Public Financial Management - Paper 13: What students should expect
By CPA Aggrey Samuel Mankaati
Director,
Sammy Professional Trainers and Consultants
Following the revision of the syllabus for the Certified Public Accountants of Uganda [CPA(U)] (Uganda) course in 2022, CPA Paper 14: Public Sector Accounting and Reporting was revised to CPA Paper 13: Public Financial Management. Public Financial Management encompasses the mobilisation of government revenue, allocation and spending of resources by public entities, and their accounting and reporting on those revenues and expenditures. According to instruction 2.1 of the Treasury Instructions, 2017, Public Financial Management comprises diverse functions including fiscal planning, budgeting, budget execution, revenue management, procurement, cash and commitment management, expenditure management, asset management, liability management, accounting, reporting, auditing, and fiscal oversight. Therefore, students who enrol for CPA Paper 13: Public Financial Management should appreciate the following aspects.
- General understanding of the operations of public sector entities in Uganda including the categorisation and main features of public sector entities, key distinctions between public sector and private sector, sources of government financing, objectives of public sector accounting and the information needs of the various users of public sector financial reports.
- The accounting bases and practices applicable to public sector entities especially the principles and application of cash basis of accounting, accrual basis of accounting, modified cash and modified accrual basis of accounting, fund accounting, budgetary accounting, and entity accounting.
- The objectives and applicability of fund accounting in Uganda’s public sector including the establishment, operational and financial reporting requirements of the consolidated Fund, Contingencies Fund and Petroleum Fund in accordance with the provisions in the Public Finance Management Act, 2015 (as amended).
- The regulatory framework for public financial management especially:
- The key provisions in the Constitution, 1995 (as amended)
- Public Finance Management Act, 2015 (as amended)
- Public Finance Management Regulations, 2016
- Treasury Instructions, 2017
- National Audit Act, 2008
- Public Procurement and Disposal of Public Assets Act, 2003 (as amended)
- Public Procurement and Disposal of Public Assets Regulations, 2014
- Public Service Act, 2008
- Leadership Code Act, 2017
- Inspectorate of Government Act, 2002
- Local Government Act,1997
- Local Government Financial and Accounting Manual, 2007
- Local Government Financial and Accounting Regulations, 2007
- The institutional framework for both central and local governments including the powers and duties of the Minister in charge of Finance, Secretary to Treasury, Accountant General, Accounting Officers, Parliament and its Accountability Committees, Auditor General, Internal Auditor General, Internal Audit, Audit Committees, National Planning Authority, Local Government Councils, Chief Administrative Officers, Town clerks, District Chairpersons, Mayors, Heads of Finance, Chief Internal Auditors, Local Government Finance Commission and Local Government Public Accounts Committees.
- The current and emerging public finance management reforms and systems especially the roll-out of the Integrated Financial Management System (IFMS), Government of Uganda Chart of Accounts, 2022, E-Cash Platform, Programme Budgeting System (PBS), Computerised financial management system for Embassies or Missions Abroad, Integrated Personnel and Payroll System (IPPS), Debt Management and Financial Analysis System (DMFAS), Fixed Assets and Inventory Management System (FAIMS), Treasury Single Account, Bank of Uganda Banking System (BBS), E- Tax System, E – supplier registration portal and Electronic government procurement system.
- The aims of the different programmes implemented by the Government of Uganda under the National Development Plan III that include Agro-industrialisation, Tourism development, Mineral development, Natural Resources, Environment, Climate Change, Land and Water Management, Private Sector Development, Sustainable Development of Petroleum Resources, Manufacturing, Energy Development, Digital Transformation, Integrated Transport Infrastructure and Services, Sustainable Urbanisation and Housing, Human Capital Development, Innovation, Technology Development and Transfer, Community Mobilisation and Mindset, Governance and Security, Public Sector Transformation, and Regional Development.
- The key stages in the annual budgeting process, which involve: determination of the resource envelope, setting national priorities and sector ceilings, budget consultations, preparation, presentation and approval of budget estimates, budget execution, monitoring and oversight.
- The key stages in the public sector procurement and disposal process which include planning, initiation of requirements, choice of the procedures, solicitation of bids, receipt and opening of bids, evaluation of bids, contract award and notification of bidders, contracting and contract management. In addition, students will appreciate the key provisions in the National Public Procurement Policy, 2019 especially the purpose, pillars, recommended procurement practices and ways of attaining value for money in public procurement.
- The purpose and principles of performance evaluation in Uganda’s public sector including the roles of the Budget Monitoring and Accountability Unit, Office of the Prime Minister, Internal Audit, Office of the Auditor General, Public Accounts Committee (Central Government), Parliamentary Local Government Accounts Committee, Local Government Public Accounts Committees, Committee on Commissions, Statutory Authorities and State Enterprises and Committee on Government Assurance and Implementation in performance monitoring and evaluation.
- Ethics and public service values in Uganda’s public sector that entail the expected ethical conduct of public officers in relation to attendance to duty, employment outside official schedule, time management, customer care, conflict of interest, dissemination of information, secrecy and confidentiality, financial embarrassment, sexual harassment, handing over and taking over office. In addition, students will appreciate the general functions and powers of the Inspectorate of Government including the requirements for public officers to disclose personal interests, declare incomes, assets and liabilities, use of public property and handle gifts and benefits in kind.
- The objectives, scope, recognition criteria, measurement bases, presentation and disclosure requirements of different International Public Sector Accounting Standards (IPSASs) especially:
- IPSAS 1: Presentation of Financial Statements
- IPSAS 2: Cash flow Statements
- IPSAS 5: Borrowing Costs
- IPSAS 9: Revenue from Exchange Transactions
- IPSAS 17: Property, Plant and Equipment
- IPSAS 22: Disclosure of Financial Information about General Government Sector
- IPSAS 23: Revenue from Non-exchange Transactions (Taxes and Transfers)
- IPSAS 24: Presentation of Budget Information in the Financial Statements
- IPSAS 32: Service Concession Arrangements (Grantor)
The students who enrol for Public Financial Management should expect to appreciate the areas highlighted above in relation to the management of public finances by the Government of Uganda. This will enable them to understand the operations of public sector entities as provided for in the different legal and regulatory frameworks as well as adequately support these entities in the process of adopting full accrual basis of accounting and International Public Sector Accounting Standards.
