Govt tightens public finance management

Business Reporter—
Government has gazetted amendments to public finance management legislation with a view to tighten systems and improve accountability over public finances. According to provisions gazetted last Friday, accounting officers of public entities shall ensure that public entities, in relation to public funds have systems for planning, allocating, budgeting and reporting use of public funds.

The officers shall be obligated to review recurrent and capital budgets of public entity or statutory funds and make recommendations to the appropriate minister, as well as advise whether budgets should be approved.

The accounting authority of public institutions or funds shall be required to submit to the accounting officer of the appropriate minister and Accountant General, at least sixty days in advance, projection of revenues.

This requirement will also compel the accounting authority of State entities to provide guidance on expenditures and borrowings for the financial year in prescribed format and annual corporate plan for public entities.

Further, accounting officers of public entities will be required to provide the appropriate ministry, not less than three months before the start of the year or prescribed period, an annual plan relating to entity or ministry.

In addition, accounting authorities and members of public entities or ministry shall not do or suffer anything that compromises the supervisory or regulatory role of the ministry in relation to the public entity.

Earlier this year, the World Bank availed a $20 million grant for the Public Financial Management Enhancement Project, which is expected to assist Government in improving its financial reporting through installing new models of the technology software than what they have been using.

The grant is also aimed at improving internal audit so that they can check the control systems in place to see whether public officials will be complying with the requirements of the financial management and the law.

This comes against the backdrop where the Government audits have frequently exposed abuse of public systems and resources at a time the Government is facing serious resource constraints due to the frail economy.

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