Part 3.4: Financial Management

We value using resources efficiently.

The department’s financial accountability responsibilities are set out in Section 44 of the Financial Management and Accountability Act 1997 and are based on efficient, effective and ethical use of allocated resources. The department meets these responsibilities by working within a financial control framework that supports efficient processing and recording of financial transactions (including the production of audited financial statements).

In 2006-07, the Government introduced an annual financial reporting requirement known as the Certificate of Compliance. The certificate requires the Secretary to confirm the department complied with the financial management and accountability legislation and other specified Commonwealth policies. It also confirms whether the department is operating within the agreed resources for the current financial year.

In 2009-10, the department maintained effective financial processes, internal control mechanisms and ongoing compliance monitoring and reporting activities, to ensure compliance with the certificate requirements.

In 2009-10 other key financial management initiatives included:

establishing appropriate business processes to support Operation Sunlight reforms impacting the departmental appropriation framework. These reforms include the implementation of net cash appropriation and introduction of Capital Management Plans; and
improving business processes and management of employee leave entitlements in an effort to improve financial reporting.

Asset Management

The department’s asset management strategy emphasises whole-of-life asset management. The department undertakes an annual review that seeks to minimise holdings of surplus and underperforming assets. In 2009-10, the department’s stocktake of fixed and intangible assets confirmed their location and condition.

In 2007-08, the department conducted a valuation of assets in accordance with the Australian Accounting Standard (AASB 116 Property, Plant and Equipment). In 2009-10, the department obtained independent expert advice on asset values and conducted a review of assets for impairment (AASB 136 Impairment of Assets), to ensure assets are only carried at their recoverable amount.

Discussion relating to the assets administered by the department in 2009-10 can be found in Part 5: Financial Statements.

Purchasing

In 2009-10, with the exception of those instances reported in the Certificate of Compliance, the department complied with the Government’s purchasing policies as stated in the Commonwealth Procurement Guidelines available at www.finance.gov.au. The department’s procurement framework encourages competition, value for money and the efficient and ethical use of resources.

Australian National Audit Office Access Clauses

All of the department’s awarded Contracts or Deeds of Standing Offer valued at $100,000 (GST inclusive) or greater, contained standard clauses granting the Auditor-General access to contractor’s premises.

Exempt Contracts

In 2009-10, 88 contracts were exempted from reporting on AusTender on the basis that publishing contract details would disclose exempt matters under the Freedom of Information Act 1982.

Top of page

| TOC | next page