The Ministry of Finance is facing significant challenges due to a shortage of internal auditors within government ministries, which is exacerbating audit-related issues. Permanent Secretary Shiri Krishna Gounder addressed this crisis during a submission to the Standing Committee on Public Accounts, highlighting that the fundamental problem stems from broader capacity limitations within the public sector.
Mr. Gounder emphasized that merely hiring internal auditors is not sufficient. He pointed out that many finance teams in various ministries lack the essential skills and experience required to navigate the complexities of government financial operations. He noted, “When ministries hire accounting staff, they often lack sufficient experience with government operations, leading to a trial-and-error approach that results in errors and inefficiencies.”
In response to the ongoing financial management challenges, the Ministry is committed to supporting ministries in building internal audit teams, contingent upon the availability of budgets. He reiterated, “Strengthening the capacity of accounting teams should be the primary focus,” stressing that many systemic issues could be resolved if the right expertise were in place.
Another significant hurdle noted by Mr. Gounder is the lack of centralized control over government finances. The decentralization of finance management, which has placed responsibility on individual finance secretaries within each ministry, adds complexity to the goal of ensuring consistent financial operations across the government. “We need to explore options for some form of centralized oversight, especially in terms of staffing,” he stated, reflecting on the need for structural reforms to improve financial management.
To foster positive change, the Ministry of Finance is determined to enhance the skills and capacities of finance teams throughout the public sector. Mr. Gounder believes that investing in staff training and resources is crucial for overcoming the systemic limitations that currently hinder progress. With the right focus and collaboration, there is potential for significant improvements in financial management within government agencies.
This situation highlights not only the challenges faced by the public sector but also an opportunity for growth and development in financial governance. By addressing these staffing and training gaps, the Ministry of Finance can ultimately lead to more effective financial practices that benefit government operations and public trust.
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