Government is set to adopt the International Public Sector Accounting Standards (IPSAS) framework in a bid to modernize the public sphere and enhance transparency and accountability in public financial management.
Finance Minister, Professor Mthuli Ncube, made the announcement during the launch of the IPSAS Zimbabwe Financial Reporting Manual (IPSAS ZFRM) in Harare this morning.
Professor Ncube said the adoption of IPSAS is a critical step towards achieving international standards and demand for transparency in business.
“Global investors and fund providers have increased the call for more transparency in the way businesses report and communicate their value creation stories, therefore, modernisation of the public sphere is no longer an option for the Governments as they have to meet these stakeholders’ demands.
“The adoption of the IPSAS framework complements the TSP and the NDS1’s recognition of the role of timely reporting in financing the transformation of the economy towards the national vision. The accrual based IPSAS reporting framework will be supportive of Government efforts to achieve the desired results-based performance through efficient utilisation of resources and, timely and transparent reporting. The reform is part of ongoing efforts to enhance and strengthen the Public Finance Management system,” Prof. Ncube said
The Minister said the adoption of the IPSAS will support government policies towards the transformation of the economy in line with vision 2030.
“The accrual based IPSAS reporting framework will be supportive of Government efforts to achieve the desired results-based performance through efficient utilisation of resources and, timely and transparent reporting. The reform is part of ongoing efforts to enhance and strengthen the Public Finance Management system.
“It is critical that we move together as a government, for leaving behind anyone of us will affect the 2025 IPSAS Compliant Financial Statements deadline. A chain is as strong as its weakest link, hence the need for all implementing entities to have the same momentum. This explains why we need to lead the process from the front. This is a national project which we all have responsibility over. We shall work together at the oversight level, to ensure implementation being fully compliant end of 2025. The successful transition to IPSAS therefore hinges on all stakeholders support and engagement, backed by a sound project management approach,” said Professor Ncube
The adoption of IPSAS is a critical step towards enhancing transparency and accountability in public financial management in the country.