TPP17-04 Requirements for Issuing, Managing and Reporting Instruments of Assurance
The Requirements for Issuing, Managing and Reporting Instruments of Assurance Policy (the Policy) is issued as a Treasurer’s Direction to all Agencies.
Issued: 14 March 2017 by Treasury
This AR is archived and has been replaced by the following document(s)
Key information
- Status
- Archived
- Type
- NSW Treasury Policy and Guidelines Paper
- Identifier
- TPP17-04
- Compliance
- Mandatory
Who needs to know and/or comply with this?
- Departments
- Executive agencies related to Departments
- Separate agencies
- State Owned Corporations
- Statutory Authorities/Bodies
- Subsidiaries of the NSW Government established under the Corporations Act
About
The Requirements for Issuing, Managing and Reporting Instruments of Assurance Policy (the Policy) is issued as a Treasurer’s Direction to all Agencies.
This Policy outlines reporting requirements and assists Agencies to assess and manage the risks related to issuing Instruments of Assurance. The Policy aims to strengthen governance across the NSW public sector by establishing greater visibility and accuracy of contingent liability exposure through Instruments of Assurance.
To support this purpose, the Policy outlines four core requirements, which detail Agencies’ obligations regarding risk assessment, management, and reporting of Instruments of Assurance:
Core Requirement 1 The Agency Head is responsible for ensuring that an Officer of the Agency, and/or the Agency itself, has the relevant authority to issue a proposed Instrument of Assurance.
Core Requirement 2 An Agency must undertake and document a risk assessment of any proposed Instrument of Assurance prior to approving the instrument to be issued. The Agency must continue to manage, and regularly assess and review, the risks associated with any Instruments of Assurance for the life-cycle of the instrument.
Core Requirement 3 Agencies must record all approved Instruments of Assurance with a potential liability exceeding $100,000 in an internal Agency register, as well as any other Instruments of Assurance that the Agency considers material.
Core Requirement 4 Agencies must report the details of all issued Instruments of Assurance with a potential liability exceeding $1,000,000 to Treasury as part of the Agency’s financial reporting obligations.
The Policy should be read alongside the other Policy and Guidelines papers as well as relevant Treasury Circulars that apply to Instruments of Assurance, including:
- Accounting Policy: Accounting for Financial Instruments (TPP 08-1)
- Applications for Government Guarantees (NSW TC 10/14).
This Policy is effective from 1 July 2017.