Effectiveness of financial management in public sector a case of Department of Employment and Labour, the Eastern Cape, South Africa

Abstract

An investigative study evaluated a financial management framework's effectiveness in resolving financial management issues and improving financial performance. The researcher utilized quantitative research methods such as probability sampling and descriptive statistics for data analysis, including Pearson-Pearson correlations and multiple regression analysis to test hypotheses. The study adhered to ethical standards by ensuring participant protection, privacy, confidentiality, anonymity, and informed consent. Data analysis revealed key themes including internal controls, financial governance, financial reporting, financial management, and financial reconciliation. It was found that the department lacked training for finance employees, knowledge from external auditors, budget monitoring mechanisms, accurate fixed assets reconciliation, and a system to prevent irregular expenditure. Recommendations included reviewing training policies, providing workshops for finance officials, ensuring audit readiness, strengthening duties and responsibilities, implementing systems to prevent unauthorized access, introducing expenditure approval templates, and requiring budget approval before expenditure. The study found that the existing financial management framework is effective but identified areas in need of improvement.