Institute of Solomon Islands Accountants

ISIA: Drastic Reforms in Public Sector Financial Reporting Standards and Strengthening of Integrity Institutions is the way forward

The announcements and statements made by the Auditor General in his latest report released over the past week around issues of inappropriate and/or poorly documented payments being made by the Economic Stimulus Package Committee which was established through a Cabinet Resolution highlights several concerning and on-going breaches of the country’s legal requirements as per the Public Financial Management Act and related regulations. It also highlights a lack of proper financial reporting mechanism/framework that is aligned to the country’s legal requirements that guides the process of expending public funds to ensure that the ESP Funds are expended with high standards of accountability and transparency.

Notwithstanding that the statements may need further validation or investigation by appropriate bodies, the raised issues display a set of weakened or poor understanding and application of ‘sound financial management and internal control standards and practices’ by representatives of the public purse, Parliament and their public service entities.

For the past years ISIA, along with other integrity organizations, have been advocating for the introduction of new and more enhanced Solomon Islands laws and regulations around ‘public sector accounting standards’, based on well- established and widely adopted internationally-recognized accounting and auditing standards which also includes the need for on-going training or retraining of agents of the public sector system from its lowest level to senior management to even members of parliament themselves.

Some of the key components of any public sector accounting and auditing standards are open and clear transparency of financial allocation and distribution processes, sound and workable internal control protocols, including the trailing of transactions supported by documentation and approval processes, and appropriate education and skilling of agents that have the responsibility, whether individually or overall, of both the distribution of public funds and how its being recorded and reported.

ISIA is not saying that having these international public sector accounting and auditing standards would have eliminated what has been asserted by the Auditor General to have happened in the case of the Economic Stimulus Package funds, but it would have significantly reduced the instances or seriousness of the reported breaches, and likewise would have made it easier to track and narrow down areas or parties of ‘responsibility breaches’ and equally assist in ‘plugging the procedural gaps’ with newer and more targeted laws and regulations.

Where to from here?
Public funds are taxpayers’ monies which are paid to the government as agents of the Solomon Islands people for the purpose of service delivery to citizens in terms of quality health-care, education and infrastructure.

Increased oversight over public finances is critical going forward for the Solomon Islands economy to progress and for service-delivery to be effective compared to what is currently being delivered to citizens.

On this note, ISIA is strongly recommending the following actions to be taken by the Government:

Immediate Government Action to Further Investigate Audit Findings

The seriousness of these breaches calls for immediate government action to further investigate based on the findings of the Auditor General to hold those responsible for these breaches to account.

These investigations must be pursued with all the due process required, and with the assurance of the integrity and independence of the authorities concerned. 
Any conflict of interest, or perceptions thereof, of those involved in these inquiries or investigations should be avoided. 

A credible mechanism including relevant central agencies of the Government and watchdog institutions should provide the necessary support and impetus to appropriate authorities like RSIPF and Director of Public Prosecutions (DPP) to take these matters further to conclusive outcomes. 

Effective deterrents and consequences are a necessary part of longer term structural and capacity improvements in public financial management in Government. 

Call for Strengthening of Integrity Institutions

Mere existence alone of integrity institutions such the Office of the Auditor General (OAG), Solomon Islands Commission Against Corruption (SICAC), the Leadership Code Commission (LCC), the Office of the Ombudsman, and Transparency Solomon Islands (TSI) is not enough.

These organizations play an integral role in maintaining the integrity of government decisions on public spending, budget allocations, and tax revenue management. These are critical functions of the public sector financial management system. Therefore, effective oversight to ensure that taxpayer’s money are spent properly is critical to restore public confidence in the decisions of the government.

These institutions need to have sufficient capability and capacity to effectively deliver on their legal mandates as expected by the public. This practically means that the Government should ensure that these organisations are fully resourced (and truly independent). This is how the Government can practically show their commitment to the fight against corruption - by ensuring high standards of transparency and accountability over the systems and processes through which public resources are being managed and allocated.

For instance, the Auditor General Bill needs to be reviewed and passed by Parliament to give more power to the Auditor General over critical decisions such as its budget and recruitment of its personnel. The OAG plays a crucial role in maintaining the integrity of government decisions and spending and for them to be effective in this role, they need autonomy over key decisions mentioned above to ensure their independence from the government.

Auditor independence is the cornerstone of the auditing profession and therefore gives credibility to the work of statutory audit institutions such as the OAG. This needs to be recognized by the Government if they are serious about strengthening oversight over how public finances are being spent and managed.

Call for Change of Public Sector Financial Reporting Standards

Finally, sound public sector accounting standards and regulations over financial reporting and auditing needs to be changed from what is currently being practiced.

In light of the current findings of the ESP Audit Report, it is high time that the Government considers moving from the IPSAS Cash Basis Reporting to the more rigorous Accrual-based Reporting as provided for in the Solomon Islands Public Financial Management Act 2013 under Section 77.

This is very important because of the identified weaknesses and shortfalls in the Cash Basis Reporting systems which fails to report on non-cash transactions resulting in significant and relevant information on assets and liabilities to be left out of formal financial reports. This can result in incomplete information that is relevant to aid in effective decision-making at higher levels of the government structure.

Such a move will require raising standards of accounting and auditing capabilities in the public sector, which is something that ISIA is committed to. The process of training / skilling at all levels of the SI public sector to understand the importance of full and open adoption of these standards is critical to ensure that these are applied properly when these standards are adopted.

Through proper documented and reportable application of accounting standards in the public sector, a stronger and more transparent Solomon Islands society will become the norm, and the confidence and trust in the public sector (includes parliament) by its citizens will increase and strengthened, especially if an introduction of a VAT or significant tax reform takes place soon.

On behalf of the Council and Secretariat of ISIA, we would like to thank each and every one who has played a part in enabling us to achieve a huge milestone by successfully delivering our first Annual Congress on Tuesday 17 September 2024 at the Heritage Park Hotel.

The event brought together an incredible lineup of speakers and experts to discuss the future of our industry and the Solomon Islands' economy. Notable Guests include our keynote speaker Accountant General Paula Uluinaceva (MoFT), First Secretary Australian Economic, Nicholas Saundersson, Australian High Commission, BAT Head of Culture and Talent, Lily Lomulo, Prof. Andrew Conway, IPA Group CEO, Peter Vial, New Zealand Head (Chartered Accountants ANZ), Brian Blood, Chief Executive, Confederation of Asian & Pacific Accountants (CAPA) Prof. Philomena Leung, Group Executive Education, IPA Group, and Mr. Batram Suri, Motivational Speaker and Solomon Islands Sports Icon.

Round one of Discussions included topics on Tax Reforms for Sustainable Growth: Featuring Dr. Luke Forau, Governor Central Bank, James Dolarii, CEO SICCI, and Ms. Primula Kingmele, Director Economic Reform Unit, Ministry of Finance & Treasury. Round two included topics on the Education System Effectiveness: Featuring Dr. Patricia Rodie, Dean of the Faculty of Education and Humanities at the Solomon Islands National University (SINU), Mr. Bob Pollard Managing Director Pasifiki HR and Kokonut Pacific Solomon Islands Ltd; Jeremy Seward, ISIA Education Consultant, and Alex Haro, Principle Woodford International School.

Thank you to our moderators, Dorothy Wickham, Founder and Editor, Melanesia News Network and Ms. Georgina Keke, Director, Solomon Islands Local Media Agency.

A huge thank you to our sponsors who made this event possible: Platinum Sponsor: Department of Foreign Affairs and Trade Gold Sponsor: Solomon Islands Ports Authority Supporting Sponsors: Institute of Public Accountants, Confederation of Asia and Pacific Accountants, Chartered Accountants of Australia and New Zealand, Solomon Power, Heritage Park Hotel, British American Tobacco SI (BATSI), Solomon Telecom, Total Print Solutions, Stewardship Accountants, Real Solutions, Solomon Telecom and Bulk Shop.

INSTITUTE OF SOLOMON ISLANDS ACCOUNTANTS MEDIA RELEASE - PROFESSIONAL DIPLOMA PROGRAM GRADUATION 2024

Title: ISIA congratulates graduands of Australia-funded Professional Diploma in Accounting Program.

Fifty-two (52) accountants from both the public and private sectors have graduated with a Professional Diploma in Accounting – a professional program delivered by the Institute of Solomon Islands Accountants (ISIA) on 16 th of September.

This graduation ceremony is for the second cohort of students who completed the Professional Diploma in Accounting Program. The first cohort completed the program in 2023.

ISIA, with continued support from the Australian Government, delivers the program in collaboration with the Institute of Public Accountants (IPA), and Monarch Institute.

ISIA CEO, Pamela Naesol-Alamu said ISIA is highly appreciative of both Solomon Islands and Australian governments support in its endeavors to raise the standards of the accounting profession in the country.

“To raise professional accounting standards, we need to develop a pool of highly competent accountants, and professional development programs such as the Professional Diploma in Accounting are aimed at equipping accountants with technical knowledge and enhancing their capabilities to provide high quality services to their employers and clients”.

The program has four modules which covered key accounting competencies that are expected of professional accounting personnel.

This is targeted for technician accountants and registered bookkeepers and includes a Tax & Law module contextualised to the Solomon Islands Tax and Company Law.

Speaking to the graduates, Australia’s Deputy High Commissioner to Solomon Islands, Andrew Schloeffel, said, “Australia is proud to be a long standing supporter of the Institute of Solomon Islands Accountants and to be able to provide scholarships for many of the participants in this course. A strong cadre of accounting professionals including the graduates here today is critical to lifting the standards of accounting across Solomon Islands, fostering good governance, and contributing to sustainable economic growth”.

Institute of Public Accountants Chief Executive Officer, Professor Andrew Conway, said, “Australia and the Solomon Islands are neighbours and long-time friends.

The IPA Group is committed to capacity building in the Pacific region. The IPA Group are proud and value our role as the ISIA’s partner of choice to develop education for the accounting profession in the Solomon Islands.

“I was delighted to be able to attend this graduation and celebrate the achievements of this second cohort of the Professional Diploma in Accounting; a program designed to best practices and aligned to the Solomon Islands taxation and legal framework. This Diploma will position the graduates for successful careers in accounting and drive economic value in the Solomon Islands. I commend the vision of the Institute of Solomon Islands Accountants and thank the Australian Government for their support in this important program and for their continued support for the next cohorts of students”. 

ISIA CEO Ms Naesol-Alamu said, “once again it’s been about effective partnerships and collaborations geared to achieve the desired outcomes that are to the benefit of the whole Solomon Islands and those who contribute to its economic growth.”

ISIA intends to provide more professional development opportunities to enhance accountants’ knowledge and skills in the country, and a professional membership pathway for its members to allow them to progress toward higher professional accreditation. Employers in both public and private sectors, business houses and everyone that relies on the services of accountants should support the work of the Institute as Solomon Islands stands to gain many economic benefits with a strong local accounting profession.

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For more information, contact ISIA Media on This email address is being protected from spambots. You need JavaScript enabled to view it. or call 20131

The Institute of Solomon Islands Accountants (ISIA) today launched its first ever Congress at the Heritage Park Hotel with the theme “Building for a Sustainable Future for SI: The Role of the Accounting Profession in Nation-Building”

ISIA will be hosting its inaugural Accountants Congress this year on the 17th of September 2024 at the Heritage Hotel, Honiara.

ISIA, is the Solomon Islands national Professional Accountancy Organisation mandated by the Accountants Act 2010 to develop and regulate the SI accounting profession.

They will be partnering with the Institute of Public Accountants, and the Australian Government to host this high profile event which is intended to bring together business leaders, industry experts, government representatives, donors and the accounting profession together to effectively dialogue and seek prospective collaborative solutions to nation-building for Solomon Islands.

The overall objective of the Accountants Congress is to facilitate discussions between private sector business community, industry experts, government and the accounting profession on relevant matters affecting the SI economy, business practices and the development of the local accounting profession.

At the launch, ISIA announced the Australian Government as the Platinum Sponsor for the Congress. The Australian Government has been supporting capacity building within the ISIA Secretariat over the past 6 years, and pledged SBD200,000 to support ISIA host this Congress.

Australian High Commissioner to Solomon Islands, His Excellency Rod Hilton, praised ISIA’s efforts to develop and grow the accounting profession in Solomon Islands.

“The Congress will be an important opportunity to discuss how accounting professionals and institutions can support sound economic policy making and the building of a strong, sustainable future for Solomon Islands.”

ISIA Council acknowledges the commitment and support of the Australian Government with the generous financial sponsorship to facilitate the operations and administration of the Congress.

The Institute would also like to acknowledge the Solomon Islands Ports Authority (SIPA) as the Gold Sponsor for this Congress by pledging SBD50,000 in support.

SIPA is proud to be a gold sponsor to the inaugural Accountants Congress to be hosted by ISIA later this year. SIPA sees this as a great initiative to begin the journey toward strengthening the role of the accounting profession in our nation building.

Other remaining sponsors that have pledged assistance in cash or in-kind towards the congress logistics include the Institute of Public Accountants (IPA), Solomon Power, Institute of Chartered Accountants of Australia and New Zealand (CAANZ), the Confederation of Asia Pacific Accountants (CAPA), Heritage Park Hotel, British American Tobacco Solomon Islands, Real Solutions, Stewardship Accountants, and Total Print Solutions.

The Congress will provide an opportunity for participants to:

✓ listen to prominent international speakers and leaders in finance and the business community sharing ideas and views with accountants

✓ discuss current issues and trends affecting the profession, the business community and the SI economy as a whole

Congress topics include the role of the accounting profession in developing a sustainable SI economy, partnership and collaboration in the region, current SI tax reforms, governance and ethics, artificial intelligence, digital transformation, empowering and embracing new changes, opportunities through the MSME sector and many more.

ISIA is excited to announce the opening of its online registration form for Congress. Members and Non-members, who can access the online registration form link via ISIA website https://www.isia.org.sb.

For more information on Congress 2024, please contact the secretariat on mobile: 677 20131; email: This email address is being protected from spambots. You need JavaScript enabled to view it. / This email address is being protected from spambots. You need JavaScript enabled to view it.