Financial Management Amendment Standard (No. 1)2006 (Qld)

Queensland Financial Management Amendment Standard (No. 1) 2006 Subordinate Legislation 2006 No. 253 made under the Financial Administration and Audit Act 1977 Contents Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 Standard amended. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 Amendment of commentaries . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Amendment of s 4 (Purpose of standard) . . . . . . . . . . . . . . . . . . 3 5 Amendment of s 6 (Application generally) . . . . . . . . . . . . . . . . . . 3 6 Amendment of s 8 (Special application provisions for pt 3) . . . . . 4 7 Amendment of s 14 (Relationship of this standard with other documents). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 8 Amendment of s 42 (Action to be taken when losses are identified .................................... 4 9 Amendment of s 45 (Elements of systems for asset management) .................................. 4 10 Amendment of s 94 (Purpose) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 11 Amendment of pt 6, div 2 hdg (Annual reporting). . . . . . . . . . . . . 6 12 Insertion of new s 95A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 95A Content of final report. . . . . . . . . . . . . . . . . . . . . . . . . 6 13 Amendment of s 96 (Additional requirements for other entities in annual report of agency). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 14 Amendment of pt 6, div 3 hdg (Annual financial statements) . . . . 9 15 Insertion of new s 97A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 16 17 18 19 20 Schedule 97A Requirements for final financial statements of abolished departments . . . . . . . . . . . . . . . . . . . . . . . . Insertion of new 98AA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98AA Requirements for final financial statements of abolished statutory bodies . . . . . . . . . . . . . . . . . . . . . Amendment of s 98A (Other requirements for annual financial statements of agencies) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amendment of sch 2 (System of information management) . . . . Amendment of sch 4 (Prescribed accounting standards for a financial year starting on or after 1 January 2005) . . . . . . . . . . . . Amendment of sch 6 (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . . Amendment of commentaries . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 11 11 12 12 13 14

s1 3 s5 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 1 Short title This standard may be cited as the Financial Management Amendment Standard (No. 1) 2006 . 2 Standard amended This standard amends the Financial Management Standard 1997. 3 Amendment of commentaries The commentaries in the Financial Management Standard 1997 are amended as stated in the schedule. 4 Amendment of s 4 (Purpose of standard) (1) Section 4(1)(b), ‘and annual reports’— omit, insert — ‘, final financial statements, annual reports and final reports’. (2) Section 4(2), ‘and statutory body’— omit, insert — ‘, former accountable officer, statutory body and administering department’. 5 Amendment of s 6 (Application generally) Section 6, ‘or statutory body’— omit, insert — ‘, former accountable officer, statutory body or administering department’.

s6 4 s9 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 6 Amendment of s 8 (Special application provisions for pt 3) Section 8(1), ‘45(2)(c) and (7)’— omit, insert — ‘45(7) and (9)(e)’. 7 Amendment of s 14 (Relationship of this standard with other documents) (1) Section 14(2) ‘or statutory body’— omit, insert— ‘, former accountable officer, statutory body or administering department’. (2) Section 14(2), ‘or body’— omit, insert— ‘, body or department’. (3) Section 14(2), after ‘agency’s’— insert— ‘or abolished agency’s’. 8 Amendment of s 42 (Action to be taken when losses are identified Section 42(2)(b), ‘Criminal Justice Commission’— omit, insert — ‘Crime and Misconduct Commission’. 9 Amendment of s 45 (Elements of systems for asset management) (1) Section 45(2)(c)— omit. (2) Section 45(2)(d)— renumber as section 45(2)(c).

s 10 5 s 10 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 (3) Section 45(3)— omit. (4) Section 45(8) and (9)— omit, insert — ‘(8) In identifying, acquiring, maintaining, disposing of, valuing or revaluing, recording or writing-off an agency’s assets, the accountable officer or statutory body must comply with the document called ‘Non-Current asset policies for the Queensland public sector’. Editor’s note — See schedule 1 for information about this document. ‘(9) For material assets that are valued at fair value, the accountable officer or statutory body must— (a) comprehensively revalue the assets at least once every 5 years; and (b) otherwise revalue the assets at least annually between comprehensive revaluations.’. (5) Section 45(12), definitions major plant and equipment and not-for-profit agency — omit . (6) Section 45(4) to (12), as amended— renumber as section 45(3) to (11). 10 Amendment of s 94 (Purpose) (1) Section 94(a), from ‘and annual’— omit, insert — ‘, final reports, annual financial statements and final financial statements; and’. (2) Section 94(b), after ‘statements’— omit, insert — ‘and final financial statements’.

s 11 6 s 12 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 11 Amendment of pt 6, div 2 hdg (Annual reporting) Part 6, division 2, heading, after ‘Annual’— insert — ‘ and final ’. 12 Insertion of new s 95A After section 95— insert— ‘95A Content of final report ‘(1) The following information about an abolished agency must be included in the agency’s final report— (a) the constitution, goals and functions of the agency, including, for example— (i) the Act under which the agency was established and, if the agency was a statutory body, the Act under which it was abolished; and (ii) the dates the agency was established and abolished; and (iii) the agency’s statutory objectives, functions and powers; and (iv) the agency’s goals and outputs identified in its strategic plan; (b) the location of the agency’s principal place of business and regional offices immediately before the abolition of the agency; (c) the agency’s structure, including, for example— (i) a summary of the agency’s organisational structure; and (ii) for an abolished statutory body—the names, appointment criteria in terms of statutory requirements and basis or term of appointment of members of the body; and

s 12 7 s 12 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 (iii) for a controlled, associated or trustee body of the agency— (A) the authority for the body’s establishment; and (B) the way the body was to be audited for the Act; and (C) the status of the body after the agency’s abolition day; (d) a review of the progress in achieving the agency’s statutory obligations; (e) information about overseas travel undertaken by the agency’s officers and, for an abolished statutory body, members of the body, including, for example— (i) the names of, and the offices or positions held by, the officers or members; and (ii) the destination, purpose and cost of the travel; (f) information about the agency’s expenditure on each category of consultancies, including a description of the category; (g) information about the agency’s operations, including, for example— (i) an outline of the nature and range of the agency’s operations and a summary of significant operations; and (ii) changes in the law, the economic climate or other factors that affected the agency; and (iii) human resourcing issues, including, for example, an organisation chart, staffing policies and establishment, management development, industrial relations and safety; and (iv) matters of interest to special interest groups served or regulated by the agency; and (v) for an abolished statutory body—the number of meetings of the body;

s 12 8 s 12 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 (h) a review of the agency’s progress towards achieving its goals and delivering its outputs for the final period, including details about the agency’s performance in relation to its goals and outputs measured using the performance measures in the agency’s strategic plan; (i) information about how efficiently and effectively the agency has carried out its operations, including a review of the agency’s progress in benchmarking and achieving best practice and cost-effectiveness in carrying out its operations; (j) a summary of the agency’s systems for obtaining information about financial and operational performance; (k) details about the name, membership and activities of any committees established for the agency’s risk management, including, for example, the agency’s audit committee and risk management committee; (l) details of the public availability of the final report. ‘(2) However, the final report of a government owned corporation need not include the information required under subsection (1)(a)(iii), (d), (e), (f), and (h). ‘(3) If a former appropriate Minister approves the preparation, by a former accountable officer or administering department, of a short form final report, the report must include— (a) an abridged version of the information required under subsection (1) and section 96; and (b) the information required by AASB 1039, ‘Concise Financial Reports’ as far as it is relevant; and (c) a copy of the audit report; and (d) a statement that the short form final report, including the relevant financial information, has been derived from the final report and the final financial statements; and (e) a statement that the final report is available, on request, from— (i) for an abolished department—the former appropriate minister; or

s 13 9 s 14 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 (ii) for an abolished statutory body—the administering department.’. 13 Amendment of s 96 (Additional requirements for other entities in annual report of agency) (1) Section 96, heading— omit, insert — ‘96 Additional requirements for other entities in annual or final report’. (2) Section 96(1), after ‘annual’— insert — ‘or final’. (3) Section 96(1)(b)(ii) ‘receive’— omit, insert— ‘received’. (4) Section 96(2), from ‘must also’ to ‘together’— omit, insert— ‘or an abolished department’s final report must also include a schedule of statutory authorities or instrumentalities that were part of the department during the financial year or final period to which the report relates, together’. (5) Section 96(2)(a) ‘are’— omit, insert— ‘were’. 14 Amendment of pt 6, div 3 hdg (Annual financial statements) Part 6, division 3, heading, after ‘Annual’— insert — ‘ and final ’.

s 15 10 s 15 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 15 Insertion of new s 97A After section 97— insert— ‘97A Requirements for final financial statements of abolished departments ‘(1) The former accountable officer, for an abolished department, must prepare the abolished department’s final financial statements under— (a) the prescribed accounting standards stated in schedule 4 to the extent the standards applied to the abolished department; and (b) the minimum reporting requirements mentioned in the document called ‘Financial reporting requirements for Queensland government agencies effective for reporting periods beginning on or after 1 January 2005’. Editor’s note — See schedule 1 for information about this document. ‘(2) If there was a departmental reporting entity within the abolished department, the former accountable officer must prepare final financial statements for the entity under the prescribed accounting standards stated in schedule 4, to the extent the standards applied to the entity. ‘(3) A departmental reporting entity’s final financial statements must be consolidated with the abolished department’s final financial statements for the department’s final report. ‘(4) The former accountable officer must ensure the final financial statements are included in the abolished department’s final report. ‘(5) In this section— final financial statements , for a departmental reporting entity within an abolished department, means the financial statements for the entity for the final period for the abolished department.’.

11 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 16 Insertion of new 98AA After section 98— insert— ‘98AA Requirements for final financial statements of abolished statutory bodies ‘(1) The administering department for an abolished statutory body must prepare the final financial statements of the body under the prescribed accounting standards stated in schedule 4, to the extent the standards apply to the body. ‘(2) Also, for preparing the final financial statements, the administering department must have regard to the minimum reporting requirements mentioned in the document called ‘Financial reporting requirements for Queensland government agencies effective for reporting periods beginning on or after 1 January 2005’. Editor’s note — See schedule 1 for information about this document. ‘(3) The final financial statements must include details of the total remuneration paid to each member of the abolished statutory body. ‘(4) In this section— remuneration includes— (a) salary, fees and commissions; and (b) contributions to members’ superannuation and other benefits received by members.’. 17 Amendment of s 98A (Other requirements for annual financial statements of agencies) (1) Section 98A, heading, after ‘annual’— insert — ‘ and final ’.

s 18 12 s 19 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 (2) Section 98A, after ‘agency’s’— insert— ‘ annual or final’. 18 Amendment of sch 2 (System of information management) Schedule 2, item 4, first dot point, ‘journals, abstracts’— omit insert— ‘journals’. 19 Amendment of sch 4 (Prescribed accounting standards for a financial year starting on or after 1 January 2005) (1) Schedule 4, part 2, entries for AASB 1046, AASB 1046A, AASB 2004-2, AASB 2005-1, AASB 2005-2 and AASB 2005-3— omit . (2) Schedule 4, part 2— insert — ‘AASB 7 Financial Instruments: Disclosures’. (3) Schedule 4, part 2, entry for AASB 132, ‘Disclosure and’— omit. (4) Schedule 4, part 3, entry for Interpretation 3— omit. (5) Schedule 4, part 3— insert— ‘Interpretation 4 Interpretation 5 Determining whether an Arrangement contains a Lease Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds

s 20 13 s 20 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 Interpretation 6 Liabilities arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment Interpretation 7 Applying the Restatement Approach under AASB 129 Financial Reporting in Hyperinflationary Economies Interpretation 8 Scope of AASB 2 Interpretation 9 Reassessment of Embedded Derivatives Interpretation 1001 Consolidated Financial Reports in relation to Pre-Date-of-Transition Dual Listed Company Arrangements Interpretation 1002 Post-Date-of-Transition Stapling Arrangements Interpretation 1052 Tax Consolidation Accounting’. 20 Amendment of sch 6 (Dictionary) (1) Schedule 6, definition agency — omit, insert — ‘ agency — (a) in relation to— (i) an accountable officer—means the department for which the officer is the accountable officer; or (ii) a statutory body—means the body; or (b) otherwise—means a department or statutory body.’. (2) Schedule 6, definition audit report , ‘or 46G’— omit, insert — ‘, 46G, 105M or 105O’.

14 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 Schedule Amendment of commentaries section 3 1 Commentary after section 84, item 4(b)— omit, insert — ‘ (b) The Queensland Plan for the Protection of Government Assets from Terrorism published by the Department of the Premier and Cabinet and available for Queensland government agencies only on < ’. 2 Commentary after section 96, heading, ‘Annual reporting’— omit, insert — ‘ Annual and final reporting ’. 3 Commentary after section 96, item 1— omit, insert — ‘ 1 An agency’s annual report or an abolished agency’s final report is a mechanism to enable the accountable officer, former accountable officer, statutory body or administering department to discharge the officer’s, body’s or department’s duties. The detail included in an annual or final report is, to some extent, influenced by the social and economic significance of the agency, its size and whether or not the agency is, or the abolished agency was, a subordinate unit within a group of departments or statutory bodies. However, a comprehensive report would be expected from a more significant agency. ’ . 4 Commentary after section 96, item 2, after ‘annual report’— insert — ‘ or in the final financial statements section of a final report ’ .

15 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 Schedule (continued) 5 Commentary after section 96, item 2, ‘section 39(4)(d)’— omit, insert — ‘ sections 39(4)(d) and 105L(3)(b) ’. 6 Commentary after section 96, item 3, after ‘annual reports’— insert — ‘ and final reports ’. 7 Commentary after section 98A, heading, ‘Annual financial statements’— omit, insert — ‘ Annual or final financial statements ’. 8 Commentary after section 98A, item 1, ‘annual financial statements’— omit, insert — ‘ annual or final financial statements ’ . 9 Commentary after section 98A, item 3, from ‘accountable’ to ‘bodies’— omit, insert — ‘ accountable officers, former accountable officers, statutory bodies and administering departments ’. 10 Commentary after section 98A, item 5— omit, insert — ‘ 5 An agency should have in place quality control systems to ensure publication of complete and accurate copies of the annual or final financial statements, as certified by the auditor-general.

16 Financial Management Amendment Standard (No. 1) No. 253, 2006 2006 Schedule (continued) ‘ 6 The signature of the auditor-general or a delegate of the auditor-general may be included in electronic copies of annual or final financial statements. ‘ 7 If audited annual or final financial statements are published on the Internet, a disclaimer provided by the auditor-general must be included. The disclaimer should state— (a) that the statements published on the Internet are not to be used as an official copy; and (b) where a hard copy of the annual report or final report containing the statements can be obtained. ’. ENDNOTES 1. Made by the Deputy Premier, Treasurer and Minister for Infrastructure on 8 October 2006. 2. Notified in the gazette on 13 October 2006. 3. Laid before the Legislative Assembly on . . . 4. The administering agency is the Treasury Department. © State of Queensland 2006