Enforcement of the PFM Act 2019: Finance Division told to form ‘internal audit policy board’

ISLAMABAD: The Cabinet Committee on Institutional Reforms (CCIR) Thursday directed the Finance Division to complete the consultative process and constitute the Internal Audit Policy Board as early as possible for quick implementation of Public Finance Management Act, 2019.

Federal Minister for Education, Professional Training, National Heritage and Culture Shafqat Mahmood presided over the meeting of the CCIR, here.

The meeting was also attended by the SAPM on Petroleum, the Auditor General of Pakistan, the Controller General of Accounts, the Deputy Chairman Planning Commission, the Secretary Establishment Division, the Secretary Finance Division, Special Secretary Cabinet Division, and Joint Secretary (Institutional Reforms Cell) Prime Minister's Office.

The committee extensively deliberated on Public Finance Management Act, 2019.

According to this Act, every ministry/division will have a chief finance and accounts officer (CFAO) to assist and work under the principal accounting officer of the respective ministry/division.

This act will strengthen the financial powers of the principal accounting officer of the ministry/division.

Under this act, for the first time, chief internal auditors (CIAs) will be introduced in the ministries/divisions, who will evaluate all the transactions of the respective ministry/division.

He will also point out the weak areas of control to the principal accounting officer before the external audit initiates.

The Chairman of the CCIR, Shafqat Mahmood, directed the Finance Division to complete the consultative process and constitute the Internal Audit Policy Board as early as possible for expediting implementation of this Public Finance Management Act, 2019.

Mahmood has remarked that with the enforcement of this PFM Act 2019, many financial issues of the respective ministries will be addressed at initial stages, and the efficiency and good governance of the ministries will improve many times.

The meeting was adjourned till next Thursday.

Copyright Business Recorder, 2021