Ministry Of Finance Validates ISPAS

By Alice Mambosasa

Blantyre, October 9, Mana: Ministry of Finance in liaison with the National Local Government Finance Committee are set to validate Internal Audit Framework and Training Manual on International Public Sector Accounting Standards (ISPAS) for local government authorities.

The Internal Audit Framework will comprise Internal Audit Policy and Procedures Manual, Audit Committee Handbook and Internal Audit Charter. They cover new public financial management interventions introduced by Malawi Government to guide and ensure that local authority financial processes are in line with ISPAS.

Speaking during a two day workshop on Thursday in Blantyre, Director of Public Finance Management in the Ministry of Finance, Monaosyile Villa Mhango, said the documentation of the framework and training manual will help in the sustainability of financial functions.

“Validation of framework and training manual is an exciting development because they will help in building capacity through transparency and accountability in the local councils when providing financial statements,’ she said.

She further said that there are a number of challenges that local authorities face when producing financial statements and as such the documents’ validation will help them to produce financial statements that are following required reporting standards.

Mhango also said the training manual is intended to be used by financial trainers and the end users in the preparation of financial statements.

Principal Internal Auditor for Blantyre District Council, Pamela Shaba, said the validation of the documents is very important because local authorities will have updated documents which will have current issues concerning internal auditing.

“Auditors have always been sidelined when implementing programmes but they are the ones who verify whatever has been implemented in councils and we expect that the validation of the documents will fill the existing gaps.

“In addition, the documents will assist in clearing issues which required guidance and we expect reduced mismanagement in councils,” Shaba said.

The validation workshop attracted officials from national institutions responsible for supervising local government authorities in public finance management, selected local government authorities and development partners supported by USAID, UKAID through Local Government Accountability and Performance.