The Federation Account Allocation Committee (FAAC) has concluded plans to harmonise the budgetary system of the three tiers of government in the country before the end of 2013.
Secretary to the FAAC, sub-committee on the roadmap for the adoption of the International Public Sector Accounting Standards (IPSAS) in Nigeria (IPSAS), Mr. James Nongo (FCA) who disclosed this in Ibadan yesterday while speaking at a two-day sensitisation workshop for stakeholders in the South-West zone.
He said that the harmonisation process would be achieved through a uniform chart of accounts system for the three governmental tiers.
He however added that this would be followed after due approval by relevant stakeholders involved in budgetary and financial management in the three tiers of government.
The stakeholder workshop for the South-West is the fourth at the series of programmes organised by the FAAC sub-committee for the six geo-political zones as part of strategies to get the buy-in of key players for smooth adoption of the new accounting standards.
Accountant General of the Federation, (AGF) Mr. Jonah Otunla who was represented by the Accountant-General of Ogun State, Mr. Adeseye Senfuye noted that government was presently taking concrete steps to ensure that all general purpose financial statements of the three tiers of government become compliant to the provision of IPSAS before the end of 2012.
According to him, the Federal Executive Council FEC had approved at its meeting of 28th July 2010 that Nigeria adopt the provisions of the International Financial Reporting Standards (IFRS) and IPSAS for the private and public sectors respectively.
“Consequently, the Federation Account Allocation Committee (FAAC) at its meeting held on 13th June, 2011 set up a Sub-committee to provide a roadmap for the adoption of IPSAS in the three tiers of government in Nigeria, he disclosed.
Mr. Otunla added that “this interactive workshop in Ibadan which is for the South-West zone has already been held in Kaduna for North-West, Enugu for South-East and Port Harcourt for the South-South.
He disclosed further that others would be held in Bauchi for the North-East and Abuja for the North-Central before the end of September, this year.
Also speaking at the occasion, the stakeholders agreed that the decision by the Federal Government to adopt the new accounting standard was a mile stone that should be encouraged by political players in the three tiers in terms of providing the will power for its success.
They were of the view that the intention of government was that the new IPSAS procedure would assist in promoting accountability, openness in governance and better credibility rating for the country.
The FAAC sub-committee has its terms of reference to include, ensuring that officers involved in finance and accounts functions understand the core requirement of IPSAS, ensure adequate coverage of all stakeholders in the distribution of the document and tackling gaps noted in the financial statements of the three tiers in order to ensure that they are bridged.
Its membership comprise of Accountants-General of Borno State representing the North-East, Sokoto for North-West, Kwara representing North-Central, Enugu for South-East, Ogun for South-West and Akwa Ibom for South-South.
The membership also includes the chairman, forum of Auditors-General for Local Government Councils of Nigeria, representative of the Financial Reporting Council of Nigeria and the Consolidated Accounts Department of the Accountant-General of the Federation.