Why do we need financial instruments?

Pilots rely on a dashboard of instruments to tell them where they are, where they are going and how they are going to get there. Financial managers have their own cockpit with a dashboard of financial instruments. If they are working, they guide the manager to keep the government going in the direction set by the budget. Are we going up or down? Are we using taxpayer resources as authorized?

What are the financial instruments?

They are standardized reports on the source and use of public resources usually found in year-end audited financial statements. The financial statements are taken from the government’s computerized financial management system. They are based on the quality of the financial management system.

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