Standing Directions of the Minister for Finance 2003

Overview

The Standing Directions of the Minister for Finance 2003 (2003 Directions) and associated rules set the standard for financial management by Victorian government agencies from 1 July 2003 until 30 June 2016.


The Financial Management Compliance Framework 2005 assists the Victorian Government to monitor the standard of financial management including compliance with the Standing Directions.

The Standing Directions of the Minister for Finance 2016 (2016 Directions) replaced the 2003 Directions on 1 July 2016. Agencies must continue comply with the 2003 Directions until 30 June 2016, and for some months after that date undertake compliance activities in accordance with the Financial Management Compliance Framework 2005.

Standing Directions of the Minister for Finance 2003

The 2003 Directions were designed to supplement the Financial Management Act 1994 by prescribing mandatory procedures for all departments and public bodies.

Associated Rules – Purchasing Card Rules, Thefts and Losses Rules, Tax Compliance Rules

Purchasing Card Rules, Thefts and Losses Rules and Tax Compliance Rules support the 2003 Directions to encourage the application of government policy and key principles in monitoring and reporting.

User Guide

The FMCF User Guide, used as guidance only, provides departments and agencies with supplementary material on aspects of the 2003 Directions.

Financial Management Compliance Framework

The Financial Management Compliance Framework 2005 (FMCF) assists Victorian public sector agencies to establish and maintain effective financial management and allows the Victorian Government to monitor the standard of financial management.

The FMCF was launched by the Department of Treasury and Finance in July 2003 and was updated in July 2005. It will not apply to the 2016 Directions.

Compliance Monitoring System

The Compliance Monitoring System (CMS) supports, facilitates and automates the annual certification process for agencies and portfolio departments.

The FMCF requires agencies to annually complete a certification letter to their Portfolio Minister (via portfolio departments). Portfolio departments are then required to provide a portfolio summary report to the Minister for Finance, via the Department of Treasury and Finance.

The aim of the CMS website is to support, facilitate and automate the annual certification process for Victorian public sector agencies and is open from 1 July until 30 September of each year.

The CMS User Guide provides relevant information on how to certify using the CMS.

Agencies, portfolio coordinators and administrators can log on to the CMS at the following webpages:

For assistance, contact your portfolio coordinator (accessible only to agencies internal to Victorian public sector).

Certification checklist

Certification of compliance is made annually to the responsible body or relevant delegate e.g. Audit Committee. Agencies subject to the FMCF are also required to annually certify compliance with these Directions to their Minister.

The FMCF certification checklist guides agencies through the certification process. Agencies are encouraged to complete the certification checklist before online certification via the CMS.

Forms – thefts and losses/purchasing card reporting

DTF requires certifying agencies to complete an annual reporting form in relation to thefts and losses and purchasing cards to ensure the rigour of reporting of thefts and losses and unauthorised use of purchasing cards.

Risk management and insurance attestation

Under Direction 4.5.5, departments and agencies must provide an annual attestation of compliance with risk management and insurance requirements in their annual report. Refer to the Victorian Government Risk Management Framework for details of the requirements and guidance material in support of the attestation requirements.

Key advice updates

Key advice updates aim to assist agencies in interpreting the requires of the Directions. Key advice updates have been issues with respect to CFAOs, Audit Committees, authorisations, managing outsourced financial services and thefts and losses.

Financial management annual compliance reports

The financial management annual compliance reports give an overview of Victoria's FMCF.

The reports also provides a high-level overview of current and recent historic levels of compliance with the Standing Directions across the Victorian public sector.

Frequently asked questions

Answers to frequently asked questions have been compiled to assist agencies in complying with their financial management obligations.

Transitional arrangements from 2003 Directions to 2016 Directions

The following table summarises the applicable Directions and requirements for internal and public attestation, for the 2015-16, 2016-17 and 2017-18 compliance years:

  2015-16 compliance year
2016-17 compliance year
2017-18 compliance year
Directions 2003

All Directions applicable

 n/a  n/a
Directions 2016
n/a

All Directions applicable, subject to transitional arrangements under 2016 Direction 1.4.

All Directions applicable, subject to transitional arrangements under 2016 Direction 1.4.

Compliance reporting/
Internal attestation

2005 Financial Management Compliance Framework

Compliance reporting as required under 2016 Instruction 5.1, including trial attestation.

Compliance reporting as required under 2016 Instruction 5.1.

Public attestation in Annual Report

2003 Direction 4.5.5 Risk management framework and processes

2003 Direction 4.5.5 Risk management framework and processes

Attestation in relation to all applicable Directions and Instructions under 2016 Direction 5.1.4.

 

Queries

For issues regarding the 2003 Directions email complianceissues@dtf.vic.gov.au.

For queries relating to your portfolio, contact your portfolio coordinator (accessible only to agencies internal to Victorian public sector).