Menu
- 4 Marks
Question
Public sector entities have downplayed the role of quality financial reporting in public financial management. In recent times, the government has been encouraged by its developing partners to ensure effective financial management and reporting in the public sector by investing in people and processes. The developing partners have touted financial reporting as a major solution to public financial management requirements of developing countries.
Required:
Explain FOUR (4) objectives of financial reporting in public financial management.
Answer
Objectives of financial reporting in public financial management include:
- To provide financial information useful for determining and predicting the flows, balance, and requirements of short-term financial resources of government.
- To provide financial information useful for determining and predicting the economic condition of the government unit and changes therein.
- To provide financial information useful for monitoring performance under terms of legal, contractual, and fiduciary requirements.
- To provide information useful for evaluating managerial and organizational performances.
- To determine the costs of programs, functions, and activities in a manner that facilitates analysis and valid comparison with established criteria among time periods and with other sector ministries.
- Tags: Financial Reporting, Objectives, Public Financial Management, Public Sector
- Level: Level 2
- Topic: Public sector fiscal planning and budgeting
- Series: NOV 2018
- Uploader: Joseph