TPG24-08 CFO Certification on the Internal Control Framework over Financial Systems and Information

Treasury’s Financial Management Policy team has released new Treasury Policy and Guidance TPG24-08 CFO Certification on the Internal Control Framework over Financial Systems and Information, and launched the CFO Certification Toolkit to assist agencies implement the new policy. 

The new TPG sets out the requirement for Chief Financial Officers (CFOs) to submit a certification to their Accountable Authority (AA) each year, and recommends how to best design, implement, and continuously monitor and evaluate the internal control framework as well as any supporting evidence. 

The TPG24-08 replaces TPP17-06 Certifying the Effectiveness of Internal Controls over Financial Information, and expands the coverage to all GSF Agencies to support Accountable Authorities discharge their responsibilities under the Government Sector Finance Act 2018. 

TPG24-08 will first apply to CFO Certifications covering the financial year beginning 1 July 2024 (for agencies in-scope of TPP17-06) or 1 July 2025 (for newly in-scope and agencies with significant implementation changes).

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Feedback from the consultation process

This final version of the policy reflects extensive feedback from the Sector throughout the consultation process, including:

  • Clarifying that, for this policy, the role of the CFO in financial management focuses on providing accurate and fair financial information to support decision making, rather than management of financial performance
  • Clarifying the requirement for CFOs to provide a separate Certification even when the AA is also the CFO
  • Providing for supporting certifications, with agreement from the AA, in cases where a CFO may share his or her responsibility with other key staff
  • Clarifying that if a supporting certification has been requested but not provided, this should be reported as a deficiency of the internal control framework with their AA and as part of the CFO certification
  • Including a light touch review of the policy after one year to incorporate learnings from the first year of implementation.

CFO Certification Toolkit

To help the Sector successfully implement this new policy, we have launched a CFO Certification Toolkit which includes factsheets and example checklists. Going forward, we will also seek to develop more resources, co-designed with agency representatives to meet agency needs.

If you would like to participate in a best practice sharing workshop in June 2024 or are interested in accessing expert training for you or your staff, please contact us at [email protected] by Friday 18 May 2024 to express your interest. 

Past consultation updates and requests

View past consultation updates and requests for feedback below.

Treasury’s Financial Management Policy team is consulting on an updated Treasury Policy and Guidance (TPG): CFO Certification on the Internal Control Framework over Financial Systems and Information. 

The updated TPG sets out the requirement for Chief Financial Officers (CFOs) to submit a certification to their Accountable Authority each year, and recommends how to best design, implement and continuously monitor and evaluate the internal control framework as well as any supporting evidence. 

The policy would replace TPP17-06 Certifying the Effectiveness of Internal Controls over Financial Information, and we propose expanding the coverage of this policy to all GSF Agencies to support Accountable Authorities discharge their responsibilities under the Government Sector Finance Act 2018.

Provide your feedback on the updated pre-final policy

Following comments received during the initial consultation period, we are now seeking feedback regarding any critical issues on the updated pre-final policy and how Treasury can support newly in scope GSF agencies to successfully comply with the policy. Please provide your feedback by emailing [email protected] by 9 February 2024.

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Following the conclusion of consultation, we will be working on finalising the policy and supporting resources and target publication in the first quarter of calendar year 2024.

Thank you for the high level of engagement during the consultation period. As a result of the feedback, we propose to:

  • Maintain the requirement for ‘all GSF agencies’ to comply with the policy, so the policy can support all Accountable Authorities discharging their obligations under the GSF Act.
  • Delay the commencement of the policy to next financial year (FY24-25) and allow optional transitional arrangements for agencies with significant implementation challenges and for newly in-scope agencies.
  • Clarify the CFO’s responsibility is to ‘continuously monitor and evaluate’ rather than to ‘test’ the internal control framework.
  • Acknowledge the joint responsibility of CFOs and Chief Risk Officers over the internal control framework and the Chief Audit Executive's role in assuring the framework.
  • Maintain the requirement to provide the CFOs certification to the accountable authority ‘before the signed financial statements’.
  • Clarify when a CFO may provide a singular CFO certification for more than one agency and more than one Accountable Authority.
  • Clarify when and how agencies may not fully apply a ‘recommendation’. 
  • Support the sector implementation and compliance with the policy by facilitating best practice sharing workshops, building a ‘CFO Certification Tooklit’ and requesting expert training.

Feedback was based on these documents:

Last updated: 27/06/2024