Financial Governance

August 2012

This briefing paper looks at the ways in which a public organisation canorganise itself to carry out Budgeting and Financial Management effectively. Itincludes consideration of embedding Financial Management skills in Government;the Manifesto of the Chartered Institute of Public Finance and Accountancy;Financial Governance arrangements; the roles of Members, Managers andAccountants; Devolved Financial Management; Financial Information Systems andCritical Success Factors.

In February 2008the Treasury’s Financial Skills Advisory Panel published „Doing the Business:Embedding Financial Management Skills in Government‟. According to this report:

“GoodFinancial Management is like fresh air, exercise and a healthy diet. Organisationsneed it every day to stay fit and to live a full and active life.

“Thevery best organisations have understood this need and taken steps to developfinancial management skills throughout their operations so that every businessdecision is underpinned by a proper understanding of its financialimplications.

Financial Governance is achieving an increasingly high profile in boththe private and public sectors. Public bodies need good systems of financialgovernance. Clear accountability is of critical importance. There is a need toembed good Financial Management in public authorities at all levels.Councillors and Board Members, Managers and Accountants all have importantroles to play and none can carry out their roles effectively without beingempowered to do them. Devolved Financial Management is seen as good practice,good Financial Management Information Systems are required and Critical SuccessFactors have been identified.

For full briefing paper please click here.