Akwa Ibom adopts International Public Accounting Standard

Posted by News Express | 13 December 2013 | 3,746 times

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Akwa Ibom has become one of the first states in the country to adopt the International Public Sector Accounting Standard (IPSAS). The model will be used by the state in its budget preparation beginning from next fiscal year, Governor Godswill O. Akpabio has disclosed.

IPSAS is a new accounting concept practised internationally and by the Federal Government. It breaks government services/functions into five main sectors viz: General Administration, Economic, Law and Justice, Regional and Social.

Governor Akpabio announced during Wednesday’s budget presentation to the Akwa Ibom House of Assembly that all ministries, departments and agencies of government have been grouped into these sectors according to their functions.

He explained that this is a new National Chart of Account structured into six segments with 52 digits, including Administration Segment-12 digits, Economic Segment-8 digits, Functional Segment-5 digits, Programme Segment-14 digits, Fund Segment- 5 digits and Geographic/Location Segment-8 digits.

According to Akpabio, “Administration Segment assigns functions to MDAs and IPSAS demands detailed budgetary explanations of expenditure on the functions; Economic Segment identifies the account financing and reporting transactions and helps to classify of group transactions into Revenue, Expenditure, Assets, Liability, etc. and provides a platform for summarising all transactions; Functional Segment categorises expenditure according to the purpose and objective for which they are intended.”

Continuing, the governor said: “The Functional Segment comprises General Public Services, Defence, Public Order and Safety, Economic Affairs, Environmental Protection, Housing and Community Amenities, Health, Recreation Culture and Religion, Education as well as Social Protection.

“Programme Segment marries the transaction with the purpose or objective for which it was intended. It identified a specific project, its objectives as well as the activities involved in the project.

“Fund Segment which addresses the ‘financed by’ element of a transaction refers to the various pools or resources for financing government activities as well as Geographic or Location Segment (Geo Code), a location or physical existence or transaction/project so that an analysis or government budget and expenditure on the Senatorial Districts, Local Government Councils and Council Wards in the State can be done with ease. It is a mechanism which provides oversight functions for monitoring and evaluation of government transactions across the state.

“The IPSAS chart of account hereby helps in achieving a purposeful driven budget with the platform for monitoring, evaluation and performance analysis. Also, it gives stakeholders and investors the desired confidence in government and governance.”

•Photo shows Governor Akpabio.

Source: News Express

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