Compliance controls are always going to be rigorous in government because public funds are being spent. The challenge for the financial framework is to find a simple and effective means of encouraging financially responsible behaviour and prudent decision making, without being overly prescriptive or excessively burdensome and costly.
Legislating a set of principles, rather than prescribing detailed procedural requirements, would give entities the flexibility to adopt appropriate systems and processes to achieve their objectives. Principles would allow entities to adapt to future changes in the way government operates.
Regulations for managing public money require consideration. Even though both FMA Act and CAC Act entities manage public money the regulatory arrangements are more prescriptive under the FMA Act. CAC Act bodies appear to operate with an equivalent level of efficacy in the management of Commonwealth resources, without the imposition of a complex legal framework.
What parts of the framework could be simplified, or removed, without placing unacceptable risks on the management of public resources?