Question

What are the requirements for financial probity?
In your response provide an overview of what financial probity involves and the impact it has upon
the organisations financial activities.

Answer 1

Financial probity is strict obedience to a code of ethics based on honesty, especially in commercial or monetary matters and beyond legal requirements.

Requirements for financial probity

• Follow all legislations, policy, guidance and mandatory requirements
• Officials must follow ethical standards
• Treat all the participants in tender activity, fairly and ethically. Treat them equally
• Maintain confidentiality of participants
• Apply public sector values
• Identify and manage the conflicts
• Ensure that the tender process are auditable and transparent

Financial probity involves systems, procedures and process that the business use to minimise the risks in financial transactions. These includes purchasing of materials, payments to employees, payments to creditors, contracts etc. Financial probity involves checking of previous activities and transactions in the organisation in respect of both legal and financial area.

Financial probity is relevant for government contracts that deals with public money. It checks the history of financial and legal transactions. For partnership arrangements also financial probity is relevant. Financial probity brings about economic growth and development. It enable effective management of public resources. Financial probity acts as a safety net for all financial segments such as strategic planning, revenue management, accounting, audit etc.