Reference Direction Benefit for Government Reporting and monitoring of key Analysing information gathered by financial systems business performance measures, can provide management with greater insight into the then leverage this information for operational effectiveness of their department by: decision-making. identifying those services that can be delivered more efficiently; mapping business outputs to budget, to determine the business performance; providing management with the relevant trends and statistics, for informed decisions; and satisfying the necessary compliance requirements (as described in section 4). Note: the level of data insight available to departments will vary according the sources (and types) of data collected and the level of investment made in Business Intelligence (BI) tools to support the finance function. Consolidated financial reporting is The government finance system will produce able to be performed at the whole consolidated financial reporting, so that: of department and whole of departments can report and manage whole-of government levels. finances (for their portfolio); and DTF can report and manage whole-of-government finances on behalf of the State. Note: see note re SRIMS under FIN-08 Multi-level financial budgets are Effective budgeting is required so that departments able to be prepared to support the can: operational and longer-term ensure sufficient cash is available to maximise financial planning needs of the investment opportunities; department and whole of manage deficits so that borrowing are government. minimised; provide operational forecasts to ensure immediate commitments can be met (including cost of service provision and running costs); provide tactical forecasts (with detailed estimates), so that planned activities are funded; longer-term forecasts, that plan annual commitments and contingencies; and facilitate ongoing communication with DTF about current and future budgeting requirements. Note: DTF’s SRIMS system will continue to be used for the foreseeable future until better arrangements are available, or until the value from it has been fully realised. This requirement merely notes that such functionality should be available, for when it is suitable to move to a new approach. Ability to perform Activity Based By setting up cost centres in the Government Costing to understand and manage Finance System, departments are able to the real costs of operating. undertake further analysis on expenses to determine the full costs of delivering a service or other outcome. Results of this analysis can provide more robust budgets and ERSC submissions.
Reference Direction Benefit for Government Reporting and monitoring of key business performance measures, then leverage this information for decision-making. Analysing information gathered by financial systems can provide management with greater insight into the operational effectiveness of their department by: identifying those services that can be delivered more efficiently; mapping business outputs to budget, to determine the business performance; providing management with the relevant trends and statistics, for informed decisions; and satisfying the necessary compliance requirements (as described in section 4). Note: the level of data insight available to departments will vary according the sources (and types) of data collected and the level of investment made in Business Intelligence (BI) tools to support the finance function. Consolidated financial reporting is able to be performed at the whole of department and whole of government levels. The government finance system will produce consolidated financial reporting, so that: departments can report and manage whole-of finances (for their portfolio); and DTF can report and manage whole-of-government finances on behalf of the State. Note: see note re SRIMS under FIN-08 Multi-level financial budgets are able to be prepared to support the operational and longer-term financial planning needs of the department and whole of government. Effective budgeting is required so that departments can: ensure sufficient cash is available to maximise investment opportunities; manage deficits so that borrowing are minimised; provide operational forecasts to ensure immediate commitments can be met (including cost of service provision and running costs); provide tactical forecasts (with detailed estimates), so that planned activities are funded; longer-term forecasts, that plan annual commitments and contingencies; and facilitate ongoing communication with DTF about current and future budgeting requirements. Note: DTF’s SRIMS system will continue to be used for the foreseeable future until better arrangements are available, or until the value from it has been fully realised. This requirement merely notes that such functionality should be available, for when it is suitable to move to a new approach. Ability to perform Activity Based Costing to understand and manage the real costs of operating. By setting up cost centres in the Government Finance System, departments are able to undertake further analysis on expenses to determine the full costs of delivering a service or other outcome. Results of this analysis can provide more robust budgets and ERSC submissions.
Statement-of-Direction-SODFIN01-Finance-Systems-V1.0.docx