Question

-Explain the five conceptual pillars of financial management practices.

Answer 1

A sound FMF needs to be comprised of 5 elements (Rules, Values & Principles, Authorities & Accountabilities, Roles & Responsibilities, and Processes) supported by Enablers that when adhered to produce Business Results.

Legislation & Policies are the foundations of sound financial management, including legislation and regulations, and policies.

Values & Principles set out the ethical value statements and foundations of sound financial management, which guide Managers in fulfilling their financial management duties.

Authorities & Accountabilities reflect delegated authorities and financial management accountabilities.

Roles & Responsibilities reflect the expected financial management responsibilities of Business Managers, Senior Management, and Financial Officers. The Roles and Responsibilities reflect the concept that financial management is everyone’s responsibility.

Processes are the means by which the FMF is operationalized. The FMF identifies financial management process standards for resource allocation, revenue and expenditure management, asset and liability management, transactional procedures, and ongoing monitoring and assurance.

Enablers are the underpinnings of the FMF, and represent the essential elements that must be in place across the Department. Enablers include visible senior management commitment, skills and knowledge capabilities, and quality integrated financial management information that is transparent, timely and reliable, supported by appropriate financial management systems and tools.