As one way of increasing transparency and accountability in the presentation of financial reports at council level, National Local Government Finance Committee- NLGFC has drilled Finance Directors on the use of recommended system for the report dubbed International Public Sector Accounting Standards (IPSAS).

This comes at a time district councils have been embedded in various failures of financial management.

In 2019, the accountant general issued a directive for all councils to start using IPSAS as one way of harmonising and ensuring that all financial reports are standardised.

Speaking during a two-day workshop in Blantyre, Financial Expert Dalitso Mainjeni from National Local Government Finance Committee admitted that local councils being found in inappropriate status as most of them could fail to come up with good financial reports.

"In the past, councils have been failing to present their elaborative financial statements due to lack of knowledge of IPSAS.

“We have noted that government employees lack capacity to handle international accounting standards, hence, we thought of training the officers as a way of helping Malawi to improve its profile on international accounting standards,” he said.

"I believe with the coming in of this system, most financial directors will be able to broaden their statements for authorities to be able to clearly understand them,” he added.

The National Local Government Finance Committee has since pledged to make follow-ups in the councils’ financial statements for 2019/2020 financial year.

According to NLGFC, the financial statements seek to have full use of the recommended international system of International Public Sector Accounting Standards - IPSAS.

Meanwhile, Chief Accountant in the Ministry of Finance, Steve Chimenya has singled out the absence of International Public Sector  Accounting Standards to be the main challenge leading to failure of councils to successfully present their financial statements.