Page 4396 - Week 14 - Wednesday, 8 December 1993
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PUBLIC ACCOUNTS - STANDING COMMITTEE
Report on Revi
ew of the Financial Management of ACT Health -
Government Response
MR BERRY (Minister for Health, Minister for Industrial Relations and Minister for Sport) (3.13): For the information of members, I present the Government's response to report No. 4 by the Standing Committee on Public Accounts on the "Review of the Financial Management of ACT Health". I move:
That the Assembly takes note of the paper.
I would like to respond to the Public Accounts Committee's report "Review of the Financial Management of ACT Health". Firstly, I would like to thank the committee for its comprehensive review of ACT Health's financial management and its acknowledgment that major improvements have been made since 1991. We have implemented a major program of financial management reform. The issues raised in the inquiry into the management of the health system by the late Mr Enfield have now been addressed. In response to the Enfield inquiry, the former board commissioned Arthur Andersen to advise it on improvements to the financial management procedures. Of the 135 recommendations arising from the inquiry, action has been commenced or completed on all of those which are the responsibility of Health. The program of financial management reform undertaken by my department is comprehensive and ongoing. It addresses much more than the matters raised in the special reports and inquiries.
Specific areas of improvement include the following: Better management structures have been put in place. The resource management role in Health has been strengthened through the appointment of a general manager, resources division. Responsibility for financial management of individual health services is now clearly with program managers responsible for service delivery. General managers of divisions have their own financial and administrative personnel. Health has improved its financial skills both through the recruitment of suitably qualified personnel and through extensive internal training. A number of staff with accounting qualifications have been recruited to key positions. There is now adequate documentation for financial procedures. For example, easy to use manuals for key financial procedures have been provided to all budget managers and administrative staff. There has also been extensive work done on documenting the activities of financial processing staff.
Computer systems for financial management have been significantly enhanced. Data communication links have been established to enable staff at all major health locations to have direct access to ACT Health's financial systems. A payroll costing package has been developed and implemented. This assists budget managers in managing their labour expenditure. ACT Health produces audited annual financial statements on an accrual basis, which is more comprehensive than is currently required for budget sector agencies. Such reporting is in line with current financial reforms by the Commonwealth, Territory and State governments. This information provides a thorough picture of ACT Health's finances. Health has received good audit reports in the three years since 1990-91. Although there was a minor technical qualification in 1991-92, the Auditor agreed with ACT Health's view and the relevant accounting standard has been amended. This good record has continued, with Health receiving an unqualified audit report in 1992-93.
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