Public sector institutions are responsible for managing public resources and ensuring transparency and accountability in financial reporting. However, many public sector accounting systems, particularly in developing economies, still rely on manual or partially digitized processes that often lead to inefficiencies, delayed reporting, weak audit trails, and increased vulnerability to financial irregularities. As governments increasingly adopt digital transformation strategies, the need for secure and intelligent financial management systems has become more critical. Artificial Intelligence (AI) and blockchain technology have emerged as powerful tools capable of improving data security, transparency, and operational efficiency in digital systems. This study explores the integration of AI and blockchain in public sector accounting to strengthen financial transparency and data integrity. The paper proposes an Integrated Public Sector Accounting Framework that combines digital transaction verification, AI-driven analytics for anomaly detection, and blockchain-based ledger systems for secure and immutable record keeping. The framework also incorporates continuous audit monitoring and real-time financial reporting mechanisms to enhance oversight and accountability. By leveraging the predictive capabilities of AI and the decentralized security features of blockchain, the proposed model aims to reduce fraud risks, improve audit reliability, and strengthen trust in public financial management systems. The study contributes to the growing discourse on secure digital governance and demonstrates how emerging technologies can support more transparent and resilient public sector accounting infrastructures.
