This circular applies to all NSW public sector agencies including State Owned Corporations.

Background

The Public Accounts Committee (PAC) Report on Quality & Timeliness of Financial Reporting, October 2010 included a recommendation that annual reports be tabled in Parliament within three months of year-end.

The Government has supported this recommendation and the Early Close Procedures have been introduced to both facilitate earlier completion and improve the quality of year-end financial statements by providing, in part, more timely resolution of emerging accounting issues.

Treasury is continuously developing Early Close Procedures, taking into account feedback from agencies and the Audit Office. These procedures are a step towards introducing a 31st March hard close which Treasury is considering in the near future.

The focus on improving the quality and timeliness of financial reporting is paying dividends. Agency and Audit Office feedback is that the Early Close Procedures have assisted in ensuring a smoother year-end process and more effective resolution of issues. Continued improvements by agencies have reduced the reported number of misstatements and resulted in an unqualified TSSA audit opinion - a significant achievement.

The Auditor-General reported that agency 2013-14 financial statements submitted for audit and used for the whole-of-government reporting, contained 10 monetary misstatements each exceeding $20 million compared to 15 such misstatements in 2012-13 and 30 in 2011-12. Despite this, the focus going forward will remain on reducing misstatements, and the underlying causes.