Publication Standards for Reporting

104.1.1 Variance Information/Explanations

Consolidated analysis commentary in the monthly statements are based on a comparison of the current months (YTD) figures to a profile of the most recent published budget estimate.

Finance's analysis on monthly financial statements not only verifies the reasonableness of the information provided, it also facilitates the compilation of variance information / explanations on which the analysis commentary is based.

In order to streamline the reporting, analysis and publication process, agencies are asked to provide Finance each month with information about significant variations (ie variations between the current months (YTD) and the profile which are greater than $50 million at the account level or $20 million at the program level). In addition, agencies are required to notify Finance of any issues affecting agencies monthly financial statements at the time that financial information is submitted to CBMS.

Some examples of explanations can include:

Income Statement

Grant Expenses

  • Grants are below profile due to the timing of payments. This is mainly attributed to:
    • Grants to States where payments are made quarterly;
    • Grants to States where payments do not commence until projects are approved and/or agreements are signed; and
    • Grants to non-profit institutions, where payments do not commence until applications are received and approved.

Depreciation Expense

  • Depreciation and amortisation is below profile due to:
    • Capital items have not yet been purchased, therefore depreciation has not been expensed.

Suppliers Expenses

  • Suppliers expenses are below profile due to:
    • Irregular payments associated with programs; and
    • Delays in establishing new programs.

Balance Sheet - Administered or Departmental

Other Non-Financial Assets

The variance in other non-financial assets to the 30 June closing balance is due to the expensing of prepayments.

Suppliers

The variance in suppliers to the 30 June closing balance is due to unanticipated delay in some payments at the end of the month.

Other Provisions and payables

The variance in other provisions and payables to the 30 June closing balance is due to the inclusion of an accrual for grants due but not yet paid.

Note: Variances in administered expenses need to include the impact on function.

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