The framework for financial and annual reporting (the framework) provides a comprehensive approach to financial and annual reporting for Government Sector Finance (GSF) agencies. This framework introduces a differential reporting model, setting criteria to enable agencies to selfassess into one of three groups (see TPG25-10 for the criteria).

Group 2 agencies are required to prepare annual reporting information in the form of an annual information statement (AIS). Group 2 agencies are those that do not meet the criteria to be in group 1 or in group 3. Group 2 agencies are required to prepare financial statements and have them audited, but are not considered large enough to require them to produce a full annual report.

The AIS is designed to streamline the reporting process for these agencies, ensuring that the reporting effort is proportionate to the size and nature of the agency while maintaining transparency and accountability. The requirement for group 2 agencies to produce an AIS recognises that a set of financial statements, on their own, only provide limited information about an agency, its responsibilities and activities. An AIS provides stakeholders with additional brief information to accompany the financial statements, to enhance transparency and accountability, without creating the undue burden of producing a full annual report.