The year 2015 is about to come to a close. It is a time when business organisations are conducting physical stocktaking exercises to identify and value their inventories, other assets and liabilities for the purpose of closing their books and preparing their financial statements. In this way, they would be in a position to determine their financial performance for the year as well as their financial condition or state of affairs at the end of the year. External auditors will also be busy observing the inventory counts and well as carrying out various tests in preparation for the submission of draft financial statements. It will be a while for the process to be completed and the reports of the auditors issued. Most businesses, however, complete their financial reporting and audit in early April in order to meet the tax deadline, after which there will be the annual general meeting of shareholders and the declaration of dividends. Within a matter of months of the close of the financial year, the financial accountability cycle is completed.
Contrast this with what prevails in Government. The Accountant General has until 30 April to submit draft financial statements on the public accounts to the Auditor General for audit. The latter has until 30 September to complete the audit and to submit his report to the Speaker. However, the National Assembly is in recess around this time, and it is not until it resumes its sittings that the report will be laid in the Assembly, and hence made public – the ultimate shareholders of government. Unlike what prevails in the private sector, the process does not stop there. The Public Accounts Committee (PAC) has to get its act together to examine the public accounts and the Auditor General’s report, and issue its own report to the Legislature. Following the issuing of the PAC report, the Government has to prepare a Treasury Memorandum setting out what actions it intends to take or
