Financial Regulation Act (2009) for PSAF

The Financial Regulation Act for PSAF (Public Sector Accounting and Finance) is different from the financial regulation for financial service firms in Nigeria. It is an act established by the federal government of Nigeria. And it is meant to regulate the receipt and disbursement of public sector funds. This article provides some knowledge on this. 

What is Financial Regulation for the public sector

It is an act established by the federal government of Nigeria through the Legislative arm that provides policies and procedures on how public sector funds are accounted for in the ministries, departments, and agencies (MDAs). The act specifies how the receipt and disbursement of funds are treated in public-sector accounting.

It contains several accounting manuals that are used in record keeping of public sector funds. This includes and is not limited to treasury cash book, revenue collector cash book, vote book, monthly transcripts, and imprest holders, among others. Aside from this, the Financial Regulation Act for PSAF specifies the steps government officials must comply with when dealing with public funds.

Therefore, the Financial Regulation Act must be complied with by all civil and public servants saddled with the responsibility of managing government funding. The office of the auditor general of the federation must ensure that these servants comply with the Financial Regulation Act for PSAF. This ensures that fraud, financial malpractices, and errors are detected early by the department of the auditor general of the federation as well as state government auditor general offices. 

According to section 105 of the act and as seen in the ICAN study pack, the Ministry of Finance has the power to provide new guidelines on the financial regulation of public sector funds. These guidelines must comply with government laws and policies. All tiers of government including MDAs must comply with the latest regulations provided through the Ministry of Finance. 

Importance of the Financial Regulation Act

The regulations were established to ensure proper accounting of public sector funds. It can be like the accounting policy of a private sector company. Therefore, it set out policies and procedures which must be followed by all civil and public servants in the public sector. Thirdly, it helps detect errors, fraud, and financial malpractices. Lastly, with the regulation, there is an organization of how government and taxpayer funds are managed and their accountability.