Compliance Management Policy

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					                                                                         FINANCIAL MANAGEMENT COMPLIANCE CHECKLIST - for Program Managers

                                                                          Assessment of Level of Compliance
Ref                      Control Activity/Process                                                                         Evidence / Process for Compliance   Area and Person Responsible
                                                                          (0)=Nil; (1)=Minor; (2)=Substantial; (3)=Full


      RESPONSIBILITY


      Relevant aspects of the DECS Strategic Plan/Business
      Plans/Performance Statements cover applicable legislation (e.g.
 1    Acts, TI's etc) Cabinet/ERBCC requirements, SA
      Government/Departmental policies and other external
      Australian standards (e.g. Compliance Standard, Risk
      management Standards and Corporate Governance Standard).

      Compliance with the applicable legislation (as above) is
 2
      monitored and non-compliance is reported.

      A compliance culture exists. The culture fostered by
 3    management is consistent with DECS values, strategies,
      governance and ethical and community standards.


 4    Adequate processes have been established within in the
      section/unit/branch/business unit to prevent and control fraud.

      Effective processes are in place to detect departures from
 5    internal control policies and procedures and enable decisive
      and prompt action to be been taken to deal with deviations.


 6    Internal control processes and systems are reviewed annually to
      address shortcomings and avoid any repeat non-compliances.

      A senior officer has been assigned responsibility for aspects of
 7    the financial management compliance program relevant to the
      section/unit/branch/business unit.




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                                                                             FINANCIAL MANAGEMENT COMPLIANCE CHECKLIST - for Program Managers

                                                                              Assessment of Level of Compliance
Ref                       Control Activity/Process                                                                            Evidence / Process for Compliance   Area and Person Responsible
                                                                              (0)=Nil; (1)=Minor; (2)=Substantial; (3)=Full

      RESOURCES


 8    Resources are appropriately allocated to achieve the
      section/unit/branch/business unit objectives.


      Systems/processes that allow timely communication of accurate
 9
      information to relevant parties (e.g. Sites, other State Public
      Sector Agencies, the Commonwealth etc.) are maintained.

      Personnel have the appropriate qualifications, skills and
      knowledge to undertake their responsibilities effectively. Where
10
      skills gaps are noted staff are offered appropriate training to
      address.


11    All personnel are aware of acceptable behaviour and actions as
      outlined in the Office of Public Employment's Code of Conduct.

      Breaches of the code of conduct/ethical guidelines are
      monitored and instances of non compliance are reported in
12    accordance with Departmental policies (e.g. DECS Fraud
      Control Policy, DECS Fraud Control Framework, Whistle Blower
      Policy) and the Code of Conduct.

      RISK

      As outlined in the DECS Risk Management Policy and Risk
      Management Framework, risk is managed by identifying,
13
      analysing, evaluating and treating material risks. All material risk
      are continually monitored and reviewed.

      INFORMATION

      Records are maintained that demonstrate compliance with
14
      applicable legislation (refer qu.1)

      Generally contracts are in writing and clarify requirements such
      as contract deliverables, price, performance standards,
15
      confidentiality and intellectual property. All contract should be
      clearly articulated and understood by personnel.




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                                                                         FINANCIAL MANAGEMENT COMPLIANCE CHECKLIST - for Program Managers

                                                                          Assessment of Level of Compliance
Ref                       Control Activity/Process                                                                        Evidence / Process for Compliance   Area and Person Responsible
                                                                          (0)=Nil; (1)=Minor; (2)=Substantial; (3)=Full


16    Processes exist to maintain all contracts are up to date and to
      assist DECS/relevant staff with ongoing contract management.

      Adequate records are maintained (e.g. contract register) to
      demonstrate compliance with contract terms and facilitate
17    ongoing contract management consistent with the "DECS
      Accredited Purchasing Unit Instructions for Managing
      Contracts"

      PLANS

      Budget and business unit plans are in accordance with the
18
      DECS' strategic plan.

      GENERAL

      Appropriate segregation of duties have been implemented and
19
      complies within areas of conflicting responsibility

      Delegation of authority are in place and reviewed at least
20
      annually.


21
      Breaches of financial delegation are detected and addressed.

      A methodology / process exists to ensure projects are managed
22
      and delivered efficiently and effectively.


23    The accounting records correctly and accurately record the
      financial position / performance of your area of responsibility.

      Reconciliations are performed on a regular basis, e.g. general
      ledger to subsidiary systems, source documents etc. Ensure
24
      movements and reconciling items are appropriately explained
      and actioned.

      Processes exist that ensure that all transactions are
25
      appropriately coded for tax purposes




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                                                                        FINANCIAL MANAGEMENT COMPLIANCE CHECKLIST - for Program Managers

                                                                         Assessment of Level of Compliance
Ref                      Control Activity/Process                                                                        Evidence / Process for Compliance   Area and Person Responsible
                                                                         (0)=Nil; (1)=Minor; (2)=Substantial; (3)=Full

      EXPENDITURE

      All goods / services ordered or purchased are in accordance
      with applicable policies, legislation, regulations, Treasurer's
      Instruction, DECS' delegation of authority, DECS' contracts
26
      and/or whole of government contracts. (e.g. Entertainment
      policy, Procurement Framework, Purchase / Credit Card policy
      etc.)

      Only goods and / or services ordered that meet appropriate
27
      specifications or business requirements are accepted.

      All goods and / or services ordered and received are completely
28    and accurately signed off and submitted for processing on a
      timely basis

      Goods ordered but not received or contracted services not
29
      provided are investigated and actioned on a timely basis

      Mechanisms to prevent the unauthorised use of purchase
30    orders, purchase / credit cards, cabcharge vouchers etc. exist
      and are maintained.

      PAYROLL

      Bona fide reports exist and are regularly reviewed / checked,
31
      and discrepancies actioned.

      INCOME
      Policies and procedures exist for raising invoices and credit
32
      notes and are reviewed regularly.


      Request for raising invoices are in accordance with Treasurer's
33    Instructions, accounting standards, DECS delegation of
      authority, DECS contracts and service level agreements etc.

      Processes are in place to ensure that requests for invoice are
34    actioned and recorded in a timely manner (i.e. reflected in the
      monthly Project Reports).

      Processes / mechanisms exists to review performance against
35
      contracts, service level agreements etc.




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                                                  FINANCIAL MANAGEMENT COMPLIANCE CHECKLIST - for Program Managers

                                                   Assessment of Level of Compliance
Ref                    Control Activity/Process                                                    Evidence / Process for Compliance   Area and Person Responsible
                                                   (0)=Nil; (1)=Minor; (2)=Substantial; (3)=Full




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                                                                           FINANCIAL MANAGEMENT COMPLIANCE CHECKLIST - for Program Managers

                                                                            Assessment of Level of Compliance
Ref                       Control Activity/Process                                                                          Evidence / Process for Compliance   Area and Person Responsible
                                                                            (0)=Nil; (1)=Minor; (2)=Substantial; (3)=Full

      GRANTS

      Responsibility and accountability is assigned to appropriate
36
      officers for all grant activities.

      Approval of grant expenditure is in accordance with the
37
      delegation of authority.


      Authorising officer for grant expenditure verifies the legitimacy
38
      of the grant expenditure in particular, where this officer is
      different to the officer responsible for grant administration.

      Grant funding is used in accordance with the grant's purpose as
39
      specified in the grant / funding agreement.

      On completion of the grant, the recipient provides an acquittal to
      the provider (e.g. Commonwealth) as assurance that funds
40
      have been spent for their intended purpose in accordance with
      the grant / funding agreement.


41    A grant budget is prepared to ensure accountability of the grant
      funding and to ensure objectives of the grant program are met.

      A process is in place to ensure that grant funding is only used to
42
      fulfil grant requirements.

      Grant reporting is undertaken in accordance with the grant
43
      funding agreement.

      Grant reporting reflects the funding agreement (e.g. whether
44    quarterly, six monthly; each reporting period; or the end of the
      grant) as part of the acquittal process.

      ASSETS

      Intangible assets (something of value which cannot be
      physically touched e.g. intellectual property, patent etc) are
45
      protected by intellectual property rights and are completely and
      accurately recorded.




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                                                                         FINANCIAL MANAGEMENT COMPLIANCE CHECKLIST - for Program Managers

                                                                          Assessment of Level of Compliance
Ref                      Control Activity/Process                                                                         Evidence / Process for Compliance   Area and Person Responsible
                                                                          (0)=Nil; (1)=Minor; (2)=Substantial; (3)=Full

      All relevant assets and minor equipment are protected from
46    unauthorised use / removal, and against physical deterioration
      or destruction.

      LIABILITIES

      Leave taken is certified by an appropriate senior officer and
47
      reconciled to payroll records (e.g. Bonafides).

      Obligations / commitments entered into are in line with the
48    DECS' strategic and capital plan; in accordance with applicable
      legislation.

      FINANCIAL MANAGEMENT REPORTING

      Budget reports are prepared on a timely basis to enable
49
      monitoring performance against budget.

      MONITORING

      Internal reporting mechanisms exist that allow the executives to
50    measure the performance and make effective decisions on a
      timely basis.



51    A process of monitoring expenditure against budget exists (e.g.
      through monthly management reports), including meaningful
      explanations for material variances and correction of anomalies.

      All budget adjustments are approved in line with DECS
52
      Business Rules for Budget Management and Control.

      Risk assessment and management plans are prepared and
53
      regularly monitored and reviewed.

      INFORMATION AND COMMUNICATION SYSTEMS

54    Passwords are kept confidential and used for proper and
      authorised activities only.




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                                                                        FINANCIAL MANAGEMENT COMPLIANCE CHECKLIST - for Program Managers

                                                                         Assessment of Level of Compliance
Ref                      Control Activity/Process                                                                        Evidence / Process for Compliance        Area and Person Responsible
                                                                         (0)=Nil; (1)=Minor; (2)=Substantial; (3)=Full



      OTHER CONTROL ACTIVITIES / PROCESSES - (Please list
      below any other control activities undertaken in your area that
      are not covered in this Checklist)




      Completion Certification:


                      Name of Officer completing this Checklist:                                                                          Contact phone number:



                              Name of Director / Assistant Director:                                                                      Contact phone number:




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                                                    INSTRUCTIONS FOR COMPLETION OF CHECKLIST

The attached checklist consists of the following columns:

Column 1: Control Activity/Process - details the control activity to be assessed. It has been pre-populated and does not require any input.

Column 2: Assessment of Level of Compliance - In this column, please make an assessment of level of current compliance and denote by recording the
relevant number.


Column 3: Evidence / Process for Compliance - In this column, please provide details of the types of processes/policies/systems that are in place and
demonstrate the control / compliance.

Column 4: Area and Person Responsible - Indicate the Area and Responsible officer for the related control activity/process.

Please find below an example of a completed section of the checklist:

                                               Assessment of Level of Compliance
                                                (0)=Nil; (1)=Minor; (2)=Substantial;                                                Area and Person
 Ref         Control Activity/Process                         (3)=Full               Evidence / Process for Compliance              Responsible


                                                                                        All staff have been issued a copy of the
  11    All personnel are aware of                                2                     Code of Conduct. Existing staff have
        acceptable behaviour and actions                                                undergone Code of Conduct training
        as outlined in the Office of Public                                             conducted in previous years. New            Mail Services, Joe Blogs,
        Employment's Code of Conduct.                                                   employees have yet to undergo training.     Manager

The completed checklist should be sent by email directly to Bea Kobayashi, kobayashi.bea@saugov.sa.gov.au, telephone 82261375, as soon as
possible, but not later than 6 May 2009.


Upon finalising the checklist, please ensure that the Completion Certification has been updated with the details of the completing officer and the relevant
Director and/or Assistant Director.

If there are problems completing the checklist, please contact any member of the FMCP Reference Group below:

                   Bea Kobayashi              822 61375                                             Jasmine Sinodinos               822 62295
                    Keka Barua                822 62294                                               Chris Williams                822 61381

				
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