Financial Management and Social Accountability

Financial management and social accountability are important components to ensure  proper use of public funds. 

• two important aspects of organizational governance.

Financial Management:

• Effective allocation and utilization of public funds to achieve social objectives. 

• Involves budgeting, accounting, and financial reporting. 

• Requires planning, organizing, directing, and controlling of an organization's financial resources

• Ensures: efficiency, Effectiveness, Transparency

Social Accountability:

• mechanisms that hold public institutions accountable to the public they serve.

• involves citizen participation and access to information. 

• Ensures: Public Trust, Reduced Corruption, Improved Service Delivery

Links:

~Transparency 

~Citizen Participation

~Community Budget Monitoring

~Public Expenditure Tracking Surveys

~Social Audits

- creates a system where public funds are used effectively and ethically to serve the needs of the people.

- contributes to social accountability by ensuring the responsible and transparent use of public funds

- social accountability mechanisms, such as participatory budgeting, budget review and analysis, expenditure tracking, and performance monitoring, can enhance financial management by promoting citizen engagement, oversight, and feedback in the decision-making processes.

Financial Management in Nepal: 

• introduction of the Treasury Single Account (TSA) 

• optimized cash management and track the spending process through payments. 

• part of the government’s efforts to strengthen governance, optimize outputs from public resources, and ensure inclusive and broad-based development.

Social Accountability in Nepal:

• The Program for Accountability in Nepal (PRAN): 

• aims at developing the capacity of civil society and government actors to promote social accountability. 

• supports social accountability activities in three focal areas: public financial management, municipal governance, and public service delivery. 

• enhances the transparency, equity, and legitimacy of public finance and service delivery.