Business Enterprise Centres Small Business Advisory Services Program docx

SBAS Program 1 of 12 Annual Financial Audit Report July 2010 Business Enterprise Centres Small Business Advisory Services Program Annual Financial Audit Report Organisation Name: Reference Number BEC-0………. Financial Year Dates <dd/mm/yyyy> to <dd/mm/yyyy> Period of Funding: 01 May yyyy to 30 April yyyy> Due by: <dd/mm/yyyy> Date received: / /2010 This is trial version www.adultpdf.com SBAS Program 8 of 12 Annual Financial Audit Report Version 1.2 November 2010 Reporting Obligations The Agreement between your organisation (the Centre) and the Commonwealth outlines your reporting obligations, including the Annual Financial Report and Audit Report. Under this Agreement, the Centre must (among other things) provide the Department with an annual financial report (prepared by the Centre); an independent audit report on the annual financial report (prepared by the auditor); and a Certification by the Auditor of certain matters (prepared by the auditor). Excerpt from the Funding Agreement Schedule 4 –REPORTS AND PUBLICITY Audit Report 4.1 The Centre must, within sixty (60) days of the completion of each financial year or Project End Date, or on the earlier termination of the Agreement, provide the Commonwealth with a report prepared by an Approved Auditor (in accordance with Australian Accounting Standards) which contains: (a) an audited detailed statement of receipts and expenditure in respect of the Funding, which must include an unqualified statement as to whether the financial accounts are complete and accurate, and a statement of the balance of the Centre's account referred to in clause 2.4; (b) an unqualified and audited statement to the effect that the Funding was only expended for the purpose of conducting the Project and in accordance with the Agreement; (c) a certificate, provided by the Executive Officer that: (i) all Funding received was expended for the purpose of the Project and in accordance with the Agreement; and (ii) salaries and allowances paid to persons involved in the Project are in accordance with any applicable award or agreement in force under any relevant law on industrial or workplace relations. 4.2 This audit report must be prepared according to the Australian Auditing Standards, and must be carried out by an Approved Auditor. 4.3 The certificate referred to in item 4.1(c) of this Schedule 4 must be provided by the Executive Officer. General Information This annual audit report should reflect the period of funding i.e. 01 May to 31 October and 01 November to 30 April. Not funding in a financial year as previously requested. The report is due in 60 days after the end of the Financial year. When completing the template please add spaces/lines as required. Please insert relevant period dates as required. When you and your auditor have completed the reports and signed the declarations please post the original reports to your Customer Service Manager. This is trial version www.adultpdf.com SBAS Program 8 of 12 Annual Financial Audit Report Version 1.2 November 2010 Centre must complete You as Grantee are required to complete the receipts and expenditure statement table(s). The Notes to the financial statements are integral to the statements and you need to enter your organisation name in the appropriate place. Certification. This needs to be signed by an official who is able to bind your organisation as stated in the Funding Agreement in Schedule 4 clause 4.1 (c). All three of the above components of your financial statements are needed by your auditor when they provide an audit report and certify your financial statements. Auditor must complete In addition to the above three components, at the end of the financial year you will need to also send to your auditor the templates for the Independent auditor report, and the Certification of certain matters. Your auditor is to complete and return them to you for on-forwarding to your AusIndustry Customer Service Manager. Note that the auditor is required to Certify to AusIndustry, NOT to your organisation. In terms of completing the table(s), please report at the level stipulated in the budget at Schedule 2 of the contract. For example, if the budget is broken down to 5 or 6 headings or subtotals such as Salaries and Running costs, Administration etc, then it is only necessary to report to that level. If there are individual elements of those lines that you wish to draw our attention to, please note them. Need Help? If you have any questions about completing this report, please contact your Customer Service Manager or send an email to sbas@industry.gov.au. Emma Hirst 02 6213 7024 emma.hirst@innovation.gov.au Alison Mornement 02 6276 1554 alison.mornement@innovation.gov.au Vanessa Jakobasic 02 6276 1055 vanessa.jakobasic@innovation.gov.au Christine McCabe 02 6276 1844 chris.mccabe@innovation.gov.au Margot Collignon 02 6213 7465 margot.collignon@innovation.gov.au This is trial version www.adultpdf.com SBAS Program 8 of 12 Annual Financial Audit Report Version 1.2 November 2010 AUDITED DETAILED STATEMENT OF RECEIPTS AND EXPENDITURE [CENTRE Name] For the period 01 May yyyy to 30 April yyyy Description Budget $ (Ex GST) Actual $ (Ex GST) INCOME Funding income Period No: Period No: Interest earned Total Income EXPENDITURE Period No: Salary & on costs Legal/Accounting Infrastructure Administration Marketing & promotion Consultants Training Other ( insert category name) Total Expenditure Net surplus / deficit for the Period EXPENDITURE Period No: Salary & on costs Legal/Accounting Infrastructure Administration Marketing & promotion Consultants Training Other ( insert category name) Total Expenditure Net surplus / deficit for the Period Total Income Total Expenditure Total Income – Total Expenditure = This is trial version www.adultpdf.com SBAS Program 8 of 12 Annual Financial Audit Report Version 1.2 November 2010 Net surplus / deficit for the funding period. This is trial version www.adultpdf.com SBAS Program 8 of 12 Annual Financial Audit Report Version 1.2 November 2010 NOTES TO THE STATEMENT OF PROJECT INCOME AND EXPENDITURE For the period 01 May yyyy to 30 April yyyy [CENTRE Name] Note 1. Basis of compilation This annual financial report has been prepared to meet the requirements of the Business Enterprise Centre funding agreement (the Agreement) between [CENTRE Name] and the Commonwealth of Australia. Significant accounting policies applied in the compilation of the report include: (a) Income Income as reported in the statement of project income and expenditure has been determined as follows: • Funding income represents the total funding under the agreement and received by [CENTRE name] during the reporting period; • Prior year project surplus / deficit represents the net project surplus / deficit approved to be applied to / set off against this financial years approved project funding • Interest represents interest earned on funding provided under the agreement (b) Expenditure The expenditure as reported in the statement of project income and expenditure has been determined on an accruals basis*, and has been determined in accordance with the agreement, and is expenditure incurred by the Centre, in the course of undertaking activities described in the Agreement, as agreed by the Centre and approved by the Commonwealth. Expenditure is • Necessarily incurred for the purposes for which the grant was provided and incurred on achieving the approved project activities; • Incurred during the reporting period; and • Consistent with the budget approved in the agreement; • Excludes expenditure on those activities specifically identified as ineligible activities or items under the agreement. *If your organisation operates on a cash basis, please note that and complete the report accordingly Please copy the next page onto your letterhead This is trial version www.adultpdf.com [Centre Letterhead] CERTIFICATION For the period 01 May yyyy to 30 April yyyy We hereby certify that the annual financial report of [CENTRE Name] is in accordance with Business Enterprise Centre Funding Agreement. In particular, the annual financial report (i) gives a true and fair view of [CENTRE Name]'s project income and expenditure in accordance with the accounting policies described at Note 1; and (ii) gives a true and fair view of the budget approved by the Department as at the date of the annual financial report. (iii) all Funding received was expended for the purpose of the Project and in accordance with the Agreement; and (iv) salaries and allowances paid to persons involved in the Project are in accordance with any applicable award or agreement in force under any relevant law on industrial or workplace relations. Signature: Name: Position: Date: This is trial version www.adultpdf.com SBAS Program 8 of 12 Annual Financial Audit Report Version 1.2 November 2010 INDEPENDENT AUDIT REPORT The purpose of the independent audit report is to provide the Department with an auditor's opinion on the annual financial report. The annual financial report is prepared by the Centre to correspond with the project income and expenditure reported to the Department by the Centre for the same period. The independent audit report must be prepared by a person who • is not a director, other office holder, or employee of the Centre or a related body corporate of the Centre; • has not previously been engaged by the Centre for the purpose of preparing their funding application or any report (other than an audit report) required under the grant agreement; • has no financial interest in the Centre; and • is a member of: the Institute of Chartered Accountants in Australia; or the Society of Certified Practising Accountants; or the National Institute of Accountants as a Public Practice Certified Member. Companies required by s.10 of Corporations Act 2001 (Cth) to prepare an audited annual financial report are encouraged to use the same auditor to audit and report on project income and expenditure. The audit should be undertaken and reported in accordance with Australian Auditing Standards. The dates by which independent audit reports are required are specified in the particular conditions of the agreement. The independent audit report must follow the required format and include any qualification regarding the matters on which the auditor provides an opinion. Departmental staff will ordinarily follow up any qualifications with the Centre or auditor. The independent audit report must be submitted on the auditor's letterhead. Auditors must comply with the professional requirements of the Institute of Chartered Accountants in Australia and the Australian Society of Certified Practising Accountants in the conduct of their audit. If the auditor forms an opinion that the annual financial report does not give a true and fair view of the project income and expenditure for the period, the independent audit report should be qualified and the error quantified in the qualification section of the independent audit report. The required independent audit report format follows. The next two pages MUST be completed and printed on the auditor's letterhead. . This is trial version www.adultpdf.com [Auditor letterhead] Independent audit report to the Department of Innovation, Industry, Science and Research (the Department) Business Enterprise Centre Initiative Unqualified Statement Scope We have audited the attached annual financial report, being a special purpose financial report, of [CENTRE Name] for the [period] as set out on pages [X] to [Y]. [CENTRE Name]'s Chairperson/CEO is responsible for the financial report and have determined that the accounting policies used and described in Note 1 to the financial statements which form part of the financial report are appropriate to meet the requirements of the Business Enterprise Centre Funding Agreement and are appropriate to meet the needs of the Department. We have conducted an independent audit of the annual financial report in order to express an opinion on it to the Department. No opinion is expressed as to whether the accounting policies used, and described in Note 1, are appropriate to the needs of the Department. The annual financial report has been prepared for distribution to the Department for the purpose of fulfilling the directors’ financial reporting requirements under the Business Enterprise Centre Funding Agreement. We disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the Department, or for any purpose other than that for which it was prepared. Our audit has been conducted in accordance with Australian Auditing Standards. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial report and the evaluation of significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial report is presented fairly in accordance with the accounting policies described in Note 1, so as to present a view which is consistent with our understanding of [CENTRE Name] project income and expenditure under the Business Enterprise Centre Funding Agreement. (These policies do not require the application of all Accounting Standards and other mandatory professional reporting requirements in Australia). The audit opinion expressed in this report has been formed on the above basis. Qualification <If required – must quantify error if one exists> Audit Overview In order to achieve the audit objective the following steps were undertaken: • (Insert audit methodology steps in dot point format) • • • • • • The table below highlights expenditure provided in the DETAILED STATEMENT OF RECEIPTS AND EXPENDITURE, and the level of testing undertaken by the auditor. Category Actual Expenditure ($) Total Expenditure Tested ($) Audit Coverage % This is trial version www.adultpdf.com (Insert period) Salary & On-cost Vehicle & Travel Infrastructure Marketing & Promotion Administration Other Expenditure Total Audit Opinion In our opinion, the financial report of [CENTRE Name] is in accordance with the Business Enterprise Centre Funding Agreement. including: (i) giving a true and fair view of [CENTRE Name] project income and expenditure in accordance with the accounting policies described in Note 1; (ii) giving a true and fair view of the budget approved by the Department as at the date of this report; and (iii) complying with Australian Accounting Standards to the extent described in Note 1. Signature: Name: Qualifications: Position: Date: This is trial version www.adultpdf.com [...]... This is trial version www.adultpdf.com [Auditor letterhead] Department of Innovation, Industry and Research Small Business Advisory Services Program GPO Box 9839 CANBERRA ACT 2601 I understand that the Commonwealth of Australia and [CENTRE Name] have entered into an agreement under the Business Enterprise Centre initiative A condition of funding under the Agreement is that the Centre provides an annual . SBAS Program 1 of 12 Annual Financial Audit Report July 2010 Business Enterprise Centres Small Business Advisory Services Program Annual Financial Audit. Small Business Advisory Services Program GPO Box 9839 CANBERRA ACT 2601 I understand that the Commonwealth of Australia and [CENTRE Name] have entered into an agreement under the Business. compilation This annual financial report has been prepared to meet the requirements of the Business Enterprise Centre funding agreement (the Agreement) between [CENTRE Name] and the Commonwealth