Local Public Financial Management

Local Public Financial Management

The local public financial management is a branch of economics that involves the collection of sufficient resources from the local and public sections in a particular economies or country (Shah, 2007). The internal control of these resources is their effective and efficient management through their allocation to ensure acceptable incomes by the people and stability of the local and public economies in a given city like Verdemont (Matthew, 2008). The local government of such city should ensure its internal control is effectively enhanced to ensure the cities activities have effective administration and design approaches especially on finance projects in the city (Shah, 2007). This involves the how incomes are generated, the allocation of the various resources collected and their appropriate expenditure of the resources on the city to ensure achievement of already set financial goals.

Statement

On designing an internal control system for a City like Verdemont, one needs several control activities that ensure an effective and efficient system. The control activities usually made should abide to internal control standards developed and managed by a main centralized authority mainly chosen by a legislative body (Chorafas, 2000). For any internal control system, we should have several control strategies that are very effective (Shah, 2007). First and for most, a good split knowledge through trainings and management of skills should be maximized to ensure orderly and effective achievement of results by the concerned people. The usage of electronically enabled equipments will ensure good monitoring and follow up of all the auditing equipments. There should be clear division of authorities’ example,...

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...and prioritization of the programs to be involved. Also the efficient control of budgetary processes should be encouraged plus a good management of their resources. Apart from the encouragement of these budgetary resources, their exercising should be highly backed up. These will ensure the local public financial management positively affects the internal controls of the city either directly or indirectly. Also emphasis on the citizen’s value for money is done hence making public and local finance management very vital.

Works Cited

Chorafas, N. D. (2000). Reliable financial reporting and internal control: a global implementation guide: New York: John Wiley Publishers.

Matthew, L. (2008). Designing High - Performance Risk Control Systems. Chicago: Gower Publishing Ltd.

Shah, A. (2007). Local public financial management. The World Bank Publishers: Washington.