Public Financial Management and Internal Control : : The Importance of Managerial Capability for Successful Reform in Developing and Transition Economies.

Public Financial Management and Internal Control : : The Importance of Managerial Capability for Successful Reform in Developing and Transition Economies.

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Bibliographic Details
:
Hepworth, Noel.
Place / Publishing House:Cham : : Springer International Publishing AG,, 2023.
©2024.
Year of Publication:2023
Edition:1st ed.
Language:English
Physical Description:1 online resource (593 pages)
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Table of Contents:
  • Intro
  • Foreword
  • Preface
  • Contents
  • List of Tables
  • 1: Changing from Financial Control to Financial Management in the Public Sector: An Introduction to the Changes That Will Be Required
  • 1.1 The Aim of and Audience for This Guide
  • 1.2 Why Is Management Relevant and Important?
  • 1.2.1 Management
  • 1.2.2 Leadership and Organisational Culture
  • 1.3 Key Terms and Facets of PFM/IC Reform
  • 1.3.1 The Budget
  • 1.3.2 Cash Management
  • 1.3.3 Management Accounting
  • 1.3.4 Control
  • 1.3.5 External and Internal Control
  • 1.4 Implementing Reform from a Management Perspective
  • 1.4.1 Longer Term Public Financial Management
  • 1.4.2 Ownership of the PFM/IC Reform and Stability in the Reform Process
  • 1.4.3 Corporate Governance (or 'Good Governance')
  • 1.4.4 The Timing of the Reform
  • 1.5 Applying This Reform
  • 1.5.1 The Practical Consequences of the PFM/IC Reform
  • 1.5.2 How Will the Existing Political and Operational Management React in Practice to Advanced Public Financial Management Reforms?
  • 1.6 Individual Governments and This Reform
  • 1.7 Structure of This Guide
  • 1.8 Summary
  • Annex 1
  • Likely Consequences of the Reform
  • The Managerial Consequences of the PFM/IC Reform
  • The Control and Budgetary Consequences of the Reform
  • The Accountability and Transparency Consequences of the Reform
  • 2: Implementing Public Financial Management and Internal Control (PFM/IC)
  • 2.1 The Context for Public Financial Management and Internal Control (PFM/IC)
  • 2.2 Implementing PFM/IC Reform
  • 2.3 Who Is the Manager?
  • 2.4 Efficiency and Effectiveness and PFM/IC Reform-Why Countries Should Want to Introduce the Reform
  • 2.4.1 Securing Efficiency and Effectiveness
  • 2.4.2 The Role of the Operational Manager in Achieving Efficiency and Effectiveness
  • 2.5 Defining 'Sound Financial Management'.
  • 2.5.1 Sound Financial Management
  • 2.5.2 Financial Control
  • 2.5.3 Cost Drivers and Cost Centres
  • 2.6 Appreciating the 'Management' in Public Financial Management
  • 2.6.1 The Professionalisation of 'Management'
  • 2.6.2 Challenges to Professionalising Management
  • 2.6.3 Management Structures and Delegation
  • 2.7 Internal Control and Management
  • 2.8 The Ministry of Finance and Its Controls
  • 2.9 Second-Level Organisations
  • 2.10 The Head of Finance
  • 2.11 The Time Horizon for Decision Making Under PFM/IC
  • 2.12 Effective Public Financial Management and the Information Requirements
  • 2.13 Achieving the Benefits of PFM/IC
  • 2.13.1 Management and the Benefits of the Reform
  • 2.13.2 Integrating PFM/IC Reform with Managerial Reform
  • 2.13.3 Promoting Financial Literacy and Awareness
  • 2.13.4 Engaging a Wider Set of Actors in Financial Decision Making
  • 2.14 Learning Lessons from the Experience of Countries Aiming to Introduce PFM/IC
  • 2.15 PFM/IC and Delegation
  • 2.16 PFM/IC and Decentralisation
  • 2.17 Summary
  • 3: The Distinction Between Public Financial Management and Internal Control (PFM/IC) and Public Financial Administration and Internal Control (PFA/IC)
  • 3.1 Public Financial Administration and Internal Control (PFA/IC)
  • 3.1.1 Control Prior to the Adoption of PFM/IC
  • 3.1.2 The Control Environment
  • 3.1.3 Limitations of PFA/IC
  • 3.2 Comparing PFM/IC and PFA/IC
  • 3.2.1 An Overview of the Comparison
  • 3.2.2 The Objectives of Control
  • 3.2.3 Budgetary Control
  • 3.2.4 Development of Budgets
  • 3.2.5 Parliamentary Scrutiny
  • 3.2.6 Internal and External Audit
  • 3.2.7 Consequential Features of PFM/IC That Do Not Exist with PFA/IC
  • 3.3 Summary
  • Annex: A Detailed Comparison of PFA/IC and PFM/IC
  • 4: The Practical Steps for Initiating a Successful PFM/IC Reform.
  • 4.1 This Is a Management Reform!
  • 4.1.1 The Managerial Impact
  • 4.1.2 The Benefits of the PFM/IC Reform
  • 4.1.3 Control
  • 4.1.4 The Timetable for the Reform and the Role of Parliament
  • 4.1.5 The Tests That Can Be Applied to Assess the Feasibility of the Reform
  • 4.2 How Is the PFM/IC Reform to BeUndertaken?
  • 4.2.1 Who Should Be Responsible for the Development of the PFM/IC Reform Policy, Its Application and Local Ownership of the Reform
  • 4.2.2 Achieving Local Ownership
  • 4.2.3 The Role of Parliament
  • 4.2.4 The Basic Elements of This Reform Recognising That This Is an Ongoing Reform
  • 4.3 Will Delegation of Operational Management to the Civil or Local Government Service Cause Politicians to Lose Control ?
  • 4.4 How Should the Reform Be Applied Across the Public Sector?
  • 4.5 Establishing a 'Driving Force for Change' Within a Ministry of Finance
  • 4.6 Summary
  • 5: The Responsibilities of the Minister of Finance, the State Secretary, and the Ministry in the Development of a PFM/IC Policy
  • 5.1 The Responsibilities of a Minister of Finance and Senior Officials
  • 5.1.1 The Minister of Finance and PFM/IC
  • 5.2 Before the Reform!
  • 5.2.1 The Initial Assessment
  • 5.2.2 The Appropriateness of the Decision to Introduce PFM/IC
  • 5.2.3 A Critical Issue for a Minister of Finance
  • 5.2.4 The Benefits and Costs of the Reform
  • 5.2.5 The Ministry of Finance and the Finance Function Within Line Ministries and Local Governments
  • 5.2.6 How the Minister of Finance Should Regard PFM/IC
  • 5.2.7 Coordination with the Different Ministry of Finance Technical Departments
  • 5.2.8 The Minister of Finance and Other Ministers
  • 5.2.9 The Minister of Finance and Parliament
  • 5.3 During the Reform!
  • 5.3.1 Establishing the Appropriate Organisational Structures to Apply the Reform.
  • 5.3.2 Cooperation with the Ministry or Department Responsible for Public Administration or Civil Service Reform
  • 5.3.3 The Use of Performance Information
  • 5.3.4 The Organisation of Financial Information for Management Purposes
  • 5.3.5 Internal Control Arrangements Within Line Ministries and Local Governments
  • 5.3.6 PFM/IC and Budgetary Control
  • 5.3.7 PFM/IC and the Quality of Public Expenditure
  • 5.3.8 The Impact of PFM/IC on the Control of Second-Level Bodies Such as Agencies and State-Owned Enterprises
  • 5.3.9 PFM/IC: Securing the Managerial and Technical Capacity: Advice and Training
  • 5.3.10 Encouraging Managerial Initiative: A Need to Review Penalty and Inspection Arrangements
  • 5.3.11 Financial Regulations and Other Advice to Be Issued by the Minister of Finance
  • 5.4 Sustaining the Reform
  • 5.4.1 The Minister of Finance and the Timescale for Application
  • 5.4.2 The Need for a Consistency of Approach over Time and for Consensus Between Different Strands of Political Opinion
  • 5.4.3 The Ministry of Finance and Annual Arrangements for the Review of the Impact of PFM/IC
  • 5.5 Summary
  • Annex
  • 6: Risks and Unintended Consequences of the Reform
  • 6.1 The Background to Risk and Unintended Consequences
  • 6.1.1 Definitions
  • 6.1.2 Causes of Unintended Consequences
  • 6.1.3 Reducing the Potential for Risks and Unintended Consequences
  • 6.1.4 Protecting Against Risks and Unintended Consequences, Including a Role for Internal and External Audit
  • 6.2 Examples of Unintended Consequences
  • 6.3 Performance Information and Using 'Bureaucracy' as an Indicator of Performance
  • 6.4 Managing Relations with Aid Agencies with the Aim of Avoiding Risks and Unintended Consequences Arising from Aid Support
  • 6.5 The Factors Which May Be a Cause of Risks and Unintended Consequences.
  • 6.6 The Warning Signs Leading to Potential Unintended Consequences
  • 6.7 Arrangements for the Monitoring and Evaluation of the Reform
  • 6.8 Summary
  • 7: The Responsibilities of the Top Operational Management Official in Public Organisations for the Implementation and Quality Control of PFM/IC
  • 7.1 Nominal and Real Responsibility for the Application and Quality Control of PFM/IC
  • 7.1.1 The PFM/IC Leadership Application Arrangements
  • 7.1.2 The Responsibilities of a State Secretary or Equivalent Before the Application of the PFM/IC Policy
  • 7.1.3 The Role and Responsibilities of a State Secretary (or Equivalent) Operating in a Managerial Environment
  • 7.1.4 The Specific Financial Responsibilities of a State Secretary with the Implementation of PFM/IC
  • 7.1.5 Where No State Secretary Post Exists But Each Department Within a Ministry Is Headed by a 'Director' Who Reports Directly to a Minister
  • 7.1.6 The Importance of Good Corporate Governance Arrangements
  • 7.1.7 The Relationship Between Line Ministry State Secretaries and the Ministry of Finance State Secretary with the Application of PFM/IC
  • 7.1.8 The State Secretary, Internal Audit and Inspection
  • 7.2 Summary
  • 8: The Role of the Head of Finance and the Finance Department in Line Ministries and Other Public Organisations with the Application of PFM/IC
  • 8.1 The Significance of Financial Management
  • 8.1.1 Financial Management in Public Organisations
  • 8.1.2 Financial Management, Decision Making and the Role of the Head of Finance
  • 8.2 Functions of the Head of Finance Prior to the Application of PFM/IC
  • 8.2.1 The Background
  • 8.2.2 A Summary of the Responsibilities of the Head of Finance Before the Introduction of PFM/IC
  • 8.3 The Responsibilities of a Head of Finance with the Introduction of PFM/IC
  • 8.3.1 The Changed Background.
  • 8.3.2 The Key Changes That the Head of Finance Should be Prepared for, Including Support to Managers.

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