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NSW Treasury has released Treasury Circular TC 22-14 Commonwealth – NSW Funding Agreements. This circular provides information for NSW ministers and agencies on processes for negotiating and approval to enter into new or extended funding agreements with the Commonwealth. This circular replaces the former Premiers Memorandum M2011-19 ‘NSW Protocol for the Intergovernmental Agreement on Federal Financial Relations’.

Key points highlighted in the circular include:

• NSW Treasurer is responsible for all Commonwealth-state funding agreements on behalf of the NSW Government
• NSW Treasury is responsible for providing guidance to NSW agencies regarding approval processes for NSW ministers to enter into funding agreements with the Commonwealth
• NSW Cabinet has overall responsibility for approving Commonwealth-state funding agreements on behalf of the NSW Government. For some agreements, authority may be delegated by Cabinet to the Treasurer or the responsible portfolio minister who is authorised to negotiate and sign an agreement on behalf of the NSW Government. However, such delegation will depend upon key considerations including policy operational or budgetary impacts. This may necessitate consideration by one or more Cabinet Committees, including the Expenditure Review Committee (ERC) where there are budget implications.

NSW Treasury has released TPG 22-23 Agencies with Occupancy Agreements with Property NSW which provides guidance to agencies on the applicability of AASB 16 ‘Leases’ in relation to occupancy agreements entered into with Property NSW (PNSW). It includes proforma financial statements disclosures for the year ending 30 June 2022 and frequently asked questions for the derecognition of existing right-of-use assets and lease liabilities related to office accommodation lease arrangements with PNSW.

The TPG is not mandatory and NSW GGS entities should tailor the assessment and disclosures to their individual circumstances.

The Government Sector Finance Act 2018 (GSF Act) enables the Treasurer, Ministers and Accountable Authorities to delegate a broad range of responsibilities and powers as well as permitting their delegates to subdelegate. This includes (but is not limited to) functions regarding:

• the expenditure of money
• making payments out of Consolidated Fund
• making payments out of an account within the Special Deposits Account (SDA) or statutory special purpose fund.

This document provides guidance for GSF agencies on:

• accountable authorities’ and government officers’ responsibilities for ensuring expenditure is authorised in accordance with the GSF Act
• important considerations when establishing delegation and subdelegation instruments, policies, procedures and systems, such as:
  • annual appropriations funding
  • cluster grants funding
  • deemed appropriations funding
  • payments made out of an account within the SDA or from a statutory special purpose fund.

The NSW Independent Commission Against Corruption (the Commission) has released its Report on investigation into pork barrelling in NSW (Operation Jersey). It found that pork barrelling, defined as the ‘allocation of public funds and resources to targeted electors for partisan political purposes’, could constitute corrupt conduct in certain circumstances.

The Commission found that, while individual matters should be assessed on a case-by-case basis, a minister, for example, may engage in corrupt conduct involving pork barrelling, within the meaning of section 8 of the Independent Commission Against Corruption Act 1988, if the minister:

• influences a public servant to exercise decision-making powers vested in the public servant, or to fulfil an official function, such as providing an assessment of the merits of grants, in a dishonest or partial way
• applies downward pressure to influence a public servant to exercise decision-making powers vested in the public servant, or to fulfil an official function, such as providing an assessment of the merits of grants, in a manner which knowingly involves the public servant in a breach of public trust
• conducts a merit-based grants scheme in such a way as to dishonestly favour political and private advantage over merit, undermining public confidence in public administration, and benefiting political donors and/or family members
• deliberately exercises a power to approve grants in a manner that favours family members, party donors or party interests in electorates, contrary to the guidelines of a grant program which state that the grants are to be made on merit according to criteria
• exercises a power to make grants in favour of marginal electorates, when this is contrary to the purpose for which the power was given.

The purpose of the report is to make clear that ministers and their advisers ‘do not have an unfettered discretion to distribute public funds. The exercise of ministerial discretion is subject to the rule of law, which ensures that it must accord with public trust and accountability principles’.

The Commission made 21 recommendations about how pork barrelling could be prevented and better regulated through whole-of-government guidelines around grants administration.

The Australian Auditing and Assurance Standards Board has issued a revised ASA 315 ‘Identifying and Assessing the Risks of Material Misstatements’, which became effective for periods beginning on or after 15 December 2021, that is, for audits year ending 31 December 2022 and onwards. Although this is a change in an auditing standard, there will be flow on impacts to the extent of engagement between auditees and their auditors and consequently documentation requests, such as, but not limited to auditors requiring:

• more detailed information and access to a broader range of management related to the IT environment, governance, and financial reporting
• additional information and evidence to support changes in audit procedures arising from more granular and iterative risk assessment throughout the audit.

Topics discussed included:

AASB Meeting Highlights – 21 September 2022

• sustainability 
• fair value measurement for not-for-profit (NFP) entities
• NFP domestic post-implementation reviews
• insurance activities in the public sector
• research update.

AASB Meeting Highlights – 3 August 2022

• not-for-profit sector financial reporting framework
• insurance activities in the public sector
• agenda consultation
• sustainability reporting
• IPSASB consultation paper on sustainability
• post-implementation reviews.

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

Topics discussed included:

IASB Meeting Highlights – 20-22 September 2022

• post-implementation review of IFRS 9 – classification and measurement
• financial instruments with characteristics of equity
• post-implementation review of IFRS 15 – revenue from contracts with customers
• work plan
• rate-regulated activities
• maintenance and consistent application
• equity method
• contractual cash flow characteristics
• goodwill and impairment
• extractive activities
• primary financial statements.

IASB Meeting Highlights – 18-21 July 2022

• post-implementation review of IFRS 9 – classification and measurement
• dynamic risk management
• financial instruments with characteristics of equity
• rate-regulated activities
• disclosure initiative – targeted standards level review of disclosures
• maintenance and consistent application
• management commentary
• contractual cash flow characteristics
• goodwill and impairment
• primary financial statements
• post-implementation review of IFRS 9 – impairment.

Latest news from the IFRS Foundation included:

Topics discussed included:

IPSASB Meeting Highlights – 19-20 September 2022 (Public Sector Standard Setters Forum)

• sustainability reporting
• new IPSASB reporting
• presentation of financial statements
• differential reporting
• building IPSASB’s future program

IPSASB Meeting Highlights – 12-16 September 2022

• measurement
• conceptual framework – limited scope update – measurement and next stage
• ED 78, Property, plant, and equipment
• revenue/transfer expenses
• reporting sustainability program information
• other lease-type arrangements
• differential reporting
• sustainability reporting strategy session.

Recent news from the IPSASB included:

Topics discussed included:

AUASB Meeting Highlights – 6 September 2022

• Financial Reporting Council and audit quality update
• sustainability
• GS 023 – engagement leader guidance issues paper
• GS 003 – limited scope amendments
• approval of AUASB quality management amendments
• KAM reporting beyond listed entities – project plan
• response to IAASB ED on ISA 700 and ISA 260
• reapproval of ASA 600 explanatory statement
• AUASB digital standards portal update.

Latest news from the AUASB included:

Topics discussed included:

IAASB Meeting Highlights – 12-16 September 2022

• audit evidence
• disruptive technologies
• strategy 2024-2027
• sustainability assurance
• audits of less complex entities
• fraud
• going concern.

Topics discussed included:

APESB Meeting Highlights – 23 September 2022

• risk register
• 2022/22 Q4 financial reports and 2022/23 cash flows
• register of interest
• proposed conforming amendment to APES 110 quality management
• proposed revisions to APES 205 address AASB projects
• update on sustainability
• international and other activities
• update on IESBA tax planning and related services project
• proposed amendments to APESB pronouncements for quality management confirming amendments
• project update on APES 215 Forensic accounting services
• proposed compilation of the code of ethics
• project update on the technology project.

Latest news and media releases from the APESB included:

Topics discussed included:

IESBA Meeting Highlights – 12-16 September 2022

• sustainability
• tax planning and related services
• technology project
• engagement team – group audits.

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:

NSW Procurement Board’s recent Directions included:

Inquiries and Reports tabled in NSW Parliament included:

Inquiries and Reports tabled in NSW Parliament included:

Recent publications included:

Recent media releases included:

Recent IPART media releases, and other materials included:

Recent publications included: