Financial Management Policy Framework
View the PDF document of the Financial Management Policy Framework.
1. Policy framework statement
The Financial Management Policy Framework specifies the financial management requirements that all Health Service Providers (HSPs) must comply with in order to ensure effective and consistent financial management across the WA health system.
The Director General (DG) of the Department of Health is the System Manager responsible for the overall management, strategic direction and stewardship of the WA health system. The DG will use policy frameworks to ensure a consistent approach to a range of matters undertaken by HSPs. Policy frameworks must be complied with and implemented as a part of ongoing operations.
The purpose of this policy framework is to ensure:
- accountability and transparency in financial management
- long-term financial sustainability
- effective and efficient control over, and use of, financial resources
- accuracy, timeliness and completeness of financial information
- effective management of financial risks
- compliance with legislative and government policy requirements.
This policy framework is binding on each HSP to which it applies or relates.
The key principles that underpin this policy framework are:
The use of financial resources, decisions and actions must be available and able to be communicated to external reviewers.
Financial management decisions must not compromise long-term financial sustainability.
The use of financial resources responsibly, for the purposes that they have been provided, with adequate planning, control and consideration of risks.
The management of financial resources must be documented and reported, in a clear, consistent and accurate manner.
5. Legislative context
The Health Services Act 2016 refers to policy frameworks in ss. 26-27 and s. 34(2)(c). Other relevant parts in the Act that relate specifically to this policy framework include ss. 34-39 which set out the functions and powers of HSPs, Part 6 which sets out the fees and charges for health services and Part 7 which sets out the accountability and financial provisions for HSPs.
The legislation below, may also apply:
- Financial Management Act 2006
- Government Financial Responsibility Act 2000
- Treasurer's Instructions.
6. Mandatory requirements
Under this policy framework HSPs must comply with all mandatory requirements* including:
- Australian Accounting Standards Board (AASB) Accounting Standards
- WA Health Chart of Accounts Manual^
- WA Health Cost Centre Manual^
- WA Health Fees and Charges Manual^
- WA Health Financial Management Manual^
*Any mandatory requirement document that references the Hospitals and Health Act 1927 must be interpreted as a requirement under the Health Services Act 2016.
^These internal documents can be made available on request.
7. Supporting information
There is no supporting information for this policy framework.
8. Policy framework custodian
Assistant Director General
Purchasing and System Performance Division
Enquiries relating to this policy framework may be directed to:
This policy framework will be reviewed as required to ensure relevance and recency. At a minimum this policy framework will be reviewed within two years after first issue and at least every three years thereafter.
|Version||Effective from||Effective to||Amendment(s)|
|PF2016_01||1 July 2016||Current||Original version|
This policy framework has been approved and issued by the Director General of the Department of Health as the System Manager.
|Approval by||Dr David Russell-Weisz, Director General, Department of Health|
|Approval date||1 July 2016|
|Date published||1 July 2016|
|Dept. File No||F-AA-40148|
This policy framework is binding on those to whom it applies or relates. Implementation at a local level will be subject to audit.
12. Glossary of terms
|Applicability||Under Section 26 of the Health Services Act 2016, Policy Frameworks may apply to:
|Health Service Provider||Health Service Provider means a health service provider established under s. 32 of the Health Services Act 2016 and may include North Metropolitan Health Service (NMHS), South Metropolitan Health Service (SMHS), Child and Adolescent Health Service (CAHS), WA Country Health Service (WACHS), East Metropolitan Health Service (EMHS), Quadriplegic Centre and Health Support Services (HSS).|
|WA health system||The WA health system is comprised of the Department of Health, Health Service Providers (NMHS, SMHS, CAHS, WACHS, EMHS, Quadriplegic Centre and HSS) and to the extent that contracted health entities provide health services to the State, the contracted health entities.|