Evaluate the application of public sector accounting In the context of a government

enterprise of your choice.

Zimbabwean government business enterprises has since long adopted the application
of public sector accounting. One of such enterprises is the Zimbabwe National Road
Administration(ZINARA). The enterprise is is responsible for fixing, collecting,
managing, disbursing road user charges and mobilizing revenue for the development
and maintenance of roads. ZINARA receives its funding from road user charges the
includes(licence fees, fuel levy ,tollgate fees and transit fees), appropriation from
parliament and grants. ZINARA is subject to public sector accounting principles and
guidelines to ensure transparency, and efficiency in its operations, as well as
compliance with IPSAS regulatory framework.

An important aspect of public sector accounting application in ZINARA is assistance

in the fulfillment of legal requirements. The law requires that government business
enterprises prepare accounts that are audited at least annually and submitted ti various
stakeholders which include the government and the public. This preparation of
accounts involves financial reporting which help provide transparency on the
ZINARA's financial operations. ZINARA has to comply with the International Public
Sector Accounting Standards (IPSAS) and ZPSAS, which requires the preparation of
financial reports that accurately reflect the entity's financial position. ZINARA
adheres to IPSAS in its reporting thereby guaranteeing transparency, comparable and
reliability of its financial statements. The financial reports are also subject to reviews
by independent external auditors to ensure compliance with international public sector
accounting standards and to safeguard against fraudulent activities.

Moving on, public sector accounting helps ZINARA to plan and budget effectively.
Budgeting is important for control and evaluation.ZINARA can perform zero based
budgeting linking its funding to the achievement of specific perfomance measures.
ZINARA prepares annual budgets based on its strategic plan, which guides its
operations and investment decisions. Since Zimbabwe adopted the use of the accrual-
based public financial framework in 2017, ZINARA’s budgets are prepared using the
accrual accounting method, which records revenue and expenses when they are
incurred, rather than when they are received or paid. Accrual budgeting entails
planning that includes revenue and expenses in the budget of the year in which the
underlying economic events are expected to occur, not necessarily in the year in
which the related cash is expected to be received or paid (khan and Mayes, 2009).This
method provides a more accurate picture of ZINARA’s financial position and helps
management to make informed decisions and helps identify areas of improvement.

In addition to financial reporting, ZINARA also employs cost accounting techniques

to track cost elements. The most common technique that has been adopted by many
enterprises is the activity based costing with ZINARA having its government’s
citizens and country being serviced instead of customers. These techniques enable the
ZINARA to determine the cost of delivering specific railway transport services and
explore ways of reducing cost elements. The cost accounting techniques also help in
preparing budgets for ZINARA, which outlines the expected costs and revenue for a
specified period, enabling the entity to plan and allocate resources efficiently.

More so, public sector accounting facilitates performance measurement and

monitoring in ZINARA.Public sector accounting principles provide a framework for
developing performance measures and evaluating performance. Performance
measures are used to assess the efficiency and effectiveness of ZINARA’s operations.
These measures are used to monitor ZINARA’s performance against its strategic
objective and to identify areas for improvement. Performance measurement is critical
in ensuring that ZINARA remains competitive and relevant in the transport sector.

Moreover, public sector accounting promotes accountability in the ZINARA's

procurement processes. The entity is required to follow procurement regulations,
which ensure that procurement processes adhere to transparency, openness,
accountability, and value for money. The ZINARA keeps accurate procurement
records, including tender documentation, evaluation reports, contractual agreements,
and payment records, which are audited so ZINARA has an audit trail. As there is
transparency, the public can view and understand the financial workings of the
organisation. This promotes accountability and allows the public to hold ZINARA
accountable for the use of its resources.

However despite ZINARA’s efforts in applying public sector accounting practices,

there have been reports of financial impropriety and mismanagement of resources in
the organization.In 2021 the Zimbabwe Anti-Corruption Commission (ZACC)
openly said that ZINARA and VID have normalized corruption in Zimbabwe.
Recently it came to light that it has been happening and the tollgate in question was
the Shurugwi one (Masarakufa C. 2022). This indicates that there is still a lot tat
needs to be done in ensuring that ZINARA effectively apply public sector accounting
practices
REFERENCES
Khan, Abdul and Stephen Mayes, 2009, Transition to Accrual Accounting, Technical
Notes and Manuals No. 09/02 (Washington: International Monetary funds). c
elibrary.imf.org
Masarakufa Clive, March 2 2022 All articles business news
https://startupbiz.co.zw/category/blog/business-news/