4.5.2 Financial accountability requirements
Funded organisations are required to report their financial position to the Department of Human Services (DHS), Department of Health (DH) and/or Department of Education and Early Childhood Development (DEECD) each year. This assists the funding department to ensure a financially sustainable service system. This financial reporting is commonly known as financial accountability requirements or FAR. Organisations funded by multiple departments (DHS, DH or DEECD) are required to complete one FAR which will be used by the relevant departments.
Until June 2009, organisations have been required to use the departments standard financial reporting forms for FAR reporting. To reduce the administrative burden placed on organisations, financial reporting to the department(s) has been streamlined.
Annual FAR requirements
Organisations must provide the following:
• Certification: A certification signed by an authorised officer from the organisation; and
• Annual Report: A copy of the organisations annual report containing financial statements.
An annual report is not required from Local Government, Government schools, Universities, TAFE and Non-Incorporated Consortia. These organisations need only provide a certification.
Where an organisation does not produce an Annual Report with financial statements, or if the organisation chooses to do so, the departments standard financial reporting forms can continue to be submitted instead of the Annual Report. See the standard financial reporting forms sub section below for more information.
Annual FAR due dates
Annual FAR reports must be submitted to the department within three months of the end the organisation's financial operating period. For example, an organisation operating on a financial year (1 July to 30 June) must submit the FAR by 1 October. An organisation operating on a calendar year (1 January to 31 December) must submit the FAR by 1 April.
Where circumstances warrant, the due date for the FAR can be extended. Contact the department if your organisation cannot submit the FAR by the required date.
Where the department has reasonable concerns about an organisation's financial position, the department can require more frequent FARs. The department will discuss any concerns it has with the organisation and advise in writing of any additional reporting requirements.
Financial reporting standards
Organisations are required to comply with the Australian Equivalents to International Financial Reporting Standards (AIFRS) which came into effect from the commencement of 2005.Information about the AIFRS can be found on the Australian Accounting Standards Board's website at http://www.aasb.com.au/Home.aspx (external link).
Standard financial reporting forms
Where an organisation does not produce an annual report containing financial statements or if the organisation chooses to do so, the departments standard financial reporting forms can be used to fulfil FAR reporting obligations.
The financial reporting forms required are based on the organisations legal status. The forms specific to an organisation should be downloaded via secure logon to the Funded Agency Channel website (http://fac.dhs.vic.gov.au/)
Samples of the departments financial reporting forms are provided below:
- Certification
- Financial Indicators Statement (FIS) or Cash Indicators Statement (CIS)
- Audit Report (only if required by law to have financial statements audited)
If you are still unsure about your FAR reporting requirements please contact your Program and Service Adviser or Payment Contact.