14. Appendices

14.1 Acronyms and abbreviations

Acronym/abbreviation

Title in full

AAI

Accountable Authority Instructions

AAO

Administrative Arrangements Order

AAS

Australian Accounting Standards as issued by the AASB

AASB

Australian Accounting Standards Board

ABS

Australian Bureau of Statistics

ACSC

Australian Cyber Security Centre

ANAO

Australian National Audit Office

APS

Australian Public Service

APSC

Australian Public Service Commission

ASA

Auditing standards as issued by the AUASB

AUASB

Auditing and Assurance Standards Board

BPG

Financial Statements Better Practice Guide

Budget, the

The Australian Government budget

CBMS

Central Budget Management System

CFO

Chief Financial Officer

CFS

Consolidated Financial Statements

Charter of Budget Honesty

Charter of Budget Honesty Act 1998

Corporations Act

Corporations Act 2001

ECPF

Enhanced Commonwealth Performance Framework

Entity

This BPG uses ‘entities’ to mean Commonwealth entities and Commonwealth companies as defined by the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

Fraud Rule

Section 10 of the PGPA Rule

ICT

Information and communication technology

IFRS

International Financial Reporting Standards

FBO

Final Budget Outcome

Finance Minister

The Minister for Finance

FMIS

Financial Management Information System

FRR

Public Governance, Performance and Accountability (Financial Reporting) Rule 2015

GBE

Government Business Enterprise

GGS Monthly Financial Statements

The Australian Government general government sector Monthly Financial Statements

Australian GFS

Government Finance Statistics Australia: Concepts, Sources and Methods

ISM

Australian Government Information Security Manual

JCPAA

Joint Committee of Public Accounts and Audit

MoG

Machinery of Government

PBS

Portfolio Budget Statements

PDF

Portable document format

PGPA Act

Public Governance, Performance and Accountability Act 2013

PGPA Rule

Public Governance, Performance and Accountability Rules 2014

PPE

Property, plant and equipment

PRIMA

Primary Reporting and Information Management Aid

PSPF

Protective Security Policy Framework

RMG

Resource Management Guide

SRP

Supplementary Reporting Pack

UPF

Uniform Presentation Framework

14.2 Glossary

Accountable authority — under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), the person or group of persons who has responsibility for, and control over, a Commonwealth entity’s operations, including financial management and reporting matters.

Accountable Authority Instructions —a mechanism for accountable authorities to apply the key principles and requirements of the resource management framework to the operations of their respective entities.

Administered —those items that an entity does not control, but over which it has management responsibility on behalf of the Government and which are subject to prescriptive rules or conditions established by legislation, or Australian Government policy, in order to achieve Australian Government outcomes. Typical examples include taxes, levies and fines, plus grants, subsidies and personal benefit payments.

Appropriation — for the purposes of this guide, an authority under any Act or law to draw money from the Consolidated Revenue Fund, whether or not the law concerned used the word appropriation or appropriated. An appropriation specifies purposes for which money may be spent, and may specify conditions under which payments are to be made, such as who is to be paid and how much in specific circumstances.

Audit-cleared —information or financial statements that have been reviewed and cleared by the ANAO.

Business areas —various work areas, which may be known as sections, branches, divisions, or groups that contribute information to the financial statements

Chief Financial Officer —generally the person that has primary responsibility for financial management and reporting.

Commitments —are defined as:

(a) intentions to create liabilities or assets for the receiving entity, as evidenced by undertakings or agreements to make/obtain future payments to/from other entities, and

(b) are executory contracts that are not recognised under AASB 137 Provisions, Contingent Liabilities and Contingent Assets (i.e. not onerous), but

(c) do not include future appropriations.

Commonwealth —the legal entity of the Commonwealth of Australia, created by the Australian Constitution.

Commonwealth entity — A Commonwealth entity is a:

(a) Department of State, or

(b) Parliamentary Department, or

(c) listed entity, or

(d) body corporate established by a law of the Commonwealth.

Commonwealth company is a Corporations Act company that the Commonwealth controls. However, it does not include a company that is a subsidiary of:

(a) a Commonwealth company; or

(b) a corporate Commonwealth entity; or

(c) the Future Fund Board of Guardians.

Consolidated Financial Statements— for the Australian Government are the annual, end-of-year financial statements prepared under section 48 of the PGPA Act and in accordance with AAS. The CFS present the consolidated results for the Australian Government as well as disaggregated information on the various sectors of government (General Government Sector (GGS), Public Non-Financial Corporations (PNFCs) and Public Financial Corporations (PFCs)).

Corporate Commonwealth entity —a Commonwealth entity that is a body corporate and legally separate from the Commonwealth.

Departmental —those items that the entity has control over. They include the ordinary operating costs and associated funding of Commonwealth entities, and typically include salaries, accruing employee entitlements and operational expenses including depreciation.

Finance team —the group of staff directly responsible for financial reporting in the entity.

Government Business Enterprise —a Commonwealth entity or Commonwealth company that is prescribed by the rules (s8 of the PGPA Act ).

Internal control —any process, policy, device, practice or other actions within the internal environment of an organisation which modifies the likelihood or consequences of a risk.

Non-corporate Commonwealth entity —a Commonwealth entity that is not a body corporate and legally part of the Commonwealth.

Officials —an individual who is in, or forms part of, the entity as set out under section 13 of the PGPA Act.

Parliament —makes laws, authorises the Government to spend public money, scrutinises government activities, and is a forum for debate on national issues.

Project manager —the person responsible for leading a project from its inception to execution. This includes planning, execution and managing the people, resources and scope of the project.

Reporting entity —an applicable entity as defined in section 6 of the FRR for which financial statements must be prepared.

Risk —the effect of uncertainty on objectives. An effect is a deviation from the expected —positive and/or negative. Risk is often expressed in terms of a combination of the consequences of an event (including changes in circumstances or knowledge) and the associated likelihood of occurrence.

Risk assessment —the process of risk identification, risk analysis and risk evaluation.

Risk appetite —the amount of risk an entity is willing to accept or retain in order to achieve its objectives. It is a statement or series of statements that describes the entity’s attitude toward risk taking.

Risk criteria —terms of reference against which the significance of a risk is evaluated.

Risk management framework — a set of components that provide the foundations and organisational arrangements for designing, implementing, monitoring, reviewing and continually improving risk management throughout the organisation.

Risk management —coordinated activities to direct and control an organisation with regard to risk.

Risk oversight —the supervision of the risk management framework and risk management process.

Risk profile —a description of any set of risks. The set of risks can contain those that relate to the whole organisation, part of the organisation or as otherwise defined.

Risk tolerance —the levels of risk taking that are acceptable in order to achieve a specific objective or manage a category of risk.

Schedule —communicates what work needs to be performed, which resources of the organisation will perform the work and the timeframes in which that work needs to be performed. The schedule should reflect all of the work associated with delivering the project on time.

Shared risk —a risk with no single owner, where more than one entity is exposed to or can significantly influence the risk.

Shared services — the provision of common services through centres of excellence (hubs) and the transition of agencies into these hubs.

Whole of government —denotes public service agencies working across portfolio boundaries to achieve a shared goal and an integrated government response to particular issues. Approaches can be formal and informal. They can focus on policy development, program management and service delivery.

14.3 Index of BPG resources

Resource name

Resource description

BPG Ref.

BPG Resources Map

This diagram sets out a suggested order and timing for the use of BPG resources.

1.1.7

Relevant legislation and standards

Details the main legislation, policies and guidelines relevant to the preparation of financial statements by public sector entities and a brief summary of each of these elements.

2.1.6

Example: Risk analysis for financial statements

This risk analysis process for financial statements can assist management to prioritise the resources allocated to the preparation of the financial statements.

3.4.3

Example: Risk framework for financial statements

This framework sets out the risk and assurance profile for the financial statements process for an entity.

3.4.3

Checklist: Machinery of Government restructures

A checklist considering a range of issues relating to the implementing MoG changes in relation to an entity’s financial statements.

3.6.6

Template: Lessons learned tracking sheet

This template assists in the tracking of lessons learned from previous years and implementing related proposed solutions.

4.2.6

Template: Schedule of activities

A schedule of activities outlines the activities to be completed in the preparation process.

4.2.6

Example: Financial statements reporting timetable

A summary timetable to set out key financial reporting dates in a form that are easily consumable by key stakeholders.

4.2.6

Example: Internal consistency checks

This spreadsheet provides examples of the consistency checks that agencies should consider including.

4.7.5

Checklist: Developing a schedule of activities

A list of possible critical events and management issues to consider when planning.

5.1.5

Example: Financial Statements Project Plan

A detailed project plan outlines the activities to be completed in the preparation process, including the timeline and responsibility for the completion of each activity and its status.

5.1.5

Example: Team and business area process guide

Example instructions for a team and business process.

5.1.5

Example: Materiality assessment paper

This paper is useful for documenting your entities decisions in regards to materiality.

7.2.9

Example: Risk assessment to bring items forward

This risk assessment demonstrates a risk that could be mitigated by inclusion in a hard or soft close.

7.3.4

Template: Position Paper

This template provides a useful structure/guidance to assist in the development of an Accounting Paper.

7.7.2

Template: Adjustments schedule

This schedule allows an agency to keeps a record of all adjustments proposed/ made and to enable the changes to be considered and actioned as a whole.

9.1.3

Template: Working Papers Cover Sheet

This template can be used to assist in providing a reference to all relevant documents that support each financial statements item or note.

9.2.3

Example: Requirements for supporting documentation

The example documentation requirements outline the types of supporting evidence required for selected financial statements items.

9.3.3

Example: Form for business area certification

An example of a management sign-off.

9.4.5

Example: Financial statement assertions

An example of financial statement assertions, adapted from the Australian Auditing Standard ASA 315.

9.4.5

Checklist: CFO Assurance

A checklist considering a range of issues relating to the preparation of an entity’s financial statements and may assist the CFO in discharging his/her responsibilities.

9.4.5

Checklist: Finance team assurance processes for audit committee

This checklist is an example of a what a Finance Area/CFO might provide to the Audit Committee to provide assurance in regards to the financial statements process.

9.5.2

Template: Chief Financial Officer's report

Template for the CFO’s report to the audit committee and accountable authority to provide assurance.

9.6.3

Template: Audit assistance package

Provides an example template that sets out details on an audit.

10.2.5

Template: Register of audit requests

Provides an example template for tracking audit requests.

10.2.5

Example: Audit protocols

Is an example of a formal communication plan with the auditors.

10.2.5

Template: Requesting advice from Finance

Template that sets out the key information to include in your request for advice from Finance.

13.1.2

14.4 Index of hyperlinked websites

Website hyperlinks

Description

BPG Ref.

AAS

An AASB site which lists the latest version (by operative date) of each Accounting Standard.

2.1 2.1.1 2.1.2 2.1.3
2.1.4 2.1.6
3.6.2
3.6.6

AASB 101

The AASB standard that prescribes the basis for presentation of general purpose financial statements including guidelines for their structure and minimum requirements for their content.

2.1.1 2.1.6
4.7.2
4.7.5
7.2
7.2.9

AASB 1049

A government specific AAS which harmonises and aligns the AAS and Australian GFS.

2.1

AASB pronouncements

AASB site that provides guidance for accessing required pronouncements.

3.6.1
3.6.6

Accountable authority

Provides guidance on role and responsibilities of accountable authorities with links to related PGPA Act and PGPA Rule provisions.

2
2.1.4 2.1.6
3.3.1
3.3.10

ASA 315

An AUASB compilation of auditing standards relating to risks of material misstatement.

3.5
3.5.3
10.2.3
10.2.5

ASA 610

AUASB guidance on using the work of internal auditors.

10.2.3
10.2.5

Audit insights

An ANAO site that provides discussions on recurring issues, shortcomings and good practice examples, identified through financial statement and performance audit work.

1.1
1.1.7

Australian GFS

An ABS site that provides the Australian System of Government Finance Statistics: Concepts, Sources and Methods, 2015

2.1 2.1.6
 

Charter of Budget Honesty

Federal Register of Legislation site for the Charter of Budget Honesty.

2.1 2.1.6

Commonwealth Financial Statements Preparation Guide

Guidance for preparing financial statements for reporting periods ending on or after
1 July 2017.

13.1
13.1.2
 

Commonwealth Fraud Control Framework

Outlines the Government's requirements for fraud control.

3.4.2
3.4.3

Commonwealth Risk Management Policy

Provides the requirements of section 16 of the PGPA Act for systems and internal controls to manage risk.

3.4.1
3.4.3
4.4
4.4.3

Comcover Risk Management Resources

Provides Comcover risk management information sheets, relevant to all Commonwealth employees.

3.4.1
3.4.3

Corporations Act

Federal Register of Legislation site for the Corporations Act.

2.1
2.1.3
2.1.4 2.1.6 10.2.3 10.2.5

Enhanced Commonwealth performance framework

A Finance site that provides guidance on requirements of the enhanced Commonwealth government performance framework.

3.2.1
3.2.4
3.2.6

Essential Eight Maturity Model

Australian Cyber Security Centre site that complements the advice in the strategies to mitigate cyber security incidents .

3.5.2
3.5.3

FRR

A compilation of the FRR that shows the text of the law as amended and in force on the compilation date.

1.1
1.1.7
2.1.1 2.1.2 2.1.6

Governance policy

A Finance site that provides information on Commonwealth governance structures policy (governance policy) and identifies efficient and fit-for-purpose governance arrangements.

3.1.1
3.1.3

Government Business Enterprises (GBEs)

Links to a Finance site that provides the rules and guidance for prescribing GBEs.

3.1.1
3.1.3

ISM

Australian Cyber Security Centre site that provides cyber security guidelines within the ISM.

3.5.1
3.5.2
3.5.3

List of exemptions ( to the FRR)

A list of entities with approved exemptions from the requirements of the FRR.

2.1.2 2.1.6

MoG Changes: A Guide

An APSC site providing guidance on MoG changes with links to other related sites.

3.6.3
3.6.6

PGPA Act

This online resource links sections of the PGPA Act to related rules and guidance.

1.1.1
1.1.7
2.1.1 2.1.3
2.1.4 2.1.5 2.1.6
3.4
3.4.3
4.4
4.4.3
9.4.4
9.4.5
9.5
11
11.1.2

PGPA Flipchart and entity list

Links to a Finance site that provides a series of resources on Government structures, portfolios, entities, accountable authorities etc.

3.1.1
3.1.3

PGPA Rule

The Federal Register of Legislation site for the PGPA Rule.

2.1.1 2.1.6
9.5
9.5.2

(PRIMA) Forms of Financial Statements

A Finance site that includes the current PRIMA forms and guides.

1.1
1.1.7
13.1
13.1.2

PSPF

Attorney-General’s Department site for information on the PSPF.

3.5.1
3.5.3

Resource Management Guides

This page lists only the numbered resource management guides (RMGs). Refer to the Index of Resource Management Guidance for a complete source, and the list of templates .

13.1
13.1.2

RMG 132

Provides guidance on corporate plans for Commonwealth entities.

3.2.2
3.2.6

RMG 134

This guide provides more information about annual performance statements.

3.2.5
3.2.6

RMG 125

Provides extracts of relevant legislative requirements from the FRR; and additional ‘guidance’ paragraphs to assist in applying the FRR and supporting policies.

1.1
1.1.7
2.1.2 2.1.6
13.1
13.1.2

RMG 126

A Finance site with RMG 126 and other information for GBEs.

3.1.1
3.1.3

RMG 202

Provides guidance on the role of audit committees including matters that the accountable authority could consider when determining the audit committee's functions, structure and conduct.

3.3.4
3.3.10
9.5
9.5.2

RMG 214

A Finance guide on requirements for the notification of significant non-compliance with the finance law .

9.4.4
9.5

Rules

A list of PGPA associated instruments and policies maintained by Finance

2.1.1 2.1.4 2.1.5 2.1.6 11 11.1.2

Direction on the requirements for performance information in PBS

Provides the requirements for performance information to be included in the PBS.

3.2.3
3.2.6

Strategies to Mitigate Cyber Security Incidents

Australian Cyber Security Centre site that complements the ISM and discusses strategies to mitigate cyber security incidents.

3.5.2
3.5.3

UPF

The UPF provides a uniform approach to the presentation of financial data in Australian governments’ budget papers.

2.1 2.1.6


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