To ensure South East Water’s finances are managed:
- in an economically responsible manner;
- as efficiently as possible and consistent with commercial practice;
- in compliance with all relevant legislation, standards and policies, and
- in a manner that promotes a culture of financial responsibility in all decision-making.
2. Scope of Policy
This policy applies to South East Water and its subsidiary, iota Services Pty Ltd, and must be observed by all directors, employees, agents, contractors and other workers. References in this policy to South East Water are taken to include iota Services Pty Ltd, unless the context otherwise requires.
3. Policy statement
South East Water is committed to:
- Promoting and regularly reviewing the proper use and management of public resources by:
- demonstrating and promoting a culture that contributes to sound financial management and acceptable shareholder returns.
- driving and maintaining efficient business operations in a financially sustainable way.
- promoting sustainable procurement practices that deliver value for money, encourage open and fair competition, accountability and transparency, and cover the full acquisition lifecycle.
- Establishing and maintaining an effective internal control system by:
- promoting sound systems of internal compliance and control to ensure effective and efficient financial governance.
- ensuring financial systems are managed effectively to meet business needs, stakeholder requirements and compliance obligations.
- managing sound and robust internal audit programs that add value and contribute to good corporate governance.
- Identifying and managing risks by:
- maintaining appropriate due diligence and risk management strategies in respect of commercial activities.
- Planning and managing performance to achieve financial sustainability by:
- managing, within board-approved policies, treasury obligations, liquidity and interest rate risks.
- formulating short and long-term financial plans in line with corporate plans and strategies.
- managing appropriate financial (including taxation) risks, planning and strategies, in respect of commercial activities.
- maintaining a rolling 12 months cash flow forecast.
- Managing financial (including taxation) information by:
- producing accurate, relevant and timely financial information to enable proper monitoring and control of financial performance for prompt decision-making.
- maintaining financial integrity through open and transparent financial and management reporting processes.
- Complying with financial management and reporting requirements by:
- applying all applicable Victorian government policy frameworks relating to the requirements of the Financial Management Act 1994 (FMA) and other government financial policies, guidelines and procedures, where relevant.
- proactively managing all external financial reporting, taxation, legislative and regulatory obligations.
- complying with and supporting external audit programs initiated by the Victorian Auditor-General’s Office.
- Providing assurance on the integrity of financial and performance information (including budgets and financial projections) to the Board and sub-committees in line with their associated Charter.
4. Related Policies
- BS2444 Compliance Policy
- BS2469 Procurement Policy
- BS2310 Treasury Policy
5. Enacting Legislation and Related Documents
- Water Act 1989 (Vic)
- Financial Management Act 1994 (Vic)
- Standing Directions 2018 under the Financial Management Act 1994
- Statement of Obligations
- Department of Treasury and Finance Corporate Planning And Performance Reporting Requirements
- Australian Accounting Standards
The Managing Director is accountable to the Board of Directors for ensuring this Policy is implemented.7. Approval
Approved by: South East Water Board of Directors
Approved on: 6/12/2021
/Sponsor: General Manager, Finance & Technology
Implementer: Group Manager Finance
Review date: 4/12/2023