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Dept. of Education
> Administrative
and Management services > Finance,
Facilities and Business Strategy Branch > Financial Overview
Financial Overview
The financial overview includes an outline of the purpose, scope, format and
control of the Department’s finance policies and guidelines.
The financial overview of the Department also outlines: financial management governance, practices and
reporting structures (internal and external), including accounting
responsibilities in line with controlling legislation, (Public Account Act
1986 and Financial Management and Audit Act 1990), guiding principles, (Treasurer's Instructions, Accounting
Standards, Handbook for Government Procurement and other guidelines), and financial
objectives and policies.
The Department’s major financial objective is to manage
the financial resources and assets available in an efficient, effective and
economical manner. The Department aims to fulfil its objectives in accordance with
Departmental policies, Government policies and legislation, accounting standards
and Treasurer’s Instructions.
- To ensure that the Department’s accounting standards, practices
and systems are consistent with contemporary industry standards and practices.
- To provide an efficient and effective payments and collections
service for clients.
- To provide effective advice and reporting to schools, managers and
operational staff within the Department to assist decision making and service
delivery.
- To develop, monitor and control budgetary allocations in accordance with
stated Departmental objectives.
- To continue to devolve financial management responsibility and
accountability to appropriate levels within the Department.
- To improve the quality of financial reporting to management, Parliament, and members of the public.
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Department
Organisational Chart
The Department is responsible to the State Minister for Education. The Department’s
principal areas of financial responsibility are:
- School Education;
- Post Compulsory Education and Training;
- Education Review;
- Library Services;
- State Archives;
- Corporate Services; and
- Internal Audit.
Funding
from the Department's Annual Budget is allocated to the Department’s many budget
centres and schools, on an outputs based level, as approved by the Corporate Management
Group (CMG). Allocated school budgets are then managed and monitored by School
Councils/ School Budget Committees.
The
financial structure of the Department operates on a relatively decentralised
model. Each budget centre and school is provided with an allocation of funds
(i.e. School Resource Package), based on
approved planned activities and staffing levels, within which it is required to
manage during the financial year. Each budget centre manager or school principal
is directly responsible for the prudent, effective and efficient financial
management of their allocations. Budget
centres and schools accept appropriate responsibility for their financial operations.
The
Finance, Facilities and Business Strategy Branch is responsible for
co-ordinating and reporting the Department’s overall budget position.
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The following
groups within the Department hold significant financial and accounting responsibilities:
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Head of
Agency: |
- Ensures that Departmental
corporate planning has regard to Budget and Forward Estimate allocations and the
Government's fiscal strategy;
- Provides information
required for the development of the Budget and analysis of Departmental
activities in a timely manner; and
- Provides regular and
timely advice to the Minister, Treasury and Budget Committee to enable effective
monitoring of the individual agency and whole of Government budget situation.
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| Corporate
Management Group (CMG): |
- Decides the strategic
direction for the department and prioritises initiatives and programs for
resource allocation purposes, taking into consideration advice provided by the
Resource Management Committee and senior officers of the Department.
- Within CMG the Deputy
Secretary (Corporate Services) plays a key role as the senior executive with
direct responsibility for ensuring the Department’s budget and financial
management is sustainable and in accordance with Government policies and
expectations.
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Resource Management Committee: |
- Monitors financial
performance (budget compared to actual expenditure) for recurrent services,
works and services, and administered items.
- Monitors performance and
trends relating to human and physical resources utilised in the Department’s
service delivery and associated service drivers such as student enrolments,
library clients etc.
- Notes budget allocation
decisions made periodically by CMG.
- Within
the Resource Management Committee the Director (Finance, Facilities and
Business Strategy) and the Director (Human Resource Management) have key roles
in ensuring that financial management and human resource management strategies
and processes support the ongoing financial sustainability of the department.
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| Portfolio
Performance Committee: |
- Identify internal and
external reporting and accountability requirements and monitor the department's
performance in meeting these requirements;
- Identify and authorise the
use of performance measures;
- Ensure effective liaison
across the agency on all statistical data provision to external agencies;
- Identify policy and
performance issues arising from reports and other accountability instruments;
and
- Provide advice to CMG on
reporting and accountability matters.
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| Risk
Management Committee: |
- Identify and manage
potential risks through the Risk Management Plan and internal audit program;
- Develop and implement risk
management priorities and policies including insurance, risk documentation,
reporting, mitigation and avoidance strategies support and training and risk
management systems;
- Oversee the internal audit
program;
- Alert CMG to significant
risks or audit issues; and
- Monitor the Department's
external audit program in conjunction with the Tasmanian Audit Office, including
action identified in response to reports.
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| Information
Management Committee: |
- Develop policy and
strategic policy in relation to information management;
- Oversee
the development and implementation of appropriate learning and information
architecture;
- Identify and oversee the implementation of data definitions and standards;
- Oversee the professional
learning strategies required for employees to implement effective information
management; and
- Advise
CMG on significant information management issues.
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| Executive
Management Group: |
- Emphasise performance
management and accountability in their leadership roles;
- Critically review data
sets and evaluation reports and uses them as the basis for decision making;
- Provide input into the
development of strategic policies and plans; and
- Promote the Report Card
model in all planning, budgeting and reporting processes.
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| Principals
of Schools and Colleges, and Budget Centre Managers: |
- Ensure
that all activities are sustainable within the level of funding provided, and
exercise appropriate financial responsibility in enabling the Department to
achieve successful service delivery outcomes.
- Within this group the
level of responsibility takes into consideration the financial and procurement
delegation framework, which ensures that officers at all levels of the
organisation are aware of what they are authorised to do, what the processes
are to exercise this level of authority, what the limits of that authority
are, and more importantly what an officer is accountable and responsible for.
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Government-wide Legislation
The Department operates within a framework of performance
and accountability established by legislation. As the main source of revenue for the Department is the Consolidated
Fund, accountability and performance requirements are determined by the
following Acts of Parliament, namely:
| State
Service Act 2000 |
The
State
Service Act 2000 makes agency heads accountable for managing their
organisation effectively and efficiently.
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| Financial
Management and Audit Act 1990 |
The Financial Management and Audit Act 1990 (FMAA)
focuses on ensuring the efficient and effective economic management of the
public finances of Tasmania consistent with contemporary accounting standards and financial practices, and
providing for the audit of public finances. Regulations issued in accordance with the FMAA prescribe matters in
relation to the financial statements of the Public Account, salaries, losses,
write‑offs and various other matters.
The major parts of the FMAA legislation are:
- Financial Management -- Defines the functions, duties and responsibilities of Heads of Agency
relating to financial management.
- Audit --
Defines the function and duties of the Auditor-General.
- Recoveries and Write-Offs -- Provides the mechanism to
write-off any loss, deficiency or damage to public property or money.
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| Public
Account Act 1986 |
The
Public Account Act 1986
establishes and defines the operation of the Public Account.
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In addition to the above Acts, the Department also operates
within the guidelines of:
| Treasurer’s
Instructions |
Treasurer’s Instructions are issued under
the
Financial Management and Audit Act 1990 and are mandatory,
unless the Treasurer grants an exemption. The
Instruction’s set out the principles, practices and procedures to be observed
in the financial management of agencies. They
complement but over-ride Australian Accounting Standards.
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| Australian
Accounting Standards |
Accounting Standards provide guidelines for Public Sector
accounting and financial reporting. Accounting
Standards do not over-ride Government standards, legislation or financial
management guidelines.
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Agency Specific Legislation
The Department also operates in an environment which is
subject to the following legislation:
- Allport Library and Museum of Fine Arts Agreement Act 1966
- Subordinate Legislation: Allport Library and Museum of Fine Arts Regulations 2002
- Archives Act 1983
- Subordinate Legislation: Archives Regulations 1987
- Building and Construction
Industry Training Fund Act 1990
- Subordinate Legislation: Building and Construction Industry Training Fund
Regulations 1991
- Child Care Act
1960
- Child Care Act
2001
- Christ College Act 1926
- Education Act 1994
- Subordinate Legislation: Education Regulations 1995
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- Education Providers Registration (Overseas Students) Act 1991
- Subordinate Legislation: Education Providers Registration (Overseas Students)
Regulations 1992
- Libraries Act 1984
- Subordinate Legislation: Libraries Regulations 2002
- Tasmanian Qualifications
Authority Act 2003
- Subordinate Legislation: Tasmanian
Qualifications Authority (Fees) Regulations 2002
- Teachers Registration Act
2001
- Subordinate Legislation: Teachers Registration Regulations 2001
- University of Tasmania Act 1992
- Vocational Education and
Training Act 1994
- Subordinate Legislation: Vocational Education and Training Regulations 1995.
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The Public
Account
The legislative
framework for the operation of the Government's financial operations is provided
by the Public Account Act 1986.
The Public Account
is comprised of two funds:
| Consolidated Fund |
The Consolidated
Fund comprises the principal fund through which Government expenditure and
receipts are processed. The Consolidated Fund receives all State taxation
revenue, the majority of Commonwealth payments to Tasmania, territorial revenue and certain
other classes of revenue, such as receipts from Government Business Enterprises
(GBEs), State authorities and State-Owned Companies (SOCs).
There are
two types of expenditures from the Consolidated Fund, recurrent services
expenditure and works and services expenditure.
Expenditure
cannot be incurred from the Consolidated Fund without the authority of
Parliament. Appropriations lapse at the conclusion of each financial year.
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| Special Deposits and Trust Fund |
The Special
Deposits and Trust Fund comprises funds which are used for specific identified
purposes. These funds are administered through a range of accounts,
including trust, suspense, deposit, operating and provision accounts.
Expenditure from
accounts in the Special Deposits and Trust Fund is not subject to the approval
of Parliament. Accounts within the
Special Deposits and Trust Fund do not operate on an annual basis. Balances are carried forward at the end of each financial year.
Accounts
in the Special Deposits and Trust Fund may operate in overdraft, subject to the
Treasurer's approval.
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Activities
Outside of the Public Account
The Department
also administers some funding which is administered outside of the Public
Account arrangements. These funds
are held in separate bank accounts and are administered totally by Departmental
staff.
| Schools
and Colleges: |
The major
activity administered outside of the Public Account is that of schools. Each school acts as an autonomous business unit which maintains its own
financial system designated by the Department and operates its own bank account.
Schools receive funding through a number of sources which include: levies, the
School Resource Package (SRP) and Commonwealth grants. School financial
activities are monitored by the Department and are consolidated into the
Department’s financial statements, and for the first time in 2003-04 in the
Department’s Budget Papers.
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| Other
Activities Managed Outside the Public Account: |
The other major
activities administered outside of the Public Account are activities principally
controlled by Boards, Trustees or Committees in a trust capacity. These activities are generally funded through donations or bequests and
the funding is held in trust and is not to be used for achievement of the
Department’s objectives. The
Department acts as an administrative agent performing a custodial role for the
Boards or Trustees in the management of associated funding through separate bank
accounts. These activities are not
consolidated into the Department’s financial statements, but are summarised in
the notes supporting the statements in view of the fact that the Department is
the administrative agent for the activities. These activities are:
- Critchley Parker Junior Student Loan Fund
- The
Woodward Visual Arts Bequest
- Sir John Morris Memorial Trust
- TM Crisp Memorial Sporting Library
- Allport Library & Museum of Fine Arts Management Committee
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The aim of the Finance Policies and Guidelines are to formally document
the finance policies and guidelines of the Department of Education (the
Department).
The policies and guidelines outline and promote sound policies, practices
and guidelines in matters of financial administration. The policies and
guidelines also act as an internal control tool and as a reference and
training aid for a variety of staff to ensure they are aware of their
responsibilities.
The purpose of the Finance Policies and Guidelines is to:
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state the finance policies and guidelines of the
Department;
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enhance staff awareness of established guidelines and
ensures consistency and uniformity in financial practices adopted and
followed throughout the Department;
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provide a vehicle for uniformly communicating details
of new financial policies and guidelines and also amendments to existing
financial policies and guidelines;
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enable monitoring and compliance with guidelines by
both the Department’s management and audit;
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enable the Secretary of the Department to effectively
discharge the position’s responsibilities under Section 22 of the Financial
Management and Audit Act 1990; and
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satisfy the statutory requirement prescribed by Section
10 of the Financial Management and
Audit Act 1990.
Policies and guidelines take immediate effect upon issue on the Department’s
website.
The policies and guidelines have been prepared on the basis of outlining key
high level financial structures and policies and operational issues of direct
relevance to staff in Departmental school and non-school budget centres.
Location of policies
The policies and guidelines are integrated into a singular web-based format, and
are available on the Department’s Internet website, found by keyword search or
more specifically on the FFBS web page. This medium will provide easy access for
all department staff.
Specific finance policies and guidelines can be found under
the following subject headings:
Control and Maintenance
Policies and guidelines will be reviewed regularly and
updated as appropriate. The Manager, Finance and Procurement Services, is
responsible for the preparation, issue and maintenance of the policies and
guidelines and providing updates as required.
Amendments to policies and guidelines may result from:
- amendments to the Financial Management and Audit Act 1990 or Treasurer’s
Instructions thereby requiring changes to policies, guidelines or reporting
methodologies within the Department; and
- changes in Departmental policy and structure, including changes in
strategic and operational direction.
Requests for amendment are to be provided in writing to the
Manager, Finance and Procurement Services.
Revised policies and guidelines will be issued from time to
time and will take immediate effect upon publication on the Department’s website.
Depending on the level of revision, any changes to department policies or
guidelines will be communicated to staff.
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