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NSW Treasury has released TD 21-02 'Mandatory Annual Returns to Treasury' (TD 21-02) and TPG 22-16 'Agency Direction for the 2021-22 Mandatory Annual Returns to Treasury' (TPG 22-16) which details the procedures agencies must follow each year to comply with the requirements to submit Annual Returns for financial years ending 30 June.

TD 21-02 and TPG 22-16:

• apply to all entities listed in Appendix A of TD 21-02 that are GSF agencies and to the accountable authorities of those GSF agencies
• require financial statements to be prepared and given to the Auditor-General by Monday, 1 August 2022
• withdraw and supersede all previous NSW Treasurer’s Directions on Mandatory Annual Returns and TPP 21-04 ‘Agency Direction for the 2020-21 Mandatory Annual Returns to Treasury’.

Additionally, NSW Treasury has issued:

• TD 22-15 'Amendment to TD 21-02 Mandatory Annual Returns to Treasury' which amends TD 21-02 for financial years ending on 30 June 2022 onwards
• TPG 22-17 'Agency guidelines for the 2021-22 Mandatory Annual Returns to Treasury for NSW public sector agencies that are not included in TD21-02' which details the annual returns procedures for agencies (listed in Appendix A) that are not included in TD 21-02. TPG 22-17 supersedes TC 21-04 'Agency guidelines for the 2020-21 Mandatory Annual Returns to Treasury for NSW public sector agencies that are not included in TD 21-02'.

NSW Treasury has published the final report (produced by the Department of Premier and Cabinet, in partnership with the NSW Productivity Commissioner) on the Review of grants administration in NSW (the report). The purpose of the review was to deliver value for money for taxpayers by ensuring that the administration, assessment, and assurance of grants is in line with good governance practices.

The report includes an updated Good Practice Guide to Grants Administration (the draft guide) and recommendations to the Premier, to ensure that NSW Government grants:

• deliver value for public money in achieving their stated purpose or purposes
• are robust in their planning and design
• adopt key principles of transparency, accountability, and probity
• deliver a high-quality customer experience.

The report included 19 recommendations to ensure the administration of NSW Government grants is underpinned by robust governance frameworks.

The draft guide included in Appendix A of the report provides principles-based guidance and includes mandatory requirements for officials, Ministers, and ministerial staff. It is recommended that the draft guide be issued as a Premier’s Memorandum and that compliance with the draft guide be a legislative requirement. The draft guide provides robust decision-making frameworks to ensure the accountability of those involved in grants administration, with its implementation to foster a culture of ‘ownership’ that is important for the integrity of grants processes.

The Office of Local Government has released the following circulars:

GC 151 2022-23 Financial Assistance Grants (FAGs) – advance payment

This circular informs councils of the estimated 2022-23 Financial Assistance Grants (the grants).

The advance payment represents 75 per cent of the estimated amount the councils are entitled to and was paid on 12 April 2022. Further adjustments will be made to the remaining payments to take into account the determination by the Commonwealth Treasurer of the final adjustments for 2021-22 and the Grants Commission’s recommendations for 2022-23.

The Grants Commission will advise councils of the recommendations when they have been finalised after the Commonwealth advises the amount of the final adjustments. The balance of the grants will be paid with a corresponding reduction to the quarterly instalments during 2022-23.

The grants are paid under the provisions of the Local Government (Financial Assistance) Act 1995.

GC 151 2022-23 supersedes ‘GC 150 2021-22 Financial Assistance Grants (FAGs) – advance payment’.

22-10 Local Government Amendment Act 2021 – Guidance on local government rating reforms

The circular advises councils that guidance on local government rating reforms (the guidance) has been prepared to assist NSW councils with reforms to the rating system that were made through the Local Government Amendment Act 2021 (amending Act) in 2021.

The guidance covers four rating reforms that came into effect on 24 May 2021:

1. allowing each council created by merger in 2016 to bring together (harmonise) its rating structures gradually, up to eight years, in consultation with its community
2. enabling a different rate peg to be set for each council, or for different cohorts of councils, and allowing it to be set as a methodology rather than a percentage, including by specifying a base percentage to which an additional figure may be added in specified circumstances
3. allowing all councils to set separate rates for different residential areas within a contiguous urban area, in certain circumstances, whether or not they have different ‘centres of population’,
4. allowing all councils to set farmland rates based on geographic location.

Six further rating reforms within the amending Act did not come into effect on assent but will be commenced by the Minister for Local Government by proclamation once supporting regulations and guidelines are in place.

The NSW Independent Commission Against Corruption (ICAC) has recently published 'Factfinder: A Guide to conducting internal investigations', a practical guide for those involved in the conduct of internal investigations. It primarily aims to assist NSW public sector agencies in the investigation of potential wrongdoings by staff but may also be appropriate with other types of investigations and organisations.

The guide details the core features of a quality investigation and provides advice on the central objectives of determining the truth and ensuring that all affected persons are treated fairly. It includes guidance on

• factors an agency should consider when deciding whether to commence an investigation
• how to plan an investigation
• how to gather and handle evidence
• how to analyse evidence, make factual findings and prepare and an investigation report
• post-investigative actions, including disciplinary matters and evaluating an agency’s investigation function.

ASIC’s media release on 1 June 2022 highlighted the following focus areas for financial reporting period ending 30 June 2022:

• asset values
• provisions
• solvency and going concern assessments
• events occurring after year end and before completing the financial report
• disclosures in the financial report and Operating and Financial Review.

Management should assess how the current and future performance of an entity, the value of its assets and its provisions, and business strategies may be affected by changing circumstances, uncertainties and risks such as:

• COVID-19 conditions and restrictions during the reporting period
• changes in customer preferences and online purchasing trends
• use of virtual meetings and more flexible working arrangements
• the discontinuation of financial and other support from governments, lenders and lessors, including any possible increases in the level of insolvencies
• the availability of skilled staff and expertise
• ongoing restrictions to deal with COVID-19 in different jurisdictions
• the impact of rising interest rates on future cash flows and on discount rates used in valuing assets and liabilities
• increases in oil prices
• geopolitical risks, including the Ukraine/Russia conflict
• commitments and policies on climate and carbon emissions by governments
• technological changes and innovation
• legislative and regulatory changes
• other economic and market developments.

Topics discussed included:

AASB Meeting Highlights – 22-23 June 2022

• sustainability reporting
• audit engagement disclosures
• post-implementation reviews
• research update
• accounting policy disclosures in special purpose financial statements of certain for-profit private sector entities
• not-for-profit private sector financial reporting framework

AASB Meeting Highlights – 18 May 2022

• post-implementation reviews
• sustainability reporting
• not-for-profit private sector financial reporting framework

AASB Meeting Highlights – 7 April 2022

• sustainability reporting
• not-for-profit private sector financial reporting framework
• AASB 15 not for profit guidance
• AASB 1058 narrow scope amendments
• right-of-use assets of not-for-profit entities

Latest news, accounting standards and work-in-progress documents from the AASB included:

Topics discussed included:

IASB Meeting Highlights – 20-22 June 2022

• financial instruments with characteristics of equity
• maintenance and consistent application for non-current liabilities with covenants (amendments to IAS 1)
• primary financial statements
• post implementation review of IFRS 9
• contractual cash flow characteristics
• business combination under common control
• equity method
• second comprehensive review of the IFRS for SMEs accounting standard
• disclosure initiative – subsidiaries without public accountability: disclosures

IASB Meeting Highlights – 23-27 May 2022

• second comprehensive review of the IFRS for SMEs accounting standard
• disclosure initiative – subsidiaries without public accountability: disclosures
• dynamic risk management
• maintenance and consistent application
• board work plan update
• post implementation review of IFRS 9
• primary financial statements
• disclosure initiative – targeted standards-level review of disclosures
• rate-regulated activities
• goodwill and impairment

IASB Meeting Highlights – 25-28 April 2022

• post implementation review of IFRS 9
• maintenance and consistent application – IFRIC update
• goodwill and impairment
• primary financial statements
• second comprehensive review of the IFRS for SMEs accounting standard
• equity method
• disclosure initiative – subsidiaries without public accountability: disclosures

Latest news from the IFRS Foundation included:

Topics discussed included:

IPSASB Meeting Highlights – 21-24 June 2022

• revenue / transfer expenses
• measurement
• conceptual framework – phase 1
• other lease-type arrangements
• ED78, Property, plant and equipment
• IFAC update
• public sector standard setters forum

Recent news from the IPSASB included:

IPSASB has recently issued:

Topics discussed included:

AUASB Meeting Highlights – 7-8 June 2022

• sustainability
• FRC and audit quality update
• work program update and agenda consultation
• IAASB update and discussion
• ASAE 3100 ‘Compliance Engagements’ – Post Implementation Review
• ED 02/22 ‘Proposed Conforming and Consequential Amendments to the other AUASB Standards to align to the IAASB Other Standards’
• GS 016 ‘Bank Confirmation Requests’
• GS 023 ‘Special Considerations – Public Sector Engagements’

AUASB Meeting Highlights – 27 April 2022

• sustainability
• FRC and audit quality update
• bank confirmations
• conforming amendments arising from quality management standards
• group audits
• public sector guidance statement

Latest news from the AUASB included:

Topics discussed included:

IAASB Meeting Highlights – 13-17 June 2022

• listed entity and public interest entity
• audit evidence
• sustainability – environmental, social and governance reporting
• going concern
• audits of less complex entities
• fraud

IAASB Meeting Highlights – 26 April 2022

• complexity, understandability, scalability and proportionality drafting principles and guidelines

Latest publications from the IAASB included:

Topics discussed included:

APESB Meeting Highlights – 3 June 2022

• proposed revisions to APES 110 for the Definition of Listed Entity and Public Interest Entity
• proposed conforming amendments to APES 110 for Quality Management
• international and other activities
• developments in sustainability
• project update on Technology Project
• project update on APES 215 ‘Forensic Accounting Services’
• project update on APES 220 ‘Taxation Services’
• proposed revisions to APES 205 to address AASB projects
• proposed revisions to fee-related provisions of APES 110
• proposed revisions to the non-assurance services provisions of APES 110

Latest news and media releases from the APESB included:

Topics discussed included:

IESBA Meeting Highlights – 6-8 June 2022

• sustainability
• public interest entity rollout
• IFAC panel on accounting education
• tax planning and related services
• Emerging Issues and Outreach Committee update
• IAASB-IESBA coordination
• technology fact finding and thought leadership
• engagement team group audit independence

Latest news and publications from the IESBA included:

Treasury’s recent releases and other guidance included:

DPC released the following memos and circulars:

PSC released the following circulars and memos:

DCS released the following circulars:

Inquiries and Reports tabled in NSW Parliament included:

Inquiries and Reports tabled in NSW Parliament included:

Recent publications included:

Recent media releases and news included:

Recent IPART papers and reports included: