Jacktone Lawi

AUDIT:  More public organisations  are now embracing financial reporting of their performance compared to the private sector players, Public Sector Accounting Standards Board (PSAB) has revealed. The revelation comes in the backdrop of increased number of public entities that submitted entries for the Financial Reporting (FiRe) Awards. 

About 289 public institutions and government entities recorded entries in the Financial Reporting Awards compared to the private sector that had just under 60. 

Steven Masha, deputy controller of budget and interim chair of PSAB,said they are noticing year after year reduction in the number of reports being qualified, meaning that the country’s accounting standards are improving.

“We have seen a lot of improvements in terms of the accountability, transparency, and the manner in which these reports are published. The number of reports that have been qualified by the Auditor General on the basis of accounting and reporting have significantly reduced,” he said.

Auditor general’s office

Masha said it is important for accounting bodies to work closely with the Auditor General’s office to ensure timely auditing of reports of financial sector entities.

However,  Controller of Budget Margaret Nyakango, said pilferage of public funds is still an issue, especially in the counties despite the improved financial reporting.

The latest quarterly report on budget implementation review for the counties revealed that county officials in both arms of the devolved units spent Sh2 billion on domestic and foreign travel, against Sh3.55 billion that was allocated for development and Sh49.2 billion on recurrent expenditure. 

Geoffrey Odundo, Nairobi Securities Exchange (NSE) chief executive says that the importance of new ways of reporting like sustainable integrated reporting and reporting on issues of environment and social governance are the way forward.