FINANCIAL REPORTING FOR CITIES AND MUNICIPALITIES – VIRTUAL SENSITIZATION FORUM FOR ACCOUNTANTS.
The Public Sector Accounting Standards Board (PSASB) was established under sections 192 to 195 of the Public Finance Management (PFM) Act 2012. The Board is mandated to provide frameworks and set generally accepted accounting standards for the development and management of accounting and financial systems and internal audit procedures by state organs and public entities as spelt out under Section 194 of the PFM Act. The Board has been operationalized as a Semi-Autonomous Government Agency under the National Treasury.
PFM Act Section 194 (1) (d) requires PSASB to prescribe formats for financial statements and reporting by all state organs and public entities. In furtherance to this mandate, PSASB issued a financial reporting template through the National Treasury Circular dated 6th July 2022 for use by all cities and municipalities in Kenya. The template was to be used to report for the financial year 2021/2022 beginning 1 st July 2021 to 30th June 2022 and the subsequent years. To guide in year reporting, PSASB also issued a quarterly financial reporting template for the Cities and Municipal Boards on 30th September 2022. The Financial reporting templates are revised on a regular basis to incorporate changes in the accounting standards, best practice and feedback from the preparers and users of the financial statements.
The purpose of this letter is therefore to invite the preparers of financial reports of all Cities and Municipalities to a virtual session to sensitize them on the requirements of the annual and quarterly financial reporting templates and the IPSAS accrual basis of accounting. The session will be held on Friday 21st October 2022 at 10.00 am to 12 noon