Financial Management Framework

The Financial Management Framework for the General Government Sector is one of OFM's key strategies to ensure effective resource allocation and management. It is a major element of the work of the Financial Management Directorate.

The Framework is a consolidation of, and advancement on, recent financial management reforms and seeks to improve the outcomes achieved by Government program and service delivery in New South Wales.

Principles of the Framework
The underlying principle of the Framework is value for money - that the limited resources available to Government be applied in such a way that community needs and expectations are satisfied to the greatest extent possible both now and in the future.

Improving value for money in Government program and service delivery involves the application of five principles:

• Clarity of objectives;
• Proper allocation of responsibility and accountability;
• Appropriate, comprehensive incentive structures;
• Performance management; and
• Integrity of information.

These principles underly financial reforms to date and are central to the comprehensive, integrated suite of policies and guidelines to be developed in the context of the Framework over the next few years, in consultation with other central agencies and line agencies. Each component, however, will be capable of implementation in its own right.