Financial controls in Maltese government authorities : a comparative study

Abstract

PURPOSE: The aim of this research is to look at the financial control environment present in Maltese government authorities. It initially looks at current financial legislation and analyses the extent to which financial controls within these authorities are in line with it. It then goes on to analyse the strengths and weaknesses of these controls. The research also attempts to establish whether the current legislation needs to be updated to reflect better today’s control environment. DESIGN: A qualitative research methodology was deemed the best approach in order to be able to better understand, analyse and comment on issues of financial control in government authorities. Face to face, flexible, semi-structured interviews were considered as the best research tool to use in order to explore and understand this new area of study. Interviews with high ranking officers from participant authorities and with the NAO were conducted. FINDINGS: The term financial control means different things to different people. Participating authorities do follow current legislation. Officers agreed that the current legislation needs to be updated, with the NAO mentioning the need for more accountability. The strengths and weaknesses in the control system present in the participating authorities vary in the different areas of financial control. CONCLUSION: This study highlights the importance of having a sound financial control system in Maltese government authorities. However, it also outlines the fact that financial control systems need constant improvement, especially in areas like risk assessment. The current legislation also needs to be updated to reflect better the needs of such control systems. VALUE: The dissertation shall encourage more research, especially in the area of financial control within the public sector to further increase the knowledge about control systems.