The Cabinet Secretary (CS) for National Treasury John Mbadi has appointed a Steering Committee to oversee the transition from cash basis to accrual basis of accounting.
- In March, the Cabinet approved the accrual basis of accounting after a recommendation by the National Treasury and the Public Sector Accounting Standards Board.
- The change has become necessary, Cabinet said, because of increased pending bills, stalled and delayed government development projects.
- In cash basis, receipts or payments are recorded when actual cash is received or paid while in accrual basis, revenue or expenses are recorded when a transaction occurs, enhancing reporting on liabilities, pending bills and other liabilities.
CS Mbadi has appointed the principal secretary National Treasury as the Chairperson of the committee with the Chairperson of, Public Sector Accounting Standards Board being the vice-chairperson. The committee will provide direction and create a roadmap for the transition, which will include appointing a technical committee to implement it. It will also be in charge of advocacy for the switch within government, and coordinate its implementation with government, development and private sector players.
Other members of the committee include Principal Secretary, State Department for Public Works; a representative of the Chief of Staff and Head of the Public Service; Director, Accounting Services – National Treasury; Director, Budget – National Treasury; Director, National Assets and Liabilities Management – National Treasury; Director, Integrated Financial Management System (IFMIS) – National Treasury; Chief Executive Officer, Public Sector Accounting Standards Board; A representative of the Council of Governors; Auditor-General or the Auditor-General’s representative; Controller of Budget or a representative of the Controller of Budget; and a representative from the Parliamentary Budget Office.
“The Steering Committee shall remain in office for a period of three years from the date of the publication of this notice. The costs incurred by the Steering Committee in the performance of its functions shall be defrayed from the voted funds of the National Treasury,” Mbadi said in the notice.
