2012 ANNUAL REPORT

Principle: 7 Finance

Accounting and Financial Management Policies

A comprehensive Accounting Manual containing accounting and financial management policies and procedures is maintained. It communicates accountability for procedures within various responsibility areas and enhances the level of internal control. The Manual enables management as well as internal and external auditors to monitor compliance with established procedures and, together with the Financial Management Act 2006 and the Treasurer’s Instructions, is available online to all employees.

Capital Works

All disclosures in relation to capital works are included in the Financial Statements.

Main Roads Strategic Asset Management Plan, produced annually, details our 10-year investment needs and drivers. The Strategic Asset Plan adheres to WA Treasury’s Strategic Asset Management Framework. We assess projects for funding based on their economic, environment and social impacts. Each capital project follows the national Austroads project evaluation methodology where a Benefit Cost Ratio (BCR) must be conducted. This incorporates quantifiable economic data and is supplemented by simplified economic, environmental and social assessments. The BCR records information on the benefits of a project on travel time savings, vehicle operating costs and smoother travel, safety, and maintenance. Other benefits and costs are considered via a multi-criteria analysis.

Internal Audit

A comprehensive system of internal controls is in place to ensure that there is an appropriate division of responsibilities to safeguard the assets and financial interests of the organisation. The Management Review and Audit Branch regularly assess the adequacy of internal controls within the organisation by conducting audits of our financial and management information systems in accordance with an Annual Audit Plan.

Statutory Audit

The annual independent external audit on controls, compliance and assurance is carried out by the Auditor General of Western Australia, in accordance with the Auditor General Act 2006. The Auditor General’s opinion is addressed to both Houses of the Parliament of Western Australia.

Management Reporting

Financial reports are tabled monthly and quarterly at the Budget Committee which comprises all Executive Directors and is chaired by the Chief Finance Officer. Key financial highlights are reported monthly to Corporate Executive along with progress against Key Financial Performance Indicators.

Pricing Policies of Services Provided

The supply of goods and services we undertake represents works and services carried out for other public sector and private bodies on a cost recovery basis. Further details are available in the Notes to the Financial Statements.