The Accountant General of the Federation, Alhaji Ahmed Idris, has indicated that all government Ministries, Departments and Agencies’ (MDAs) statements of account must be compliant with the International Public Sector Accounting Standards (IPSAS) prescriptions.
He stated this at the one-day retreat on first year of IPSAS accrual implementation in Nigeria held in Abuja.
Represented at the event by Dr. Bakari Wadinga, Director, Revenue and Investment, Office of the Accountant General of the Federation, Alhaji Idris said though there have been challenges transiting from the IPSAS cash basis to IPSAS accrual basis, the retreat will address the challenges and additional capacity will be provided to MDAs where necessary.
“Transition to IPSAS accrual basis requires a lot of capacity building and commitment to sustainable policy implementation by providing the needed support and resources for Nigeria to adopt global best practice in public finance management,” he said.
He noted that while the “Erstwhile government accounting were on cash basis, the IPSAS accrual accounting basis application requires maintaining full records of financial transactions of government. Besides, IPSAS prescribed specific treatments of various revenues, expenditures, assets, liabilities and disclosure requirements which public sector entities are to comply with,” he stated.
Also speaking at the retreat, the Auditor-General of the Federation (AuGF), Mr. Anthony Mkpe Ayine, said audit gave credibility to any accounting record or statement.
“As first time adopters of IPSAS accrual basis, a lot of challenges are thrown up. I believe very strongly that with this retreat, these issues will be x-rayed and solved,” he said.
“For the MDAs, in particularly the DFAs in the MDAs, it is expected of you to prepare stand alone financial statements. If we are not careful, it will be an issue so this retreat provides opportunities to ask questions where you are not clear,” he noted.
