Does your accountant know their WHS responsibilities as a company officer?

More than 2 years after the mirror Work Health and Safety legislation was introduced into a number of States, most executive management teams are by now well aware of their responsibilities and duties under the Act.

However, under the WHS legislation it is also recognised that the CFO or senior accountant of an organisation is also a company officer, and not all organisations have given consideration to the fact that this status imposes certain due diligence responsibilities.

Key to this is the responsibility for company officers to take reasonable steps to ensure the PCBU has the resources in place to ensure health and safety, and to verify the use of those resources.

When CFOs or accountants work with their management teams to allocate resources in the annual budget cycle, health and safety should receive appropriate consideration in the context of the PCBUs responsibilities.

A basic cost benefit analysis for the allocation of resources is not necessarily enough. Accountants need to bring into this equation the potential costs associated with failure to ensure health and safety, as well as the full gamut of benefits from good health and safety practices, in order to get a true analysis. Budgetary allowances for WHS costs related to incident prevention strategies, for example, will likely be more easily justified when assessed in this way.

Also, accountants may not be sufficiently aware of the full range of costs and resources related to health and safety management. Generally, direct health and safety related expenditure such as safety professionals’ salaries, workers’ compensation premiums, PPE and first aid supplies will be readily identified. However, the indirect costs related to conducting appropriate consultation with workers, conducting investigations of WHS incidents, repairing or replacing equipment damaged in incidents etc. may not be correctly accounted for.

If there’s any uncertainty as to whether your CFO or senior accountant is across these issues and their responsibilities under the mirror Work Health and Safety legislation, it is better for all company officers and for the organisation that the individuals concerned receive appropriate advice, instruction and support.

Please contact QRMC for more information.