1. Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit) Queenslan d Audit Office CPA Public Sector Discussion Group Paul Christensen A/Director – Audit Policy & Quality Queensland Audit Office

2. Queenslan d Audit Office Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit) 2 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

3. Queenslan d Audit Office Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit) 3 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

4. Queenslan d Audit Office Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit) 4 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)

5. Queenslan d Audit Office Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit) 5 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

6. Queenslan d Audit Office Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit) 6 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

7. Queenslan d Audit Office Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit) 7 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

8. Queenslan d Audit Office Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit) 8 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

9. Queenslan d Audit Office Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit) 9 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

10. Queenslan d Audit Office Insert event title and date (go to VIEW>MASTER>SLIDE MASTER to edit) 10 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