Tag Archives: #publicsector

WHAT BUDGET HOLDERS NEED TO KNOW

| March 12, 2026

Effective financial management, budgeting and control should underpin the operations of all public sector and nonprofit organisations. The reason being that they are responsible for public funds, and need to ensure value for money. In the current environment public sector budgets are being challenged to deliver more for less. This requires all those tasked with spending public funds to take ownership of their budgets and be accountable for their use. Many budget holders are skilled professionals in specific disciplines but may not have any knowledge or experience in being responsible for a budget. This increases the challenges faced in ensuring public funds are managed and controlled. Often training and development budgets face constraints which result in only “essential” training being funded and delivered. We consider that finance training should be in that category, but often it is not. There are many areas that we consider that anyone responsible for a budget at any level should be fully conversant with and form part of their underpinning knowledge. What Budget Holders Should

Key Financial Management Challenges

| February 16, 2026

Many public sector and nonprofit organisations continue to face key financial management challenges. Tight budgets, rising service demands, and greater scrutiny mean finance teams and budget holders must work more efficiently and confidently than ever. Below are some of the most common challenges we see across the sector: Issue Description Overspend Risk Budget pressures often arise from limited forecasting skills, delayed financial information, or lack of confidence among budget holders. Weak Internal Controls Inconsistent processes and unclear responsibilities increase the risk of errors, non‑compliance, and governance concerns. Audit Findings Recurring audit issues highlight deeper gaps in skills or processes, particularly around documentation, controls, and financial accuracy. Poor Budget Monitoring Many managers struggle to interpret financial reports, leading to reactive decisions and late identification of variances. Grant Reporting Issues Managing restricted funds and meeting funder requirements can be complex, especially when multiple grants are involved. Skills Gaps in Finance Teams Both finance and non‑finance staff often need support to build confidence in budgeting, financial management, and internal controls. These challenges are

Robust Financial Management (RFM) for the Public Sector

| April 26, 2023

Robust Financial Management in the Public Sector (RFM) A necessity not a choice  What is robust financial management ? Firstly, we can define “robust” as follows: “Robustness is a characteristic describing a system’s ability to perform effectively while its variables or assumptions are altered. In general, a system is robust if it can handle variability and remain effective” (Investopedia) Public financial management refers to “the collection, management, and expenditure of public finances throughout an economy. The core objective of public financial management is to improve citizens’ lives through better management of public money.” (International Federation of Accounting) Combining these definitions, we can state that robust financial management in the public sector should be focusing on achieving the 4Es – Economy, Efficiency, Effectiveness and Equity in the use of public funds. This is in line with New Public Management (NPM) theories. NPM seeks to improve public sector management generally, including increased flexibility and transparency. This can be a challenging objective when public funds are limited, and the demands are high. Therefore,