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CPA Public Sector Discussion Group. Paul Christensen A/Director – Audit Policy & Quality Queensland Audit Office. New Legislation. FA&A Act 1977 and FMS 1997 replaced by: Financial Accountability Act 2009 Financial and Performance Management Standard 2009 Effective 1 July 2009
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CPA Public Sector Discussion Group Paul Christensen A/Director – Audit Policy & Quality Queensland Audit Office
New Legislation FA&A Act 1977 and FMS 1997 replaced by: • Financial Accountability Act 2009 • Financial and Performance Management Standard 2009 • Effective 1 July 2009 • Principles based legislation • Supported by external documents e.g.: • Financial Accountability Handbook • Non-Current Asset Policies for Queensland Public Sector Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit)
Financial & Performance Management Standard 2009 FMS previously required: • Strategic plan for assets each financial year covering at least four years • Strategic asset plan to provide for: • Analysis of key issues effecting medium/long term asset requirements • Appropriateness of existing assets • Identifying needs for new assets • Strategies for asset disposal • Strategies for maintaining condition and operational performance Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit)
Financial & Performance Management Standard 2009 FMS previously required: • Division 5 Asset Management • Responsibility (s.44) • Elements of systems for asset mgt (s.45) • Evaluations of acquisitions, maintenance and improvements of physical assets (s.47) • Maintenance of assets (s.48) • Disposal of assets (s.49) Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit)
Financial & Performance Management Standard 2009 Each department and stat body must now: • Establish asset mgt system (s.15(c)) • Manage assets in accordance with asset mgt system (s23(1)) • System to provide for (s.23(2)): • Identifying, acquiring, managing, disposing, valuing, recording writing-off • Evaluating acquisition/maintenance of “significant assets” – not defined • Reviewing performance of significant assets • Regularly maintaining assets Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit)
Financial & Performance Management Standard 2009 Each department and stat body must now: • Must comply with Non-current asset policies for Queensland public sector • In preparing evaluations must have regard to: • Project assurance framework • Value for money framework Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit)
Financial Accountability Handbook 3.8 Property, Plant and Equipment Systems: • Asset strategic planning • Asset evaluations • Variations • Projects • Recognition and recording • Revaluations • Depreciation • Maintenance • Disposals and writ-offs • Physical security and stocktakes Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit)
Financial Accountability Handbook Related information sheets: • 4.1 Monitoring and Assessment of Internal Controls • 4.2 Statement of Chief Finance Officer • Annual statement on operation of internal financial controls (s77 of FA Act) • S.57 of FPMS identifies compulsory statements to be included Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit)
Local Government Act 2009 • Required to have a long-term asset management plan • Outlines policies and strategies for ensuring suitable management • Must cover a period of at least 10 years • Requirements to be prescribed under a regulation Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit)
Challenges • Develop asset management systems that are appropriate for the agency • Focus on information relevant for decision-making purposes • Asset management and asset accounting can have different information needs • Commonalities between the two need to be identified and taken into account • Lower level of prescription ≠ lower level of accountability Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit)