13 Aug 2017

It is common knowledge that government has attracted and retained fewer professional accountants compared to the private sector, says accountant general.

Speaking at the signing of a Memorandum of Understanding (MoU) between the Accountant General and Botswana Institute of Chartered Accountants (BICA), Ms Emma Peloetletse said it was against that background that the Ministry of Finance and Economic Development (MFED) decided to “vigorously pursue recruitment of professional accountants in the public sector.”

She noted that a few years ago, the Botswana Economic Advisory Council came up with the Botswana Excellence Strategy which recommended that government should migrate from cash to accrual based accounting.

“We started by conducting an in-depth study assisted by some of our development partners. The result of which was a road map which detailed government’s readiness, resource requirements as well as the time it will take to transition,” she said.

She said upon further engagements with industry practitioners and the Botswana Accountancy Oversight Authority, it was agreed on the adoption of the International Public Sector Accounting Standards (IPSAS), hence the accrual IPSAS route.

Ms Peloetletse said the need for government to enhance the capacity of public accountants and auditors was identified as one of the areas to focus on by the road map.
“Apart from our recruitment drive, we took advantage of the abundance of professional accountants registered with BICA hence the MoU,” she said.

The MoU is basically to formalise collaboration and cooperation between BICA and MFED through the Office of the Accountant General (OAG)’ on how they would exchange and share thoughts around the implementation of the IPSAS standards, said Ms Peloetletse, adding that “with a pool of professional members, BICA is in a better position to assist OAG with both interpretation and application of some of the complex standards.”

She noted that there were 40 IPSAS standards to be implemented, and that OAG would be relying on BICA members to assist where OAG falls short. Ms Peloetletse said “transition to accrual IPSAS by government is scheduled to start in the 2019/2020 financial year.”

Some of the main objectives of the MoU include identification of solutions to address skills gaps in financial accounting, financial management and financial reporting within the public service, facilitate opportunities for attachment of OAG staff at organisations owned or managed by BICA members.

She added that it also includes undertaking joint benchmarking trips, providing a basis for funding to finance activities under the MoU and promoting the accountancy profession in the public sector by increasing the number of professional accountants in the public sector.

For her part, the chief executive officer of BICA, Ms Valery Molatedi said BICA had 1 200 qualified professionals as members, and that they were part of the journey by government through OAG to professionalise the accounting profession in the public sector by implementing public financial management reforms.

“By using IPSAS, government will be able to have high quality accounting and financial reporting standards which will result in better management of resources and decision making,” she said. She said BICA would also give advice on where some quick wins could be achieved as part of the migration from cash to accruals basis of accounting.

“As BICA, this partnership will also put us in good stead to continue monitoring compliance with the code of ethics by accountants in the public sector which will ultimately lead to public interest protection because this is what the profession stands for,” said Ms Molatedi.

She further indicated that professionalisation of the accounting profession in the public sector was happening the world over and that professional accounting organisations like BICA played a key advisory role in assisting their governments on this journey.

“I am quite positive that international accounting organisations that we belong to being the Pan-African Federation of Accountants and the International Federation of Accountants will be equally delighted to learn that this cooperation has now finally taken off in Botswana,” she concluded. ENDS