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Glossary

The glossary in this Portal provides definitions of core terms closely related to the medium-term expenditure framework; and links to other online glossaries.

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Word

Definition

Financial audit

Financial audit (regularity audit) comprising: · Attestation of financial accountability of accountable entities, involving examination and evaluation of financial records and expression of opinions of financial statements. · Attestation of financial accountability of the government administration as a whole. · Audit of financial systems and transactions including an evaluation of compliance with applicable statutes and regulations. · Audit of internal control and internal audit functions. · Audit of the probity and propriety of administrative decisions taken within the audited entity. · Reporting of any other matters arising from or relating to the audit that the SAI considers should be disclosed.

Financial budgets

Budgets that outline how an organization is going to acquire its cash and how it intends to use the cash.

Financial management

The legal and administrative systems and procedures put in place to permit government ministries and agencies to conduct their activities so as to ensure correct usage of public funds that meets defined standards of probity, regularity, efficiency and effectiveness. Financial management includes the raising of revenue; the management and control of public expenditure; financial accounting and reporting; cash management; and, in some cases, asset management.

Financial statement

A summary of a major aspect of an organization's financial status which is used as a financial control technique.

Fiscal Policy

Fiscal policy is related to Government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates, and government spending, in an effort to control the economy. Since, the 1980s, most Western Countries have held a "tight" policy, limiting public expenditure.

Fraud

The severest form of an irregularity. In respect of expenditure, it includes any intentional act or omission relating to: · The use or presentation of false, incorrect or incomplete statements or documents, which has as its effect the misappropriation or wrongful retention of funds. · Non-disclosure of information in violation of a specific obligation, with the same effect. · The application of funds for purposes other than those for which they were originally granted, with the same effect. In respect of revenue, fraud includes any intentional act or omission relating to: · The use or presentation of false, incorrect or incomplete statements or documents, which has as its effect the illegal diminution of the resources of the budget. · Non-disclosure of information in violation of a specific obligation, with the same effect. · Misapplication of a legally obtained benefit, with the same effect.

Functional classification (of government expenditure)

Functional classification (of government expenditure): Classification of expenditure by the purpose of which transactions are undertaken. It is generally used to measure the allocation of resources by government to the promotion of various activities and objectives in the country.