Description
Since the issue of Premier's Department Circular 98-71, numerous agencies have sought clarification concerning the recognition of tertiary qualifications and membership of professional accounting bodies for the purpose of complying with the requirements of the policy contained in that Circular. Accordingly, this Circular replaces Circular 98-71 and sets out formal tertiary educational and professional qualifications required of some public service employees whose primary responsibilities involve financial management and accounting.
Detailed Outline
Since the issue of Premier's Department Circular 98-71, numerous agencies have sought clarification concerning the recognition of tertiary qualifications and membership of professional accounting bodies for the purpose of complying with the requirements of the policy contained in that Circular. Accordingly, this Circular replaces Circular 98-71 and sets out formal tertiary educational and professional qualifications required of some public service employees whose primary responsibilities involve financial management and accounting.
Application of Policy
This policy applies only to people such as chief financial officers (or similarly titled positions) and specialist senior positions employed in Departments (as specified in Schedule 1 to the Public Sector Management Act) and who have primary accountability at an agency level for:
- the preparation of external financial reports, the form and content of which are prepared to comply with Australian Accounting Standards. The audited financial statements included in an agency's annual report would be the most common example of this type of report. Another example is all FIS/LEGS data supplied to NSW Treasury.
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the preparation of financial reports for use by agencies' management, the form and content of which are to be consistent with Australian Accounting Standards, or which management requires to be prepared by a person with a strong working knowledge of the Standards. Examples are -
- monthly/quarterly/half yearly financial statements.
- reports used for decision making purposes that need to take into account the impact of Australian Accounting Standards, eg leasing decisions.
- other reports determined by management.
- financial management functions within agencies.
Statutory bodies, including State Owned Corporations, are also strongly encouraged to adopt these standards.
Qualifications Required
In future people recruited or promoted to such financial management positions must have a relevant tertiary qualification, full membership of a professional accounting body and be able to demonstrate knowledge of the Australian Accounting Standards as well as a record of ongoing professional development.
Full professional accounting body membership will ensure that financial managers are:
- professionally bound to comply with the high accounting and other professional standards required by the Australian accounting bodies
- kept up to date with current accounting issues
- required to undertake continuing professional development, and
- subject to peer review and professional oversight.
Exemptions
The essential requirements relating to the positions referred to above do not apply to those departments:
- where the person responsible for the accounting and financial management functions is also held accountable for other significant functions such as corporate support and administration services, or
- where the accounting and financial management functions have been substantially outsourced to, for example, another agency
provided that in the above circumstances, the persons (including the contractors) mainly responsible for the preparation of the agency's financial reports have relevant tertiary qualifications and current full membership of a professional accounting body.
Agencies will be able to grant exemptions from these requirements where officers who already hold such positions are reappointed to a position with similar accountabilities.
Action Required
Each agency should examine relevant positions and determine those where possession of appropriate tertiary qualifications and membership of an appropriate professional body should be essential requirements. When such a position next becomes vacant, this requirement should form part of the job description and advertisement.
C. Gellatly
Director-General
Issued: Strategic Policy and Reform, PSMO
Overview
Compliance
- Not Mandatory
AR Details
- Date Issued
- Nov 30, 1999
- Review Date
- Dec 31, 2014
- Replaces
- Replaced By
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Contacts
- Contact
- Contact us
- Phone
- 02 9228 5555
- Publishing Entity
- Department of Premier and Cabinet
- Issuing Entity
- Department of Premier and Cabinet