Public Sector Governance and Accountability Series: Budgeting and ...

Budget Execution 303
personnel management issues that affects the budget needs to be prepared
in consultation with the ministry of finance and must be subject to similar
restrictions and controls as other items of public expenditure.
The areas in which the ministry of finance must be involved and that
should be integrated into the budgeting process concern the determination
of (a) personnel levels in line ministries, (b) long- and short-term financial
implications of staff reductions and retrenchment policies, and (c) financial
components of the pay structure for the civil service as a whole. The
organizational dualism that consists of making establishment boards responsible
for the creation of posts, while providing funding through the ministry
of finance, should be avoided.
administering the payroll and personnel databases.
The payroll is underpinned by a personnel database that
provides a list of all staff members who should be paid every month. This list
can be verified against the approved establishment list and the individual
personnel records.
The link between the personnel database and the payroll is key for
control of personnel expenditures. Therefore, the following actions should
be taken:
Required changes to the personnel records and payroll should be updated
monthly, generally in time for the following month’s payments.
Where they are computerized, personnel and payroll databases should be
electronically linked to ensure data consistency. Whatever the degree of
computerization, a monthly reconciliation procedure should be in place.
Any amendments required to the personnel database should be processed
in a timely manner through a change report and should result in an audit
trail. Authority to change records and payroll should be clearly defined.
Payroll audits should be undertaken regularly to identify ghost workers,
to fill data gaps, and to identify control weaknesses.
Value for money in procurement
The main objective of the government as a purchaser is to obtain goods
and services of the required quality at a competitive price. Procurement
procedures should provide fair opportunity to all bidders and should be
designed to achieve good value for money and to minimize risks of corruption
and patronage. 11
The legal framework should be aimed at enforcing the key principles
in procurement, which are open competition and transparent procedures.