Contextualising the measurement of governance in public financial management

Abstract

Governance is the exercise of authority, direction and control of an organisation to ensure its goals are achieved. It refers to who is in charge of what; who sets the direction and the parameters within which the direction is to be pursued; who makes decisions; who sets performance indicators, monitoring of progress and evaluates results; and, who is accountable to whom for what. Governance includes the structures, responsibilities and processes of the organisation to direct and manage its future operations. Good governance portrays good management, good performance and good stewardship of public money. The purpose of this article is to focus on the financial context of good governance.