Financial Management Amendment Standard (No. 1) 2004 (Qld)

Queensland Financial Management Amendment Standard (No. 1) 2004 Subordinate Legislation 2004 No. 321 made under the Financial Administration and Audit Act 1977 Contents Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 Standard amended. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Amendment of commentaries . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5 Amendment of s 23 (Elements of ICT resources strategic plan) . 3 6 Amendment of s 25 (Elements of assets strategic plan) . . . . . . . 3 7 Amendment of s 45 (Elements of systems for asset management) ................................ 4 8 Amendment of s 56 (Elements of systems for financial information management) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 9 Amendment of s 66 (Purpose of part) . . . . . . . . . . . . . . . . . . . . . 4 10 Replacement of pt 5, div 3 hdg and s 72 . . . . . . . . . . . . . . . . . . . 4 Division 3 Appraisal and risk assessment of agencies’ systems 72 Responsibility for appraisal and risk assessment of systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 11 Amendment of s 73 (Elements of framework for systems appraisal) ................................... 6 12 Replacement of s 74 (Conduct of appraisals) . . . . . . . . . . . . . . . 6 74 Requirements for appraisal and risk assessment of systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 13 14 15 16 17 18 19 20 21 22 23 Schedule Amendment of s 86 (Insurance contracts) . . . . . . . . . . . . . . . . . . Amendment of s 87 (Definitions for sdiv 3). . . . . . . . . . . . . . . . . . Amendment of s 97 (Requirements for annual financial statements of departments) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amendment of s 98 (Requirements for annual financial statements of statutory bodies) . . . . . . . . . . . . . . . . . . . . . . . . . . Amendment of s 99A (Requirement to report to appropriate Minister about derivatives—Act, s 43D) . . . . . . . . . . . . . . . . . . . . Insertion of new pt 7, div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Division 3 Transitional provisions for Financial Management Amendment Standard (No. ..) 2004 106 Prescribed accounting standards for a financial year ending before 1 July 2005—accountable officers . . 107 Prescribed accounting standards for a financial year ending before 1 July 2005—statutory bodies . . . . . Amendment of sch 1 (Documents made by the Treasurer or published by the treasury department and to which section 46L(2) of the Act applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amendment of sch 2 (System of information management) . . . . Amendment of sch 3 (Prescribed accounting standards). . . . . . . Insertion of new sch 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule 4 Prescribed accounting standards for a financial year starting on or after 1 January 2005 Amendment of sch 6 (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . . Amendment of commentaries . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 7 8 8 9 9 9 9 10 10 11 15 16

s1 3 s6 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 1 Short title This standard may be cited as the Financial Management Amendment Standard (No. 1) 2004 . 2 Commencement The following provisions commence on 1 January 2005— (a) sections 15(1) and (3), 16(1), 18, 21(1) and 22; (b) schedule, sections 3 to 5, 15 and 16. 3 Standard amended This standard amends the Financial Management Standard 1997. 4 Amendment of commentaries The commentaries in the Financial Management Standard 1997 are amended as stated in the schedule. 5 Amendment of s 23 (Elements of ICT resources strategic plan) Section 23(1)(c), from ‘called’— omit, insert— ‘called ‘[email protected] - Working with the World’, as issued by the Department of Public Works;’. 6 Amendment of s 25 (Elements of assets strategic plan) Section 25(1)(a), ‘Capital Investment’— omit, insert — ‘Asset’.

s 7 4 s 10 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 7 Amendment of s 45 (Elements of systems for asset management) Section 45(8)— insert — ‘(e) for land assets, complying with the Government Land Policy section on ‘Property Tenure’. 1 ’. 8 Amendment of s 56 (Elements of systems for financial information management) Section 56(2)(b), ‘ Libraries and Archives Act 1988 ’ and footnote— omit, insert — ‘ Public Records Act 2002 ’. 9 Amendment of s 66 (Purpose of part) Section 66(b)— omit, insert— ‘(b) appraisal and risk assessment of systems;’. 10 Replacement of pt 5, div 3 hdg and s 72 Part 5, division 3 heading and section 72— omit, insert— 1 The Government Land Policy section on ‘Property Tenure’ may be found in the ‘Government Asset Management System’. The Government Asset Management System may be viewed at the website address < s 10 5 s 10 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 ‘Division 3 Appraisal and risk assessment of agencies’ systems ‘72 Responsibility for appraisal and risk assessment of systems ‘(1) Each accountable officer and statutory body must ensure the agency’s systems required under part 3 2 remain cost-effective and appropriate for the agency’s operations. ‘(2) Subject to subsection (3), for ensuring an agency’s systems remain cost-effective and appropriate for the agency’s operations under subsection (1), the accountable officer or statutory body must carry out an appraisal or a risk assessment of each system at least once every 3 years. ‘(3) If an agency existed immediately before the commencement and has continued to exist since the commencement, the accountable officer or statutory body must carry out an appraisal or a risk assessment of each of the agency’s systems within 1 year after the commencement. ‘(4) Before carrying out an appraisal or a risk assessment of a system, the accountable officer or statutory body must develop and implement a framework for carrying out the appraisal or risk assessment. ‘(5) If a risk assessment of a system indicates an appraisal of the system is required, the accountable officer or statutory body must carry out an appraisal of the system within 3 months after the risk assessment is carried out. ‘(6) Subject to subsection (5), if an appraisal or a risk assessment of a system indicates that action is required, the accountable officer or statutory body must carry out the action as soon as practicable. ‘(7) In this section— commencement means the commencement of this section.’. 2 Part 3 (Management of resources)

s 11 6 s 13 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 11 Amendment of s 73 (Elements of framework for systems appraisal) Section 73(2) and (3)— omit. 12 Replacement of s 74 (Conduct of appraisals) Section 74— omit, insert— ‘74 Requirements for appraisal and risk assessment of systems ‘(1) Subject to subsections (2) and (3), an appraisal or a risk assessment of an agency’s system under section 72 must be carried out by the accountable officer or statutory body in a way the officer or body considers appropriate. ‘(2) An appraisal or a risk assessment of a system must be documented and include the following— (a) the results of the appraisal or risk assessment; (b) the action required as a result of the appraisal or risk assessment; (c) recommendations for follow-up action; (d) if an appraisal or a risk assessment of the system has been previously carried out—an evaluation about the actions, if any, taken as a result of the last appraisal or risk assessment carried out. ‘(3) An appraisal or a risk assessment must not be devolved to the internal audit function.’. 13 Amendment of s 86 (Insurance contracts) Section 86(2)(b)(ii), ‘ WorkCover Queensland Act 1996 ’ and footnote— omit, insert — ‘ Workers’ Compensation and Rehabilitation Act 2003’ .

s 14 7 s 15 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 14 Amendment of s 87 (Definitions for sdiv 3) (1) Section 87, definition approved security provider , paragraphs (a)(i) and (b)(i), ‘Fitch IBCA’— omit, insert — ‘Fitch Ratings’. (2) Section 87, definition security provider , paragraph (d)— omit, insert — ‘(d) a corporation that is a registered entity under the Financial Sector (Collection of Data) Act 2001 (Cwlth) and is included in either of the following categories in the list of names of registered entities 3 kept under section 11(1) of that Act— (i) category D (money market corporations); (ii) category other (formerly categories E, F and G).’. 15 Amendment of s 97 (Requirements for annual financial statements of departments) (1) Section 97(1)(a), ‘schedule 3’ and footnote— omit, insert— ‘schedule 4 4 ’. (2) Section 97(1)(b)— omit, insert — ‘(b) the minimum reporting requirements mentioned in the document called ‘Financial Reporting Requirements for Queensland Government Agencies Effective for 3 The list of names of registered entities may be viewed at the website of the Australian Prudential Regulation Authority at < 4 See also section 106 (Prescribed accounting standards for a financial year ending before 1 July 2005—accountable officers) and schedule 3 (Prescribed accounting standards for a financial year ending before 1 July 2005).

s 16 8 s 17 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 Reporting Periods Ending on or After 30 June 2004’. 5 ’. (3) Section 97(2), ‘schedule 3’— omit, insert— ‘schedule 4’. 16 Amendment of s 98 (Requirements for annual financial statements of statutory bodies) (1) Section 98(1), ‘schedule 3,’— omit, insert — ‘schedule 4, 6 ’. (2) Section 98(2) and (3)— renumber as section 98(3) and (4). (3) Section 98— insert— ‘(2) Also, for preparing its annual financial statements a statutory body must have regard to the document called ‘Financial Reporting Requirements for Queensland Government Agencies Effective for Reporting Periods Ending on or After 30 June 2004’.’. 17 Amendment of s 99A (Requirement to report to appropriate Minister about derivatives—Act, s 43D) Section 99A(3)(c)(i), from ‘under’ to ‘Act’— omit . 5 See schedule 1 (Documents made by the treasurer or published by the treasury department and to which section 46L(2) of the Act applies) for details about this document. 6 See also section 107 (Prescribed accounting standards for a financial year ending before 1 July 2005—statutory bodies) and schedule 3 (Prescribed accounting standards for a financial year ending before 1 July 2005).

s 18 9 s 19 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 18 Insertion of new pt 7, div 3 After section 105— insert— ‘Division 3 Transitional provisions for Financial Management Amendment Standard (No. 1) 2004 ‘106 Prescribed accounting standards for a financial year ending before 1 July 2005—accountable officers ‘(1) This section applies if an accountable officer is preparing a department’s annual financial statements for a financial year ending before 1 July 2005. ‘(2) For preparing the annual financial statements, section 97(1)(a) and (2) 7 applies as if a reference to the prescribed accounting standards stated in schedule 4 were a reference to the prescribed accounting standards stated in schedule 3. ‘107 Prescribed accounting standards for a financial year ending before 1 July 2005—statutory bodies ‘(1) This section applies if a statutory body is preparing its annual financial statements for a financial year ending before 1 July 2005. ‘(2) For preparing the annual financial statements, section 98(1) 8 applies as if the reference to the prescribed accounting standards stated in schedule 4 were a reference to the prescribed accounting standards stated in schedule 3.’. 19 Amendment of sch 1 (Documents made by the Treasurer or published by the treasury department and to which section 46L(2) of the Act applies (1) Schedule 1, item 2— 7 Section 97 (Requirements for annual financial statements of departments) 8 Section 98 (Requirements for annual statements of statutory bodies)

s 20 10 s 21 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 omit, insert — ‘2 ‘Asset Strategic Plan Guidelines’, as published by the treasury department in July 2003.’. (2) Schedule 1, item 9— omit, insert — ‘9 ‘Financial Reporting Requirements for Queensland Government Agencies Effective for Reporting Periods Ending on or After 30 June 2004’, as published by the treasury department in October 2004.’. 20 Amendment of sch 2 (System of information management) (1) Schedule 2, item 2, ‘system appraisals’— omit, insert— ‘appraisals or risk assessments of systems under section 72’. (2) Schedule 2, item 6, ‘, bank statements’— omit . 21 Amendment of sch 3 (Prescribed accounting standards) (1) Schedule 3, heading and authorising section reference— omit, insert— ‘Schedule 3 Prescribed accounting standards for a financial year ending before 1 July 2005 sections 106 and 107 ’. (2) Schedule 3, part 2, after item for AASB 1028— insert — ‘AASB 1039 Concise Financial Reports’. (3) Schedule 3, part 2, after item for AASB 1045—

s 22 11 s 22 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 insert — ‘AASB 1047 Disclosing the Impacts of Adopting Australian Equivalents to International Financial Reporting Standards’. (4) Schedule 3, part 3, items for Abstracts 2, 6, 8, 12, 15, 26 and 48— omit . (5) Schedule 3, part 3— insert — ‘Abstract 54 Defined Benefit Superannuation Disclosures by Employers Abstract 55 Accounting for Road Earthworks’. 22 Insertion of new sch 4 After schedule 3— insert— ‘Schedule 4 Prescribed accounting standards for a financial year starting on or after 1 January 2005 sections 97 and 98 ‘Part 1 Statements of accounting concepts SAC 1 SAC 2 Definition of the Reporting Entity Objective of General Purpose Financial Reporting

s 22 12 s 22 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 ‘Part 2 Accounting standards AASB 1 AASB 2 AASB 3 AASB 4 AASB 5 AASB 101 AASB 102 AASB 107 AASB 108 AASB 110 AASB 111 AASB 112 AASB 114 AASB 116 AASB 117 AASB 118 AASB 119 AASB 120 AASB 121 Framework for the Preparation and Presentation of Financial Statements issued in July 2004 First-time Adoption of Australian Equivalents to International Financial Reporting Standards Share-based Payment Business Combinations Insurance Contracts Non-current Assets Held for Sale and Discontinued Operations Presentation of Financial Statements Inventories Cash Flow Statements Accounting Policies, Changes in Accounting Estimates and Errors Events after the Balance Sheet Date Construction Contracts Income Taxes Segment Reporting Property, Plant and Equipment Leases Revenue Employee Benefits Accounting for Government Grants and Disclosure of Government Assistance The Effects of Changes in Foreign Exchange Rates

s 22 13 s 22 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 AASB 123 AASB 124 AASB 127 AASB 128 AASB 129 AASB 130 AASB 131 AASB 132 AASB 133 AASB 134 AASB 136 AASB 137 AASB 138 AASB 139 AASB 140 AASB 141 AASB 1004 AASB 1023 AASB 1031 AASB 1038 AASB 1048 AAS 25 AAS 29 AAS 29A Borrowing Costs Related Party Disclosures Consolidated and Separate Financial Statements Investments in Associates Financial Reporting in Hyperinflationary Economies Disclosures in the Financial Statements of Banks and Similar Financial Institutions Interests in Joint Ventures Financial Instruments: Disclosure and Presentation Earnings per Share Interim Financial Reporting Impairment of Assets Provisions, Contingent Liabilities and Contingent Assets Intangible Assets Financial Instruments: Recognition and Measurement Investment Property Agriculture Contributions General Insurance Contracts Materiality Life Insurance Contracts Interpretation and Application of Standards Financial Reporting by Superannuation Plans Financial Reporting by Government Departments Amendments to the Transitional Provisions in AAS 29

s 22 14 s 22 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 AAS 31 AAS 31A Financial Reporting by Governments Amendments to the Transitional Provisions in AAS 31 ‘Part 3 Urgent Issues Group Interpretations Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities Interpretation 107 Introduction of the Euro Interpretation 110 Government Assistance—No Specific Relation to Operating Activities Interpretation 112 Consolidation—Special Purpose Entities Interpretation 113 Jointly Controlled Entities—Non-Monetary Contributions by Venturers Interpretation 115 Operating Leases—Incentives Interpretation 121 Income Taxes—Recovery of Revalued Non-Depreciable Assets Interpretation 125 Income Taxes—Changes in the Tax Status of an Entity or its Shareholders Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease Interpretation 129 Disclosure—Service Concession Arrangements Interpretation 131 Revenue—Barter Transactions Involving Advertising Services Interpretation 132 Intangible Assets—Web Site Costs Interpretation 1017 Developer and Customer Contributions for Connection to a Price-Regulated Network Interpretation 1019 The Superannuation Contributions Surcharge

s 23 15 s 23 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 Interpretation 1030 Depreciation of Long-Lived Physical Assets: Condition-Based Depreciation and Related Methods Interpretation 1031 Accounting for the Goods and Services Tax (GST) Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities Interpretation 1039 Substantive Enactment of Major Tax Bills in Australia Interpretation 1047 Professional Indemnity Claims Liabilities in Medical Defence Organisations Interpretation 1055 Accounting for Road Earthworks’. 23 Amendment of sch 6 (Dictionary) (1) Schedule 6, definition information standard , paragraph (e)— omit, insert— ‘(e) the Department of Innovation and Information Economy, Sport and Recreation Queensland between 22 February 2000 and 11 February 2004; or (f) the Department of Public Works. 9 ’. (2) Schedule 6, definition State Archivist— omit, insert — ‘ State Archivist means the State Archivist under the PublicRecords Act 2002 , section 21(1).’. 9 An information standard may appear with a number, for example, Information Standard No. 25.

16 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 Schedule Amendment of commentaries section 4 1 Commentary after s 23, item 2, ‘Department of Innovation and Information Economy, Sport and Recreation Queensland’— omit, insert— ‘ Department of Public Works’. 2 Commentary after s 23, item 5, from ‘Department’— omit, insert— ‘ Department of Public Works, at < 3 Commentary after s 45, item 5— omit . 4 Commentary after s 45, items 6 to 10— renumber as items 5 to 9. 5 Commentary after s 45, item 5 as renumbered, ‘AAS 5’— omit, insert— ‘ AAS 5/AASB 1031 ’. 6 Commentary after s 48, from ‘Other documents’ to ‘regard—’— omit . 7 Commentary after s 48, ‘46 to’— omit, insert — ‘47 and’. 8 Commentary after s 74, ‘Appraisal of systems’— omit, insert — ‘Appraisal and risk assessment of systems’.

17 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 Schedule (continued) 9 Commentary after s 74, items 1 and 4, after ‘appraisals’— insert — ‘and risk assessments’. 10 Commentary after s 74, items 2 and 3, after ‘appraisal’— insert — ‘or risk assessment’. 11 Commentary after s 84, item 1, after ‘control’— insert— ‘, counter-terrorism preparedness’. 12 Commentary after s 84, item 4(b)— omit, insert— ‘(b) Government Agency Preparedness Counter-terrorism Risk Framework and Guidelines for Queensland Government Agencies (March 2004);’. 13 Commentary after s 96, items 2 and 3— renumber as items 3 and 4. 14 Commentary after s 96— insert— ‘ 2. Information or explanatory material that has not been audited must not be included in the financial statements section of an annual report. See the Financial Administration and Audit Act 1977, section 39(4)(d).’. 15 Commentary after s 98A, item 3— omit, insert— ‘ 3. For each prescribed accounting standard stated in schedule 3 or 4, accountable officers and statutory bodies should decide if the standard applies to the agency by considering the application provision of the standard . ’.

18 Financial Management Amendment Standard (No. 1) No. 321, 2004 2004 Schedule (continued) 16 Commentary after s 98A, item 4, from ‘SAC 3’— omit, insert— 'the Framework for the Preparation and Presentation of Financial Statements issued in July 2004.’. 17 Commentary after 98A— insert— ‘5. An agency should— (a) have in place quality control systems to ensure publication of complete and accurate copies of the annual financial statements, as certified by the Auditor-General; and (b) to prevent inappropriate use of the signatures of the Auditor-General or delegated officers, remove the signatures from electronic copies of annual financial statements before the statements are posted on the internet; and (c) consider the use of disclaimers for electronic copies of annual financial statements posted on the internet.’. ENDNOTES 1. Made by the Treasurer on 13 December 2004. 2. Notified in the gazette on 17 December 2004. 3. Laid before the Legislative Assembly on . . . 4. The administering agency is the Treasury Department. © State of Queensland 2004