22nd International Consortium on Governmental Financial Management (ICGFM) Conference

“Joining Forces for Responsible Leadership to Enhance Good Governance: Citizens, Public Officials, Private Sector and the Press”

Session theme: How external parties influence government decision-making

Presentation: “Efforts to fight fraud and punish corruption”

Gavin Woods (mathlati@icon.co.za) - May,19 2008

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THE PRESENTATION – ISSUES TO BE DISCUSSED:

• THE FINANCIAL MANAGEMENT REFORM MODEL

• THE MODEL AND THE INFLUENCE OF EXTERNAL PARTIES – SPECIFICALLY THE SAI AND PAC

• THE MODEL AND IMPROVED OPPORTUNITIES TO FIGHT FRAUD AND CORRUPTION

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FINANCIAL MANAGEMENT MODELPLANNING REFORMS

POLICYOBJECTIVES

STRATEGIC PLANNING

MTEF 1-2-3

ANNUALPERFROMANCE

BUDGET(GAAP)

PLANNED RESULTS (DOCUMENTED)

D

INITIALCOSTING

FINALCOSTING

PLANNEDMEASURABLERESULTS (OUTPUTS

Designed by gavin woods (mathlati@icon.co.za) 3

FINANCIAL MANAGEMENT MODELOPERATIONAL/MANAGEMENT REFORMS

PROCUREMENT PERSONNEL ASSETS WORKING CAP

MANAGEMENT MANAGEMENT MANAGMNT MANAGEMNT

PROGRAM/PROJECT . MANAGEMENT

. I N T E R N A L C O N T R O L A R R A N G E M E N T S

ACCOUNTING SYSTEM ACHIEVED MEASURABLE (GAAP/ACCRUAL) RESULTS (OUTPUTS ETC.)

STATEMENTS AND REPORTS

Designed by gavin woods (mathlati@icon.co.za) 4

KEY FEATURES OF THE FINANCIAL MANAGEMENT REFORMS

• MODERN “BEST- PRACTICE” MANAGEMENT SYSTEMS AND PRACTICES WHICH PROMOTE PERFORMANCE AND GOVERNANCE

• INTERNAL CONTROL ARRANGEMENTS WHICH ENSURE COMPLIANCE AND REDUCE RISKS

• COMPREHENSIVE INFORMATION AND REPORTING WHICH FACILITATES MANAGEMENT AND ACCOUNTABILITY

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BASIS AND MEANS OF FIGHTING CORRUPTION - PROVIDED THROUGH THE FM REFORMS

•SPENDING AGAINST COSTED PLANS AND PREDETERMINED OUTPUTS•VARIANCE ANALYSIS AND INVESTIGATION THROUGH SUBSTANTIVE PAPER TRAILS

•TRANSPARENCY OF PROCESSES

•SYSTEMATIC PROCUREMENT AND SUPPLY CHAIN MANAGEMENT

•FACTUAL AND RELEVANT INFORMATION•COMPREHENSIVE AND TIMEOUS REPORTING AND DISCLOSURE (INTERNAL AND EXTERNAL)

•QUALIFIED FINANCIAL MANAGEMENT OFFICIALS

•INTERNAL CONTROLS AND RISK MANAGEMENT (INCLUDING INTERNAL AUDIT)

•SCOPE AND TIMING OF SAI AUDIT

•EXTENSIVE MEANS OF OVERSIGHT

•CRIMINAL SANCTIONS6

EXTERNAL PARTIES INFLUENCING GOVERNMENT DECISION-MAKING -SPECIFICALLY THE PUBLIC ACCOUNTS COMMITTEE

EXPANDING FOCUS/ROLES:

S.A.I.’S PERFORMANCE, ACCOUNTING STANDARDS AND FINANCIAL

STATEMENTS

PAC’S FINANCIAL MANAGEMENT SYSTEMSCOMPETENCE OF PUBLIC OFFICIALSEXPENDITURE – ECONOMIES AND EFFICIENCIESQUALITY OF INFORMATION AND REPORTING - INCLUDING

FINANCIAL STATEMENTSREPORTING REQUIREMENTS/DISCLOSURE‘FINANCIAL’ MISCONDUCT AND SANCTIONS

INFLUENCING PERSONNEL APPOINTMENTS, CAPACITY BUILDING, VALUE-FOR-MONEY DECISIONS, MANAGEMENT PRACTICES, GOVERNANCE AND THE PACE OF REFORMS

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