Maximising internal controls & managing risks within a government finance department : account-ministry for finance

Abstract

The main purpose of this study is to understand better to which extent internal controls & risk management are being implemented in the Corporate Services Directorate, Accounts Section, Ministry for Finance. The main objectives of this study are: Identify why internal controls & risk management are important, what is to be accomplished by their implementation & what should be done in order to maximise controls & manage risks; Getting a good picture of the current situation in other accounts government sections to tackle the public service risk analysis; Assess the level of awareness by headship positions of the Ministry for Finance with respect to Risk Management & control concepts by interviewing them & analyse the daily operations; Using the main findings to compile a sample risk register to be implemented & adjusted according to the needs of the accounts section. The main data sources consisted of qualitative type data collection i.e. structured interviews conducted at the Accounts Section, MFIN. I acquired feedback of what's going on, what are their perspectives about the subject & what situations the department is currently facing. I also did documentation analysis from NAO Audit Reports, international publications, local journals, articles and other online material and related subject books. The final stage of this study includes a number of recommendations in order to help strengthen control functions & implement them according to the relevant circulars & regulations, and above all help improve the current situation with respect to Risk Management & control in the Accounts Section. The main conclusions derived showed that risk management is still in its infancy phases. Government Departments suffer from lack of resources which was even felt in this department. This is a limiting factor to the adoption of a complete strategic approach to risk management, however things are on the right track. The importance of having more training courses which cater the status of risk management in a government finance department is continuously being emphasised in order to be more aware on the development of risk management competence. The ultimate responsibility for implementing risk assessments rests on the management of the department.