Public Financial Management
What makes for good public financial management?
Without good financial management, there is an increased risk of inefficient use and mismanagement of funds.
SPARC focuses on three important areas of public financial management: managing resources, controlling fiduciary risk, and improved management.
SPARC works towards three goals in managing resources: better fiscal management (to ensure that Nigeria’s financial resources are used efficiently and effectively), better resource allocation (to ensure that taxes are used efficiently and that funds are released to spending ministries on time), and greater technical efficiency (to ensure that contracts are completed on time, funds distributed promptly and any inefficiency properly investigated).
Controlling fiduciary risk
Governments have a duty to act responsibly when handling the country’s or State's funds and not take unwarranted risks (this is known as fiduciary responsibility). SPARC is working with Nigeria’s government to achieve three goals in relation to this issue:
- Proper accountability and transparency – this means helping government staff and politicians become accountable for what they do, for example by making budget and audit reports publicly available.
- The use of funds for their intended purpose – this means helping put in place mechanisms to check that money is spent on the purpose for which it was intended, such as building schools or roads.
- A sound financial control framework – this means helping to establish public financial control systems that provide for regular audits and ensure funds are not misused.
SPARC works to help improve managerial skills. Skilled managers are better placed to make informed financial decisions as they base decisions on careful analysis of past, current and projected financial flows of funds.
For information on improving financial management, please email PFM team.