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) Financial Management Act 2006 Treasurer’s Instructions
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)) Treasurer’s Instruction 1201: Structure of the internal audit function
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)) Financial Management Act 2006 Treasurer’s Instructions 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) Public Sector Commissioner's Circular: 2009 -12 Costing and Pricing Government Services
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