Kwara State Government has opted for full implementation of the International Public Sector Accounting Standards (IPSAS), with the cabinet approving the development of the IPSAS compliance software for the state.
The development of the software was one of the 22-point preconditions for the implementation of fiscal sustainability plan framework which the Kwara State had not complied with over the years,
Commissioner for Finance and Planning Olasumbo Florence Oyeyemi told the cabinet late Thursday as she sought council’s approval for the award of the contract for the development of the software.
She said the development of the software would involve setting up of a mini-data centre to host the software and serve as the main hub of the state’s digital accounting platform while work stations deployed across MDAs will be linked to the mini-data centre at the accountant general’s office.
Oyeyemi said the full implementation of the IPSAS would be in three phases, with the first phase involving the purchase of IPSAS-compliant account software; software configuration and project management; purchase of server and other hardware requirements for six pilot MDAs; and offsite access licence and configuration across the MDAs.
The second phase, she added, is the design and development of IPSAS implementation framework which involves review and domestication of the national chart of account for the government, review and domestication of IPSAS-Accrual Accounting Manual for the state government, and setting up of IPSAS (Accrual)-compliant general ledger.
She said the third phase will be the budget and accounts conversion and preparation support.
Following extensive briefings from the commissioner, the cabinet approved the award of the contract for the provision of comprehensive IPSAS Implementation Support Services to the PAACO-PCL Consortium at the cost of N390,647,500 for a duration of 41 weeks — after considering proposals from two other firms AGM Professional Services which bid at N546,500,000 for 47 weeks and Neo Mundo Ltd which quoted N521,213,241 for a duration of 56 weeks.
The Commissioner had said the approval meant the migration of the state from its current cash basis accounting system to accrual basis accounting system, listed its other benefits to include timely publication of state budget online, publication of audited annual financial statements within six months, improved transparency and service delivery, streamlining the standard of current financial system operational in the state as the MDAs will be linked to the office of the Accountant General for direct posting and monitoring.
Others included enhancement of Kwara’s portfolio status and its reconsideration for remittance of Federal Government’s budget support fund, improved confidence of development partners in the state’s financial report, cross border investment and foreign direct investments, among others.
The cabinet meanwhile had also approved the reversal of the Ministry of Social Development to the Ministry of Women Affairs and Social Development following a memo by the Head of Service Modupe Oluwole who said excluding ‘women affairs’ from the nomenclature may deprive the state of certain benefits especially from gender-based international development partners.