Procedures

Finance Reporting - Procedures

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1. Purpose and Objectives

The purpose of these procedures is to provide an overview of the external and internal reporting responsibilities of the University.

2. Definitions, Terms, Acronyms

Annual Report - a report made in writing by the University to the State Minister on the operations of the University for a financial year. The report also contains the annual financial statements. The requirement for the University to provide an annual report is contained in the Financial Accountability Act 2009 and the requirements for the contents of the report are contained in the Financial and Performance Management Standard 2009.

BSC - Budget Sub-Committee

Department of Education - Government agency responsible for national policies and programmes that help Australians access quality and affordable childcare; early childhood education, school education, post-school, higher education, international education and academic research.

DIISRTE - Department of Industry, Innovation, Science, Research and Tertiary Education

Management reporting - the process of generating accurate reports on a timely basis to assist management in making decisions.

Management Reporting Framework (MRF) - a standard suite of finance reports that provides financial information across all areas of the University

QAO - Queensland Audit Office

USMG - University Senior Management Group

3. Procedures Scope/Coverage

These procedures relate to finance reports prepared by all organisational units within the University.

4. Procedures Statement

It is University procedure that reports are prepared regularly in line with the University Executive’s reporting requirements by all organisational units.

Section 63 of the Financial Accountability Act 2009 prescribes that statutory bodies must prepare annual reports for their agency in accordance with the requirements set out in the Financial and Performance Management Standard 2009.

Section 50 of the Financial and Performance Management Standard 2009 provides that the annual report of a department or statutory body must include:

  • the annual financial statements, including the management and audit certificates; and
  • the information required by the Annual Report Requirements for Queensland Government Agencies as prepared and released by the Department of the Premier and Cabinet.

When reproducing the financial statements in the annual report, they must be exactly the same as those audited and certified by the Auditor-General (or delegate). No changes, however minor, are permitted.

Preparation of agency annual reports requires detailed planning in order to meet tabling deadlines and comply with mandated reporting obligations.

5. External Financial Reporting

5.1 Financial reporting requirements

  • Statement of Profit or Loss and Other Comprehensive Income;
  • Statement of Financial Position (Balance Sheet);
  • Statement of Cashflows; and
  • Notes to the Financial Reports.

The annual report also includes commentary on the economic factors, investment performance and specific financial disclosures required under State legislation (e.g. advertising expenditure). Accounting and Reporting Section within FBS also provides financial information for the Performance Indicators and any other information as directed by the Minister.

The draft financial statements and performance indicators are forwarded to the Auditor-General for audit purposes. The Auditor-General is required to issue an opinion within two (2) months of the end of the financial year to which the statements relate.

In addition to the annual report, the following are also required:

  1. Provision of extracted financial information to the Department of Education through spreadsheets based on the annual financial statements. These spreadsheets are sent with copies of the audited Annual Report by no later than 30 June of the year following year-end.
  2. Quarterly statistical reporting to the Australian Bureau of Statistics. Information relating to income, expenditure and capital acquisitions and disposals are required to be submitted within two weeks of each quarter end.

5.2 Responsibilities and format

Accounting and Reporting Section within FBS is responsible for producing the annual financial statements in a format consistent with the requirements of:

  • Financial Accountability Act 2009 and Treasurer Instructions;
  • Financial Management Performance Standard 2009;
  • The University of Queensland Act 1998;
  • the Higher Education Support Act, 2003 and issued Guidelines;
  • Australian Accounting Standards;
  • Financial Statement Guidelines for Australian Higher Education Providers as issued annually by DIISRTE.

These statements are based on the data recorded in the financial information management system and any other information which is made known. It is the responsibility of all University staff with financial management responsibilities to provide requested information to support the financial statement preparation, as well as advising the Accounting and Reporting Section within FBS of any changes to activities or financial management

5.3 Year-end close procedures

Year-end processing and reconciliation procedures are required to ensure the financial information is a true and fair reflection of the financial results and financial position at the end of the financial year. The year-end requirements are timetabled and published by the Accounting and Reporting Section within FBS. It is imperative that all financial transactions and reconciliations are completed in accordance with the timetable and prior to the closure of the records for the financial year. All University staff responsible for financial administration are to ensure compliance with the relevant timetable dates and processing requirements relevant to their activities.

6. Management Reporting

6.1 Reports

The University has implemented a standard suite of management reports, the Management Reporting Framework (MRF). The MRF allows reports to be presented in a consistent format across different layers of the organisation.

The MRF is a template and will populate with data based on a user’s level of access. The standard template is available on the UQ Reportal website. It is available to run reports directly or to download to make local area modifications.

Any changes to the format or layout of the MRF can only be requested to the Associate Director, Financial Planning and Analysis Section, FBS Division.

6.2 Timeliness of data

The finance data is available in management reports, which are accessed via the UQ Reportal, the next day after the UniFi finance system has been updated. While the data is available on a daily basis, due to the different data sets (actual, forecast and budget) and time periods (prior year, current year and future year) captured in the reports, it is recommended that the reports are run on month end data. Due to the finalisation of month end processes the finalised month end data will be available in the UQ Reportal on the third business day of the month.

6.3 Formal reporting

The current process is that units must report at a Faculty (or equivalent) level on a quarterly basis for the current year. The financial data available at these times will then be used to produce the Financial Management Report for presentation to the University Senior Management Group (USMG).

Faculties, Institutes and Central Units (at a faculty equivalent level) are required to meet with the Provost and Chief Financial Officer (CFO) on a quarterly basis. The format of reports for these meetings will be advised by the Associate Director, Financial Planning and Analysis Section, FBS Division.

While these are the formal requirements for UQ Management Reporting, it is expected that units will run and review reports on a monthly basis.

For more detailed information on budgeting and forecasting refer to PPL 9.10.02 Budgeting and Forecasting.

7. Grants - External Reporting

The Contract and Grants Accounting Section within FBS is responsible for the preparation of all certified financial statements in accordance with the conditions specified for all externally granted projects.

Financial statements are based on the general ledger for the project and report the income and expenditure according to Australian Accounting Standards. Grant projects are reviewed annually as part of a risk based audit conducted by QAO under the supervision of the Auditor-General.

For more detailed information refer to:

Custodians
Chief Financial Officer
Mr Andrew Betts
Custodians
Chief Financial Officer
Mr Andrew Betts