By Linus Aleke
The Commissioner for Finance, Economic Community of West African States (ECOWAS), Commission, Abuja, Mrs. Halima Ahmed, said the Financial Committee of the Commission, has updated its accounts using the International Accounting Standard.

Also, members of Parliament (Mps), and other critical stakeholders have identified the lack of uniformity in the International Public Sector Accounting Standard (IPSAS), as one of the major problems confronting ECOWAS institutions.

This is even as the Chairman of the Community Parliament of the Economic Community of West African States (ECOWAS), Committee on Macroeconomics and Economic Policy Research, Kebba Barrow, posited that free movement of people and goods within member states will improve the economic status of the ordinary citizens of the community.

Ahmed had revealed that the Commission has updated its accounts using the International Accounting Standard, while presenting the ECOWAS Commission’s 2020 Consolidated Annual Report of Community Institutions, before the Joint Committee on Public Accounts, Administration, Finance and Budget, Macroeconomic Policies and Economic Research, Trade, Customs, and Free Movement, at the just concluded delocalized meeting of the ECOWAS Parliament in Lome, Togo.

The joint committee is part of the fourteen Standing Committees of the ECOWAS Parliament.
Ahmed, who pointed out some problems confronting the Finance Department of the Commission, particularly the backlog of financial statements that were not prepared, also expressed successes recorded so far, irrespective of the challenges.

She said, “Today I’m proud to report that we have updated our accounts, produced financial statements, and got them audited, using the International Accounting Standard. We have also produced consolidated financial statements of all the ECOWAS Institutions.

“By next month that is June, we will publish the financial statements in line with the provisions of the ECOWAS financial regulations and with that, the financial situation of the ECOWAS would be regularly available to the citizens, and of course through you also for your appreciation thereby improving public accountability.”

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She further disclosed that under the current management of ECOWAS, the implementation of the enhanced powers of the Parliament commences with the consideration of the budget of the community.
According to the Finance Commissioner, “This as you know is a very significant step in the direction of public accountability. The opinions expressed on the budgets by you all will now constitute a core part of the budget approval process by the Council of Ministers and of course, give direction to the implementation of these budgets.”
She explained that they have revised the ECOWAS protocol on Community levy and replaced it with the Community Levy Act, stating that the new Act has made important provisions for the role of the ECOWAS Parliament, in the community levy mobilization.

“Therefore, little by little we are seeing enhancement in the role of ECOWAS Parliament in the integration and process of our community,” she said.

Ahmed averred that the Joint Committee would be examining the specific positions of the supplementary Act of Parliament on the consolidation of the community audit report.

She, however, lauded the Speaker of the ECOWAS Parliament, Dr Sidie Tunis, for the support and collaboration between the ECOWAS Parliament and the ECOWAS Commission.

Relatedly, the Chairman, ECOWAS Parliament Committee on Macroeconomics and Economic Policy Research, Barrow, expressed optimism that the free movement of people and goods within member states will improve the economic status of an ordinary citizens of the ECOWAS community and the community as a whole.
Barrow, who said this while answering questions from journalists at the sidelines of the just-concluded delocalised meeting of the ECOWAS Parliament in Lome, Togo, opined that free movement of people aids the volume of businesses being done across the border in all member countries.

He said this will help boost the economic capacity of ordinary people, as well as the economy of the sub-region.
He said: “The Protocol on Free Movement of People and Goods is a very important protocol for us as Parliamentarians, because, that is where activities of an ordinary citizen are taking place. We need to consolidate that and put it in the right perspective to ensure that all member countries are tied to the principle of the protocol which would in no small measure improve the quality of life of an average citizen in our respective countries”.

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The MP further said the supplementary Act which is the modalities that they need to follow up to look at other reports, including an independent auditor’s report on the finances of the Commission, would ensure demonstration of good governance, transparency, and accountability.

He explained that this move would ensure that people in power carry out their responsibilities, and fulfil their mandates as enshrined in the protocol, and other procedures that the Parliament is empowered to do.

“We want to make sure that we get citizens informed on what the Parliament is doing on their behalf. The Joint Committee would look at what it has from the meeting, while other reports would be deliberated on, at the level of the ECOWAS Parliament at plenary, and would look at the review and come out with an opinion in line with the Supplementary Act empowering and enhancing the capacity of the Parliament,” he said.

On over-sighting other ECOWAS institutions, he said the meeting with them to discuss their various mandates, would allow the Parliament to know what works they are doing, especially in the area of properly representing the people.

According to him, “the information is shown at the level of our respective countries and we do one on one sensitization meetings. So this will help the ordinary citizen in our country to know what the Parliament is doing as an oversight institution of the ECOWAS institutions.

We also put this as part of our activities on an annual basis, to have about six delocalized meetings on various skills, working around various institutions that are working at the Commission.”
Also, Members of Parliament (MPs), and critical stakeholders identified the lack of uniformity in the International Public Sector Accounting Standard, (IPSAS), as one of the major problems confronting ECOWAS institutions.

The challenge they said is evident in the lack of implementation of the IPSAS, which has led to delays in preparing financial statements and proper audit of reports within the member states.

The intention for the implementation and operationalization of the IPSAS was to change the government’s accounting system from a cash basis to an accrual basis.
In a paper titled, “Compliance with International Public Sector Accounting Standard,” the Deputy Director, Centre for Entrepreneurship Studies, University of Abuja, Dr. James Adefiranye, said, adopting the IPSAS would greatly help ECOWAS member states move forward in dealing with their financial statements and reports.

Adefiranye, who was addressing members of the ECOWAS Parliament Committee on Public Accounts, further posited that “Cash basis entails that, activities should be reported when cash is received. That means, if we have an activity or function for the year 2020 and we did not release the cash until 2022, we will not talk about it until 2022, even though we have access. It’s not ideal, that’s why IPSAS is saying no, let’s do it the way it’s done in the very sector; when we receive an item, we convert the liability, we report it that year, that is what is how it should be done”.
He said the level of adoption of the IPSAS by member states differs, explaining that, what is being experienced in the ECOWAS member states was an attempt to prepare the government’s financial statements using the accrual basis.

Adefiranye stressed that by extension of lack of uniformity of IPSAS in member states would likely affect the activities of the ECOWAS.

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“For example, when ECOWAS report is strictly on IPSAS accrual basis, and the local communities have another system.

“When you send your report, the government of such States will have to delay in accepting your reports, because, they are doing it according to the cash basis they are used to, then it looks strange or questionable,” he said.

The university don recommended that, if they must achieve near perfect, transparency and accountability in ECOWAS states, member states need to adopt and apply the use of IPSAS.
He said, “To make this a reality, this body, this Institution should know that there should be conscious efforts made towards assisting community institutions in addressing the obstacles and other challenges that are militating against the full adoption of IPSAS. We can make efforts to encourage the local communities.”

Informing the Committee that, almost all states in ECOWAS are tilted towards IPSAS but are encountering challenges in the area of implementation, the academic urged the Members of Parliament to do a careful study of the outcome of the audit management letters, to pinpoint areas and aspects that need urgent attention, and to ensure they scrutinize each item raised in every audit management.