Public Financial Management
The public sector is the largest employer and goods and services provider in most economies. More and more, the public are demanding greater accountability from its government, visibility of the decision-making process and participation in that process to influence how public money is being spent. It is thus, critically important that this sector of the economy is operating efficiently and its finances are well managed.
Focus on Public Financial Management
Resilient public financial management systems are central to good public sector governance. They are built around budget reliability, transparency, predictability and accountability. Uncertainty and volatility of recent years has made some of these objectives difficult to achieve, yet they are fundamental to the health of a country's finances and its citizens' wellbeing.
"The COVID-19 pandemic revealed that many PFM systems were not sufficiently resilient, which contributed to the widespread adoption of crisis budgeting measures."
2022 PEFA Global PFM report
2022 PEFA Global PFM report
Areas of expertise
Strong PFM systems that are adaptable and resilient are the centre-focus for governments who want to overcome crises and be prepared for unexpected events. Sequential PFM reform is critical to a successful program of strengthening PFM systems with careful curation and supervision every step of the way.
Whether it is PFM system gap analysis, assessment and diagnostics, policy and procedure development, process design and implementation - we can provide an in-depth analysis of the status quo, a roadmap for implementation and a systematic approach to execution.
Whether it is PFM system gap analysis, assessment and diagnostics, policy and procedure development, process design and implementation - we can provide an in-depth analysis of the status quo, a roadmap for implementation and a systematic approach to execution.
Good corporate governance sets out the procedures and policies, culture and approaches of a public sector entity from which every aspect of its operations are then built. Having sound corporate governance practices in place is critically important in the public sector due to its impact on planning, resource allocation and expenditure decisions, the extent of accountability, transparency and effective service delivery to the citizens.
Our team can support in developing corporate governance frameworks and designing and implementing business-process flows adapted to public sector business models.
Our team can support in developing corporate governance frameworks and designing and implementing business-process flows adapted to public sector business models.
Public sector audit, accounting and reporting is more complex than in the private sector and requires a tailored approach and non-standard view of the internal processes, financial information user needs and organisational capabilities. We focus on the specific requirements and operating model of each client to design accounting and reporting systems that are sector and entity-specific.
The adoption of IFRS and IPSAS in the public sector is a critical step towards transparency, comparability and accountability of financial information. Alignment to the global standards on accounting and reporting positively impacts operational efficiency of public sector entities, increases foreign direct investment and efficiency of capital markets and improves performance of public service delivery.
With extensive experience in gap analysis and policy design in the context of standards adoption, leveraging AI-capabilities for tailored and localised solutions, we are well-placed to deliver impact.
The adoption of IFRS and IPSAS in the public sector is a critical step towards transparency, comparability and accountability of financial information. Alignment to the global standards on accounting and reporting positively impacts operational efficiency of public sector entities, increases foreign direct investment and efficiency of capital markets and improves performance of public service delivery.
With extensive experience in gap analysis and policy design in the context of standards adoption, leveraging AI-capabilities for tailored and localised solutions, we are well-placed to deliver impact.
At the core of PFM systems is the budget encompassing planning, approval, execution, reporting and evaluation processes. Good budgeting is characterised by accurate forecasting, sufficient legislative oversight, efficient controls over execution, timely and comparable reporting and audit ensuring transparency.
LMC supports public sector entities in building strong budgeting processes, from developing budgeting policies and templates to implementing robust controls and building capacity of budgeting units.
LMC supports public sector entities in building strong budgeting processes, from developing budgeting policies and templates to implementing robust controls and building capacity of budgeting units.
Effective cash management requires sufficient data, agile modelling and discipline and itself drives budgetary discipline by ensuring predictability and control, timely communication of budget ceilings and cash transfers, reconciliations and TSA implementation. LMC can support public sector entities in enhancing cash planning and management processes and establishing procedures and policies for long-term sustainability.
One of the key weaknesses of many countries' PFM systems, public investment management involves project appraisal, selection, costing and monitoring. Making sure that all of the steps in the investment cycle are transparent and are not only a compliance exercise will ensure that public funds are spent well on projects that benefit society and achieve the desired outcomes whilst being efficient, effective, economical and equitable. LMC provides support in building the foundations for adequate appraisal and selection of projects, helping public sector officers correctly cost and monitor project execution leveraging global assessment and implementation tools like PEFA and PIMA.
One of the areas of PFM that carries significant risks of fraud, procurement is critical to effective functioning of PFM processes. To ensure that procurement is competitive and transparent, we help governments implement procurement practices that answer to today's challenges and consider international best practices.
The internal audit function is a partner to the organisation, not a warden. An internal audit function that is embraced by the internal stakeholders will support the organisation with conducting internal audit assessments to improve internal control systems, provide consultations and valuable insights to aid sound decision-making, ensure more accurate planning and compliance.
We provide independent evaluations of the internal audit function in accordance with IIA Global Internal Audit Standards and support organisations in their internal audit engagements via co-sourcing and out-sourcing arrangements.
We provide independent evaluations of the internal audit function in accordance with IIA Global Internal Audit Standards and support organisations in their internal audit engagements via co-sourcing and out-sourcing arrangements.
A sound internal control system is the foundation of accountability, transparency and value for money service delivery that are fundamental to modern and sustainable public sector organisations. An effective internal control system, developed to fit the public sector entity context will help achieve strategic objectives and operational effectiveness, prepare accurate and reliable financial reports, safeguard public assets and manage increasing risks.
We partner with the organisation's management to design, implement and assess internal control systems to improve effectiveness and sustainability of performance and internal operations.
We partner with the organisation's management to design, implement and assess internal control systems to improve effectiveness and sustainability of performance and internal operations.
The design and implementation of a risk management framework is a make-or-break decision not just in the private sector. Climate, compliance, fiscal risks are fluid and forever-changing and risk management has been transformed from an afterthought to a central element of public financial management.
To help navigate through the ever-shifting environment, we assess, design, implement and enhance risk management frameworks adapting them to the current operating context. Together with public sector managers we aim to design programmes that are flexible and adaptive to the organization's needs.
To help navigate through the ever-shifting environment, we assess, design, implement and enhance risk management frameworks adapting them to the current operating context. Together with public sector managers we aim to design programmes that are flexible and adaptive to the organization's needs.
PFM Advisory Framework
PFM Advisory Framework is an integrated framework developed by Lynceus Management Consulting (LMC) to support the public sector entities in designing and implementing PFM reforms at national, subnational, organisational and functional levels.
PFM Advisory Framework leverages global and regional diagnostic tools, international and national requirements to identify, assess and validate institutional and capacity-rooted weaknesses of country PFM systems. It is a systematic approach to transforming diagnostic gap analysis and assessment findings into practical PFM reform design and implementation activities, with step-by-step operationalisation assistance.
- Leveraging existing tools and guidance.PFM Advisory Framework is built on the body of existing toolkits and guidance developed by global organisations such as World Bank, IMF, INTOSAI and OECD so not burdening governments with new and additional tools.1
- Designing practical solutions.LMC draws on first-hand experience to design and implement PFM reform solutions that are practical and sustainable when the driving factor is visible result in an environment of constant change and uncertainty.2
- Public sector expertise.LMC team has extensive expertise and understanding of how public sector entities operate - key business processes, information flows, related risks and controls, challenges and opportunities ensuring that proposed solutions are relevant and contextualised.3
- Working in partnership.LMC works in partnership with the public sector. Instead of suggesting off-the-shelf solutions, we listen and design approaches to PFM reform that are bespoke but agile in delivery, saving and money time yet ensuring a good fit.4
Next capability
PAOs
Capabilities
Expertise
Contacts
- Lynceus Management Consulting, 201- Al Suaidi, Deira - Al Marrar, Dubai, UAE
- lmc@lynceusconsulting.com
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