A seminar on Public Internal Financial Control
was launched by the Hon Prime Minister Dr
Lawrence Gonzi this morning.
The programme outlines the Public Internal
Financial Control (PIFC) concept which will
provide a structured and operational model to
assist the national government in re-engineering
the internal control environment so as to ensure
that public funds are safeguarded.
The management functions within the Public
Sector need to be continuously upgraded to
embrace the best practices employed by modern
management. The public internal financial
control is the common thread that will provide a
framework that ascertains internal, adequate and
transparent methods that will serve as a roadmap
in guiding government officials within the
public sector and government service to assure
that public funds are spent wisely and utilised
in accordance with the objectives identified by
Government and approved by Parliament.
In addition, the environment created by a
functioning public internal financial control
framework provides an effective tool in the
prevention of fraud and corruption.
The Government has identified this initiative as
one of the important tools by which the
effectiveness and efficiency of the Public
Sector will be enhanced. This encompasses the
strengthening of the internal audit function of
Government.
The Internal Audit and Investigations
Directorate falls under the Cabinet Secretary
and shall be investing heavily in its resources
and addressing not only public finances from an
ex post point of view, but will also focus on an
ex ante approach by entrenching internal
controls within the Public Sector.
The public internal financial control framework
is built upon three fundamental concepts:
managerial accountability, internal auditing and
the harmonisation of a common approach
throughout Government. Together these three
provide a framework where decentralisation is
embraced and facilitated by a centralised
monitoring and control framework. Such a
control environment will be bolstered by
Government through a number of new initiatives
that will be taken in the coming months.
The PIFC framework has a track record of success
in other countries, and it is strongly
recommended for top management to get thoroughly
acquainted with the state-of-the-art internal
control environment so as to assist Government
in its mandate.
