Importance of Integrating Sustainability Reporting in Government Accounting

Sustainability reporting in government accounting in Africa promotes transparency, supports Sustainable Development Goals, attracts investments, manages resources, enhances efficiency, and fosters partnerships. The role of government accounting is crucial for transparent and sustainable governance through data collection, integration of financial and non-financial information, performance evaluation, budgeting, risk management, stakeholder engagement, and compliance with reporting standards. However, integrating sustainability reporting faces challenges such as data collection, standardization, capacity building, stakeholder engagement, regulatory barriers, and measuring impact. Integrating sustainability in the accountability cycle involves linking the chart of accounts to sustainability reporting to enhance accountability and achieve environmental and economic goals.

• Sustainability reporting
• Government accounting
• Africa
• Transparency
• Accountability

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1. INTEGRATING SUSTAINABILITY REPORTING IN GOVERNMENT PRESENTED BY: Lindy Bodewig Title: Chief Director: Technical Support Services Division Office of the Accountant-General ACCOUNTING 1st AFRICAN ASSOCIATION OF ACCOUNTANTS GENERAL ANNUAL CONFERENCE 2024 Date: 20 Feb 2024

2. 2 Sustainability reporting in government accounting holds significant importance in Africa for several reasons: Promoting Transparency and Accountability Supporting Sustainable Development Goals (SDGs) / Agenda 2063 Attracting Investment and Aid Managing Environmental Resources Addressing Social and Economic Inequities Enhancing Public Sector Efficiency Fostering Local and Global Partnerships Meeting International Reporting Standards

3. 3 The role of government accounting in sustainability reporting is multifaceted and crucial for ensuring transparent, accountable, and sustainable governance Data Collection and Management Integration of Financial and Non-Financial Information Performance Measurement and Evaluation Budgeting and Resource Allocation Risk Management Stakeholder Engagement Compliance with Reporting Standards

4. 4 Integrating sustainability reporting poses several challenges Data Collection and Management Standardization and Consistency Capacity Building and Resource Constraints Complexity of Reporting Data Quality and Reliability Stakeholder Engagement Regulatory and Institutional Barriers Political Will and Leadership Measuring Impact and Effectiveness

5. 5 Integrating sustainability in the accountability cycle Paris Agreement SDGs / Agenda 2063 Development Funding National Development Plan National budget and expenditure frameworks Climate change & presidential cc Climate budget tagging Capital and appraisal guidelines Economic strategy Long-term fiscal and economic modelling Carbon tax Just transition Macro economic frameworks Sustainable finance Debt markets and equity oversight Disaster risk management and funding Green finance taxonomy Green finance

6. 6 Importance of government s chart of accounts Linking the chart of accounts to sustainability reporting requirements involves aligning financial data with non-financial sustainability indicators to provide a comprehensive view of the government s ESG performance Function/ program Economic classif. Cost centre Geo. region Fund Project What Revenue, expenditure, assets & liabilities Geographic location of where expenditure is incurred General funding source E.g. grants, donor funds Specific key activities of an entity Organisation units Projects undertaken by entity Usually long- term in nature Costs incurred on specific programs, such as conservation costs Organisational units involved in or responsible for sustainability programs Infrastructure projects linked to sustainability prog or funding Funding for specific sustainability goals Activities linked to sustainability goals E.g. conservation Communities or areas benefiting from the programs or funding How

7. 7 Existing reporting guidance and what to expect from the IPSASB .. RPG 3: Reporting Service Performance Information RPG 3: Reporting Service Performance Information IPSAS 24: Presentation of Budget Information in the Financial Statements RPG 2: Financial Statement Discussion and Analysis IPSAS 24: Presentation of Budget Information in the Financial Statements IPSAS 18: Segment Reporting

8. 8 Existing reporting guidance and what to expect from the IPSASB .. Climate related disclosures (ISSB publication combined with GRI) Natural resources Standard on natural resources (under development), Exposure draft on Exploration for and Evaluation of Mineral Resources, also Stripping Costs in the Production Phase of a Surface Mine

9. 9 Thank you