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Last updated: March 2008

Financial management and budget frameworks

Financial management policies

Financial management policies have been developed based on the Financial Management and Accountability (FMA) legislation. In particular, agency chief executives are required to comply with Government policies when approving commitments to spend public money under regulation 9 of the Financial Management and Accountability Regulations 1997.

This section covers the procurement framework and contains links to key financial management policies:

Procurement framework

The procurement framework aims to assist and ensure that agencies subject to the Financial Management and Accountability Act 1997 (FMA Act) achieve value for money in their procurement activities.

The Commonwealth Procurement Guidelines (CPGs) are issued by the Minister for Finance and Administration under regulation 7 of the Financial Management and Accountability Regulations 1997 (FMA Regulations) on matters related to the procurement of all property and services. The CPGs establish the procurement policy framework and articulate the expectations that exist on FMA Act agency officials, or their agents, when performing duties related to procurement. Regulation 8 of the FMA Regulations requires an official performing duties in relation to the procurement of property or services to have regard to the CPGs

The CPGs are further supported by a collection of Guidance documents and Finance Circulars, which provide more detail and advice on the procurement framework. Operational aspects of procurement, for example the requirements for tendering and contract management, are addressed by each agency's Chief Executive's Instructions (CEIs).

As a result of the Finance Minister’s (CAC Act Procurement) Directions 2004, some Commonwealth authorities and Commonwealth companies are also subject to aspects of the CPGs. These bodies are prescribed in Schedule 1 of the Commonwealth Authorities and Companies Regulations 1997.

Agency banking

For more information:

The Department of Finance and Deregulation produces guidance for agencies in meeting their banking responsibilities as set out in the Financial Management and Accountability (Finance Minister to Chief Executives) Delegation including the Agency Banking Framework Guidance Manual.

Risk management and insurance—Comcover

Comcover operates as part of the Department of Finance and Deregulation. It is responsible for the administration of the Commonwealth's self-managed fund for insurable risks including the property and liability risks of its members. Comcover also supports Australian Government agencies in the integration of risk management practices into their operations.

Australian Government agencies operating within the general Government sector, including those covered by the Financial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997, are to be insured by Comcover unless specifically exempted.

Finance Circulars

Finance Circulars are issued by the Department of Finance and Deregulation. They provide policy guidance on various financial management matters. The Department of Finance and Deregulation provides a list of current Finance Circulars on its website. Finance Circulars may relate to matters under the FMA Act and the Commonwealth Authorities and Companies Act 1997, and include: