Annual reporting requirements for NSW Agencies could change this financial year (2022-23) with NSW Treasury calling for feedback on proposed reforms.
Releasing its Annual Reporting Reform 2022 discussion paper, Treasury said there was an opportunity to review and reform the annual reporting requirements for Agencies to ensure they meet the needs of the users of annual reports, aligned with the principles-based framework of the Government Sector Finance Act 2018 (NSW) (GSF Act), and reflected best practice.
“As part of the staged implementation of the GSF Act, annual reporting requirements in the GSF Act will replace those in the current Annual Reporting Acts from 1 July 2023,” Treasury said.
“This means that from the financial year 2022-23 onwards, Agencies will prepare annual reports under the GSF Act,” it said.
“Transitioning from the Annual Reporting Acts to the GSF Act provides an opportunity to review and reform the format and content of Agency annual reports.”
Treasury said it was proposing a principles-based approach to annual reporting, consisting of five principles to support excellence in annual reporting and eight high-level content headings to ensure a consistent and comprehensive approach to annual reporting
It said a principles-based annual reporting framework would provide Agencies with the flexibility to adopt new requirements and report based on an assessment of materiality.
NSW Treasury said the new approach would ensure a more comprehensive and consistent accountability across the Performance and Financial Management lifecycle by all Agencies, and empower Agencies to improve reporting by identifying their key accountabilities.
Treasury said the proposal would also provide flexibility to incorporate new frameworks and standards, especially on evolving areas like climate risks reporting.
“It should be noted that a principles-based approach does not mean the removal of all prescribed requirements,” it said.
“Some content will continue to be prescribed in some detail to reflect other legislative requirements, applicable standards and stakeholder expectations.”
However, Treasury said the extent of prescription would be reviewed in consultation with content-owners as part of the reform program.
Treasury’s 39-page Discussion Paper can be accessed at this PS News link with written submissions welcome until 17 July.
