TNAG-1361-FCO40-1807-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 318

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I am convinced, Sir, that public hearings of the Public Accounts Committee are here to stay, and if any of my

Unofficial colleagues feel apprehensive about the intention to

commence public hearings of the Finance Committee in March, I

would reassure them that the extra effort and tension involved

is well worthwhile.

I

This

It has been my practice, Sir, when introducing this

report to offer some personal observations on the process of

developing better financial management in the Government.

should like, if I may, to offer one suggestion this year. relates both to what I said last year and the year before, the

need to inculcate a greater sense of financial awareness in managers in the Government. The Committee heard with pleasure

this year of the improvements which were brought about by the

introduction of thoroughly modern accounting and financial

information systems in the Medical and Health Department, and

in particular that this new scheme had been successful in

promoting that greater sense of financial awareness and budget consciousness in managers. But I am aware, Sir, that the

Ledger Accounting and Financial Information System will take

time to extend to every corner of this large Administration.

Nor do I think that it is the sole solution to the problem

which I see. Financial awareness cannot begin and end with one

management system.

What is needed, in my view, is a training scheme. whereby all officers rising to directorate rank in the civil

service are required to go through a course in financial

management which outlines the essentials of the Government's

budgetary system, teaches them the basic principles of cost

accounting and management accounting, and gives them a firm

grasp of the essential principles of financial control, financial forecasting and even financial modelling. I do not

think that this is too much to ask either of the Administration

which has such tremendous financial responsibilities as our Government or of the officers who carry the final responsibility for the management of public moneys.