goods_and_service_procurement_practice_guide.doc

69 ver december 2017 appendix government approach to

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69 Ver. December 2017 Appendix
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Government approach to foreign exchange risk management Further guidance on managing foreign exchange risk can be found within Treasurer’s Instruction 826. Treasurer’s Instructions can be found within the Financial Administration Bookcase at www.treasury.wa.gov.au/FAB/ Treasurer's Instruction 826 requires "The Accountable Officer or Authority shall ensure that foreign exchange risk ...is identified, measured, considered and managed." The Instruction further requires that "...where a material foreign exchange exposure has been identified, the Accountable Officer or Authority shall seek and obtain advice from the Western Australian Treasury Corporation in the management of that exposure.". Consideration of Commodity Risk Commodity risk is the risk of a transaction’s value changing due to movements in underlying commodity prices. Some examples of commodities include electricity, diesel, oil, and steel. Commodities are often priced in a currency other than AUD. If you believe that the exposure to Commodity risk within your purchase is significant or high, or you are uncertain of the approach to take, contact WATC at www.watc.wa.gov.au or on (08) 9235 9100. 70 Ver. December 2017 Appendix
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Appendix – Disposals Each year, the State Government spends more than $9 billion on products, services and works to assist in the effective delivery of services to the community. A significant proportion of this expenditure is made on products, many of which need to be disposed of when they become surplus to requirements. The expectation is therefore that a public authority disposes of these products in a manner that is ethical, equitable and efficient, and where practical maximises the public benefit or financial return to government. In order to achieve this goal and maximise the financial return to government, public authorities should: Achieve the best available net return when selling products; Appropriately handle products that require special consideration in their disposal; and Ensure that all disposal dealings are undertaken in an even-handed, open and honest manner. Although open and effective competition should be sought where practical when disposing of products, the effort involved in achieving this should be commensurate with the value of the products. There are a number of reasons why it is appropriate to dispose of surplus products. It could be because they: Are considered obsolete due to changes to procedures, functions or usage patterns; No longer comply with occupational health and safety standards; Occupy storage space and are not expected to be used in the foreseeable future; Are reaching their optimum selling time to maximise returns; or Are beyond repair but can be sold for scrap.
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