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 |
|
|
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. |
|
This diagram sets out a suggested order and timing for the use of BPG resources. |
1.1.7 |
|
|
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. |
||
|
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 |
|
|
This framework sets out the risk and assurance profile for the financial statements process for an entity. |
3.4.3 |
|
|
A checklist considering a range of issues relating to the implementing MoG changes in relation to an entity’s financial statements. |
3.6.6 |
|
|
This template assists in the tracking of lessons learned from previous years and implementing related proposed solutions. |
4.2.6 |
|
|
A schedule of activities outlines the activities to be completed in the preparation process. |
4.2.6 |
|
|
A summary timetable to set out key financial reporting dates in a form that are easily consumable by key stakeholders. |
4.2.6 |
|
|
This spreadsheet provides examples of the consistency checks that agencies should consider including. |
4.7.5 |
|
|
A list of possible critical events and management issues to consider when planning. |
5.1.5 |
|
|
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 instructions for a team and business process. |
5.1.5 |
|
|
This paper is useful for documenting your entities decisions in regards to materiality. |
7.2.9 |
|
|
This risk assessment demonstrates a risk that could be mitigated by inclusion in a hard or soft close. |
7.3.4 |
|
|
This template provides a useful structure/guidance to assist in the development of an Accounting Paper. |
7.7.2 |
|
|
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 |
|
|
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 |
|
|
The example documentation requirements outline the types of supporting evidence required for selected financial statements items. |
9.3.3 |
|
|
An example of a management sign-off. |
9.4.5 |
|
|
An example of financial statement assertions, adapted from the Australian Auditing Standard ASA 315. |
9.4.5 |
|
|
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 for the CFO’s report to the audit committee and accountable authority to provide assurance. |
9.6.3 |
|
|
Provides an example template that sets out details on an audit. |
10.2.5 |
|
|
Provides an example template for tracking audit requests. |
10.2.5 |
|
|
Is an example of a formal communication plan with the auditors. |
10.2.5 |
|
|
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. |
|
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 |
|
|
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 |
|
|
A government specific AAS which harmonises and aligns the AAS and Australian GFS. |
2.1 |
|
|
AASB site that provides guidance for accessing required pronouncements. |
3.6.1 |
|
|
Provides guidance on role and responsibilities of accountable authorities with links to related PGPA Act and PGPA Rule provisions. |
2 |
|
|
An AUASB compilation of auditing standards relating to risks of material misstatement. |
3.5 |
|
|
AUASB guidance on using the work of internal auditors. |
10.2.3 |
|
|
An ANAO site that provides discussions on recurring issues, shortcomings and good practice examples, identified through financial statement and performance audit work. |
1.1 |
|
|
An ABS site that provides the Australian System of Government Finance Statistics: Concepts, Sources and Methods, 2015 |
2.1 2.1.6 |
|
|
Federal Register of Legislation site for the Charter of Budget Honesty. |
2.1 2.1.6 |
|
|
Guidance for preparing financial statements for reporting periods ending on or after |
13.1 |
|
|
Outlines the Government's requirements for fraud control. |
3.4.2 |
|
|
Provides the requirements of section 16 of the PGPA Act for systems and internal controls to manage risk. |
3.4.1 |
|
|
Provides Comcover risk management information sheets, relevant to all Commonwealth employees. |
3.4.1 |
|
|
Federal Register of Legislation site for the Corporations Act. |
2.1 |
|
|
A Finance site that provides guidance on requirements of the enhanced Commonwealth government performance framework. |
3.2.1 |
|
|
Australian Cyber Security Centre site that complements the advice in the strategies to mitigate cyber security incidents . |
3.5.2 |
|
|
A compilation of the FRR that shows the text of the law as amended and in force on the compilation date. |
1.1 |
|
|
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 |
|
|
Links to a Finance site that provides the rules and guidance for prescribing GBEs. |
3.1.1 |
|
|
Australian Cyber Security Centre site that provides cyber security guidelines within the ISM. |
3.5.1 |
|
|
A list of entities with approved exemptions from the requirements of the FRR. |
2.1.2 2.1.6 |
|
|
An APSC site providing guidance on MoG changes with links to other related sites. |
3.6.3 |
|
|
This online resource links sections of the PGPA Act to related rules and guidance. |
1.1.1 |
|
|
Links to a Finance site that provides a series of resources on Government structures, portfolios, entities, accountable authorities etc. |
3.1.1 |
|
|
The Federal Register of Legislation site for the PGPA Rule. |
2.1.1 2.1.6 |
|
|
A Finance site that includes the current PRIMA forms and guides. |
1.1 |
|
|
Attorney-General’s Department site for information on the PSPF. |
3.5.1 |
|
|
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 |
|
|
Provides extracts of relevant legislative requirements from the FRR; and additional ‘guidance’ paragraphs to assist in applying the FRR and supporting policies. |
1.1 |
|
|
A Finance site with RMG 126 and other information for GBEs. |
3.1.1 |
|
|
Provides guidance on corporate plans for Commonwealth entities. |
3.2.2 |
|
|
This guide provides more information about annual performance statements. |
3.2.5 |
|
|
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 |
|
|
A Finance guide on requirements for the notification of significant non-compliance with the finance law . |
9.4.4 |
|
|
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 |
|
Australian Cyber Security Centre site that complements the ISM and discusses strategies to mitigate cyber security incidents. |
3.5.2 |
|
|
The UPF provides a uniform approach to the presentation of financial data in Australian governments’ budget papers. |
2.1 2.1.6 |