The recent global financial crisis has resulted in a number of positives in the public sector globally, including a greater focuson risk management, increased recognition of the need for transparency and an ongoing focus on improving service delivery.
These are among the findings of a new international Grant Thornton report, “Public financial management reform in a period of global adjustment”.
The report shows that public sector entities around the world are grappling with very similar issues to those facing the South African public sector.
Many governments did not sufficiently employ risk management into their public financial management (PFM) practices prior to the economic meltdown, according to the report. It also highlights the fact that governments are now more widely focused on more efficient and effective service delivery.
A key trend — with over 65 percent of respondents citing it — is a focus on improving public procurement to address the need for more effective outcomes of the process and better value for money.
PFM is evolving during this post-crisis period with a greater emphasis on managing risk and more focus on the efficient, effective use of resources to better meet the needs of citizens.