The strategic role of a CFO in the public sector: indicating relevant legislation

to their duties
CFO is a key member in the top leadership and the financial stability, and performance of
governments and public sector organizations are closely linked with quality and professionalism
of the Chief Financial Officer.

Have to prove their expertise but in the confines of the legislation and being responsive to
political priorities as compared to pvt sector CFOs.

quality and professionalism equate private sector cfo despite working under an environment
with complex legislature and policy

1. Roles as conferred by Chief Financial Officers Act

Chief Financial Officers Act of 199062. – United States

i. developing and maintaining integrated accounting and financial management systems;

ii. directing, managing, and providing policy guidance and oversight of all agencies’
financial management personnel, activities, and operations;
iii. approving and managing financial management systems design and enhancement
projects;
iv. developing budgets for financial management operations and improvements;
v. overseeing the recruitment, selection, and training of personnel to carry out agency
financial management functions;
vi. implementing asset management systems, including systems for cash management,
credit management, debt collection, and property and inventory management and
control; and monitoring the financial execution of the agency budget in relation to
actual expenditures.

2. Chief Finance Officer Handbook –South Africa

i. maintaining a close liaison with the accounting officer and the management team.
ii. responding to changing needs for financial information and advice.
iii. making a contribution to the financial aspects of the strategic planning process.
iv. ensuring that internal financial targets and budgets are fully consistent with the
strategic plan and relevant agreements with government.
v. managing working capital, assets, and liabilities.
vi. managing the accounting and finance staff.
vii. expenditure management.
viii. revenue management (where applicable).
ix. meeting reporting requirements as required in terms of financial management
legislation.
x. maintaining systems of internal control, which comply with internal audit
requirements.
xi. undertaking product and service costing tasks. (VFM)

3. Public Finance Management Act

In 2009, the Public Finance Management Act (Chapter 22:19) and The Public

Finance Management (General) Regulations, 2019, conferred the Director of Finance as the

person responsible for the financial affairs of a ministry, constitutional entity, or public entity and is
directly accountable to the Accounting Officer. Thus the Director Finance was assigned the duties of
a CFO by the statute.

Responsible for:

a) expenditure of money appropriated to the PS department;

b) all revenues and other public money received, (inc. cash management, banking)

c) Compliance with public finance management statutes and all instructions from the Accountant-
General in respect of managing all assets.

d) Management of Liabilities

e) timeous preparation and submission of monthly, quarterly, and annual financial statements to
their accounting officer and to the Accountant-General.

f) Providing inputs to the annual budget process

g) dealing with Internal Audit and Internal Controls

h) dealing with Financial Misconduct

In general, has responsibility for running all financial affairs of public sector on behalf of the
Accounting Officer.