2022 Edition

Financial Management (CP-FIN) 4: Financial Management

Positive financial outcomes are achieved through a financial management system that receives, disburses, and accounts for funds consistent with sound financial practices. 


Viewing: CP-FIN 4 - Financial Management



Public authority/agency viability and positive financial outcomes are achieved through diligent application of sound financial management practices that accord with applicable requirements. 
Full Implementation, Outstanding Performance
A rating of (1) indicates that the agency's practices fully meet the standard and reflect a high level of capacity.  
  • All elements or requirements outlined in the standard are evident in practice, with rare or no exceptions: exceptions do not impact service quality or agency performance. 
Substantial Implementation, Good Performance
A rating of (2) indicates that an agency's infrastructure and practices are basically sound but there is room for improvement.
  • The majority of the standards requirements have been met and the basic framework required by the standard has been implemented. 
  • Minor inconsistencies and not yet fully developed practices are noted; however, these do not significantly impact service quality or agency performance.

Partial Implementation, Concerning Performance
A rating of (3) indicates that the agency's observed infrastructure and/or practices require significant improvement.  

  • The agency has not implemented the basic framework of the standard but instead has in place only part of this framework.  
  • Omissions or exceptions to the practices outlined in the standard occur regularly, or practices are implemented in a cursory or haphazard manner.  
  • Service quality or agency functioning may be compromised.  
  • Capacity is at a basic level.
Unsatisfactory Implementation or Performance
A rating of (4) indicates that implementation of the standard is minimal or there is no evidence of implementation at all.  
  • The agency’s observed administration and management infrastructure and practices are weak or non-existent; or show signs of neglect, stagnation, or deterioration.
Self-Study EvidenceOn-Site EvidenceOn-Site Activities
  • Financial management and accounting procedures
  • Job description of the person responsible for managing financial accounts
  • Resume of the person responsible for managing financial accounts
  • Procedures regarding protection of client funds and assets
  • Documentation tracking staff completion of training on the accounting system
  • Interviews may include:
    1. Governing body members
    2. CEO
    3. CFO
    4. Relevant personnel
  • Observe reporting and accounting system


CP-FIN 4.01

The public authority/agency takes full advantage of available funding opportunities provided by the three levels of government.


CP-FIN 4.02

The agency seeks to conserve its fiscal resources by:
  1. taking advantage of tax exemptions permitted for public agencies, where applicable;
  2. coordinating the purchase of goods or services among internal divisions; and
  3. involving staff and other stakeholders in identifying creative ways to use funds effectively and efficiently. 


CP-FIN 4.03

The public authority/agency’s fiscal department:
  1. employs qualified financial personnel;
  2. trains personnel to use the accounting system and adapt to changes in the system as they occur;
  3. ensures system security in accordance with established safeguards; 
  4. maintains all financial records required to support legal, regulatory, and contractual claims; and
  5. complies with all applicable court orders or mandates.

Fundamental Practice

CP-FIN 4.04

A public authority/agency that assumes fiduciary responsibility for client funds or disburses client funds: 
  1. segregates client funds from other agency funds;
  2. complies with applicable legislative, regulatory, judicial, and governmental requirements; and
  3. plans for meeting the needs of clients in the event of unexpected resource disruptions impacting client funds.