6.3 FARs Forms
Organisation certification
This is mandatory for all organisations. Organisations must have their FAR certified by one of the following:
- principal accounting officer, or treasurer, or equivalent
- chief executive officer
- president
- chairperson
- director.
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.
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 Co-Operatives 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)
The FIS is mandatory for all companies and other organisations that are required to produce audited annual financial statements. The FIS provides information on an organisation’s total financial position for the financial year and is completed on an accrual basis in accordance with relevant Australian Accounting Standards.
The CIS is mandatory for all organisations that have no requirement to produce audited annual financial statements. It is completed on a cash basis.
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.
(Both the CIS and FIS require information to be declared that is relevant to employee entitlements.)
Interim Financial Indicators Statement (IFIS)
The department, lead region or division will determine the frequency with which an organisation must complete an IFIS (quarterly or six-monthly). The requirements to complete an IFIS may either be incorporated into Schedule 5 prior to signing the service agreement or may be negotiated during the course of the service agreement.
The IFIS must be completed on a cumulative basis, using the start of the reporting period as the starting point for calculation.