Role of the Central Government in the Financing of Public Institutions
Accounting Officers (Directors-General) should have an excellent relationship with their ministers who will issue direct instructions and communicate general policy directions which stem from decisions made in the Legislature. They should also be able to rely upon and trust entirely their personnel who act as departmental financial officers and who do the actual work of accounting and bookkeeping.
Role of the Departmental Financial Officers These are the accountants and bookkeepers of each department. They are sometimes also called the departmental accountants, state accountants or director of finance (NOT to be confused with the Director-General of Finance (state department)). They should: • control all finances and be responsible for the financial administration and all record-keeping of the department;
• have sound knowledge of financial matters – be expert in financial accounting systems and procedures;
• control all transactions of department; • report any maladministration to the Accounting Officer; • provide effective internal procedures to ensure financial regulations are followed; • exercise budget control a daily basis; • act as the main adviser to the Accounting Officer, who in turn reports directly to the minister.
They should be experts in financial accounting and public finance and are, in fact, the people who physically prepare the annual budget. They should control and implement effective internal accounting measures so as to be able to report any discrepancies or mistakes before they are implemented. They are often called upon to appear, together with the Accounting Officer, before the Public Accounts Committee in order to answer any queries. In preparing the annual budget the director of finance will take into account the directives and wishes of not only the Accounting Officer, but also the minister, the executive authority and the treasury.
Example: Department Budgeting Officials responsible for submitting budget requirements often ask for more money than they need. There exists the argument that because the departmental financial officer and the Accounting Officer usually reduce the amounts on their budget proposals, they should therefore ask for more. This is what is meant by the chicken and the egg; which should come first – a truthful and realistic proposal by the officials, or an absolute acceptance of what they ask for? Another phenomenon is the end of year “spending spree”. Sometimes departments are left with surplus funds (it is almost impossible to estimate to the rand exactly what each division will need). Officials call upon staff to quickly spend money. The argument will go something like this: “If we do not spend all the money we asked for, the departmental financial officer will automatically reduce our budget proposals for next year – so spend, quickly!”
It is important for there to be trust between these officials and the director of finance so there does not arise a waste of public money.
It is the task of the Departmental Financial Officers, together with their Accounting Officers (Directors-General) to closely scrutinise the budget proposals submitted by various officials and departmental heads under them. This may often lead to a situation of the chicken and the egg as many officials are often tempted to ask for more than they require for any given year. (See example above). It is also the financial officers’ task, together with that of the Accounting Officer, to reduce these amounts to a realistic level. They may also recommend the exclusion of proposed services in line with funds available.
57
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140