EFFORTS TO EDUCATE PUBLIC SERVANTS ON IMPORTANCE OF AUDIT PROCEDURE AND BEST ACCOUNTING PRACTICES 1

Presented by: Name: LOUIS MWANSA (MR) Title:DIRECTOR – PLANNING AND INFORMATION 2

Outline of the Presentation 1.Audit procedures and accounting practices 2.The Role of the Office of the Auditor General in the Public Service 3.Efforts made in educating the public servants on the importance of audit procedure and best accounting practices 4.Conclusion 5.Acknowledgements 3

Audit Procedures and Accounting Practices Every accounting system needs to be audited in order to attain sound financial management in the use of public funds and subsequently, to attain economic development. The importance of effective auditing and accounting processes is illustrated in the diagram below: 4

Government Accounting Public funds are appropriated to Ministries, Provinces and other Spending Agencies (MPSAs) by Parliament to foster good governance Auditing Audits are carried out on expenditures and revenues incurred by MPSAs in order to promote accountability and transparency Accountability and Transparency Progressive Economic Development 5 Monies are spent by MPSAs Sound financial management is promoted Sustainable national economic development is achieved

6  The country’s economic development is dependent on how well the public resources are utilised.  However, good utilisation of public funds calls for best accounting practices and effective audit procedures.

7  It also depends on how efficient and effective the operational and financial systems in the public sector are managed.

8 Public officers entrusted with the management of public funds need to properly account for the public resources.

The role of the Office of the Auditor General (OAG) in the civil service is to carry out various types of audits and thereby enhance accountability and transparency in the utilisation of public financial resources The Role of the Office of the Auditor General in the Civil Service 9

 The OAG which is the Supreme Audit Institution (SAI) of Zambia continuously makes efforts to ensure that effective audit procedures are implemented in the audit of public funds by enhancing its operations through: i. Proper Planning, Execution and Reporting ii.Capacity building; iii. Affiliations with other international SAIs, audit organisations and; iv.Cooperating partners. 10

 However, an audit cannot be fully effective if the accounting records are not properly managed.  Therefore, it is important that responsible officers adhere to the accounting procedures and Government financial regulations in the preparation and management of accounting information. 11

 An effective audit function is therefore key to ensuring that: i.The Government achieves its objectives (good governance) 12

13 i.The citizens’ socio-economic needs are met. The public resources are meant to benefit the whole society which include the most vulnerable. Therefore, it is important that effective audit and accounting procedures are implemented in the public sector in order to attain the socio-economic needs of the citizens.

The OAG educates the public servants on the importance of audit and accounting procedures through various ways and these include: The Audit Process During audit, the auditors scrutinise the financial records for correctness and other assertions such as compliance and highlight the weak internal controls within the accounting system. Recommendations are then made on how the controls can be strengthened. 14

In addition, auditors normally engage the clients to discuss: i. the objectives of the audit; ii.the importance of preparing accounting records and; iii.Good record keeping of accounting information. 15

Sensitisation programmes for Permanent Secretaries (Controlling Officers) From time to time, the OAG conducts sensitisation workshops for Permanent Secretaries who are the controlling officers of financial resources on the following matters: i.Importance of audit procedures ii.The various types of audits carried out by the OAG iii.Importance of implementing best accounting practices iv.Any changes implemented by the OAG in its audit operations 16

The objective of the sensitisation programmes is to ensure that: i.Clients understand the objectives of auditing ii. Best accounting practices are consistently applied iii.To promote sound financial management. 17

Government has in place financial regulations which apply in the management of public funds in MPSAs. The financial regulations are one of the key tools the OAG uses to base its audits to ensure that the utilisation of public funds is in line with the regulations and whether the public funds are being utilised in an efficient, effective and economic manner. 18

PUBLIC ACCOUNTS COMMITTEE The Public Accounts Committee is a median through which Government financial operations are controlled. The audit queries indicated in the financial audit reports are deliberated by the Public Accounts Committee and the clients are sanctioned for failure to adhere to regulations. 19

It is through this process of deliberations that emphasis is made to clients to effectively implement the laid down procedures of managing public financial resources and also on the importance of audit procedures. 20

Conclusion Having highlighted the importance of audit and accounting procedures in achieving economic development, it is important that as public servants: we put the socio-economic welfare of the country in forefront. This calls for exhibiting accountability, transparency and ethics in the use of public resources. 21

Conclusion (continued) In addition, public servants should view the audit procedures as a tool to promote sound financial management for the benefit of the citizenry. 22

Acknowledgements As OAG, we would like to thank the Consortium for International Management, Policy, Administration and Development (CIMPAD) and the Zambian Society for Public Administration (ZSPA) for organising this important event. We implore you to continue this good work. 23

THANK YOU 24