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