Question 5.

Describe the requirements and implications of “financial probity”.

Financial Probity as all of the procedures, processes and systems that a business may put in place
to minimise risks concerning any transactions involving money. This may include purchasing, staff
payments, contracts and dealings with customers. The Northern Territory Government describe a
probity check as an investigation into an organisation (or persons) background to determine their
‘fitness to undertake a specified activity for which authorisation is required. Probity checks
investigate the previous history and activities of organisations and individuals, especially but not
only in respect of financial records and legal involvements’ (Northern Territory Government 2015,
‘Probity Checks’). Probity is integral when dealing with large organisations, especially those that hold
Government contracts, and when receiving public money to fund their organisation. Organisations
receiving public money, such as grants and donations, must be able to assure the funding bodies
and community that they can be trusted. Probity should also be considered when you are deciding
on partnership arrangements.