Mandate & function
The mandate and functions of the PSASB are established in Part VI of the Public Financial Management Act i.e. Sections 192 to 195 of the Act. The purpose or mandate of the Board can be summarised as follows:
- Set generally accepted accounting and financial system standards for the Public Sector.
- Prescribe and pronounce generally accepted internal auditing standards.
- Mainstreaming of best practices for good governance, internal controls and risk management in the Public Sector.
The PSASB is therefore established as the ‘de facto’ and only authorised setter of financial accounting and internal audit standards for the Public Sector in Kenya.
The specific functions to be undertaken by the Board are clearly outlined in Section 194 of the PFMA, 2012.
- The Accounting Standards Board shall provide frameworks and set generally accepted standards for the development and management of accounting and financial systems by all State organs and public entities, and shall in particular perform the following functions:
- Set generally accepted accounting and financial standards;
- Prescribe internal audit procedures which comply with the PFM Act;
- Prescribe formats for financial statements and reporting by all state organs and public entities;
- Publish and publicise the accounting and financial standards and any directives and guidelines prescribed by the Board;
- In consultation with the Cabinet Secretary on the effective dates of implementation of the standards, gazette the dates for application of the standards and guidelines; and
- Perform any other functions related to advancing financial and accounting systems management and reporting in the Public Sector.
- In setting the standards under subsection, the Board shall take into account any relevant factors including: