4.5.3 FAR forms
Organisation certification
Organisation certification is mandatory for all organisations. Organisations must have their certification signed by one of the following:
- treasurer or equivalent
- chief executive officer
- president
- chairperson
- director
- principal
Independent Auditor's Statement (IAS)
The IAS is mandatory for all organisations that are required to produce audited annual financial statements. The Auditor's Statement covers the annual Financial Indicators Statement (FIS). Where the organisations annual report contains an audited annual financial statement, this may be provided in lieu if the IAS and FIS.
Public bodies (as defined under the Audit Act) that are required to report to either the State or Commonwealth are not required to obtain an auditor's opinion on the annual Financial Indicators Statement. This exclusion applies principally to local government authorities and government owned tertiary institutions. If the department has assessed that the organisation should provide audited statements, it will provide the organisation with the department's Approved Auditor's Statement.
The Approved Auditor's Statement must be completed and returned to the department, along with the relevant financial statements and organisation certification.
Auditor accreditation
Organisations that are incorporated under the Cooperatives Act or Corporations Law must be audited by a registered company auditor. Organisations that are incorporated under specific State or Commonwealth legislation must be audited in accordance with any specified audit requirements within that legislation.
A qualified member of the Australian Society of Certified Practising Accountants, the Institute of Chartered Accountants or the National Institute of Accountants must audit organisations that are registered under the Associations Incorporation Act or any State or Commonwealth legislation that does not specify auditing requirements. Annual Financial and Cash Indicators Statements (FIS and CIS).
Annual financial or cash indicators statement (FIS or CIS)
The annual Financial Indicators Statement (FIS) is mandatory for all organisations that are required to produce audited annual financial statements. The FIS provides information on an organisation's total financial position for the reporting year and is completed on an accrual basis in accordance with relevant Australian Accounting Standards. Where the organisations annual report contains an audited annual financial statement, this may be provided in lieu if the independent auditor's statement and FIS.
The Cash Indicators Statenment (CIS) is mandatory for all organisations that have no requirement to produce audited annual financial statements. The CIS is completed on a cash basis. Where the organisations annual report contains an annual financial statement, this may be provided in lieu if the CIS.
Recording provisions for long service leave and sick leave
Provisions for long service leave and sick leave represent the current level of unpaid employee entitlements. It is anticipated that these amounts will be paid to employees at some future date, when the entitlements are due.
It is strongly recommended that smaller organisations maintain separate bank accounts for long service leave and sick leave provisions. This allows organisations to meet the costs of these employee entitlements as they fall due.
Declaration of relevant employee entitlements are required for both CIS and FIS.