The Chief Executives of FMA agencies have the authority to issue legally binding instructions relating to the financial administration of their agency.11 These Chief Executive Instructions (CEIs) can be expected to include details of the agency's procurement policies, including contracting policies. It is also generally appropriate for the CEIs to be supplemented by more detailed procurement procedures and practices that cover all phases of the procurement cycle in the context of the agency's particular business environment. While there is no legislative requirement to do so, Chief Executive of a CAC Act body can also be expected to issue policies, procedures and practices that address the body's procurement responsibilities. | CAC bodies may consider adopting some or all of the requirements of the CPGs, recognising that they represent good practice. |
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11 FMA Agency Chief Executives are authorised to issue CEIs under Section 52 of the FMA Act and Regulation 6 of the FMA Regulations. In July 2011, the Department of Finance and Deregulation, in consultation with FMA Act agencies, released Model CEIs. The Model CEIs cover the core topics, including procurement, which are applicable to the majority of officials in most agencies under the FMA Act. As a tool, the Model CEIs seek to improve consistency across agencies and to help all staff members to understand and comply with the key requirements of the financial management framework. Finance Circular 2011/05 Chief Executive Instructions provides guidance on the development and operation of CEIs, including guidance on the adoption of the Model CEIs.