The document discusses public sector accounting information and its importance to internal and external users. It outlines the constitutional and regulatory framework that governs public sector accounting, including the constitution, auditor general's office, accountant general's office, state finance acts, and financial regulations. It also details the duties of an accounting officer, such as establishing internal controls, ensuring proper record keeping, and preparing financial statements. Finally, it introduces some key concepts and principles of public sector accounting, including consistency, materiality, periodicity, and historical cost, and identifies the three bases for compiling public sector financial statements: cash, accrual, and commitment.
The document discusses public sector accounting information and its importance to internal and external users. It outlines the constitutional and regulatory framework that governs public sector accounting, including the constitution, auditor general's office, accountant general's office, state finance acts, and financial regulations. It also details the duties of an accounting officer, such as establishing internal controls, ensuring proper record keeping, and preparing financial statements. Finally, it introduces some key concepts and principles of public sector accounting, including consistency, materiality, periodicity, and historical cost, and identifies the three bases for compiling public sector financial statements: cash, accrual, and commitment.
The document discusses public sector accounting information and its importance to internal and external users. It outlines the constitutional and regulatory framework that governs public sector accounting, including the constitution, auditor general's office, accountant general's office, state finance acts, and financial regulations. It also details the duties of an accounting officer, such as establishing internal controls, ensuring proper record keeping, and preparing financial statements. Finally, it introduces some key concepts and principles of public sector accounting, including consistency, materiality, periodicity, and historical cost, and identifies the three bases for compiling public sector financial statements: cash, accrual, and commitment.
The document discusses public sector accounting information and its importance to internal and external users. It outlines the constitutional and regulatory framework that governs public sector accounting, including the constitution, auditor general's office, accountant general's office, state finance acts, and financial regulations. It also details the duties of an accounting officer, such as establishing internal controls, ensuring proper record keeping, and preparing financial statements. Finally, it introduces some key concepts and principles of public sector accounting, including consistency, materiality, periodicity, and historical cost, and identifies the three bases for compiling public sector financial statements: cash, accrual, and commitment.
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PRESENTER 2 - THOMAS K.
TURAY
THE IMPORTANCE OF PUBLIC SECTOR ACCOUNTING INFORMATION TO USERS
The internal users require accounting information in order to ascertain the various levels of regulatory compliance and whether actual expenditure is in accordance with the budget. They like to ascertain whether or not adequate safeguards are available for the protection of public resources. Conversely, the external users require accounting information to ascertain the financial viability of the public sector organisations and the efficiency and effectiveness of management. CONSTITUTIONAL AND REGULATORY FRAMEWORK OF PUBLIC SECTOR ACCOUTING The public sector accounting is regulated by the following: The Constitution of a country. The constitution of the country is one of the legal frameworks that regulate the receipt and disbursement of public funds. Auditor general’s office: The office of the auditor general is mandated by the constitution to audit all government ministries and spending agencies. This is to ensure that accountability of government resources is done. The auditor general’s report is submitted to the president and thereafter to parliament. Accountant general’s office: an office mandated to prepare government financial statements. State Finance Act: The State Finance Act of various countries provides guidance on management and operation of government funds. The act would regulate on the accounting system, books of accounts of accounts to be kept and the procedures to be followed in preparation of government financial statements. Financial Regulations: These are manuals of government Ministries/government departments which deals with financial and accounting matters. The regulations set out the procedures and steps to be followed in treating most of government transactions DUTIES OF AN ACCOUNTING OFFICER The functions of an Accounting Officer include the following: 1. To establish and manage an effective, efficiently run and result-oriented Internal Control Department in his Ministry. 2. To ensure that proper books of accounts and system as specified by the Minister of Finance are kept. PRESENTER 2 - THOMAS K. TURAY 3. To ensure that all revenue accruable to his Ministry are collected and accounted for as and when due. 4. To ensure that there is provision for effective security system over all government funds. 5. To install adequate preventive measures against frauds and misappropriation of funds. 6. To ensure that only trustworthy, dedicated and reputable officers are entrusted with government funds. 7. To ensure that all payments are backed up with proper authority and that only services and goods provided are paid for. 8. To make available all the cash, stamps, bank statements etc. in his custody when such is requested for by the Accountant-General of, or Auditor-General for, the Government. 9. To ensure that financial statements statutorily required are prepared without delay. CONCEPTS AND PRINCIPLES APPLICABLE TO PUBLIC SECTOR ACCOUNTING AND FINANCE Concepts have been defined as broad basic assumptions which underlie the preparation of financial statements of an enterprise. Public Sector Accounting is an integral but separate branch of Financial Accounting, sharing in common many concepts and principles applicable in the private sector. These concepts include: Consistency, Materiality, Periodicity, Duality, Entity, Historical Cost and Going Concern. BASES OF PUBLIC SECTOR ACCOUNTING There are three bases under which the financial statements of a public sector enterprise are compiled. These are: (a) The cash basis. (b) The accrual basis. (c) The commitment basis.
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