Definition: Financial management
Covers the legal and administrative systems and procedures put in place to permit government ministries and agencies to conduct their activities so as to ensure correct usage of public funds which meets defined standards of probity and regularity. These activities include the raising of revenue, the management and control of public expenditure and financial accounting and reporting, and, in some cases, asset management.
Organization for Economic Cooperation and Development (OECD), "Effects of European Union Accession, Part 1: Budgeting and Financial Control", OECD SIGMA Paper No. 19, Paris, March 1998