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Public Resource Management 1 Previous Exam Answers
- Institution
- University Of South Africa (Unisa)
Past exam papers covering all exams since the launch of the Public Resource Management 1 (PUB1504) UNISA Module
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By: rockymahlako95 • 6 months ago
By: mboledim • 3 year ago
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PUBLIC RESOURCE MANAGEMENTPUBLIC RESOURCE MANAGEMENT I (PUB1504)
BASIC PROCESS IN FINANCIAL MANAGEMENT
1. Budgeting: Determining the income and capital required to finance the expenditure
planned by preparing detailed budgets.
2. Safeguarding: Implementing controls to ensure that the income, capital and assets such
as money and motor vehicles are safeguarded against improper use, loss or theft.
3. Monitoring: Monitoring actual results and performance against those budgeted through
management reporting. Checking to see that you get what you pay for.
4. Accountability (Financial Reporting): Reporting to all stakeholders by preparing
financial statements which are audited by the Auditor-General.
FIVE COMPONENTS OF THE SPECIFIC ENVIRONMENT OF A PUBLIC INSTITUTION
1. Regulators mediate, control or regulate the relationships between the institution and its
suppliers, consumers and competitors. They are vested with the authority to determine
enforceable rules with which the institutions falling under their authority have to abide.
2. Suppliers produce, mobilise and allocate various resources to particular institutions. In
public institutions, financial resources are mobilised by taxes, levies or service charges
and are allocated to public institutions according to political and policy priorities.
3. Consumers comprise the users of the products or services provided by the particular
public institution. They may make voluntary use of services or they may be compelled to
consume them.
4. Competitors consist of those societal institutions competing for scarce resources with the
public institutions concerned. In many instances, public institutions are monopolies.
5. Other aspects from the environment that influence the availability and management of
scarce resources, such as finances, include policy and planning influences, systems
design influences, implementation influences and evaluation influences.
FUNDAMENTAL GOALS OF GOVERNMENT
The fundamental goals of government have certainly seen many changes over the centuries.
Earlier views on governments’ main obligations were based on the laissez-faire approach to
governing. In terms of this view, the main role of a government in the past was to maintain law
and order and protect the lives of its citizens.
Outcomes of this were that government could not interfere in the economic and social activities
of its people. The obvious result from this situation was that the rich became richer and the
poor never seemed to progress.
Another outcome of this situation was that the governments realised that they were not gaining
any financial income from citizens, who while enjoying the protective structures that
government ensured, were not contributing to governments’ financial well-being at all. Instead
they were simply ensuring the increase of their own bank balances.
Thus governments came to realise that it was necessary to collect taxes according to the
income of their citizens, while still ensuring the economic freedom of the citizens. While these
changes ensured the growth of government finances, they still failed to address the imbalance
among the citizens in terms of their financial status.
, Once again it was necessary for governments to review their governing approaches. Many
governments turned to the system called the economic welfare state, emphasising the
individual’s economic welfare. The advantage of this system was that individuals were
encouraged to care for their own social well-being.
The more modern approach to governing therefore says that the economic welfare state
should be supported by democratic principles. This ensures that the overall well-being of all
the citizens receives attention.
ECONOMIC GOALS OF GOVERNMENT
The economic goals of government, like the fundamental goals have also seen changes over
the years. It is essential that governments play a major role in the allocation and distribution
of resources. However, it is essential that governments do not go to extremes in their attempt
to ensure control over the economy (as is the case in the system of socialism). Instead,
governments need to recognise that in order to encourage economic growth and development,
they need to create and sustain an unhampered market situation.
THE NEED OF FINANCIAL REGULATIONS IN THE PUBLIC SECTOR
There is a definite need for regulations when dealing with public sector finances. Regulatory
exercises may, for example, be used to inhibit the sales of certain items and to promote the
economic goals of other aspects of the public sector.
Regulations also serve to ensure that certain functions, such as cash management, are carried
out equitably and honestly, ensuring that the foundations of the public sector, such as
transparency and accountability, are adhered to.
It can also be argued that these regulations serve as an instructional guide to the various role-
players in the public sector, i.e. ensuring that they understand the procedures to be followed
in cash management and other general issues relating to public finance. The regulations also
create an understanding of the necessity for consistent procedures which will ensure that the
cost-effective utilisation of resources remains a priority.
PROCESS OF CASH MANAGEMENT IN THE PUBLIC SECTOR
Cash management in the public sector can be considered to be more than simply ‘managing’
cash. Rather, it can be said to be a process involving the:
collection of public money
use of this money between the time it has been received and the time it is disbursed
(note that this money must be used in a manner reflective of the public’s interest)
disbursement of these funds
Another view of effective cash management is that it consists of:
an assessment of the seasonality of revenues and expenditure
the preparation of forecasts of cash requirements
the adoption of the portfolio management approaches to optimise the liquidity
positions so that cash is available when needed
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