Amendment status not verified — confirm the current text below against the official source.
Financial management principles.- Every local fund authority will be guided by the following financial management principles, namely:- (a) ensuring transparency at all stages of policy making and implementation; 4 (b) introducing performance linked budget policies; (c) providing for effective and sustained fiscal monitoring systems; (d) introducing robust financial management principles; (e) maintaining local fund authority's debt at prudent levels; (f) managing guarantees and other contingent liabilities prudently, with particular reference to the quality and level of such liabilities; (g) ensuring that policy decisions of the local fund authority have due regard to their current financial position and the financial implications on future generations; (h) adopting accrual system of accounting for payables and receivables; (i) ensuring that borrowings are used for productive purposes and accumulation of capital assets, and are not applied to finance current expenditure; (j) ensuring a reasonable degree of predictability in the flow of funds; (k) pursuing tax policies with due regard to economic efficiency and compliance costs; (l) pursuing fiscal policies with due regard to cost recovery and equity; (m) pursuing expenditure policies that would provide impetus for economic growth, poverty reduction and improvement in human welfare; (n) ensuring that physical assets of the local fund authority are properly maintained; (o) disclosing sufficient information to allow the public to scrutinize the conduct of fiscal policy and the state of local fund authority finances; (p) ensuring that local fund authority uses resources in ways that give best value for money, and also ensure that public assets are put to best possible use; (q) managing expenditure consistent with the level of revenue generated; (r) formulating budget in a realistic and objective manner with due regard to the general economic outlook and revenue prospects, and minimize deviations during the course of the year; (s) ensuring collection of dues and taxes in an expeditious manner; (t) ensuring discharge of current liabilities in a timely manner; (u) adopting appropriate techniques for measuring the cost of the services provided by the local fund authority.