Financial Crime World

NAURU FINANCIAL REGULATORY BODIES FACE CHALLENGES IN MANAGING PUBLIC FUNDS

In an effort to strengthen public financial management, the Government of Nauru has established a key regulatory body, the Treasury department, responsible for managing whole-of-government treasury functions. The Treasury’s mission is to safeguard the country’s financial assets, support value-for-money outcomes, and improve systems and processes towards international standards.

Treasury Vision and Objectives

According to sources, the Treasury’s vision is to ensure that public funds are managed in accordance with the law, in a transparent manner that supports accountability, equal treatment, risk mitigation, and risk management for the benefit of all Nauruans. The department aims to achieve two key outcomes:

  • Effective and efficient management of public funds consistent with government law
  • Implementation of public financial management reform towards better international practice

To achieve these outcomes, the Treasury has identified four key objectives:

  • Quality financial information and control environment
  • Timely and effective budget preparation and execution
  • Efficiency and effectiveness of expenditure
  • Capability building, training, and professionalization of the Treasury Division and budget officers service-wide

Public Financial Management

Public financial management is at the heart of a strong and enabling public sector environment. The department seeks to achieve fiscal discipline, better allocation of resources, proper utilization of resources, and stronger accountability and transparency through four key areas for improvement:

  • Quality financial information and control environment
  • Timely and effective budget preparation and execution
  • Efficiency and effectiveness of expenditure
  • Capability building, training, and professionalization

Recent Developments

In 2016, Nauru completed a PEFA self-assessment, which provided a blueprint for public finance management reform. The department has since developed a medium-term debt strategy, assessed its public financial management system, and conducted gender-responsive budget assessments.

The Treasury also manages whole-of-government financial transactions through the central Financial Management Information System (FMIS) supplied by TechnologyOne Enterprise Suite. The system provides access to all government agencies and is used to approve expenditure and recognize revenue for the Government of Nauru.

Access to FMIS

All government employees who require access to the FMIS are urged to contact the Treasury department directly.

Conclusion

With its commitment to improving public financial management, the Treasury remains a crucial regulatory body in Nauru’s efforts to strengthen its economy and improve the lives of its citizens.