ZAPB

The PAAB, as the national accounting standards setter, prescribes accounting standards for use in Zimbabwe, and has prescribed accrual IPSAS as the applicable financial reporting framework for public sector entities. Public sector entities include Central Government, Local Authorities (both Urban and Rural Councils) and some qualifying State – Owned Enterprises. The Public Sector Accounting Standards Committee (PSASC) is responsible for recommending and adapting IPSASs for local circumstances, eliminating alternatives, and reducing complexity; and advising the PAAB on any changes to the Zimbabwe Public Sector Financial Reporting Framework;

One of the PAAB’s strategic objectives is to increase the participation of the accountancy profession in strengthening PFM systems to achieve fiscal discipline, effective resource allocation, and effective service delivery. To help achieve this objective, the PAAB will support the Government of Zimbabwe in implementing the IPSAS Implementation Strategy and Plan; promote the African Union Agenda 2063; and promote an integrated approach to PFM to win the fight against corruption.

Along with PAAB’s other technical committees (Committee for Auditing Standards, Accounting Standards Committee, Ethics Committee, Taxation Committee) the PSASC will support the PAAB in achieving this strategic objective. It will function as PAAB’s Committee focusing on public sector financial reporting matters.

PURPOSE STATEMENT OF THE PSASC

The PSASC leads the PAAB’s work in improving public sector financial reporting in Zimbabwe, regionally and internationally. It will operate to support the vision, mission and overall strategic objectives of PAAB.

In order to fulfil its purpose, the PSASC will play a leadership and influential role by:

• monitoring emerging themes;
• developing guidance where necessary;
• making proactive and reactive submissions on all relevant pronouncements and legislation that affect public sector financial reporting in Zimbabwe, regionally and internationally; and
• communicating with and educating PAAB members, business leaders and other relevant stakeholders to address public sector financial reporting issues in Zimbabwe, regionally and internationally

TERMS OF REFERENCE

1. To review and monitor on a timely basis and within the context of public sector financial reporting, focusing primarily on International Public Sector Accounting Standards (IPSAS) and any other public sector financial reporting framework that may be developed, issues and trends in public sector financial reporting in Zimbabwe and elsewhere.
2. To prepare for submission by the PAAB, with the intention to influence outcomes, comments on exposure drafts or discussion papers or any other appropriate documents or legislation issued by the IPSASB, Accountant General, the Auditor General or other bodies, taking the views of local commentators into consideration.
3. To identify the need for, and develop, guidance on public sector financial reporting matters, working with those responsible for the implementation of accrual-based accounting standards in the Zimbabwe public sector with a view to reaching consensus as to the appropriate accounting treatment for events, transactions and balances covered by IPSAS or any other public sector financial reporting framework adopted in Zimbabwe for the time being. The public sector financial reporting issues reviewed will be issues judged to be of reasonably widespread importance to users and preparers and generally not issues of concern only to one or a small set of entities.
4. To have oversight and influence on the preparation and issuing of documents that contain public sector financial reporting matters which are drafted by other PAAB Committees, Project Taskforces, Interest Groups or structures.
5. To review, as considered necessary, PAAB’s frequently asked questions (FAQs) in the area of public sector financial reporting.
6. To provide input to PAAB seminars/events/discussion forums; e-learning, click2start videos and other products offered by PAAB in the areas of public sector financial reporting.
7. To seek membership of Boards or Committees concerned with the promotion of excellent public financial management and/or the setting of public sector accounting standards where appropriate, in Zimbabwe, regionally and internationally.
8. To collaborate with various stakeholders, for example the IPSASB, the PAFA, Accountant General Office, Auditor General Office, and the Public Sector Financial Reporting Monitoring Panel on public sector financial reporting matters.
9. To maintain liaison with similar bodies in other countries, for example Public Sector Standard Setters Forum (PSSSF), regional accounting bodies (including but not limited to the standard-setters/institutes in the Pan African Federation of Accountants (PAFA)) and with other relevant regulators.
10. To promote the monitoring of compliance with public sector financial reporting frameworks as defined in these Terms of Reference.
11. To carry out any other activities that appear to the PSASC to be relevant to its objective of improving public financial management in Zimbabwe, regionally, or internationally, including (but not limited to) engaging with the media and civil society to promote an awareness of public financial management, public sector financial reporting, and encouraging research on public sector financial management and reporting matters at universities or elsewhere.
12. To evaluate, at least annually, its own performance in the spirit of ongoing improvement and achieving maximum levels of effectiveness, in terms of PAAB’s process of Committee evaluations. In addition, the PAAB Board will be provided the opportunity to evaluate the effectiveness of the PSASC.
13. Research and thought leadership- to undertake initial research and scoping activities on important public sector accounting topics in advance of the Work Program consultation. In other words, the aim is to advance the thinking related to specific topics selected by the Public Sector Accounting Standards Committee (PSASC) that are strong candidates for inclusion in its future Work Program, in order to support the eventual decision on this.

Membership

Section 44,subsection(2) (a) of the Public Accountants and Auditors Amendment Act, 2014 (Act 6 (the “Act”) requires the PAAB to prescribe accounting standards, auditing standards and accountancy reporting standards for use in Zimbabwe, including the application of internationally recognised auditing, accounting and reporting standards.

ASCOM is established in terms of section 12 as a committee of the Board. The terms of Reference of ASCOM set out the composition of the ASCOM and its primary responsibilities. The schedule sets out the “Delegation of Powers and Assignment of Duties to the ASCOM” and effectively establishes the Terms of Reference of the ASCOM.

Membership

The ASCOM members act in the common interest of the public at large and the worldwide accountancy profession. This could result in them taking a position on a matter that is not in accordance with current practice in their firm or organisation, nor in accordance with the position taken by those who nominated them for membership of the ASCOM. Members should communicate any conflict of interest at the commencement of an ASCOM meeting and refrain from voting on a matter on the Agenda of an ASCOM meeting that is the subject of that conflict.

Section 44,subsection(2) (a) of the Public Accountants and Auditors Amendment Act, 2014 (Act 6 (the “Act”) requires the PAAB to prescribe accounting standards, auditing standards and accountancy reporting standards for use in Zimbabwe, including the application of internationally recognised auditing, accounting and reporting standards.

CFAS is established in terms of section 12 as a committee of the Board. The terms of Reference of CFAS set out the composition of the CFAS and its primary responsibilities. The schedule sets out the “Delegation of Powers and Assignment of Duties to the CFAS” and effectively establishes the Terms of Reference of the CFAS.

Primary Responsibilities

The Committee For Auditing Standards (CFAS) will assist the Zimbabwe Accounting Practices Board (ZAPB): –

a) To develop, maintain, adopt, issue or prescribe auditing standards and/or pronouncements;

b) To consider relevant international changes by monitoring development by other auditing standard-setting bodies and sharing information where requested; and

c) To promote and ensure the relevance of auditing pronouncements by – i. considering the needs of users of audit reports;

ii. liaising with other committees of the ZAPB on standards to be maintained by registered auditors and by receiving feedback from such committees on areas where auditing pronouncements are needed;

iii. ensuring the greatest possible consistency between auditing pronouncement and accepted international pronouncements; and

iv. consulting with professional bodies on the direction and appropriateness auditing pronouncements.

The CFAS assists the ZAPB to influence the nature of international auditing pronouncements by-

a) preparing preparing comment on exposure drafts or discussion papers and replies to questionnaires prepared by the International Auditing and Assurance Standards Board or a successor body; and

b) nominating representatives to committees of the International Auditing Assurance Standards Board or a successor body when requested to do so by the ZAPB

Membership

The CFAS members act in the common interest of the public at large and the worldwide accountancy profession. This could result in them taking a position on a matter that is not in accordance with current practice in their firm or organisation, nor in accordance with the position taken by those who nominated them for membership of the CFAS. Members should communicate any conflict of interest at the commencement of a CFAS meeting and refrain from voting on a matter on the Agenda of a CFAS meeting that is the subject of that conflict.