This presentation was made by Tracey Carroll, Australia, at the 19th OECD Senior Financial Management and Reporting Officials Symposium held at the OECD Conference Centre, Paris, on 4-5 March 2019

1. 1
Consolidating Public Accounts
in Australia
Challenges & Success Factors
TRACEY CARROLL
First Assistant Secretary
Australian Government Department of Finance

2. 2
CONTENTS
ADOPTION
CHALLENGES & SUCCESSES
QUESTIONS
CONSOLIDATED REPORTING IN 2019

3. 3
ADOPTION
DRIVERS &
ENVIRONMENTAL
CONTEXT
•1996 National Commission of Audit
• Australian Parliament’s Joint Committee of Public Accounts 1995 Report: ‘Financial Reporting for the Commonwealth:
Towards Greater Transparency and Accountability’
BENEFITS
ANTICIPATED
• Improved understanding of the long term financial effects of government decisions
• Create a single reference source
• Enable medium to long term trend analysis
• Enable assessments of Government’s performance in their stewardship of resources
• Enhance transparency and strengthen accountability
PROCESS & TIMING
• 1996 - Trial whole of Australian Government financial statements prepared for the National Commission of Audit
• 1998-99 - Consolidated Financial Statements fully audited
• 1999 - Australian Government implemented accrual budgeting

4. 4
1. BUDGET
ESTIMATES
2. ANNUAL
ACTUALS
3. MONTHLY
FINANCIAL
STATEMENTS
CONSOLIDATED REPORTING IN 2019
Budget Update
Mid-Year Economic and Fiscal Outlook (MYEFO) Update
Final Budget Outcome (FBO)
Consolidated Financial Statements (CFS)

5. 5
CHALLENGES & SUCCESSES:
Two accrual based standards
o ABS GFS
o AAS
Harmonised AASB 1049 Whole of
Government and General Government
Sector Financial Reporting standard resulted
in a single set of financial statements
Uniform Presentation Framework (UPF)
Public Sector Reporting
Requirements
Capability & Capacity
Financial Management
Information System
Timeliness
Continued Focus on Cash

6. 6
CHALLENGES & SUCCESSES:
Public Sector Reporting
Requirements
Capability & Capacity
Financial Management
Information System
Timeliness
Continued Focus on Cash
Insufficient accounting skills within
Government
o Niche skill set
Established long term partnerships with private
sector
Department of Finance supports entities with
training, technical support & publication of
guidance materials

7. 7
CHALLENGES & SUCCESSES:
Public Sector Reporting
Requirements
Capability & Capacity
Financial Management
Information System
Timeliness
Continued Focus on Cash
2017 - Our third customised accrual
financial management information system
went live
Off-the-shelf software was not suitable
Budget process demands a tailored platform

8. 8
CHALLENGES & SUCCESSES:
Public Sector Reporting
Requirements
Capability & Capacity
Financial Management
Information System
Timeliness
Continued Focus on Cash
Given the complexity of the task, timeframes
are always tight
Iterative improvements have been made
over time
Communication, planning and project
management is key

9. 9
CHALLENGES & SUCCESSES:
Public Sector Reporting
Requirements
Capability & Capacity
Financial Management
Information System
Timeliness
Continued Focus on Cash
Cash surplus/deficit remains the key focus
In recent years, there has been an increased focus on balance sheet
measures and accrual aggregates
The benefits anticipated to be achieved by producing consolidated accounts
in Australia have largely been achieved

10. 10
Discussion and Questions