Background
Financial Directions are a key element of the system of internal control. The Treasurer of the States has sought to develop a comprehensive set of Financial Directions prescribing the financial procedures and controls to be followed for all financial activities of the States. As at July 2014 there were 33 Financial Directions in force, made available to staff via the States’ intranet. A further 20 Directions were at various stages of development.
Scope
This review considers:
- the appropriateness of design of Financial Directions; and
- the extent of compliance with those Financial Directions in practice.
Conclusions
Financial Directions have been developed and improved over the last three years. However, compliance with Financial Directions is not consistent and improvements in the Financial Directions themselves are required to facilitate compliance.
Shorter, sharper, more accessible Financial Directions in a consistent style, supported by training, would improve the design and operation of the States’ system of internal control.
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