Hot topics
Government Sector Finance legislation assented
The Government Sector Finance Act 2018 (GSF Act) which consolidates, reforms and modernises the State’s financial management legislation was assented on 24 October 2018. The associated Government Sector Finance Legislation (Repeal and Amendment) Act 2018 (Repeal and Amendment Act) was assented on 22 November 2018.
The GSF Act and associated Repeal and Amendment Act were Proclaimed by the Governor on 28 November 2018 and will commence in stages from 1 December 2018. The Government Sector Finance Regulation 2018 was published on the NSW Legislation website on 30 November for commencement on 1 December 2018.
Agencies can find additional information on the GSF legislation on NSW Treasury’s website.
ICAC Guidance on Direct Negotiations: Guidelines for Managing Risks
The NSW Independent Commission Against Corruption (ICAC) recently issued guidance on ‘Direct Negotiations: Guidelines for Managing Risks’ (the Guidance) to help NSW public sector agencies manage corruption risks when undertaking direct negotiations with an external party.
The Guidance details ICAC’s position on direct negotiations, as well as how they may arise. ICAC refers to direct negotiations as ‘dealings between an agency and a counterparty without first undergoing a competitive process’ and advises that ‘as a general rule, direct negotiations should be avoided unless they clearly fall within the government’s legislative and policy framework and/or the risk of corrupt conduct has been managed in accordance with these guidelines.’
It also provides criteria for agencies to determine whether undertaking direct negotiations is the most suitable course of action, including but not limited to, an exemption by statute or government policy, uniqueness and monopolies where it is beyond doubt that no other supplier or counterparty can meet the agency’s well-defined needs.
Where it is considered appropriate to engage in direct negotiations, the Guidance advises agencies to conduct them in accordance with strict probity rules and ensure there is a robust policy framework in place to ensure corruption risks are addressed.
Restructured Code of Ethics for Professional Accountants
The Accounting Professional and Ethical Standards Board (APESB) recently re-issued APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) in November 2018. The Code will be effective from 1 January 2020 with early adoption permitted.
While the fundamental principles of ethics have not changed, major revisions were made to the unifying conceptual framework – the approach applied by professional accountants to identify, evaluate and address threats to compliance with the fundamental principles and, where applicable, independence.
Other key changes include:
- revised “safeguards” provisions that better align to threats to compliance with the fundamental principles
- stronger independence provisions regarding long association of personnel with audit clients
- new and revised sections dedicated to professional accountants in business (PAIBs) relating to:
- preparing and presenting information
- pressure to breach the fundamental principles
- clear guidance for accountants in public practice that relevant PAIB provisions are applicable to them
- new guidance to emphasise the importance of understanding facts and circumstances when exercising professional judgment
- new guidance to explain how compliance with the fundamental principles supports the exercise of professional scepticism in an audit or other assurance engagements.
The Code can be downloaded from the APESB website.
Circulars released by the Office of Local Government
The Office of Local Government (OLG) has released the following circulars:
Circular 18-38 ‘2018-19 draft Code of Accounting Practice and Financial Reporting (Update No.27)’ advising councils that the draft Local Government Code of Accounting Practice and Financial Reporting (Update No.27) (the Code) has been released for comment. Comments are due to OLG by 11 January 2019. The draft Code is available on the OLG website.
Circular 18-37 ‘Audit Office – Local Government Fraud Control Performance Audit’ advising councils of the high-level findings from the Audit Office’s sector-wide performance audit of fraud control in councils. The Circular encourages councils to review their fraud controls and assess their efficacy against the Audit Office’s Fraud Control Improvement Kit.
Circular 18-35 ‘The new Model Code of Meeting Practice for Local Councils’ advising that the new ‘Model Code of meting Practice for Local Councils in NSW’ (the Model Meeting Code) has been finalised and will soon be prescribed by the Local Government (General) Regulation 2005.
The new Model Meeting Code is available on the OLG website. OLG will provide further guidance to councils when the Model Meeting Code is prescribed in the regulations.
Circular 18-31 ‘Special Variation and Minimum Rate Variation Guidelines and Process for 2019-20’ advising the timetable and guidelines for 2019-20 Special Variation and Minimum Rate Variation applications have been released.
New councils (except MidCoast Council) are not eligible for a special or minimum rate variation for the 2019-20 rating year. All eligible councils intending to apply for a Special Variation or Minimum Rate Variation in 2019-20 should contact IPART well in advance of submitting an application.
The Guidelines are available on the OLG website.
Audit Office of New South Wales
Margaret Crawford, Auditor-General for New South Wales - presentations, attendances and interviews |
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Organisation | Event | Involvement | Date |
Institute of Public Administration (IPAA) |
Spann Oration - Dr Lisa O'Brien |
Attendance |
4 December 2018 |
Department of Premier and Cabinet | DPC Staff Awards | Attendance | 4 December 2018 |
PwC Australia | PwC's Indigenous Consulting (PIC) breakfast | Attendance | 4 December 2018 |
Local Government NSW (LGNSW) | Good Governance Forum | Presentation | 29 November 2018 |
NSW Vice Chancellors Committee | Committee meeting | Presentation | 27 November 2018 |
IPAA | Valedictory address - Graeme Head | Attendance | 22 November 2018 |
Parliament of NSW - Legislative Assembly | Public Accounts Committee (PAC) briefing on Auditor-General's reports to Parliament tabled since 25 October 2018 | Presentation | 22 November 2018 |
IPAA | 2018 Annual State of the Sector presentation with Tim Reardon | Attendance | 15 November 2018 |
Australasian Council of Auditors-General (ACAG) | Business meeting | Host | 8-9 November 2018 |
NSW Treasury | Leadership team meeting | Presentation | 8 November 2018 |
Institute of Chartered Accountants in England and Wales | Reception for World Congress of Accountants (WCOA) | Attendance | 6 November 2018 |
Australia and New Zealand School of Government | Roundtable with Professor Donald Moynihan | Hosted roundtable | 5 November 2018 |
Parliament of NSW - Legislative Assembly | Public Accounts Committee (PAC) briefing on Auditor-General's reports to Parliament tabled since 27 September 2018 | Presentation | 25 October 2018 |
LGNSW | 2018 Local Government NSW Annual Conference | Attendance | 23 October 2018 |
South African Parliamentary Delegation | Briefing meeting | Presentation | 17 October 2018 |
City of Sydney | Council meeting | Presentation | 15 October 2018 |
Parliament of NSW - Legislative Council | Public Accountability Committee hearing - Impact of the WestConnex project | Public hearing | 11 October 2018 |
Auditor-General's reports to Parliament |
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Report | Type of report | Report date |
Planning and Environment 2018 | Financial audit | 13 December 2018 |
Property Asset Utilisation | Performance audit | 13 December 2018 |
Health 2018 | Financial audit | 11 December 2018 |
Newcastle Urban Transformation and Transport Program | Performance audit | 12 December 2018 |
Unsolicited proposal process for the lease of Ausgrid | Performance audit | 11 December 2018 |
Industry 2018 | Financial audit | 11 December 2018 |
Family and Community Services | Financial Audit | 11 December 2018 |
Central Agencies 2018 | Financial Audit | 4 December 2018 |
Transport 2018 | Financial Audit | 29 November 2018 |
Justice 2018 | Financial Audit | 28 November 2018 |
Internal Controls and Governance 2018 | Financial Audit | 22 November 2018 |
Report on State Finances 2018 | Financial Audit | 30 October 2018 |
Mobile speed cameras | Performance audit | 18 October 2018 |
Accounting update
Australian update - Australian Accounting Standards Board (AASB)
Topics discussed included: AASB Meeting Highlights – 13 November 2018
Latest news, accounting standards and work-in-progress documents from the AASB included: |
||
Name | Type of document | Publication date |
Exposure Draft – Not-for-profit lessees may elect not to fair value ‘peppercorn leases’ | Exposure draft | 23 November 2018 |
Treasury proposals to increase thresholds for small/large companies | News | 16 November 2018 |
ED 286 – Amendments to Australian Accounting Standards – Right-of-Use Assets of Not-for-Profit Entities – comments were due by 7 December 2018 | Exposure draft | November 2018 |
One-year deferral of AASB 1059 for service concession grantors | News | 1 November 2018 |
AASB 2018-5 Amendments to Australian Accounting Standards – Deferral of AASB 1059 – effective for annual reporting periods beginning on or after 1 January 2019 | Accounting standards | 31 October 2018 |
Are the reporting stars finally set to align? | News | 30 October 2018 |
International update - International Accounting Standards Board (IASB)
Topics discussed included: IASB Meeting Highlights – 11-13 December 2018
IASB Meeting Highlights – 14-15 November 2018
IASB Meeting Highlights – 24-25 October 2018
IASB Meeting Highlights – 19-20 September 2018
|
International update - International Financial Reporting Standards (IFRS) Foundation
Latest news from the IFRS Foundation included: | |
Name | Publication date |
IASB to propose one-year deferral of insurance contracts Standard | 14 November 2018 |
IASB clarifies its definition of 'material' | 31 October 2018 |
IASB amends definition of business in IFRS Standard on business combinations | 22 October 2018 |
International update - International Public Sector Accounting Standards Board (IPSASB)
Topics discussed included: IPSASB Meeting Highlights – 4-7 December 2018
IPSASB Meeting Highlights – 18-21 September 2018
IPSASB has recently issued: |
|
Name | Publication date |
Improvements to IPSAS, 2018 | 26 October 2018 |
2018 Handbook of International Public Sector Accounting Pronouncements | 28 September 2018 |
Auditing update
Australian update - Auditing and Assurance Standards Board (AUASB)
Topics discussed included:
AUASB Meeting Highlights – 29 October 2018
AUASB Meeting Highlights – 12 September 2018
Latest news and work-in-progress documents from the AUASB included: |
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Name | Type | Publication date |
AUASB issues the updated AUASB Glossary | News | 11 December 2018 |
AUASB submits feedback on ED ISA 315 | News | 2 November 2018 |
Audit Quality in Australia: The Perspective of Audit Committee Chairs | News | 1 October 2018 |
AUASB-NZAuASB Webinar: ASA 315 Exposure Draft – Question and answer session | News | 18 September 2018 |
International update - International Auditing and Assurance Standards Board (IAASB)
Topics discussed included: IAASB Meeting Highlights – 10-14 December 2018
IAASB Meeting Highlights – 16 October 2018
IAASB Meeting Highlights – 17-21 September 2018
Latest publications from the IAASB included: |
|
Name | Publication date |
Exposure Draft – Proposed International Standard on Related Services 4400 (Revised), Agreed-Upon Procedures Engagements | 16 November 2018 |
Ethics update
Australian Update - Accounting Professional and Ethical Standards Board (APESB)
Topics discussed included:
APESB Meeting Highlights – 4 September 2018
Latest news and media releases from the APESB included: |
|
Name | Publication date |
Exposure Draft – Proposed Standard: APES 330 Insolvency Services | 28 November 2018 |
APESB issues restructured Code of Ethics* | 2 November 2018 |
International update - International Ethics Standards Board for Accountants (IESBA)
Topics discussed included: IESBA Meeting Highlights – 3-5 December 2018
IESBA Meeting Highlights – 17-20 September 2018
|
NSW Treasury
NSW Treasury documents and resources
Treasury’s recent releases included: |
|
Name | Publication date |
Government Sector Finance Act 2018 – Resources | October – December 2018 |
NSW Government Response – Review of Payroll Tax Administration | 22 November 2018 |
NSW Productivity Commissioner to Treasurer – Review of payroll tax administration | 21 November 2018 |
TPP18-08 Board Appointments for State Owned Corporations and Other Commercial Government Businesses | 19 November 2018 |
TD92.2 TD88.2 TD89.1 Treasurer's Directions Sale or Lease of Government Assets | 18 November 2018 |
Archived, withdrawn or superseded NSW Treasury Circulars | 14 November 2018 |
TC18-16 – Small Agency Exemption to TPP15-03 | 31 October 2018 |
2017-18 NSW Report on State Finances | 19 October 2018 |
TCorp Foreign Exchange Execution Framework | 4 October 2018 |
NSW Procurement Board
Directions and Procurement Alerts
NSW Procurement Board's recent Directions and Procurement alerts included: | ||
Name | Type | Publication date |
Faster Payment Terms Policy replaces 30 Days to Pay Policy | Procurement alert | 30 November 2018 |
Improvements to the Accreditation Program for Goods and Services Procurement | Procurement alert | 2 November 2018 |
PBD-2018-Approved Procurement Arrangements | Direction | 12 September 2018 |
Office of Local Government (OLG)
Recent publications released: | |
Name | Publication date |
18-43 Council decisions on the administration of the September 2020 elections | 12 December 2018 |
18-42 Recent amendments to the Government Information (Public Access) Act 2009 | 10 December 2018 |
18-41 Misuse of Council Resources – March 2019 State Election | 6 December 2018 |
18-39 Debt Management and Hardship Guidelines | 27 November 2018 |
Councils court out over rates debt collection | 27 November 2018 |
18-38 2018-19 draft Code of Accounting Practice and Financial Reporting (Update No. 27)* | 22 November 2018 |
18-37 Audit Office – Local Government Fraud Control Performance Audit* | 20 November 2018 |
Council Credit Card use crackdown | 20 November 2018 |
18-35 The new Model Code of Meeting Practice for Local Councils* | 16 November 2018 |
18-33 OLG Financial Reporting Workshops 2018-19 | 22 October 2018 |
18-31 Special Variation and Minimum Rate Variation Guidelines and Process for 2019-20* | 8 October 2018 |
18-30 Changes to GIPA – IPC Advice | 3 October 2018 |
18-29 New structure for NSW State Emergency Service | 27 September 2018 |
Australian Securities and Investments Commission (ASIC)
Recent speeches included: | |
Name | Publication date |
Whistleblowing – new rules, new policies, new vision | 16 November 2018 |
Financial regulation in a digital world | 12 November 2018 |
Ethics and professionalism post Royal Commission – A regulator's view | 1 November 2018 |
Senate Economics Legislation Committee: Opening statement by ASIC Chair, James Shipton | 24 October 2018 |
Recent media releases included: | |
Name | Publication date |
18-364MR Major financial reporting changes and other focuses | 3 December 2018 |
18-291MR Statement from ASIC Chair James Shipton on the Interim Report of the Financial Services Royal Commission | 28 September 2018 |
Australian Charities and Not-for-profits Commission (ACNC)
Recent media releases included: | |
Name | Publication date |
External Conduct Standards regulations set to begin from July 2019 | 30 November 2018 |
Charity Fraud Awareness Week: Moving money safely | 26 October 2018 |
Charity Fraud Awareness Week: Cyber-fraud | 22 October 2018 |
2018 Annual Information Statement due date extended | 4 October 2018 |
Australasian Council of Auditors-General (ACAG) Submissions to AASB
ACAG recently made submissions on: | |
Name | Submission date |
ED 286 Amendments to Australian Accounting Standards – Right-of-Use Assets of Not-for-Profit Entities | 7 December 2018 |
ITC 41 The AASB’s Approach to International Public Sector Accounting Standards | 30 November 2018 |
ED 01/18 Proposed Auditing Standard ASA 315 Identifying and Assessing the Risks of Material Misstatement | 15 October 2018 |
ED 03/18 Proposed Auditing Standard ASA 540 Auditing Accounting Estimates and Related Disclosures | 15 October 2018 |
Publications by Australian and New Zealand Audit Offices
Australian National Audit Office (ANAO) | Publication date |
Human Services’ Compliance Strategies | 6 December 2018 |
Joint Strike Fighter — Introduction into Service and Sustainment Planning | 5 December 2018 |
Disability Support Pension – Follow-on Audit | 29 November 2018 |
Strategies for Addressing the Impacts of Declining Demand for Australian Circulating Coins | 20 November 2018 |
Insights from reports tabled July to September 2018 | 19 November 2018 |
Design and Implementation of the VET Student Loans Program | 12 November 2018 |
Design and Implementation of the Quality Framework | 5 November 2018 |
Procurement Processes and Management of Probity by the Moorebank Intermodal Company | 11 October 2018 |
Management of Commonwealth Leased Office Property | 9 October 2018 |
Management of the Regional Network | 28 September 2018 |
Australian Capital Territory Audit Office (ACT AO) | Publication date |
2017-18 Financial Audits Overview | 21 November 2018 |
Northern Territory Auditor-General's Office (NT AGO) | Publication date |
November 2018 Report to the Legislative Assembly | 29 November 2018 |
Queensland Audit Office (QAO) | Publication date |
Transport: 2017–18 results of financial audits | 11 December 2018 |
Digitising public hospitals | 4 December 2018 |
Energy: 2017–18 results of financial audits | 22 November 2018 |
Water: 2017–18 results of financial audits | 15 November 2018 |
Conserving threatened species | 13 November 2018 |
Delivering coronial services | 18 October 2018 |
Follow-up of Bushfire prevention and preparedness | 9 October 2018 |
Managing transfers in pharmacy ownership | 28 September 2018 |
South Australian Auditor-General’s Department (SA AGD) | Publication date |
New Royal Adelaide Hospital operating term arrangements | 4 December 2018 |
Examination of the District Council of Coober Pedy | 4 December 2018 |
Battery storage procurement | 27 November 2018 |
Health budget performance 2017-18 | 23 October 2018 |
Digital licensing | 16 October 2018 |
Report on the Operations of the Auditor-General’s Department for the year ended 30 June 2018 | 16 October 2018 |
Annual Report of the Auditor-General for the year ended 30 June 2018 | 16 October 2018 |
Victorian Auditor-General’s Office (VAGO) | Publication date |
Auditor-General’s Report on the Annual Financial Report of the State of Victoria: 2017–18 | 24 October 2018 |
Western Australia Office of the Auditor-General (WA OAG) | Publication date |
Opinions on Ministerial Notifications | 10 December 2018 |
Audit Results Report – Annual 2017-18 Financial Audits of State Government Entities | 8 November 2018 |
Opinion on Ministerial Notification | 31 October 2018 |
Local Government Procurement | 11 October 2018 |
Annual Report 2017-2018 | 20 September 2018 |
New Zealand Office of the Auditor-General (NZ OAG) | Publication date |
Sea Change – Tai Timu Tai Pari: Creating a marine spatial plan for the Hauraki Gulf | 5 December 2018 |
Central government: Results of the 2017/18 audits | 3 December 2018 |
Results of the 2017 school audits | 21 November 2018 |
Annual report 2017/18 | 28 September 2018 |
Introducing our work about procurement | 21 September 2018 |
Other useful resources
The Treasury (Australian Government)
Recent publications included: | |
Report | Publication date |
Australia's experience with economic reform | 12 October 2018 |
Independent Commission Against Corruption (ICAC)
Recent media releases included: | |
Report | Publication date |
United against corruption - Leadership is the key to corruption prevention | 7 December 2018 |
ICAC's first report on state of corruption in NSW warns of evolving risks | 4 December 2018 |
Independent Pricing & Regulatory Tribunal (IPART)
Recent IPART papers and reports included: | |||
Report | Industry | Type of document | Publication date |
Valuer General's Proposal – Review of process for land valuation services provided by the Valuer General to councils | Special Reviews | Proposal | 6 December 2018 |
14 Local councils notify intention to vary rates | Local Government | Media Release | 3 December 2018 |
Reviewable Contributions Plans – Environmental Planning and Assessment Act 1979 | Local Government | Terms of Reference | 29 November 2018 |
Rental arrangements of communication towers on Crown Lands | Special Reviews | Terms of Reference | 16 November 2018 |
How IPART will assess applications for special variations – 2019-20 | Local Government | Fact Sheet | 15 November 2018 |
Applications to Increase Minimum Rates – 2019-20 | Local Government | Fact Sheet | 15 November 2018 |
Community awareness and engagement for special variations – 2019-20 | Local Government | Fact Sheet | 15 November 2018 |
Policy paper – Working Capital Allowance | Special Reviews | Final Report | 12 November 2018 |
Review of prices for land valuation services provided by the Valuer General to councils from 1 July 2019 | Special Reviews | Issues Paper | 17 October 2018 |
Guidelines for preparation of an application for a special variation to general income – 2019/20 | Local Government | Guidelines / Procedures | 9 October 2018 |
Guidelines for preparation of an application to increase minimum rates above the statutory limit – 2019/20 | Local Government | Guidelines / Procedures | 9 October 2018 |
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