PURPOSE
1
Budget and financial advice, management and reporting—support the government to deliver its fiscal targets and policy objectives
Outcome 1
| Criterion | Analysis, policy advice and costing information provided to the Finance Minister and the Expenditure Review Committee of Cabinet as part of the budget and financial reporting processes meet the expectations of government and relevant stakeholders and support informed decision-making. |
| Source | Corporate Plan 2016–17, page 9 Portfolio Budget Statements 2016–17, Program 1.1, page 26 |
| Result | Achieved Finance provided advice to the Finance Minister and Expenditure Review Committee of Cabinet that was relevant to government considerations, accurate, evidence-based, delivered within agreed timeframes and consistent with government-agreed processes. Finance’s analysis, advice and costing information was included in the 149 briefs prepared in 2016–17 to support the deliberations of the Expenditure Review Committee. Further, during the development of the 2017–18 Budget, Finance verified approximately 900 policy costings for accuracy and overall alignment with the policy’s intent and validated over 8,700 estimates adjustments. |
Provision of analysis, policy advice and costing information is an essential role performed by Finance to ensure that government is provided with critical information to support informed decision-making in the development of the Budget. Finance undertakes this role in accordance with the expectations of the government and the requirements of key policies such as the Cabinet Handbook and Budget Process Operational Rules. Finance monitors its performance in relation to the delivery of budget analysis, policy advice and costing information through internal departmental records and stakeholder engagement including interactions with ministers’ offices.
| Criterion | The budget-related updates and the government’s financial statements are accurate (taking into account, to the fullest extent possible, all government decisions and other circumstances that may have a material effect), delivered within required timeframes, and meet the government’s legislative obligations. |
| Source | Corporate Plan 2016–17, page 9 Portfolio Budget Statements 2016–17, Program 1.1, page 26 |
| Result | Substantially achieved Finance delivered all of the economic and fiscal updates and the government’s financial statements within legislated timeframes:
In relation to the accuracy of budget estimates, Finance reports the following results:
Three elements of this criterion were fully achieved and one element was partially achieved. Variations between the estimates and final outcome reflect program-specific parameters. Program estimates are regularly reviewed and updated to take account of the best available information to maximise their reliability and accuracy. |
Another vitally important Finance contribution to the budget and financial advice, management and reporting purpose is ensuring budget estimates, processes and documentation are prepared and delivered in an accurate and timely manner. In 2016–17 this involved:
- coordinating, preparing, and advising on the delivery of the budget and related updates, including budget papers, appropriations legislation and the government’s financial statements
- developing and maintaining sound legal, financial and policy settings, and implementing processes that improve fiscal accountability and the quality of information provided to the parliament and the public.
Finance considers that by managing the budget process and rules, costing and advising on new policy proposals and maintaining the government’s financial reporting framework it is helping the government develop and meet its fiscal targets, policy objectives and legislative obligations.
As noted, Finance’s performance in fulfilling this function is demonstrated by compliance with legislated deadlines for budget documentation and the accuracy of budget estimates.
| Criterion | The government’s cash requirements are met on a daily basis, ensuring the ongoing operations of government. |
| Source | Corporate Plan 2016–17, page 9 Portfolio Budget Statements 2016–17, Program 1.1, page 26 |
| Result | Achieved Finance managed the Central Budget Management System to ensure that the government’s daily cash requirements were met on each day of the reporting period. |
Finance’s robust financial systems and frameworks supported the processing of a daily disbursement of cash through the Central Budget Management System, enabling the government to meet the daily cash requirements of Commonwealth entities. This is crucial: meeting the funding requirements of entities enables them to continue to deliver on the government’s policy objectives including provision of services to the community. In order to ensure that no entity is prevented from delivering its services due to a lack of cash, and to ensure the ongoing operations of government, Finance has a target of meeting all entities’ cash requirements on each day of the financial year. This target was met in 2016–17.
Performance analysis: Budget and financial advice, management and reporting purpose
In the development of the 2016–17 Corporate Plan, Finance determined that its key contributions to the budget and financial advice, management and reporting purpose were as follows:
- the provision of analysis, policy advice and costing information
- ensuring that budget-related updates and the government’s financial statements were accurate
- making sure Commonwealth entities had adequate funding to deliver the government’s policy objectives.
Finance regarded the successful completion of these activities as core departmental business. The results demonstrate that in 2016–17 Finance, as a central agency, effectively supported the government in articulating and achieving its fiscal targets and policy objectives with only one Budget Estimates target not being met due to program specific parameters.
