LOCAL GOVERNMENT ACT 2009 - SECT 104 Financial management systems

LOCAL GOVERNMENT ACT 2009 - SECT 104

104 Financial management systems

(1) To ensure it is financially sustainable, a local government must establish a system of financial management that—

(a) ensures regard is had to the sound contracting principles when entering into a contract for—

(i) the supply of goods or services; or

(ii) the disposal of assets; and

(b) complies with subsections (5) to (7) .

(2) A local government is
"financially sustainable" if the local government is able to maintain its financial capital and infrastructure capital over the long term.

(3) The
"sound contracting principles" are—

(a) value for money; and

(b) open and effective competition; and

(c) the development of competitive local business and industry; and

(d) environmental protection; and

(e) ethical behaviour and fair dealing.

(4) A
"contract for the supply of goods or services" includes a contract about carrying out work.

(5) The system of financial management established by a local government must include—

(a) the following financial planning documents prepared for the local government—

(i) a corporate plan that incorporates community engagement;

(ii) a long-term asset management plan;

(iii) a long-term financial forecast;

(iv) an annual budget including revenue statement;

(v) an annual operational plan; and

(b) the following financial accountability documents prepared for the local government—

(i) general purpose financial statements;

(ii) asset registers;

(iii) an annual report;

(iv) a report on the results of an annual review of the implementation of the annual operational plan; and

(c) the following financial policies of the local government—

(i) investment policy;

(ii) debt policy;

(iii) revenue policy.

(6) A local government must ensure the financial policies of the local government are regularly reviewed and updated as necessary.

(7) A local government must carry out a review of the implementation of the annual operational plan annually.

(8) To remove any doubt, it is declared that subsection (1) (a) does not require equal consideration to be given to each of the sound contracting principles.