Financial management

Most major DEECA agencies are subject to the FMA. They are public bodies which must submit an annual report that is tabled or reported in Parliament (see the annual reporting support module) and comply with a range of financial management obligations in accordance with the Standing Directions issued under section 8 of the FMA.

(Note: being a public body under the FMA is different to being a public entity under the Public Administration Act. However, most major DEECA agencies are both.)

Standing Directions 2018

The Standing Directions 2018 (Directions) are issued under section 8 of the Financial Management Act 1994 (FMA). They specify public sector agency responsibilities to achieve a high standard of public financial management and accountability. Government departments and public bodies subject to the FMA must comply with the Directions.

Changes to the Directions include:

• requirements for stronger accountability for agency boards, Chief Executive Officers (CEOs) and Chief Financial Officers (CFOs)
• controls against fraud and corruption
• better planning and public attestation in agencies’ reports
• requirements for the Central Banking System.

Further to the Directions are the Instructions supporting the Standing Directions 2018 (Instructions) and Guidance supporting the Standing Directions 2018 (Guidance). Both are issued by the Department of Treasury and Finance (DTF). The Instructions are mandatory and provide more detailed requirements in specific areas of risk while the Guidance is non-mandatory and provides supporting information in relation to the interpretation and implementation of the Directions and Instructions.

Further information, as well as copies of the 2018 Directions, Instructions and Guidance can be found on DTF’s website at Standing Directions 2018 Under The Financial Management Act 1994

Model financial policies and procedures

The Model financial policies and procedures (MFPP) has been designed to assist board members, executive officers and staff of public bodies to establish and maintain effective financial policies and procedures in line with the Directions. The MFPP is not mandated, it is a guide only; public bodies are responsible for ensuring they have the appropriate policies, procedures and systems in place to ensure compliance with all applicable Standing Directions.

The MFPP is consistent with the Directions and include:

• Guidelines and example policies and procedures on financial management compliance, reporting and other financial management related activities.
• References to specific Directions and Instructions through the corresponding numbering.

Your agency may choose to adapt the MFPP to suit the nature, structure and functions of your operations.

The MFPP were last updated in October 2020. The changes were minor.

• Model Financial Policies and Procedures (PDF, 1.1 MB)
• Model Financial Policies and Procedures (DOCX, 3.8 MB)

Other financial management requirements

The Department of Treasury and Finance website has a section on Financial Management of Government with links that include:

• Planning, Budgeting and Financial Reporting frameworks
• Asset Management Accountability Framework
• Victorian Government Risk Management Framework
• Victorian Government Purchasing Board Purchasing Policies

Annual reporting

In addition to their financial management obligations, public bodies are required to submit an annual report in accordance with the FMA.