For the first time, home care providers must maintain a Financial and Prudential Framework under the Aged Care Act 2024, marking a significant uplift in financial governance expectations. This article sets out what boards need to know about the Financial and Prudential Management Standard and their oversight obligations.
It explains which providers the Standard applies to, the requirement for a written framework covering governance, internal controls and financial risk management, and the governing body’s obligation to review this framework at least annually. It covers key risks for boards, including unclear accountabilities and inadequate reporting, and the shift away from relying solely on traditional financial reports.
Nine practical priorities are set out for boards, covering gap analysis, framework development, financial reporting processes, staff and board education, role descriptions, and an ongoing review and improvement schedule aligned with the organisation’s governance cycle.
Written for governing bodies, executives, and finance teams meeting obligations under the Aged Care Act, Aged Care Rules, and Aged Care Quality and Safety Commission guidance, this resource translates the Financial and Prudential Framework into clear governance actions for boards.
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