The Financial and Prudential Management Standard makes sure you have strong financial and prudential management systems to support you to provide safe, high-quality care.
This Standard:
- supports stronger financial management so your organisation can focus on improving quality and continuity of care
- sets out your responsibilities for the systems and processes your organisation needs to have to be financially stable and manage risk
- makes best practice financial governance and operations ‘business as usual’.
Who the Financial and Prudential Management Standard applies to
This standard applies to:
- all non-government providers registered in categories 4,5 or 6
- non-government multi-purpose providers
- National Aboriginal and Torres Strait Islander Flexible Aged Care Program providers.
It doesn’t apply if you’re a government or local government authority.
What’s required
To make sure you manage your finances and keep providing high-quality care, you need to:
- have a financial and prudential management system
- show evidence of compliance
- make sure your governing body regularly reviews and improves your financial and prudential management system.
Your written financial and prudential management system should:
- describe the roles and responsibilities for financial and prudential governance
- include your accountabilities and processes to manage refundable deposits (if any)
- support strong financial management across your organisation
- detect, record and respond to any non-compliance with the system or this Standard
- include when and how often you’ll review and update the system.
Evidence of compliance includes:
- written policies and procedures
- documents describing financial governance responsibilities
- regular reports that show management and ongoing improvements
- position descriptions that clearly define roles and accountabilities.
The Financial and Prudential Management fact sheet includes the financial and prudential management system checklist. Use this checklist to make sure your organisation meets the Financial and Prudential Management Standard.
More information
The Financial and Prudential Standards: Guidance for providers has more information about:
- responsibilities of the governing body
- governance and its key elements.
Download the Financial and Prudential Management Standard fact sheet.
Watch the Financial and Prudential Management video.
Read the legislation which outlines these requirements.
You can find a summary of the 3 standards in the new Financial and Prudential Standards poster.
