3.5: Financial Management

We value using resources effectively

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, economical and ethical use of Commonwealth allocated resources that is not inconsistent with the policies of the Commonwealth. 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.

To ensure the Department has complied with the certificate’s requirements in 2011-12, the Department has maintained effective financial processes and internal control mechanisms as well as ongoing compliance monitoring and reporting activities.

The Department’s corporate governance arrangements include a Finance, Risk and Security Committee to provide advice and make recommendations to the Executive Committee on Financial Management, Risk Management and Strategic Security Management policies, initiatives and reviews. In addition, it is a forum for the discussion, prioritisation and planning of such matters. The committee met on four occasions in 2011-12.

Further advice on the Department’s committee structure is provided at Part 3.1: Corporate Governance.

Asset Management

The Department’s asset management strategy emphasises whole-of-life asset management and in addition, the annual asset review seeks to minimise holdings of surplus and underperforming assets.

The Department’s stocktake of fixed and intangible assets in 2011-12 confirmed their location and condition.

In 2011-12, the Department conducted a revaluation of assets in accordance with the Australian Accounting Standard (AASB 116 Property, Plant and Equipment). 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 a value above their recoverable amount.

Discussion relating to the assets administered by the Department in 2011-12 can be found in Part 4: Financial Statements.

Purchasing

In 2011-12, 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.¹⁴² The Department’s procurement framework encourages competition, value for money, transparency and accountability, and the efficient, effective and ethical use of resources.

Australian National Audit Office Access Clauses

Eight of the Department’s awarded Contracts or Deeds of Standing Offer, valued at $100,000 (GST inclusive) or greater, did not contain standard clauses granting the Auditor-General access to contractor’s premises. These contacts are identified in the table below.

Contractor Name	Contract Purpose	Contract Value (GST inclusive)	Reason Access Clause wasn’t Included
CSL Ltd	Antivenom Products	$4,135,302.00	The Supplier’s contract was used and the Department did not request the inclusion of standard Commonwealth contract clauses.
Nectaria Nominees Pty Ltd	Office Lease for the Office of the Gene Technology Regulator	$1,907,259.00	The Supplier’s contract was used and the Department did not request the inclusion of standard Commonwealth contract clauses.
Sensis Pty Ltd	Aged Care White Pages Phone Directory	$316,142.20	The Supplier’s contract was used and the Department did not request the inclusion of standard Commonwealth contract clauses.
Sensis Pty Ltd	Commonwealth Respite and Carelink Centres Entries in the 2011-12 White Pages	$128,345.80	The Supplier’s contract was used and the Department did not request the inclusion of standard Commonwealth contract clauses.
Telstra Corporation Ltd	1800 Network of Numbers Used by Commonwealth Respite and Carelink Centres	$400,333.32	The Supplier’s contract was used and the Department did not request the inclusion of standard Commonwealth contract clauses.
Telstra Corporation Ltd	Commonwealth Respite and Carelink Centre Listings	$128,345.80	The Supplier’s contract was used and the Department did not request the inclusion of standard Commonwealth contract clauses.
Telstra Corporation Ltd	Commonwealth Respite and Carelink Centre Telephone Network	$375,920.60	The Supplier’s contract was used and the Department did not request the inclusion of standard Commonwealth contract clauses.
Thomson Reuters (Scientific) Inc	Library Subscription	$150,000.00	Non-standard contract developed and didn’t include the standard access clause.

Exempt Contracts

In 2011-12, 109 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.

Available at: www.finance.gov.au

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