The Government of Malawi has a responsibility to the entire nation to provide social,
security, and general welfare and upliftment of all its citizens. In order for the government
to perform its duties and responsibilities, it uses several tools amongst which is the public
sector accounting and finance function.
The public sector financial management systems are also used for accountability of
government to the general public as government officers act in stewardship responsibility
on behalf of the citizenry of the country. Several developments in public finance in recent
decades especially in the 21st Century have made the subject of public sector accounting
and finance an important part of accounting studies world over. . With the economic
recession, a lot of focus has gone to public sector accounting and finance due to its
significant influence on economies. The analysis of the concepts and techniques of
accounting applied to public sector and the private sector show that there are notable
differences between the two accounting systems, mainly, in the area of accounting
methods and financial management principles.
The public sector accounting and finance system is comprehensive as it starts from
budgeting, budget execution and implementation, procurement, accounting and reporting.
It also includes systems put in place to fulfil the oversight functions such as external
auditing. The systems in public sector accounting and finance are closely interlinked and therefore, weaknesses in one component affect the proper functioning of others. 