Nairobi October 12, 2016…. Kenya’s public sector is expected to enhance financial reporting, following increased participation in the Excellence in Financial Report Awards (Fire Award) this year. The annual awards are organized by the Public Sector Accounting Standards Board (PSASB), Capital Markets Authority (CMA), Nairobi Securities Exchange (NSE), and the Institute of Certified Public Accountants of Kenya (ICPAK).
The PSASB Chairman, Mr Bernard Ndung'u, who is also the Director General of Accounting Services at the National Treasury, said 278 public sector entries have been received, following a decision to enhance public sector participation, designed to promote more transparent financial reporting in the public sector in Kenya. The public Institutions include; Ministries, Departments and Agencies, State Corporations and Semi-Autonomous Government Agencies, and the County Governments.
In addition to the 278 public sector entries, there are another 100 entries from the financial services sector, industrial, commercial and services sector, public benefits organizations, pension schemes and learning institutions, bringing the total entries to 378 in 2016 compared to 376 in 2015.
Mr Ndung’u said; ‘’Increased participation by the public sector demonstrates commitment to more open accountability in the use of public funds and offers the entities an opportunity to be assessed against global standards through the International Public Sector Accounting Standards which is the reporting framework adopted in Kenya in 2014’’.
Highlighting the impact of financial reporting, the Capital Markets Authority Chief Executive, Mr. Paul Muthaura, noted that “responsible financial reporting contributes significantly to ensuring the relevance and reliability of financial information provided to investors as they make decisions on participation in the capital markets”.
The NSE Chief Executive, Mr. Geoffrey Odundo, said; “The participation of public sector institutions in this year’s FiRe Award, will enhance the accountability and transparency of public institutions, thereby increasing their attractiveness to financiers, bolstering the economic growth of our country“.
The ICPAK Chief Executive, Dr. Patrick Ngumi, observed; ‘’the entry of public sector into the FiRe Award creates a whole new sense of enhanced disclosures of financial and non-financial information of public sector entities and contributes significantly to strengthening the informative value of public sector financial reporting as envisaged in the Public Financial Management Act, 2012’’.
The awards focus on voluntary disclosure of relevant information in annual reports that go significantly beyond the minimum legal and regulatory requirements. The awards continue to be important for stakeholders and are expected to embed a stronger financial reporting culture in Kenya.
The promoters of FiRe Award (Excellence in Financial Reporting Award) have confirmed Ms Olajobi Makinwa, Chief Africa at the United Nations Global Compact as the Guest of Honour during the Gala Dinner and Award Ceremony, scheduled for October 28, 2016, while the theme for Fire Award this year, “Accountable Governance For Excellence And Reliability In Financial Reporting In East Africa’’,
BACKGROUND INFORMATION ON THE FIRE AWARD
The Financial Reporting (FiRe) Award is the most prestigious and coveted Award in East Africa for financial reporting. The Award is presented annually, during a colorful, gala evening hosted by the joint promoters; the Public Sector Accounting Standards Board (PSASB), Capital Markets Authority (CMA), the Nairobi Securities Exchange (NSE) and the Institute of Certified Public Accountants of Kenya (ICPAK). For the last fourteen (14) years, the FiRe Award has recognized and awarded the best reporting entities in East Africa. The Award is aimed at promoting integrated reporting through enhancing accountability, transparency and integrity in compliance with appropriate financial reporting framework and other disclosures on governance, social and environmental reporting by private, public and other entities domiciled in East Africa.
PUBLIC SECTOR ACCOUNTING STANDARDS BOARD (PSASB): The PSASB is a statutory body established under Section 192 of the Public Finance Management Act (PFM) No. 18 of 2012. The Board is mandated to provide frameworks and set generally accepted standards for the development and management of accounting and financial systems by all state organs and public entities.
ICPAK: The Institute of Certified Public Accountants of Kenya (ICPAK) is a statutory body that regulates the profession of accountancy in Kenya. The Institute has achieved recognition as a professional body for its contribution in finance and accounting education, governance, professional development, maintenance of high accounting, auditing and ethical standards.
As a professional body concerned with protection of public interest, ICPAK is one of the most active thought leaders in governance and economic matters in the country and the region.
NSE: The Nairobi Securities Exchange (NSE) is the principal securities exchange of Kenya. Besides equity securities, the NSE offers a platform for the issuance and trading of debt securities. The NSE is a member of the African Securities Exchanges Association (ASEA) and the East African Securities Exchanges Association (EASEA). It is an affiliate member of the World Federation of Exchanges (WFE), an associate member of the Association of Futures Markets (AFM) and a partner Exchange in the United Nations Sustainable Stock Exchanges Initiative (SSE). NSE is also a signatory to the UN Global Compact.
CMA: The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest.
For more information visit our website: http://www.fireaward.org