The number of public sector entities participating in the financial reporting (FiRe) excellence evaluation 2021 has increased marginally by 18 per cent to 288 from 244 recorded in 2020.
The increase in numbers witnessed this year is a testimony of the positive shift in the attitude of the public sector players in financial management. It indicates that entities have started to value the feedback they receive from the evaluation process.
“PSASB desires to see more Counties obtain unqualified audit opinions from the Office of Auditor General (OAG). We look forward to hear from you on the areas of non-compliance that we can engage in and help, in collaboration with other key stakeholders, in public finance management and reporting, as we seek to continually improve the processes,” Public Sector Accounting Standards Board (PSASB) CEO, Mr Fredrick Riaga said.
Mr Riaga added that to improve the evaluation exercise, PSASB and other FiRe promoters plan to automate the evaluation checklists to generate reports using aided tools. These promoters include the Institute of Certified Public Accountants of Kenya (ICPAK), Nairobi Securities Exchange (NSE), the Capital Markets Authority (CMA) and the Retirements Benefits Authority (RBA).
Addressing participants during the FiRe Award evaluators’ debriefing session in Machakos, Mr Riaga encouraged participants to network during the event and learn from one another to sharpen their skills. At the same time, he challenged accounting professionals to start thinking about sustainability and climate-related issues and how financial reporting can be plugged in. This comes when leaders are scratching their heads on how to tackle the biggest calamity facing humanity – climate change.
“I call upon you to be on the lookout for recommendations of the just concluded COP26 conference and the taskforce on climate change-related financial disclosures framework, in particular, efforts to establish an international sustainability board which may greatly alter environmental sustainability reporting and its evaluation in future,” Mr Riaga said.
The number of participating entities may increase this year, considering that only four National Government Constituencies Development Funds and 21 counties have submitted their annual reports.
Present during the event was Georgina Muchai PSASB Director of Accounting standards, Isaac Nyangweso PSASB Principal Officer Accounting Standards and Dr Nebart Avutswa of ICPAK.