Financial control is of paramount importance in the administrative process. One of the most important pillars of this process and the control process needs to regulated. In such a way on develop administrative activities. As effective tools for development and management with different entities.
As a result, It known that the government behind its establishment. Aims to provide services to citizens. The role of regulators is to ensure that these services provided as soon as possible. With the least effort and expenditure and in the form required by law.
The existence of efficient and effective financial control systems in any organization is one of the most important factors in the organization’s success. Finally To achieving its objectives.
The concept and types of financial control
Financial control is the procedures, policies and means by which the organization monitors and controls the direction, allocation and use of its financial resources.
Thus at the heart of the management of resources and operational efficiency. In an organization is financial control in the legislative concept as the procedure of the set of regulatory rules. It is necessary to follow up on the work of the organization.
Implementation of plans and regulations designed to apply financial standards and identify deviations. To work to address them on time, besides to maintaining public funds.
Embezzlement, loss or abuse, and the mention of types of censorship here does not mean that they work from each other. But rather divides control according to the angle of vision of management scientists, for instance:
- Control by time
- Monitoring by location
Censorship is divided into three types, usually known as stages:
1. Previous oversight: it aims to ensure the legality of financial conduct.
2. Inherent control: it is censorship with the aim of guiding and not making a mistake or modifying something.
3. Subsequent oversight: in which performance records are reviewed.
From an accounting point of view, oversight is divided into:
- Internal control
- External control
Definition of financial control
Financial control determined by ensuring that the following procedures. Methods carried out without errors or irregularities. By established plans and curricula and in a manner
- That leads to the achievement of the objectives.
The Financial control is of great importance in management, where it ranks great. As it established by governments with the aim of providing services to citizens.
Financial control thus means financial controls, procedures, policies and the means by which the organization controls the direction, allocation and use of its financial resources.
Not only that, The Financial controls are at the heart of the management of resources and operational efficiency in any organization.
Website of the General Authority for Financial Supervision
After the issuance of Royal Decree No. (5/A), the authorities in Saudi Arabia are working to complete the development of their implementation rules and attract qualified human resources to work
Thus, develop operational plans and formulate future strategies that test the authority to fully fulfill its responsibilities.
Chairman of the Financial Supervisory Authority
The General Authority for Zakat and Income, headed by The Integrity of Mr. Mazen Bin Ibrahim Al-Kahmos, is working to spread transparency.
Integrity and anti-corruption in the agencies covered by its jurisdictions, namely the public authorities in the state, and all companies in which the state owns at least 25%;
This is to create a work environment in these bodies characterized by integrity, transparency, honesty, justice and equality.
What are the objectives of financial control
1- A political goal:
This means determining the level of consistency between approvals approved by the legislature and the directives of the executive branch on the way to law enforcement.
Financial objectives:
Through it is obtained from twos ides:
First: Ensure the integrity and accuracy of accounts in all aspects of financial procedures and processes and indicate deviations such as financial errors and embezzlement if any.
Second: Review and monitor the implementation of spending and its compatibility with the objectives of the plan drawn up.
Administrative objectives:
The adequacy of the work systems is ensured and the maximum benefits are achieved with the least effort and expenditure available as soon as possible.
Not only that, It requires rationalizing management decisions on planning, implementation, oversight and thinking about performance efficiency.
Financial Supervisory Authority Act
The Oversight and Anti-Corruption Authority as an alternative to the former National Anti-Corruption Authority in Saudi Arabia, which founded in 1432 Ah.
In order to protect public money, article 1reads:
The following words and phrases, wherever they contained in this organization, mean the meanings shown before them:
Organization: Organizing the National Anti-Corruption Authority
Body: National Anti-Corruption Authority
President: Chairman of the Commission.
The entities covered by the authority’s terms of reference are the public authorities in the state. Thus the companies in which the state owns at least 25% of its capital.
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Importance of financial control
FINANCIAL SUPERVISORY AUTHORITY WEBSITE
The Authority is the first cabinet responsible for details such as (issuing regulations, rules and instructions in the financial market.
The application of the provisions of the financial and administrative market system and to do so the Authority will:
1. Regulating the issuance, control and handling of securities.
2. Work to check the work and activities of the authorities under the control and supervision of the Authority.
3. Arrangement of power of attorney and buy applications and general offers of shares.
4. Protect citizens and investors in securities from
unfair, improper or fraudulent practices, fraud, fraud, fraud or manipulation.
5. Achieving justice, efficiency and transparency in securities transactions.
*Check the full disclosure of information about securities. Their issuers and the dealings of informed persons, major shareholders and investors,
Identify and provide information that market participants must disclose to shareholders and the public.
However, Regulating and developing the financial market. Working to develop the methods of devices and entities involved in securities trading. Finally, Develop procedures to reduce the risks associated with securities transactions.
Financial control mechanisms
The financial control mechanisms added by the SAI included:
1. Activating the role of internal review to contribute to raising the efficiency of spending.
2. Then, Achieving economic sustainability and self-censorship
3. Accountability and transparency by government agencies (establishment of review committees)
4. Then, Preparing a unified list of governance mechanisms
Not only that, Debt exercises its supervisory functions in accordance with a specific “methodology” and through specialized auditors with knowledge Sufficient skills and expertise in the areas of financial control and performance.
Control of public money
According to the High Financial Supervisory Authority. The concept of money control is “a broad scientific concept that requires the integration of legal. Economic and accounting concepts to ensure the preservation of public funds.
Thus, To improve its efficiency and verify its effectiveness. Article VII stipulates that it is the function of the Court to control
The expenditure
- Revenues of funds transferred
- Immovable to the State
- Ensure their proper use.
Public financial control
Thus It is defined as the assertion that the state budget items spent with the required interest with the highest returns and the lowest spending in accordance with the rules, regulations and guidelines.
Role of financial control
The role of the Authority’s financial control is (continuous monitoring) after the implementation of the budget, revenues and expenditures in its oversight activities,
In order to detect errors and irregularities without full distribution or conduct. However, Cabinet members exercise such control on a regular and permanent basis.
Financial Regulatory Authority
The authorities represented by the Authority have made a number of observations continuously to verify good performance.
As workflow and safety from errors in accordance with regulations and guidelines.
The work of supervising the branches of the Authority must carry out in all regions of the country and submit the results.
Not only that, Monitoring and irregularities to the supervisory body, which is preparing a report on them, including the opinions and proposals of the supervisory body.
The Authority’s investigation into the application of its jurisdiction. And the number of surveillance programmers implemented in the fiscal year was 1428/1427 Ah (537) through however many surveillance and violations identified.
Thus this is through a special supervisory method followed by the Authority. Thus it is based on:
1. Frankness
2. Disclosure
3. Performance control
4. Finally, the comprehensive control of integrating compliance control with regulations and regulations with administrative performance control.
DECISION OF THE FINANCIAL SUPERVISORY AUTHORITY
Through the chairman of the authority stressed that the role of the “authority” in controlling public funds and identifying irregularities in the control. The investigating complaints, conducting investigations however bringing cases to the Complaints Office.
Not only that, but also identifying mistakes and financial malpractice, such as bribery. Embezzlement and other calls for accountability, but also preventive oversight based on treading,
Thus ensuring that the guidelines implemented. Another basis is our role in dealing with violations, complaints and accountability.
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Control steps
1-The stage of expectation:
Through which the Central Bureau aims to develop processes such as (translated perceptions and expectations) to results and objectives however it wishes to reach within a specified period of time.
2- The information gathering phase:
Thus The stage is more stringent because of its jurisdiction over the audit of the information collected and the importance of each point and the write-off of what is not important.
3-The stage of analysis and financial reporting:
Under what collected in the previous phase. Financial information subject to the request of disciplinary However authorities is analyzed for the purposes of comparing the results with the standard figures or ratios.
In order to see if the actual results are acceptable and in accordance with the model criteria.
The importance of censorship
Financial control is no less important than other functional and administrative aspects. As it derives its strength from being a comprehensive system, thus its importance lies in:
1. Cash flow maintenance
2. Financial Resources Department
3. Forecasting, processes and making expectations.
4. Ensuring operational efficiency.
Then, There is no doubt that the biggest goal of oversight is to ensure the integrity of internal work in all companies of the administrative apparatus. Thus transparency and integrity in protecting public money.
We have provided you with everything related to the concept of financial control. The fight against corruption and its types. Thus, the most important steps of financial control. In order to the actions of the authority taken to ensure the control of public money. How to activate these mechanisms.
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Importance of financial control
