Principle 7: Finance
The organisation safeguards financial integrity and accountability.
Sound financial management is critical to ensure effectiveness in programs and services, accountability and efficiency in the management of public resources. It is an essential element to sustain and improve good governance.
|Operational element||Requirements to achieve organisational performance and accountability||Additional resources|
|7.1 Finance policies define the key strategic goals and outcomes for which the organisation’s finances must be employed||
Constitution Act 1889 (Sections 68 and 72)
|7.2 A formal internal audit charter specifies roles and responsibilities, composition and structure of all internal audit functions||
Financial Management Act 2006 (Part 4 section 53(1)(d))
|7.3 Processes ensure the proper recording of financial transactions consistent with applicable accounting standards||
Public Sector Management Act 1994 (Sections 7(g) and (h), 29(1)(c) and (n) and 30(c))
Treasurer’s Instructions (Part IX and XI)
|Financial Administration Bookcase|
|7.4 Financial operations contribute towards the organisation’s key strategic goals and outcomes and uphold the highest level of integrity||
Financial Management Act 2006 (Part 4 section 53)
|7.5 Structured procedures are in place to monitor and audit financial performance against budget and key strategic goals, both at executive level as well as by an independent audit committee||Treasurer’s Instructions IX, XI, XII|
Page last updated 4 November 2015