Circular No 2011/01 - Ministerial Council for Federal Financial ...

Authorised Certifiers
Federal Financial Relations Circular 2011/01
33. In order to ensure an appropriate level of authorisation by portfolio agencies on behalf of their
Commonwealth Minister, only Chief Financial Officers (CFOs) and two other nominated senior
authorised persons may certify payments for submission to the Treasury.
34. Ordinarily an agency’s CFO will certify payments. Should the CFO not be available, then
either of the two other authorised persons may certify the payments.
35. The two nominated senior authorised persons should hold a section 44 delegation under the
FMA Act. Section 44 requires that a Chief Executive or delegate must manage the affairs of the
Agency in a way that promotes proper use of the Commonwealth resources for which the Chief
Executive is responsible, where “proper use” means efficient, effective and ethical use that is not
inconsistent with the policies of the Commonwealth.
36. In certifying payments for submission to the Treasury, the certifier is not actually exercising
their delegation as such, however, it is considered appropriate from an internal control and audit
perspective that a certifier should be a section 44 delegate.
37. The Treasury will shortly be requesting from agencies the names and positions of two other
senior authorised persons that may certify payments.
38. The register of authorised certifiers will be reviewed annually and agencies must also advise
the Treasury of any changes throughout the year.
39. Payments will not be made where they are not signed by the CFO or an authorised certifier.
Transfer of funds and information on GovDex
40. Under the centrally administered payment arrangements of the framework, all payments are
processed by the Commonwealth Treasury and paid directly to each State or Territory Treasury.
State and Territory Treasuries are responsible for distributing the funding within their jurisdiction.
41. Having State and Territory Treasuries distribute Commonwealth-sourced funding to State or
Territory portfolio agencies helps reinforce that State and Territory agencies are primarily
accountable to their own Parliament and the public for their service delivery performance, including
in respect of their delivery of programs for which the Commonwealth provides a financial
contribution.
42. Information regarding payments made is posted on the government information sharing
website GovDex – www.govdex.gov.au. This information is provided initially in draft form to
assist State and Territory Treasuries with cash forecasting and management. Final information is
provided once the determination has been signed by the Treasurer.
43. The information on GovDex provides individual monthly payments, cumulative balances and
tracking against budgeted amounts which will assist State, Territory and Commonwealth agencies
with tracking payments and cash flow management.
Annual summary of payments
44. For each financial year, an annual summary of amounts certified for payment by agencies
throughout the year will be sought. This process, first introduced for the 2009-10 financial year,
aims to facilitate an annual reconciliation to ensure all payments have been correctly made and
reported.
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