Question

The new Metropolitan Chief Executive (MCE) of Juamansan District Assembly was a pure party activist with no knowledge in public financial management. Because of his interest in politics however he was an ardent listener of proceedings in parliament and the work of the Public Accounts Committee. He vowed never to be a victim of the Auditor General’s report when it comes to public procurement.

On assumption of office the MCE gave the following instructions:

(i) All procurement of goods, works and services for the Juamansan District Assembly should go through competitive tendering process

(ii) In the procurement plan for the next financial year, the Assembly will procure some goods, works and services using established private sector practices as permitted by the Public Financial Management Act 2016 (Act 921).

Required:

As an established District Finance Officer of Juamasan District Assembly for the past fifteen years write a memorandum to the new MCE explaining the circumstances under which his directives in (i) above will not be appropriate. Your memorandum should detail the circumstances under which our public financial management laws will allow his directive in (ii) above and the benefits that come with it.

Answer 1

i)

Recognize the most select methods for directing PFM issues. Also, Recognize legal plan strategies that have shown useful, based on cross-jurisdictional practices given by presenters including fellow associates. Examine also assess national PFM act upon global good usages.
Express and develop suggestions on how to change PFMA by law reformation to arrange it to global good practices. Demonstrate to stockholders submitted improvements to PFMA and support those suggestions in conversations including discussion methods with stakeholders.

PF(Public Finance) comprises the combination of revenues, the use of spending, funding of deficiencies, including administration of public assets, debts, moreover additional accounts. PF is managed according to the sources of centralized plus decentralized supervision.

Basic laws of Public Finance:

1. PFM will guarantee financial restraint.
2. PFM will be placed and served as a compatible amount.
3. Public finance should be handled in a way to secure the responsibility of public administrators.
4. Meanwhile securing the composition of goods plus services of public organizations moreover satisfying their requirements.
5. PFM will produce the situation required to improve public decisions in behavior to secure business, economic, and social performance.

ii)

The benefits that come with it are:

1. While the formation and implementation of the notice, it is necessary to assure macro-economic balance collectively among sustainable improvement.
2. The records will be developed, executed, and managed in compliance with the procedures, purposes, and preferences envisioned in the growth strategies and plans, and according to the imperative designs, performance measures, and cost-benefit review of the administrations.
3. The spending authorization entrusts to public departments with the note should be executed to make the services and duties specified in the rules.
4. The notice Should give a complete and clear glimpse of the public financial progress.
5. Aggregate revenues including expenses should be registered in the records with their gross values.
6. Notices should be settled and estimated concurrently with the notice evaluations of the following couple of years by analyzing imperative ideas.
7. This is necessary to assure income and investment stability in the notes.
8. Notices cannot be performed unless they are allowed or authorized by the Turkish Grand National Assembly.
9. Notes should not include issues unrelated to the notice.
10. It should be developed and executed in order with a group defined by the Ministry of Finance according to the global measures in a way to show institutional, practical, and financial outcomes.
11. Clarity, efficiency, and financial transparency are necessary for note income and investment calculations and recording of implementation decisions.
12. All incomes and expenses of public authorities should be registered in their notes.
13. Public services should be presented with support to be designated to the notices following the practices, policies, and plans established forward by the law.
14. In the records, contributions shall be allotted to perform particular views.

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