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NATIONAL PUBLIC ENTITIES FINANCIAL STATEMENTS TEMPLATE TRAINING

Join Mr. John Watson, Director AS&R, for a training session on the 2014 Public Entity Consolidation Process, including the AFS Template, submission deadlines, and year-end procedures.

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NATIONAL PUBLIC ENTITIES FINANCIAL STATEMENTS TEMPLATE TRAINING

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  1. NATIONAL PUBLIC ENTITIESFINANCIAL STATEMENTS TEMPLATE TRAINING NATIONAL TREASURY Presenter: Mr. John Watson, Director AS&R | 7 MARCH 2014

  2. Program • 2014 PE Consolidation Process • 2014 AFS Template • Submission Deadlines • GRAP update • Year End Procedures 2013/14 • Accounting Support during 2013/14 audit process

  3. 2014 PE Consolidation Process If we understand the WHY it will help us with the WHO, WHAT, HOW, WHEN and WHERE. • PFMA Section 8 • GRAP 6, 7 & 8 • Auditor-General of South Africa • Transparency

  4. 2014 PE Consolidation Process

  5. 2014 Public Entity Consolidation Process • NT responsible for identifying entities to be included • PFMA listed entities and unlisted entities • Only institutions applying the accrual basis of accounting • Consolidated Financial Statements in terms of GRAP • Financial statements of each entity within the group • combined on a line by line basis • adding like items of assets, liabilities, net assets, revenue and expenses

  6. 2014 Public Entity Consolidation Process BIG changes for 2014 • AFS Template is based on 2013 but updated and enhanced • Inter-entity for current year and prior year • New conversion journals for current year and prior year • New Management sign-off template • New External Audit sign-off template • New requirements for entities with 30 June year end

  7. 2014 Public Entity Consolidation Process • AFS Template is based on 2013 but updated and enhanced • Aligned to published consol annual report for 2013 • Must enable macros or it will not work • Improved verification (red cells) • Includes new worksheets on • Inter-entity • Conversion • Uncorrected misstatements

  8. 2014 Public Entity Consolidation Process 2. Inter-entity for current year and prior year • Why? GRAP requirement (GRAP 6.46) • Not the same as related parties • Includes prior period to have accurate comparatives • Entities should implement system to track transactions • Make use of supplier database / customer database • Share your information with other entities • Tested by external auditors • Different entities list for provinces (arranged with PAGs)

  9. 2014 Public Entity Consolidation Process 3. New conversion journals for current year and prior year • Why? GRAP requirement (GRAP 6.51) • Aligns entity’s normal AFS to Group Accounting Policies • Identify difference in accounting policy > journal entries • Journal per line items in the SCOA • If final AFS figures change > update your journal entries • NT will pass journals on final consolidation • Tested by external auditors

  10. 2014 Public Entity Consolidation Process 4. New Management sign-off template • Why? PFMA requirement – 40(1)(b) / 55(1)(b) • Confirmation of compliance with NT instructions • Inter-entity complete, valid and accurate • Conversion journals complete, valid and accurate • Unadjusted audit misstatements recorded • External audit has tested the AFS template

  11. 2014 Public Entity Consolidation Process 5. New External Audit sign-off template • Why? Do not need full audit opinion for consol purposes • Document discussed with AG and big 4 firms • Testing whether AFS template agrees to normal AFS • Testing inter-entity and testing conversion journals • Confirming unadjusted audit differences (misstatements) • Sign-off submitted to management of entity

  12. 2014 Public Entity Consolidation Process 6. New requirements for entities with 30 June year end • Why? GRAP requirement (GRAP 6.48) • TB for 31 March 2014 (3 months + 9 months) • Management accounts OR financial statements for 12 months ended 31 March 2014 based on above trial balance • Material entities will be requested to obtain additional audit assurance on the management accounts / financial statements for 12 months. A separate communication to this effect will be sent out to these entities.

  13. 2014 AFS Template Before you start working on your template know the following: • Template is 32bit • Must read the instructions and do things in right order • Workbook and worksheets are locked • Do not delete rows or columns or highlight cells • Fill in as much information as possible in the yellow cells • Remember to save your work

  14. 2014 AFS Template Initial Questionnaire and Instructions

  15. 2014 AFS Template Income & Expenditure Mapping

  16. 2014 AFS Template Assets Mapping

  17. 2014 AFS Template Liabilities Mapping

  18. 2014 AFS Template Net Assets Mapping

  19. 2014 AFS Template SCOA

  20. 2014 AFS Template Calculation Sheets

  21. 2014 AFS Template Notes to the financial statements • Populated by SCOA and Calculation sheet amounts • Some note numbers have changed after alignment process • Complete all relevant yellow highlight areas • Check if note agrees to POS, PER, CFS or NA • Blue help button is there if need assistance

  22. 2014 AFS Template Statement of Financial Position

  23. 2014 AFS Template Statement of Financial Performance

  24. 2014 AFS Template Statement of Changes in Net Assets

  25. 2014 AFS Template Cash Flow Statement

  26. 2014 AFS Template Inter-Entity

  27. 2014 AFS Template Conversion Journals

  28. 2014 AFS Template Uncorrected Misstatements

  29. Submission deadlines 31 MAY 2014

  30. Submission deadlines 31 JULY 2014

  31. Year End Procedure 2013/14 • To be issued before 31 March 2014 • Purpose is to remind: • Accounting Officers (AO) and Accounting Authorities (AA) of important financial year end procedures and closure/submission dates relating to the preparation and auditing of AFS and preparation of Annual Reports (AR). • AA of entities with a financial year end other than 31 March of important financial year end procedures and submission dates relating to preparation and auditing of AFS and preparation of AR.

  32. Year End Procedure 2013/14 Annual Report Submission Dates

  33. Year End Procedure 2013/14

  34. Year End Procedure 2013/14 Confirmation Letters: • Submission of AFS • Accounting Authority (AA) / Accounting Officer (AO) accepts responsibility for the accuracy & fair presentation of the AFS submitted to AG & relevant treasury • Submission of Annual Report incl. Performance Information • AA/AO accepts responsibility for the accuracy & fair presentation of the AFS & PI submitted to AG & relevant treasury • AGSA will review the contents of the AFS for consistency

  35. Year End Procedure 2013/14 Performance Information to Auditors: • The performance information in the annual report • Needs to be submitted for audit purposes on 30 May 2014 • External Auditor’s PFMA deadline is 31 July 2014.

  36. GRAP Update

  37. GRAP Update Employee Benefits previously accounted for in terms of IAS 19 however since 1 April 2013 required to account for in terms of GRAP 25, unless early adopted.

  38. Accounting Support during 2013/14 audit process

  39. THANK YOU

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