Australian Capital Territory
Financial Management (Statement of Performance Scrutiny) Guidelines 2005
Disallowable instrument DI2005–273
made under the
Financial Management Act 1996, s107 (Guideline-making power)
EXPLANATORY STATEMENT

Outline
These guidelines are issued in accordance with section 107 of the Financial Management Act 1996 (the Act).  This Guideline is one of a reissued set of financial management guidelines that aim to be more accessible and easier to maintain, by grouping similar provisions with common amendment patterns into separate financial management guidelines.  
This instrument, Financial Management (Statement of Performance Scrutiny) Guidelines 2005, prescribes the annual scrutiny requirements for different categories of performance measures included in the Statement of Performance.  The provisions within this guideline are new and are made as a consequence of recent amendments to the Act, through the Financial Management Legislation Amendment Act 2005. 
Details of the Financial Management (Statement of Performance Scrutiny) Guidelines 2005
Formal Clauses
Clauses 1, 2, 3 and 4 are formal requirements.  They refer to the name of the guidelines, the commencement date of the guidelines and explain the inclusion of a dictionary and notes in the guidelines.
Scrutiny of Statements of Performance
The guideline defines the level of scrutiny by the Auditor‑General of departments’ and territory authorities’ annual Statements of Performance.  Under the revised performance measurement framework, the Auditor‑General will provide a Report of Factual Findings on accountability performance measures.  However, strategic performance measures will not be subject to annual scrutiny by the Auditor‑General, although this does not preclude these measures being subject to a performance audit by the Auditor‑General at some point in the future.  
This level of scrutiny provides an appropriate balance between audit’s important scrutiny role and the administrative burden on agencies.  It is also aimed at facilitating an environment that encourages innovation in the development of more meaningful and useful performance measures for the Community and the Assembly.  
Clause 5 specifies the annual scrutiny requirements for respective categories of performance measures in a department’s statement of performance.
Clause 6 specifies the annual scrutiny requirements for respective categories of performance measures in a territory authority’s statement of performance.  This clause also addresses the annual scrutiny requirements of performance measures contained in an authority’s statement of intent for the year.
End