Department of Health Annual Report 2016-17

Part 4.1: 2016-17 Financial Statements Process

Page last updated: 19 October 2017

The Department is required to prepare annual financial statements to comply with the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The statements must comply with the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 and Australian Accounting Standards. Additional guidance is provided by the Department of Finance through Resource Management Guide No. 125.

In preparing the 2016-17 financial statements, the Department applied professional judgement to ensure that the financial statements fairly present the financial position, financial performance and cash flows.

From 2016-17, the Department has reduced disclosure of certain technical information to shorten the statements and enhance their readability. The Department has also reformatted its financial statements to increase the proximity of like disclosures and incorporate accounting policy detail with the items they describe. Items that do not add material value in separate disclosure have been disclosed in aggregate form only.

The Department has continued its practice of additional disclosures where, in the opinion of the Chief Financial Officer, these disclosures add value for the reader. In 2016-17, this includes a note specific to the Therapeutic Goods Administration special account and detailed descriptions supporting the note disclosures.

The Department’s quality assurance framework applied to the financial statements includes independent advice from the Audit and Risk Committee to the Secretary on the preparation and review of the financial statements. The financial statements are audited by the Australian National Audit Office.

Readers of the financial statements will be assisted by the colour coding incorporated in the statements, notes and narrative. Expenses administered by the Department on behalf of the Government are shaded grey, unshaded items are operational in nature (departmental expenses), and accounting policy has a mauve background.

For further information, Chief Operating Officer’s Report which contains a summary of the Department’s 2016-17 financial results.