MPA 508: Public Financial Management and Governance (elective)

Public demand for excellence in the management of public resources has never been stronger. This module seeks to prepare leaders and individuals without sufficient finance background to effectively assume major financial management responsibilities within their sphere of work. As many public servants climb up the career ladder they are required to manage human, financial, and other resources. Thus the overall aim of this module is to equip public sector managers with public sector corporate governance and financial management knowledge, analytical tools, and practical skills that will enable them to contribute to the effective management of finances in public organizations.

Intended Learning Outcomes:

By the end of this study students should be able to:

  • Explain the meaning and scope of Public Sector Corporate Governance.
  • Explain the link between Corporate Governance and Financial Management in the Public Sector.
  • Explain the core elements of financial management in the Public Sector.
  • Describe the Legal and Policy Framework of Public Finance Management.
  • Use the knowledge gained to apply to real life situations in their areas of work.
  • Reflect critically and discuss lessons from the implementation of the Financial Management Reforms that the country has taken over the years.

1. Understanding Public Sector Corporate Governance and Financial Management

  • Meaning of Corporate Governance.
  • Corporate governance theoretical framework: Agency, Transaction cost  and, Stakeholder theory
  • Principles of Public Sector Corporate Governance.           
  • Public Sector Corporate Governance and Financial Management.
  • Elements of Public Financial Management.

2. The Legal and Institutional Framework of Public Financial Management in Malawi

  • Key Features of the Malawi Public Finance Management system.
  • The Legal and Policy Framework of Public Financial Management in Malawi: Salient Features and Gaps.
  • The Institutional Framework: Institutions, Actors and their roles  and relationships
  • Intergovernmental Fiscal Relations

3. Public Sector Budgeting

  • Understanding budgeting, basic elements and types of public sector budgets.
  • Functions of the budget in public sector management.
  • Budgeting Approaches: General and Malawi
  • The budget development processes in Malawi:  Legal and policy framework, structures, actors, and processes.
  • Budget implementation and performance management: monitoring, review, reporting, and control.                                                                                                     

4. Cash Management

  • Public sector revenue and cash management
  • Elements of Cash Management and its importance.
  • Policy framework and operational procedures of cash management.
  • Opportunities and challenges of cash management in Malawi.

5. Procurement Management

  • Policy framework for procurement in Malawi.
  • Structures and role players in public procurement.
  • Planning, execution, and monitoring of procurement operations.
  • Opportunities and challenges of procurement management in Malawi.

6. Internal Control

  • Defining Internal Control.
  • Objectives of internal control systems.
  • Internal Control Principles and Procedures.
  • Classification of Internal Controls: Organisation and Procedural Controls.
  • Risk assessment and system reviews
  • Internal Control systems within Malawi’s Public Finance Management Framework: Prospects and Challenges

7. Fiscal Accountability and Transparency

  • Mechanisms of Financial Accountability and Transparency
  • Internal and External Auditing.
  • Financial Reporting.
  • Key institutions, actors, and processes.
  • Understanding and Interpreting Financial Statements.

8. Public Financial Management Reforms in Malawi and their implications

  • Reform measures and factors driving the reforms:
  • Implementation of the Reforms and their outcomes.
  • Prospects, Challenges, and Lessons.

Assessment:

  • Continuous assessment:        50 %
  • Examinations:                         50 %

Teaching and Learning Methods:

  • Lectures.
  • Interactive tutorial sessions based on guided reading and case studies.
  • Guest lecturers and presentations from practitioners.
  • Seminars and student paper presentations.

Prescribed Texts:

Erasmus and Visser (2002), The Management of Public Finance: A Practical Guide. Cape Town: Oxford University Press.

Guthrie, James, Humphrey Christopher, Jones and Olson (2005), International Public Financial Management Reform: Progress, Contradictions, and Challenges.

Schiavo-Campo, S. and Tommasi, D. (eds.) Managing Government Expenditure. Manila: ADB.

Key Government Documents:

Malawi Government (2003), Public Procurement Act, 2003. Government Printer: Zomba

Malawi Government (2003), Public Finance Management Act, 2003. Government Printer: Zomba.

Malawi Government (2003), The Taxation Act, 2003. Government Printer: Zomba

Malawi Government  (2009), Budget Manual

Malawi Government (2005), The Value Added Tax Act, 2005. Government Printer: Zomba.

The Malawi Constitution

Malawi Government (2003) Public Audit Act, 2003. Government Printer: Zomba

Malawi Government (1998), Corrupt Practices Act, 1998. Government Printer: Zomba

Treasury Instructions- Finance, Stores, Procurement

Recommended Readings:

Aman Khan, W. Bartley Hildreth (2004), Financial management theory in the public sector.

Aman Khan, W. Bartley Hildreth (2003), Case studies in public budgeting and financial management.

Robinson, M. (ed.) (2007) Performance Budgeting: Linking Funding to Results. London: Palgrave Macmillan in association with the IMF.

Diamond, J. and Khemani, P. (2005) ‘Introducing Integrated Financial Management Systems in Developing Countries’. Working Paper. Washington, DC: IMF.

Paolo de Renzio, Matt Andrews and Zac Mills (2011), Does donor support to public financial management reforms in developing countries work? An analytical study of quantitative cross-country evidence. London: Overseas Development Institute.

Published Apr. 17, 2015 4:30 PM - Last modified Oct. 28, 2020 11:22 AM
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