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

Emma Hirst 02 6213 7024
Alison Mornement 02 6276 1554
Vanessa Jakobasic 02 6276 1055
Christine McCabe 02 6276 1844
Margot Collignon 02 6213 7465


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




CERTIFICATION OF CERTAIN MATTERS BY THE AUDITOR

The Department also requires certification of certain matters by the Auditor in addition to the
independent audit report. This should be submitted with the annual financial report and independent
audit report. The required format of certification follows.

The next page MUST be completed and printed on the auditor's letterhead.

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 financial report and has that annual financial report audited.

In fulfilment of the condition, I hereby certify that:

1 I am a member of the Institute of Chartered Accountants in Australia/the Society of Certified
Practising Accountants/the National Institute of Accountants (as a Public Practice Certified Member).
2 I have prepared the independent audit report on [CENTRE Name, financial report details and grant
details] dated [date of independent audit report]
3 I have reviewed the funding Agreement and understand the requirements pertaining to financial
reporting and use of funding contained therein.
4 I have complied with the professional independence requirements of the Institute of Chartered
Accountants in Australia/the Society of Certified Practising Accountants. I specifically certify that I:
(a) am not, and have not been, a director, office holder, or employee of [CENTRE Name] or related
body corporate of [CENTRE Name]

(b) have not been previously engaged by [CENTRE Name] for the purpose of preparing their
funding application or any report (other than an audit report) required under the agreement

(c) have no financial interest in [CENTRE Name].




Signature:

Name:

Qualifications:

Position:

Date:


This is trial version
www.adultpdf.com