Financial Management is an important tool that helps the public sector take care of money in a systematic, efficient and legitimate way. As the public sector is responsible for bringing together large amounts of resources to achieve a range of public goods.

The responsibility comes with considerable complexity and expectations. To realize this the three cornerstones must be addressed systematically, these are resource allocation, controlled delivery and accountability these ensures good governance.    In essence good governance is about the processes for making and implementing decisions. It’s not about making ‘correct’ decisions, but about the best possible process for making those decisions work in the interest of the intended beneficiary.  

Financial Management and good governance in the public sector operates on the same principles of good decision-making processes, and therefore good governance, share several characteristics. All have a positive effect on various aspects of governance including consultation policies and practices, meeting procedures, service quality protocols and officer conduct, role clarification and good working relationships