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  • Principle 1
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  • Principle 4
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  • Principle 6
  • Principle 7
  • Principle 8
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• Performance Measures
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  • Notes to Financial Statements (PDF)
• Appendices
  • Appendices
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Principle 7: Finance

Reporting to the Department of Treasury

There is a requirement to provide monthly, quarterly and annual information to the Department of Treasury, which is subject to audit by the Office of the Auditor General. This also serves as an independent check on the integrity of financial reporting.

Accounting and Financial Management Policies

A comprehensive Accounting Manual containing accounting and financial management policies and procedures is maintained together with Control Self-Assessment Checklists. These documents communicate accountability for procedures within various responsibility areas and enhance the level of internal control. The Manual and Checklists enable 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, are available online to all employees.

Capital Works

All disclosures in relation to capital works are included in the Financial Statements. Our Strategic Asset Management Plan, produced annually through our Asset Management and Investment Planning processes, 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, environmental 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 in relation to travel time savings, vehicle operating costs and smoother travel, safety, and maintenance. Other benefits and costs are considered via a multi-criteria analysis. Capital works financial progress is reported to the Budget Committee on a monthly basis.

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 is responsible for managing our internal audit function which provides independent, objective assurance and consulting activities. The Branch aims to add value, improve operations and bring a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, operational controls and governance processes. The Management Review and Audit Charter establishes the responsibility of the Management Review and Audit function to ensure it performs effectively in the organisation. This Charter identifies that the audit function will provide the Managing Director and Corporate Executive with:

• Objective constructive and independent assessments of the extent to which:
  • financial, human, intellectual and physical resources are managed with due regard to economy, efficiency and effectiveness
  • accountability relationships are reasonably served.
• Assurances as to the reliability of accounting and financial management information and the protection of assets and resources under control.
• Assessment of the organisation’s compliance with legislation and relevant policies and procedures.
• Assessment of audit reports issued by the Office of the Auditor General and the relevance and possible impact on Main Roads.
• Independent and confidential advice on remedial action to improve operational effectiveness, efficiency and economy.
• Progress reports regarding remedial action taken by line management.

The Branch reports quarterly to the Management Review and Audit Committee and maintains a regular review of audit plans, reports and working papers.

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 and audits our financial statements, controls and key performance indicators. It provides an independent opinion on whether our financial statements are true and fair and are in accordance with the Australian Accounting Standards and the Treasurer’s Instructions.

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. Particular financial highlights are reported monthly to Corporate Executive along with progress against Key Financial Performance Indicators. In addition, Regions and Branches conduct monthly reviews of their finances with financial reports presented at Directorate Management Meetings.

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.

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