Public Sector Accounting and Finance

The Public Sector Accounting and Finance module, part of the ICAG Professional Qualification Syllabus for 2024–2029 at the Application Level (module 2.5), develops candidates’ understanding of public financial management, government accounting systems, budgeting processes, financial reporting frameworks, and accountability mechanisms in the public sector. It equips learners with knowledge of IPSAS, Ghana’s PFM legal architecture, donor funding arrangements, and the roles of key oversight institutions in ensuring transparency, compliance, and value for money.

Module Aim

The aim of this module is to ensure candidates gain a comprehensive understanding of the principles, structures, and processes underpinning public sector financial management. It prepares candidates to apply public sector accounting standards, analyze government budgets, evaluate internal controls, assess financial reports, and understand the roles of public institutions in safeguarding public funds. The module also strengthens ethical awareness and professional judgment in public financial decision-making.

Core Content Areas

The curriculum is organized around key competencies, with indicative weightings that reflect exam focus and guide structured study:

Public Sector Financial Management Framework (15%)

• Explains the constitutional, legal, and regulatory framework governing public financial management (PFM) in Ghana, including the PFM Act, Audit Service Act, and Procurement laws.

• Describes the roles of public sector institutions: MOF, CAGD, Parliament, Auditor-General, Public Accounts Committee, and Internal Audit Agency.

• Discusses the principles of transparency, accountability, stewardship, and value for money.

• Outlines the structure of the public sector (central government, MMDAs, SOEs, subvented agencies).

Public Sector Budgeting and Control (20%)

• Describes the government budget cycle: formulation, approval, execution, monitoring, and evaluation.

• Explains Medium-Term Expenditure Framework (MTEF), programme-based budgeting, and fiscal responsibility principles.

• Identifies budgeting techniques applicable to the public sector (incremental, zero-based, activity-based).

• Assesses budgetary control systems, variances, expenditure tracking, and commitment controls.

• Distinguishes between recurrent, capital, statutory, and consolidated fund expenditures.

Public Sector Revenue, Expenditure, and Cash Management (15%)

• Explains sources of public revenue: taxation, grants, donor funds, internally generated funds (IGF), and borrowing.

• Describes expenditure management processes, warranting, payment controls, and commitment ceilings.

• Evaluates cash management systems, treasury single account (TSA), and government banking arrangements.

• Considers fiscal decentralization and revenue administration at local government levels.

Public Sector Accounting Systems and IPSAS (25%)

• Applies International Public Sector Accounting Standards (IPSAS) for recognition, measurement, and presentation of public sector transactions.

• Distinguishes between cash basis IPSAS and accrual IPSAS.

• Prepares and interprets general-purpose financial statements for public sector entities (statement of financial performance, financial position, cash flows, and consolidated fund accounts).

• Considers disclosure requirements, commitments, contingent liabilities, and accounting for donor-funded projects.

• Explains Ghana’s transition to accrual IPSAS and related implementation challenges.

Financial Reporting, Audit, and Assurance in the Public Sector (15%)

• Identifies key public sector reports (annual financial statements, budget implementation reports, auditor-general’s reports).

• Explains internal audit functions under the Internal Audit Agency Act.

• Assesses external audit processes and reporting in the public sector.

• Evaluates compliance with financial regulations and procurement standards.

• Discusses accountability mechanisms through Parliament, PAC hearings, and audit follow-up processes.

Public Procurement and Governance (10%)

• Explains procurement principles under the Public Procurement Act.

• Identifies procurement methods, thresholds, and approval mechanisms.

• Evaluates risk, control weaknesses, and common irregularities in public procurement.

• Considers governance frameworks, anti-corruption measures, and ethical expectations of public officials.

Ethical considerations are embedded throughout the module, requiring candidates to uphold integrity, transparency, objectivity, accountability, and professional skepticism in managing, reporting, and safeguarding public funds across all levels of government.