Guidance 1.5 Exemptions – Objective To assist Agencies in applying for exemptions from the Directions Effective Date 1 July 2016 Relevant Direction Last Reviewed 1 February 2016 Summary Section 8(d) of the FMA, and , provide that the Minister for Finance may exempt an Agency from specific or all requirements in the Directions and Instructions. sets out the minimum requirements for an exemption request: that it be in writing, trial the reasons for the exemption, and specify proposed alternative action or procedures. The Directions and Instructions are intended to set down the minimum financial management standards for the Victorian Public Sector (VPS). Accordingly, exemptions will only be granted in exceptional circumstances. Agencies should only seek an exemption as a last resort. Preparing to apply Before applying for an exemption, an Agency should closely consider whether the exemption is required. It may be that the relevant Direction can be achieved without the need for an exemption. It should be kept in mind that the Directions are intended to be applied in a manner consistent with the size and risk profile of Agencies: see . If an exemption is required, the Agency should identify the minimum exemption necessary. Agencies should consult with their Portfolio Department and DTF as soon as possible before making a formal exemption request. This may save time and effort later, and provide a chance to ensure that the application is tailored appropriately. Agencies should dedicate sufficient time and resources to preparing a strong case for an exemption. How to apply An Agency should apply for an exemption by letter from their Accountable Officer or Responsible Minister to the Minister for Finance. The application should also be copied to DTF. An Agency should include the following information in the application: the Directions and/or Instructions from which the exemption is sought; the reasons for seeking the exemption (see discussion below); relevant information about the Agency, including size and risk profile if relevant; details of any previous or existing exemptions of the Agency; alternative action or procedures to ensure that the objectives of the relevant Directions are achieved; and the duration of the exemption: for a specified period, or ongoing. Reasons for an exemption An Agency seeking an exemption needs to provide reasons that demonstrate to the Minister for Finance that it has a compelling case for an exemption. An Agency may provide the following information to support its case for an exemption: an explanation of how the exemption sought and alternative arrangements proposed would not undermine the integrity of the Agency’s financial management systems and the objectives of the Direction;
Guidance 1.5 – Exemptions Objective To assist Agencies in applying for exemptions from the Directions Effective Date 1 July 2016 Relevant Direction Last Reviewed 1 February 2016 Summary Section 8(d) of the FMA, and , provide that the Minister for Finance may exempt an Agency from specific or all requirements in the Directions and Instructions. sets out the minimum requirements for an exemption request: that it be in writing, the reasons for the exemption, and specify proposed alternative action or procedures. The Directions and Instructions are intended to set down the minimum financial management standards for the Victorian Public Sector (VPS). Accordingly, exemptions will only be granted in exceptional circumstances. Agencies should only seek an exemption as a last resort. Preparing to apply Before applying for an exemption, an Agency should closely consider whether the exemption is required. It may be that the relevant Direction can be achieved without the need for an exemption. It should be kept in mind that the Directions are intended to be applied in a manner consistent with the size and risk profile of Agencies: see . If an exemption is required, the Agency should identify the minimum exemption necessary. Agencies should consult with their Portfolio Department and DTF as soon as possible before making a formal exemption request. This may save time and effort later, and provide a chance to ensure that the application is tailored appropriately. Agencies should dedicate sufficient time and resources to preparing a strong case for an exemption. How to apply An Agency should apply for an exemption by letter from their Accountable Officer or Responsible Minister to the Minister for Finance. The application should also be copied to DTF. An Agency should include the following information in the application: the Directions and/or Instructions from which the exemption is sought; the reasons for seeking the exemption (see discussion below); relevant information about the Agency, including size and risk profile if relevant; details of any previous or existing exemptions of the Agency; alternative action or procedures to ensure that the objectives of the relevant Directions are achieved; and the duration of the exemption: for a specified period, or ongoing. Reasons for an exemption An Agency seeking an exemption needs to provide reasons that demonstrate to the Minister for Finance that it has a compelling case for an exemption. An Agency may provide the following information to support its case for an exemption: an explanation of how the exemption sought and alternative arrangements proposed would not undermine the integrity of the Agency’s financial management systems and the objectives of the Direction; trial
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