A public sector integrated financial governance framework

[摘要] Using an investigative approach the study starts by outlining the governancequandary that exists within the public sector, with observations made over thepast decade by scholars and active role players in the governance arena bothin the private sector and in the public sector. It continues to show a growingneed for good governance in the public sector, especially in the developingeconomies of emerging democracies. It uses South Africa as an example inthis regard, although the discussion can just as well be applied to othercountries finding themselves in a similar situation. It places the governancedebate in perspective and provides the background for the development ofthe Public Sector Integrated Financial Governance Framework (IFGF).A brief look is taken at the reasons for the growing focus on governance ingeneral, governance in the private and public sector, the need forgovernance, the basic dynamics of governance, stakeholder relationships, theregulatory framework and the role of the judiciary. It then places thisunderstanding of governance – from a financial perspective – within the SouthAfrican context.Using the South African context the study discusses the need for an IFGF,the basic requirements for such an IFGF and then as a response proceeds todiscuss the role of values and principles, functional application areas andgovernance-related activities in an IFGF. It develops a financial governanceuniverse, which provides an overview of the various subsections within theseaspects. From this basis the study proceeds to develop the IFGF by identifying specificprinciples and values applicable to South Africa, followed by a description offunctional application areas consisting of leadership, management and controlpractices required as a minimum to ensure healthy public sector financialgovernance. It continues to develop governance-related activities based onexisting frameworks recognised by public sector agencies globally and insome instance, designed for the private sector. The study proceeds todevelop these areas to enable employees in the public sector to dischargetheir duties in a manner that can form the cornerstone in governanceexcellence.Having used a deductive approach during the first few chapters to developthe IFGF, the study then proceed using an inductive process to construct theconditions and the related activities required by the IFGF. It developsdetailed information on specific activities that must be in place for the IFGF tobe functional. These activities provide the 'how and are grouped togetherbased on a recognised framework. Governance effectiveness depends on asituation where all areas are considered.Lastly the study focuses on the conclusions regarding the IFGF outcomesand therefore discusses the implementation of the IFGF and the impact onthe accounting system, measuring governance and keeping the IFGFupdated with developments internally and externally.The study shows the growing importance for developing countries andemerging economies to demonstrate healthy governance processes andpractices. However, no consensus yet exists on the approach or methodology, particularly with regard to building national ownership of andpolitical commitment to governance (Landell-Mills, 2003:369). Fortunatelysimilar initiatives have been forthcoming from a number of countries and,although they are each focussed differently, they provide a base fordeveloping a public sector IFGF for South Africa in particular, but can also beused as a guideline for other emerging democracies. Developing thegovernance universe facilitates the process of keeping track of a multitude ofpossibilities that are relevant in day-to-day management.The study determined the applicable criteria that an IFGF must satisfy toattract attention when funding is required from the donor community and toprovide assurance to stakeholders with limited skills and knowledge thatobjectives are achieved effectively and efficiently in an ethical environment.The benefit of this framework is that it has passed the first scrutiny in SouthAfrica namely that of the Provincial Treasury of the Provincial GovernmentWestern Cape (PGWC) public sector audit committees in the public sector(PGWC) and is currently being subjected to a four-year implementationprocess, starting with an awareness phase in all Departments of the PGWC.During this process the senior management of all the departments are beingexposed to the principles contained in the IFGF and their practicalobservations and suggestions will be applied towards formulating an updatedversion of the Governance Framework of PGWC (Draft version 2.20e).This is significant, because it represents a healthy interaction betweenacademic research and practical application, a process that is more oftenthan not balanced, but appears to be in favour of either the one or the other.

[发布机构] Stellenbosch University