ACC 308: Public Sector Accounting & Reporting

Learning Outcomes

At the end of this course, students should be able to:

  1. explain the underlying concepts and principles in public sector accounting;
  2. state the constitutional, legislative and regulatory frameworks of public sector accounting;
  • discuss the process and responsibilities for planning and budgeting in the public sector;
  • discuss Medium Term Expenditure Framework (MTEF), Medium Term Sector Strategies (MTSS) and Planning, Programming and Budgeting System (PPBS);
  • identify the underlying concepts, principles and framework for reporting and auditing in public sector organisations;
  • discuss the roles of bodies set up for accountability and probity of public office holders;
  • explain the objective and preparation of financial statements using the accrual basis method;
  • discuss the objective and preparation of financial statements using Cash bases method;
  • explain differences between Cash and Accruals Bases of Public Sector Accounting;
  • identify and apply international public sector accounting standards;
  • discuss auditing in the public sector covering – financial and internal controls, value for money audit, performance audit, etc;
  • differentiate between financial reporting in the private sector and public sector (application of IFRS and IPSAS, IASB and IPSAB);
  • explain public procurement procedure – Public Procurement Act, 2007; and
  • discuss ethical issues relating to public sector accounting.
Course Contents

Concept of public sector accounting. The principles of government accounting in relation to professional pronouncements from – United Nations (UN) on government accounting. The International committee for public sector financial management. The constitutional, legislative and regulatory frameworks of public sector accounting covering – Finance (control and management) Act of 1958 (as amended), financial regulations for federal and state governments, financial memoranda for local government councils.

The generally accepted accounting principles (GAAPs) applicable to the public sector, Fiscal Responsibility Act, 2010 with emphasis on medium term expenditure framework (MTEF) and Public Procurement Act, 2007. Government planning and budgeting covering – Types of budgets, budgeting techniques, budget process and control, and roles of FAAC, RMAFC and IPSAS 24. Government accounting with emphasis on reporting and auditing, including – Uses of treasury cash book and transcripts, vouchers, bank reconciliation statements, subsidiary accounts, journal entries, vote book and expenditure control and revenue control procedures.

Roles of Auditor-General for the Federation. Financial statements preparation according to – IPSAS 1 – Presentation of financial statements, IPSAS 2 – Cash flow statements, IPSAS 3 – Accounting policies, IPSAS 34 – Separate financial statements and IPSAS 35 – Consolidated financial statements. The functions and powers of selected bodies saddled with the responsibility of accountability and probity of public office holders, such as Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Related Offences Commission (ICPC), Code of Conduct Bureau (CCB), Code of Conduct Tribunal (CCT) and Public Accounts Committee (PAC).

Analysis and interpretation of public sector financial statements using relevant and appropriate techniques such as ratio analysis, variance analysis, budget performance indices and revenue and expenditure profiles. Accrual basis of accounting in the public sector, using appropriate International Public Sector Accounting Standards (IPSAS) including definitions, applications, recognition, measurement and disclosures. Discuss ethical issues in public sector accounting.