Africa-Press – Tanzania. IN any functioning democracy, public organisations stand as the primary custodians of citizens’ resources. Taxes, grants and other public funds are handed over to government institutions with a simple but powerful expectation, that every shilling will be managed efficiently, honestly and in the best interest of the common good.
This trust forms the backbone of the social contract between the state and its people and at the heart of this responsibility lies a critical but often overlooked element, the quality of financial accounts.
Well-prepared accounts are more than routine paperwork; they are a clear mirror of transparency and integrity within public institutions. They signal an organisation’s commitment to openness and prudent stewardship of public resources. When public organisations maintain accurate, complete and timely financial records, they open their operations to scrutiny.
Auditors can carry out their work effectively, lawmakers can make informed decisions and oversight bodies can identify both strengths and weaknesses in public spending. Most importantly, citizens are empowered to see how their money is collected, allocated and ultimately used.
In this way, sound financial reporting becomes a powerful tool for accountability. It deters misuse of public funds, strengthens institutional credibility and builds public confidence in government systems.
Beyond compliance, well-kept accounts tell a story one of responsibility, good governance and respect for the taxpayer. Ultimately, transparent financial management is not merely a technical requirement; it is a democratic obligation.
By maintaining high standards in financial reporting, public organisations reinforce trust, protect public resources and help lay a firm foundation for sustainable national development. This openness discourages misuse of funds and helps expose irregularities early, reducing opportunities for corruption to take root.
Sound accounting practices also demonstrate accountability, but by presenting clear financial statements, public institutions show that they are willing to explain and justify their decisions.
This accountability builds trust between the government and the people it serves. Citizens are more likely to support public policies and comply with tax obligations when they are confident that their money is managed responsibly.
Moreover, well-prepared accounts strengthen governance and service delivery. Reliable financial information enables leaders and policymakers to make informed decisions, plan effectively and prioritise spending where it is most needed.
It also enhances efficiency by identifying wasteful expenditure and ensuring that limited resources are directed toward health, education, infrastructure and other critical sectors.
From a national perspective, credible public accounts improve a country’s reputation. Development partners, investors and international institutions often assess financial management systems before providing support.
Strong accounting systems signal integrity and stability, attracting investment and development assistance. Ultimately, well-prepared public accounts are more than a technical requirement; they are a moral obligation.
They affirm a commitment to integrity, protect public resources and reinforce the social contract between the state and its citizens. In doing so, they establish a strong foundation for sustainable development, national advancement and the overall social wellbeing of society, securing a better future for all.
Establishing a strong foundation for sustainable development is critical for the long-term stability and effectiveness of security funds, particularly those entrusted with safeguarding the welfare of citizens such as social security and pension schemes.
A well-grounded sustainable development framework ensures that security funds remain resilient, accountable and capable of meeting both current and future obligations.
One of the key benefits is financial sustainability. Strong development foundations promote prudent investment strategies, sound governance structures and effective risk management.
By diversifying investments and aligning them with long-term national development goals, security funds can generate stable returns while protecting contributors’ savings from economic shocks.
This financial strength guarantees timely and reliable payment of benefits, reinforcing public trust. A solid sustainability foundation also enhances institutional credibility and transparency.
Clear policies, strong internal controls and accountable leadership reduce the risk of mismanagement and corruption. When contributors are confident that their funds are well managed, compliance improves and membership expands, strengthening the fund’s revenue base and overall stability.
Furthermore, sustainable development enables security funds to play a meaningful role in national economic growth. By investing in critical sectors such as housing, infrastructure, healthcare and energy, security funds support job creation and inclusive growth while achieving reasonable returns.
These strategic investments contribute to social wellbeing and economic resilience, creating a virtuous cycle that benefits both the fund and the wider society.
Another important benefit is social protection and intergenerational equity. A strong foundation ensures that security funds can meet the needs of today’s beneficiaries without compromising the rights of future generations.
This balance supports long-term social stability and reduces the risk of future fiscal burdens on governments. Establishing a strong foundation for sustainable development empowers security funds to remain financially sound, transparent and socially responsible. It strengthens public confidence, supports national development and ensures lasting security for present and future contributors.
In recognition of the importance of sound financial management, the Public Service Social Security Fund (PSSSF), alongside other public institutions, was honoured with awards, with PSSSF emerging as the First Winner for Excellence in the Preparation of Financial Statements for the year ended 2024 in the social security category, presented by the National Board of Accountants and Auditors (NBAA).
Apart from PSSSF, other winners included the Drug Control and Enforcement Authority (DCEA), which emerged as the first winner and received the Award for Excellence in the Best Preparation of Financial Statements for the year 2024, in compliance with the International Public Sector Accounting Standards (IPSAS), under the category of selfautonomous government institutions.
Another winner was the Tanzania Ports Authority (TPA), which also emerged as the first winner of the Award for Excellence in the Best Preparation of Financial Statements, after adhering to the International Financial Reporting Standards (IFRS).
The Tanzania Ports Authority (TPA) emerged as the top performer in the category of public corporations, taking first place, followed by the Tanzania Petroleum Development Corporation (TPDC) in second place, and the Tanzania Electric Supply Company (TANESCO) in third place.
Explaining how the winners were selected, the Chief Executive Officer of the National Board of Accountants and Auditors of Tanzania (NBAA), CPA Pius A Maneno, said that 86 public and private institutions participated in the process of submitting financial statements for the year ended 2024.
“We provide our accounting standards and a range of assessment criteria. To win, an institution must meet specific requirements. Out of 1,392 points assessed, those who scored at least 75 per cent emerged as winners. We also consider whether the institution received an unqualified audit opinion, among other factors,” CPA Maneno explained.
The Deputy Minister for Finance Laurent Deogratius Luswetula congratulated all the winners and urged them to maintain professionalism in order to sustain their success, while encouraging those who did not meet the criteria to make improvements so they too can perform better in the future.
