Consolidation of financial information provided by agencies depends on identifying transactions to and from related entities in CBMS.
All related entity transactions within the General Government sector above a threshold should be reported in CBMS. The threshold for reporting inter-agency transactions is $20 million per CBMS account, per annum (e.g. supply of goods and services expense related entities etc). This means that agencies should separately identify those related entity balances that are likely to be greater than or equal to $20 million by year end. In addition, if the value of related entity transactions in an account will be less than $20 million for the year but it was reported against a related entity account in the previous years annual statements, it should also be reported against a related entity account in CBMS for monthly actuals, monthly estimates and annual estimates.
Related entity superannuation expenses and FBT should be separately identified irrespective of the amount involved. This is because these related entity balances are relevant to most agencies and, therefore, are material at the General Government level.
The following is a list of some of the (larger) related entity transactions which are required for Finance to complete the consolidation process:
- Grant Revenue / Receivable against related entity Grant Expense / Payable;
- Interest Revenue against related entity Interest Expense;
- Superanuation Premium Revenue (COMSUPER) against related entity Superannuation Premiums Expense;
- Workers Compensation Premium Revenue (COMCARE) against related entity Workers Compensation Expense;
- Subsidies Received against related entity Subsidies Paid;
- Prepayment Asset against related entity Prepayment Liability;
- Suppliers Expense against related entity Goods and Services Revenue;
- Investment against related entity Equity (Accumulated Reserves).