Role of Financial Concurrence in Public Sector Undertakings (PSUs)

Abstract

There are different departments in Public Sector Undertakings (PSUs), but Finance Department plays a very key role and its finance/accounting functions, ensures that the procedures, rules and regulations are followed in line with the processes and defined government guidelines. In an organization, finance department has number of wings or branches to take care of all activities such as establishments, billings, payments, taxation, commercial etc. along with one of the important activities is concurring the proposals received from various department of the organization. In a public sector undertaking, a separate department exists named as Finance Concurrence Department (FCD). We need to understand here the meaning of financial concurrence and the role of FCD. The objective of financial concurrencies is to protect financial interest in decision making while ensuring financial propriety as a part of internal control system. The internal control is exercised through the vetting and concurrence by finance department so that decision making is in accordance to the policies, guidelines, rules, regulations, provision of budgets etc. and to ensure the decision is beneficial to the company.