Implementation Of The Government Sector Finance Act – Phase 2 Update

The Government Sector Finance Act (the Act) introduces a greater focus on performance, transparency, accountability, and efficiency with respect to financial management in the government sector.

The Act was assented in October 2018, with staged commencement its provisions over five key phases. The principles outlined in the Act will be supplemented by regulations and Treasurer’s Directions.

Phase 2 commenced 1 July 2019. Provisions of the Act in Phase 2 include:

• Budget, Appropriations and Special Deposit Accounts (SDAs)
• Expenditure & Gifts (Act of Grace Payments, Payment of Tax Equivalents to the Treasurer, etc.)

WHAT OUR CLIENTS NEED TO DO

Take action to address the requirements of Phase 2, as follows:

• Review ‘own-source’ money and check the Regulation to ensure they are within the scope of deemed appropriations
• For any SDAs, ensure that a responsible manager has been appointed and appropriate records maintained (in preparation for Phase 5 that will require financial reporting of SDAs for Financial Year 2021-2022)
• Identity GSF Agencies, Accountable Authorities, Responsible Ministers and Government Officers within their Cluster, taking into consideration any Machinery of Government (MoG) changes
• Review existing delegations to ensure they reflect post-MoG changes and, where possible, leverage opportunity for flexibility and streamlining.

All GSF Agencies are also required to keep up to date regarding Treasurer’s Directions and Treasury Policies and Procedures (TPPs).

HOW WE CAN HELP

The Auditor-General identified incorrect application of Phase 1 requirements as the root cause for some errors identified within the State’s 2018-19 consolidated Financial Statements.

Centium can offer fiduciary reviews to assess whether policy frameworks and controls are operating in line with current GSF Act Provisions. Such reviews can also incorporate an assessment of agency policies and controls against future phases to assist our clients with their preparation.

Our team includes several accounting and financial specialists who can provide guidance and advice regarding the application of Australian Accounting Standards, the Acts and TPPs.

For more information regarding Phase 2 requirements, please do not hesitate to contact Penelope Corkill, Director Risk & Assurance.