2014-15 budget - general government
Budget paper 5 – Statement of Finances
This guidance material outlines the information requirements for the 2014-15 Budget Paper No. 5 Statement
of Finances. It should be read in conjunction with the other budget paper guidance documents.
Key dates:
27 March 2014 – Departments to submit Contingent Assets and Contingent Liabilities information in SRIMS.
8 April 2014 – Departments to provide final draft of the commentary on financial statements to be published
in Budget Paper No. 5 to DTF Relationship Managers.
Budget Paper No. 5 – Statement of Finances
Update contingent assets and liabilities
Contingent Assets and Contingent Liabilities (CA/CL) information is published in Budget Paper No. 5. The
Estimates Supplementary Information (ESTSI) module in SRIMS is the expected means of collecting CA/CL
information for the 2013-14 budget.
It should be noted that the CA/CL information collection templates in the SRIMS ESTSI module are under
review with a view to further enhance the quality of information collected for disclosure. Departments and
agencies will be notified when the templates in the ESTSI module are finalised and guidance will be provided
to departments and agencies as to the nature of any changes.
The CA/CL chapter of Budget Paper No. 5 provides an update on the information collected and published in
the 2013-14 Budget Update. Information sought for the 2014-15 budget will focus on confirming the
information previously provided for the 2013-14 Budget Update and any updates since then.
CA/CL information will need to be submitted to DTF by no later than Thursday 27 March 2014.
Departmental commentary and notes on major variances in departmental financial
statements
Consistent with previous budgets, you are required to provide an analysis of your departmental financial
statements. The commentary will be included in Budget Paper No. 5, Chapter 3 alongside the financial
statements.
You are required to draft a one page (maximum) commentary on major variations within your departmental
financial statements between the 2013-14 revised estimates and 2014-15 budget. This commentary should
identify and clearly articulate the business drivers causing the major variations, including identifying where
changes have arisen as a result of the impact of the budget on service delivery or through other factors.
2014-15 budget - general government
Remember that the audience is the general public, so avoid references to internal or government processes:

avoid technical and internal accounting terminology (and avoid detailed commentary about accounting
policy issues and references to internal accounting devices such as the SAU and depreciation
equivalents);

relate major trends/changes to business drivers – do not just state the obvious that a reader could
obtain from the financial statements, for example, an increase in expenses is due to increase in
employee entitlements. Where possible, departments should reference drivers to published
performance information;

avoid duplication of commentary, such as mentioning the same driver of change in income as in
expenses;

use correct terminology, for example refer to:

revenue and expenses in the comprehensive operating statement;

assets and liabilities in the balance sheet; and

receipts and payments in the statement of cash flows.
Focus on the aggregates (such as total revenue, total expenses, total assets, and total liabilities) unless there is
a significant matter requiring explanation at line item level (for example significant growth/decline in
employee entitlements relative to other expense categories).
The commentary should be provided under the following sub headings:
1.
2.
3.
Operating performance (operating statement and cash flow from operating activities):

focus on variations in total income and expenses and relate these back to the drivers of the
business (that is, the story should be around business drivers) and where possible these should link
to publicly available information;

what is driving the variation in total income and expenses (for example, policy initiatives, wages
growth, Commonwealth funding), and include explanations for material variations in individual
expenditure categories;

comment on the cash flows from operating activities on an exception basis only (for example, if
growth in payments (or payment category) significantly differs from equivalent trend in operating
statement).
Investment and financing

focus on variations in capital expenditure (mainly purchase of property, plant and equipment and
capital contribution) as per cash flow statement and any other investment/financing activities that
are significant; and

discuss drivers behind changes, for example new Government initiatives, ongoing impact of
previously approved capital program.
Balance sheet performance

focus on any significant changes in the Balance Sheet; and
Page 2
2014-15 budget - general government

4.
comment on the major variations in larger items unless there is a very significant change in one
class of asset or liability that may warrant comment (for example, increase or decrease in accounts
receivable/payable).
Administered items statement

discuss the transactions administered by your department on behalf of the State, particularly what
they are and what they are for; and

outline any significant variances in administered revenue and expenses.
Although the final estimates update is required to be completed in early April 2014, you can progressively
view your department’s financial statements at any time via SRIMS using the reports in the Estimates
>Departmental Financial Statements Group. DTF strongly recommend that you review your department’s
financial statements regularly for accuracy and completeness, and progressively draft commentary based on
the latest SRIMS financial statements.
The final draft of the commentary on your department's financial statements to be published in Budget Paper
No. 5 must be provided to your DTF Relationship Manager by Tuesday 8 April 2014. Your departmental CFO is
responsible for final sign-off of your departmental financial statements, commentary and reconciliation tables
and any notes that are to be included (DTF will provide the final Word file, incorporating all tables and
supplied commentary, as part of the departmental pack process). It is expected that departments undertake
an internal quality assurance process in relation to their financial statements and commentary prior to CFO
sign off and submission to DTF.
Departmental commentary on general government sector revenue
You may also be asked to contribute to information on State Revenue on an as needs basis. This reflects the
need for commentary on sales of goods and services, Commonwealth Specific Purpose Payments (SPPs) and
National Partnerships Payments (NPPs), and other non-taxation revenue items. You will be informed by your
DTF Relationship Manager should this requirement arise.
Capital assets charge
Capital assets charge (CAC) information is published in Budget Paper No. 5. For details on the calculation of
CAC, refer to BFMG 12 – Capital Assets Charge.
Financial information
The financial information used for compiling the general government estimated financial statements for the
2014-15 budget and the departmental financial statements will be sourced from SRIMS. Therefore you are
responsible for ensuring the financial data contained in SRIMS is accurate for your department and its
associated general government entities, and reflects all known policy (that is, output and asset investment
decisions made by BERC) and non-policy estimates variations.
The following information will be presented, for which you will be required to provide commentary by 8 April
2014:

comprehensive operating statement;
Page 3
2014-15 budget - general government

statement of cash flows;

balance sheet;

statement of changes in equity;

administered items statements; and

tables detailing the authority for resources and payments made on behalf of the State (note: no
commentary will be required for these tables).
Final departmental sign off
As it becomes available, budget paper material (departmental packs) will be made available progressively for
final review and sign off as ready for publication. Sign off by the CFO (or appropriately authorised person)
must be provided to your DTF Relationship Manager using the sign off template that will also be available in
SRIMS. The material that will be made available for departmental review will include:

departmental commentary and financial statements to be included in Budget Paper No. 5 (this is
included to provide CFOs with an opportunity to review the financial statements and commentary in a
final Word document, noting that quality assurance and sign off of the content must occur prior to
submission to DTF); and

contingent assets and liabilities information.
The information provided by DTF may also include text specific to sales of goods and services, Commonwealth
Special Purpose Payments and National Partnership Payments, and other non-taxation revenue items to be
included in the chapter on State Revenue.
Other budget paper material will also be provided to you for Department CFOs to review and confirm as
reasonable (sign off is not being requested). This includes information in the estimated financial statements
relating to general purpose classifications and land and property. CFOs will be advised by email when this
review is required.
SRIMS users
The SRIMS user guide is available on the SRIMS website (https://srims.vic.gov.au). This should be your first
reference point prior to contacting SRIMS Support either by email srims.support@dtf.vic.gov.au or by phoning
9651 2000. For general queries on SRIMS you should email your request to srims-info@dtf.vic.gov.au.
You are encouraged to use the Quick Reference Guides for the main SRIMS processes and if further
information is required the User Training Guides available on SRIMS.
Further information
Please contact your DTF Relationship Manager for further information.
Page 4