HIP IPS REPORT ON RECORD KEEPING
REPORT PRODUCED FOR THE DEPARTMENT OF INDUSTRY AND SCIENCE
The purpose of this report is to:
1. establish what is reasonable to request as supporting documentation in order to make an
estimate of the adverse financial impact experienced by business entities as a result of the
Home Insulation Program (HIP), and
2. recommend a methodology to apply when estimating the value of the adverse financial
impact experienced by insulation installers.
Note: Neither the Australian Accounting Framework, nor the Australian Accounting Standards
provide specific guidance or a methodology to distinctly separate or rank the impact of influences or
drivers on the profitability of a business entity. For this reason, the methodology suggested seeks to
make a best estimate of a range of influences and their impact over time; and it cannot be taken to
be solely reflect the impact of the HIP.
BACKGROUND
On 3 February 2009, the then Prime Minister, the Hon Kevin Rudd, announced the Nation Building
and Jobs Plan, a $42 billion initiative of the Australian Government, released as part of its response
to the Global Financial Crisis.
A proportionately small part of the Nation Building and Jobs Plan was the Energy Efficient Homes
Package (EEHP), which was initially allocated less than 10% of the total amount to be spent under
the Plan. Part of the EEHP was a component concerned with ceiling insulation, then named the HIP,
which ran for a little over 12 months.1
The Royal Commission, also identified that the decision to effectively terminate the HIP in mid
February 2010, had a profound effect on businesses which manufactured insulation and which were
engaged in the installation of it.2
TYPES OF BUSINESS STRUCTURES
In Australia, there are four main structures that businesses operate under:




Sole traders – business setup and controlled by the individual business owner.
Partnerships – an association of people who carry on a business as partners and receive
income jointly.
Trusts – an obligation imposed on a person (trustee) to hold property and assets (such as
business assets) for the benefit of others, and
Companies – a distinct legal entity whose operations are controlled by its directors and
which is owned by its shareholders.
The businesses affected by the termination of the HIP could fit within any of the four business
structures listed above.
1.
2.
Attorney-General’s Department, August 2014 “Report into the Royal Commission into the Home Insulation Program”, p. 1
Attorney-General’s Department, August 2014 “Report into the Royal Commission into the Home Insulation Program”, p. 4
HIP IPS Report on Record Keeping: v3.0
10 February 2015
1
RECORD KEEPING AND REPORTING OBLIGATIONS
In order to determine what information could be reasonable to request a business to provide as
support for an application for adverse financial impact, a review of the main compliance record
keeping and reporting requirements for each business type was undertaken. This review
encompassed the requirements for:
1. The Australian Taxation Office (ATO),
2. The Australian Securities and Investments Commission (ASIC), and
3. The Australian Accounting Standards Board (AASB).
Each of the compliance organisations listed above had a slightly different definition for business/
financial record keeping, but have the following common elements:
1. Records must correctly record and explain all transactions,
2. Records must be in writing (ASIC specifies these records must be in English), and
3. Financial records include documents such as invoices, receipts, cheques/cheque butts and
working papers.
Reporting obligations for each business type generally become more rigorous as the size of the
business increases, with companies having the highest level of record keeping compliance
obligations.
Each business structure has different record keeping and financial reporting requirements in order
to meet their compliance obligations.
The following table summarises the record keeping and financial reporting requirements for each
business structure under:
1. The Australian Taxation Office (ATO),
2. The Australian Securities and Investments Commission (ASIC), and
3. The Australian Accounting Standards.
HIP IPS Report on Record Keeping: v3.0
10 February 2015
2
Business
Structure
ATO tax law compliance
requirements
ASIC Corporations Act compliance
requirements
Sole Traders
Must keep business records which
explain all transactions for five years.
Nil – does not fall under Corporations
Act.
Partnerships
Must keep business records which
explain all transactions for five years.
Nil – does not fall under Corporations
Act.
Trusts
Must keep business records which
explain all transactions for five years.
Nil – does not fall under Corporations
Act unless the trustee for the trust is a
company.
Companies
Must keep business records which
explain all transactions for five years.
Identifies statement of financial
position (Balance Sheet) and
Detailed Operating Statement (Profit
and Loss) as records that a company
maintains.
Financial records required to be kept for
seven years. Financial records include
financial statements (not required for
small proprietary companies, but
recommended.)
HIP IPS Report on Record Keeping: v3.0
10 February 2015
Australian Accounting Standard requirements
Not likely to fit within the scope of AASB101 as sole
traders are unlikely to fit the definition of a reporting
entity; and therefore Financial Statements would not
be required to be prepared IAW AASB101. However,
CPA Australia does recommend in their “Good
practice guide for small business” the preparation of a
Profit and Loss, Balance Sheet and Cash Flow
Statement on a monthly or quarterly basis; as well as
on an annual basis.
Likely to fit within the definition of a reporting entity
in which case Financial Statements are required to be
prepared IAW AASB101. In addition, CPA Australia
does recommend in their “Good practice guide for
small business” the preparation of a Profit and Loss,
Balance Sheet and Cash Flow Statement on a monthly
or quarterly basis; as well as on an annual basis.
Likely to fit within the definition of a reporting entity
in which case Financial Statements are required to be
prepared IAW AASB101. In addition, CPA Australia
does recommend in their “Good practice guide for
small business” the preparation of a Profit and Loss,
Balance Sheet and Cash Flow Statement on a monthly
or quarterly basis; as well as on an annual basis.
Financial Statements are required to be prepared IAW
AASB101 for entities required to prepare financial
reports IAW Part 2M.3 of the Corporations Act.
3
REASONABLE FINANCIAL INFORMATION REQUEST
As shown in the previous paragraphs, there is a difference between the compliance requirements for
companies (excluding small proprietary companies) and the remaining business types, i.e. sole traders,
partnerships and trusts. It is therefore reasonable to expect that companies (excluding small proprietary
companies) will have different financial documentation/reports which could be reasonably requested to
accompany an application for consideration of an adverse financial impact.
It is therefore recommended the four business types be split into two groups in relation to the information
which could be requested to be provided, i.e. 1) Group 1: Companies (excluding small proprietary companies*)
and 2) Group 2: all other Businesses.
*ASIC defines a proprietary company as small for a financial year if it satisfies at least two of the following
paragraphs:
 the consolidated revenue for the financial year of the company and any entities it controls is less than
$25 million
 the value of the consolidated gross assets at the end of the financial year of the company and any
entities it controls is less than $12.5 million, and
 the company and any entities it controls have fewer than 50 employees at the end of the financial
year.
Some small proprietary companies may have to lodge financial reports with ASIC in certain circumstances.
Refer to the list on pages 11-12, which shows which small proprietary companies are required to prepare
financial reports under Section 292 of the Corporations Act 2001.
The tables on the following two pages show the recommended information to be requested to accompany an
application for consideration of an adverse financial impact.
HIP IPS Report on Record Keeping: v3.0
10 February 2015
4
NOTE:- As the Australian taxation period for business returns runs from 1 July to 30 June, all financial reports requested will need to be provided for these
same periods in order to allow reconciliation between the taxation returns and financial reports and a consistent assessment period for all applicants.
Business Type
Companies (excluding
small proprietary
companies)
Although the ATO
requirement for
retention of records is
only five years, the
requirement for ASIC is
seven years, therefore it
is reasonable to expect
that these companies
will be able to provide
the following
information.
Financial Information to be requested
For Profit and Loss Information:
Financial reports for the Financial Years 2007-08
and 2010-11 including Profit and Loss, Balance
Sheet and Cash Flow Statement.
Company tax returns and ATO assessment for the
same periods.
For Capital Investment Information:
Depreciation schedules for Financial Years 200708, 2008-09, 2009-10 and 2010-11 used for
Company tax returns.
HIP IPS Report on Record Keeping: v3.0
10 February 2015
Notes regarding information to be provided
The Profit and Loss reports must reconcile to the figures reported in the company
tax returns and clearly show for each Financial Year the total Income and Expenses.
In addition, it is required to show separately the Income and Expenses directly
related to the installation of home insulation. The remainder of the Income and
Expenses can be grouped together.
Copies of Tax invoices and receipts will not be required to be submitted, but must
be able to be produced upon request.
Depreciation schedules should clearly show details of:
1) Investment in installation and/or installation related equipment, including
purchase date(s)
2) Any change of the valuation of installation and/or installation equipment
following the suspension of the HIP, and
3) Any disposal of installation and/or installation equipment following the
suspension of the HIP, including details of any loss which may have resulted
from such disposals.
5
Business Type
Financial Information to be
requested
All other businesses
For Profit and Loss Information:
Financial reports for the Financial
Years 2007-08, 2008-09, 2009-10
and 2010-11 including Profit and
Loss, Balance Sheet and Cash Flow
Statement.
Notes regarding information to be provided
It is recognised that for these businesses, records may not be able to be produced as the required
ATO retention period is only five years. Therefore, information should be requested in the following
order of preference, where it is outside the ATO retention period:
1.
Business or individual tax returns
and ATO Assessment for the same
periods.
Provision of the financial reports listed, along with a copy of the business or individual tax
returns for the same periods, noting the Profit and Loss reports must reconcile to the figures
reported in the company/trust/individual tax return. In addition, it is required to show
separately the Income and Expenses directly related to the installation of home insulation.
The remainder of the Income and Expenses can be grouped together. Copies of Tax invoices
and receipts will not be required to be submitted, but must be able to be produced upon
request.
2.
For Capital Investment
Information:
Depreciation schedules for
Financial Years 2007-08, 2008-09,
2009-10 and 2010-11 used for tax
returns.
HIP IPS Report on Record Keeping: v3.0
10 February 2015
If the business in not able to provide the information requested in dot point 1 above, they
should provide a summary document showing their total income and expenses for each of
the 2007-08, 2008-09, 2009-10 and 2010-11 Financial Years. In addition, they will be
required to provide two transaction lists containing only those transactions relating to the
installation of home insulation: 1) a listing of their invoices and 2) a listing of their receipts.
Note: Copies of Tax invoices and receipts will not be required to be submitted, but must be
able to be produced upon request.
It is recognised that for these businesses, records may not be able to be produced as the required
ATO retention period is only five years. Therefore, information should be requested in the following
order of preference:
1.
Provision of Depreciation schedules listed, which should clearly show details of:
a. Investment in installation and/or installation related equipment, including purchase
date(s)
b. Any change of the valuation of installation and/or installation equipment following the
suspension of the HIP, and
c. Any disposal of installation and/or installation equipment following the suspension of
the HIP, including details of any loss which may have resulted from such disposals.
2.
If the business is not able to provide the information listed in dot point 1 above, they should
provide a summary document for each Financial Year showing: a) a listing of all installation
and/or installation related equipment capital purchases, b) a listing of the useful lives for all
installation and/or installation related equipment, and c) a listing of all disposals of
installation and/or installation related equipment. Note: Copies of receipts will not be
required to be submitted, but must be able to be produced upon request.
6
Note- In addition to the financial information that will be requested, business entities will be
requested to provide a copy of their ABN certificate which was in place as at February 2009 to add to
the verification that they were operating as a home insulation installer at the time the HIP
commenced.
ADVERSE FINANCIAL IMPACT ON BUSINESSES
Following the completion of the Royal Commission, the Government reviewed the report and
determined the Government had a moral obligation to those businesses who had an adverse
financial impact as a direct result of the HIP.
For the purposes of this report, the adverse financial impact includes the impact on revenue and
expenses directly related to the HIP and its suspension and capital investments in installation and/or
installation related equipment.
The HIP commenced in the 2008-09 Financial Year and was suspended in the 2009-10 Financial Year,
approximately 12 months later. As a result of the HIP, some businesses had a spike in their revenue
and Net Profits in these two Financial Years, which then dropped following the suspension of the
HIP. In addition, some business invested in installation and/or installation related equipment which
they undertook on the basis that the HIP would continue for some time. Following suspension of the
HIP, the future economic benefit which could be obtained from these Assets was reduced, which
had a negative impact on these businesses.
DETERMINING ADVERSE FINANCIAL IMPACT ON PROFITS
For the purposes of this estimation, the period 1 July 2007 to 30 June 2008 will be used as the
baseline year, before the introduction of the HIP and the period 1 July 2010 to 30 June 2011 will be
used as the comparison year, following the suspension of the HIP.
In order to determine the extent of the impact and ensure a consistent and transparent approach, a
table should be created to allow the rating/categorisation at set levels of the magnitude of the
adverse financial impact. Levels of financial payment can then be allocated to the various
ratings/categories in the table.
As this assessment is only in relation to the adverse financial impact as a result of the HIP,
comparisons should be done using the figures provided which only relate to income and expenses
derived from the installation of home insulation.
Using the financial information provided by applicants, a comparison should be made between the
Net Profits (Revenue – Expenses) in the 2007-08, 2008-09, 2009-10 and the 2010-11 Financial Years.
The comparison should be calculated to determine the dollar figure difference and the difference in
percentage terms.
If there was an increase in the Net Profits between the compared Financial Years, the applicant will
have been determined to have not had an adverse financial impact. If there was a decrease in the
Net Profits between the compared Financial Years, the applicant will be determined to have had an
adverse financial impact and the dollar figure difference and percentage terms difference should be
documented in order to be determine which rating/categorisation level the impact fits within.
HIP IPS Report on Record Keeping: v3.0
10 February 2015
7
DETERMINING ADVERSE FINANCIAL IMPACT ON CAPITAL INVESTMENTS
For the purposes of this estimation, the period 1 July 2007 to 30 June 2008 will be used as the
baseline year before the introduction of the HIP and the 2008-09, 2009-10 and 2010-11 Financial
Years will be examined to determine if there was an adverse financial impact on Capital investments
as a result of the suspension of the HIP.
In order to determine the extent of the impact and ensure a consistent and transparent approach, a
table should be created to allow the rating/categorisation at set levels of the magnitude of the
adverse financial impact. As there are two categories of possible adverse financial impact on Capital
Investments, it is recommended to create one table for each possible Capital impact. Levels of
financial payment can then be allocated to the various ratings/categories in both tables.
As this assessment is only in relation to the adverse financial impact as a result of the HIP, an
examination should be done using the figures provided which relate to Capital Purchases,
Depreciation and Disposals in relation to installation and/or installation related equipment.
Installation equipment and/or installation related equipment falls under the Accounting Standards
definition of Property, Plant and Equipment (PP&E). Under Australian Accounting Standard AASB 116
“Property, Plant and Equipment”, after a business has initially recognised the value of their property,
plant and equipment, they can choose to revalue it according to one of two models:
1. The Cost Model – which recognise the value of an item of PP&E at its cost less any
accumulated depreciation and any accumulated impairment losses (Note: This value is
known in accounting as “written-down value”), or
2. The Revaluation Model – which recognises the value of an item of PP&E at its fair value* at
the date of revaluation less any subsequent accumulated depreciation and subsequent
accumulated impairment losses.
*Australian Accounting Standard AASB 13 defines fair value as “the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date.”
The possible adverse financial impact on Capital Investments falls into two categories:
1. The loss incurred from the sale of equipment at less than its written-down value, and
2. The loss incurred from the reduction in the fair valuation of equipment as a result of the
change in market conditions (as a result of the suspension of the HIP).
1. Loss from Sale of Equipment
In order to assess the possible impact from the loss on sale of equipment, an examination of the
information provided should be undertaken to identify any related purchases which were
undertaken (including ordered but not delivered) during the period 3 February 2009 to 19 February
2010.3 If there was no Capital equipment purchased (including ordered but not delivered) during this
period, the applicant will have been determined to have not had an adverse financial impact. If there
was a purchase (or purchases made or orders placed) during the examined period, then a review of
the information provided needs to be undertaken in order to determine if any of the equipment was
3.
Auditor-General’s Department, October 2010 “Audit Report No. 12 2010-11 Performance Audit: Home Insulation Program”, p. 20
HIP IPS Report on Record Keeping: v3.0
10 February 2015
8
sold at a loss (i.e. at less than its written-down value) and if there was a loss, the dollar value of the
loss needs to be documented in order to determine which rating/categorisation level the impact fits
within.
2. Loss from Reduction in Fair Value
In order to assess the possible impact from the reduction in the fair value of equipment, an
examination of the information provided should be undertaken to identify any related purchases
which were undertaken (or ordered, but not delivered) during the period 3 February 2009 to 19
February 2010.3 If there was no Capital equipment purchased (or ordered but not delivered) during
this period, the applicant will determined to have not had an adverse financial impact. If there was a
purchase (or purchases or orders placed) during the examined period, then a review of the
information provided needs to be undertaken in order to determine if any of the equipment was
revalued after 19 February 2010 but before 30 June 2011. The dollar value of the reduction in the
fair value needs to be documented in order to determine which rating/categorisation level the
impact fits within.
TOTAL ADVERSE FINANCIAL IMPACT
In order to determine the total adverse financial impact on a business, the evaluation of the impact
upon Profits, Loss from the Sale of Equipment and Loss from a Reduction in Fair Value will need to
be individually calculated and the output of each calculation applied to the relevant rating table.
Each rating table will show the determined value of the adverse financial impact. The value for each
of the three tables will then be combined in order to calculate the total adverse financial impact on a
business.
3.
Auditor-General’s Department, October 2010 “Audit Report No. 12 2010-11 Performance Audit: Home Insulation Program”, p. 20
HIP IPS Report on Record Keeping: v3.0
10 February 2015
9
RESEARCH DETAILS AND LINKS
(Accessed between 3-10 February 2015)
ATO – RECORD REQUIREMENTS
Running a Small business https://www.ato.gov.au/Business/Starting-and-running-your-smallbusiness/Running-your-business/#
The ATO advises in their business basics, that a business has ‘transactions where money flow into a
business (receipts) and out of a business (payments). These transactions are supported by
documents recording the details of the transaction such as tax invoices, wages records, cheque butts
and credit card statements; and these documents contain the information a business needs to
record.
Management of invoices, payments and records https://www.ato.gov.au/Business/Manage-yourinvoices,-payments-and-records/
Under tax law, business records must:
1)
2)
3)
4)
explain all transactions,
be in writing,
be in English, and
be kept for five years (although some records such as capital gains transactions need to be kept
longer).
Period required for record keeping https://www.ato.gov.au/Business/Starting-and-running-yoursmall-business/In-detail/Review-of-your-assessment-and-record-keeping/
For small business entities – 5 years from when the business record is prepared or the transaction is
completed, whichever occurs later.
Financial Statements http://www.asic.gov.au/for-business/running-a-company/companyofficeholder-duties/what-books-and-records-should-my-company-keep/
The ATO does not require small businesses to submit financial statements, but it does recommend
they prepare annually a summary of income and expenses in a Profit and Loss Statement. ATO
record keeping and instruction guidelines (in their Company tax return instructions, 2014) states that
the ‘records that a company maintains, includes a statement of financial position and detailed
operating statement.’
https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/BUS40078_NAT0069_11_2014.pdf
HIP IPS Report on Record Keeping: v3.0
10 February 2015
10
ASIC RECORD REQUIREMENTS
ASIC is responsible for the regulation of companies, under the Corporations Act. Businesses which
are not a company structure do not fall under the Corporations Act.
What books and records should a company keep? http://www.asic.gov.au/for-business/running-acompany/company-officeholder-duties/what-books-and-records-should-my-company-keep/
The Corporations Act in s286(1) states that a company must keep written financial records that:
1) Correctly record and explain its transactions and financial position and performance, and
2) would enable true and fair financial statements to be prepared and audited.
Financial records are defined in s9 of the Corporations Act as including:



Invoices, receipts, orders for the payment of money, bills of exchange, cheques, promissory
notes and vouchers,
Documents of prime entry, and
Working papers and other documents needed to explain:
a. The methods by which financial statement are made up, and
b. Adjustment to be made in preparing financial statements.
Section 286(2) of the Corporations Act requires financial records to be kept for seven years.
FINANCIAL STATEMENTS
Certain companies must lodge financial reports with ASIC, including all large proprietary companies
and small proprietary companies (if directed to do so). Generally, companies must lodge financial
reports if:



substantial sums of money are involved
the general public has invested funds with the company, and
the company exists for charitable purposes only and is not intended to make a profit.
Financial reports are required even if the company has not made a profit or traded during the
financial year. http://www.asic.gov.au/for-business/your-business/small-business/compliance-forsmall-business/small-business-companies-that-must-lodge-financial-reports-with-asic/
Section 292 of the Corporations Act 2001 (Corporations Act) requires the following entities to
prepare financial reports: http://www.asic.gov.au/regulatory-resources/financial-reporting-andaudit/preparers-of-financial-reports/financial-reports/







all disclosing entities
public companies
companies limited by guarantee (except small companies limited by guarantee)
all large proprietary companies**
all registered schemes
small proprietary companies that are foreign-controlled
small proprietary companies or small companies limited by guarantee that we direct to
prepare financial reports
HIP IPS Report on Record Keeping: v3.0
10 February 2015
11


small proprietary companies subject to a shareholder direction under s293 of the
Corporations Act
small companies limited by guarantee subject to a shareholder direction under s294a of the
Corporations Act
** A small proprietary company is defined by ASIC is it satisfies at least two of the following
paragraphs: http://www.asic.gov.au/regulatory-resources/financial-reporting-and-audit/preparersof-financial-reports/are-you-a-large-or-small-proprietary-company/



the consolidated revenue for the financial year of the company and any entities it controls is
less than $25 million
the value of the consolidated gross assets at the end of the financial year of the company
and any entities it controls is less than $12.5 million, and
the company and any entities it controls have fewer than 50 employees at the end of the
financial year.
Some small proprietary companies may have to lodge financial reports in certain circumstances.
Refer to the list on page 10, which outlines which small proprietary companies are required to
prepare financial reports under Section 292 of the Corporations Act 2001.
Under the Corporations Act, financial statements (for example Profit and Loss Accounts, Balance
Sheets, Depreciation Schedules and Taxation Returns) are required to be prepared for companies,
except small proprietary companies; for which this is not a requirements, but a recommendation
(unless ASIC directs the small proprietary company to do so).
HIP IPS Report on Record Keeping: v3.0
10 February 2015
12
AUSTRALIAN ACCOUNTING STANDARDS REQUIREMENTS
AASB 101 “Presentation of Financial Statements”, prescribes the basis for presentation of general
purpose financial statements. It sets out the overall requirements for the presentation of financial
statements, guidelines for their structure and minimum requirements for their content.
‘The standard applies to:
a) each entity that is required to prepare financial reports in accordance with Part 2M.3 of the
Corporations Act,
b) general purpose financial reports for each reporting entity, and
c) financial statements that are, or are held out to be, general purpose financial statements.’
Entities required to prepare financial reports IAW the Corporations Act are companies, except small
proprietary companies.
A reporting entity is defined in the standard as “an entity in respect of which it is reasonable to
expect the existence of users who rely on the entity’s general purpose financial report for
information that will be useful to them for making and evaluating decisions about the allocation of
resources.”
General purpose financial statements are defined in the standard as “those intended to meet the
needs of users who are not in a position to require an entity to prepare reports tailored to their
particular information needs.”
AASB116 “Property Plant and Equipment”.
http://www.aasb.gov.au/admin/file/content105/c9/AASB116_07-04_COMPjun14_07-14.pdf
Measurement after Recognition
29 An entity shall choose either the cost model in paragraph 30 or the revaluation model in
paragraph 31 as its accounting policy and shall apply that policy to an entire class of property, plant
and equipment.
Cost Model
30 After recognition as an asset, an item of property, plant and equipment shall be carried at its cost
less any accumulated depreciation and any accumulated impairment losses.
Revaluation Model
31 After recognition as an asset, an item of property, plant and equipment whose fair value can be
measured reliably shall be carried at a revalued amount, being its fair value at the date of the
revaluation less any subsequent accumulated depreciation and subsequent accumulated
impairment losses. Revaluations shall be made with sufficient regularity to ensure that the carrying
amount does not differ materially from that which would be determined using fair value at the end
of the reporting period.
AASB 13 “Fair Value Measurement”
http://www.aasb.gov.au/admin/file/content105/c9/AASB13_09-11_COMPjun14_07-14.pdf
Measurement
Definition of fair value
9 This Standard defines fair value as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date.
HIP IPS Report on Record Keeping: v3.0
10 February 2015
13
The asset or liability
11 A fair value measurement is for a particular asset or liability. Therefore, when measuring fair
value an entity shall take into account the characteristics of the asset or liability if market
participants would take those characteristics into account when pricing the asset or liability at the
measurement date. Such characteristics include, for example, the following:
(a) the condition and location of the asset; and
(b) restrictions, if any, on the sale or use of the asset.
ADDITIONAL RESEARCH
Good Practice Checklist for small business – CPA Australia (2012)
www.cpaaustralia.com.au/~/media/corporate/allfiles/document/professionalresources/business/good-practice-checklist-small-business.pdf
The good practice checklist provides a checklist to ensure businesses are implementing “good
business practices”. It recommends businesses prepare a Profit and Loss Statement, Balance Sheet
and Cash Flow Statement on a monthly or quarterly basis to show emerging problems in time for
corrective actions.
Report of the Royal Commission into the Home Insulation Program
http://www.homeinsulationroyalcommission.gov.au/Documentation/Documents/ReportoftheRo
yalCommissionintotheHomeInsulationProgram.pdf
Audit Report No. 12 2010-11 Performance Audit: Home Insulation Program (October 2010)
http://www.anao.gov.au/uploads/documents/2010-11_audit_report_no_12.pdf
HIP IPS Report on Record Keeping: v3.0
10 February 2015
14
PURPOSE AND INTENDED USE OF THIS REPORT
This report is provided to the Department of Industry and Science under the direction to provide
consultancy services in the form of independent expert accounting advice to assist in the
development of the Home Insulation Program (HIP) Industry Payment Scheme (IPS). The advice was
provided by a consultant within CIT Solutions that displayed skills, knowledge, experience and
qualifications acceptable to the Department upon signing the Order for Service. The result of this
consultancy is documented as this report. This report is provided for the sole purpose of
consolidating publicly available information as requested in the Order for Service. CIT Solutions
bears no responsibility for the intended use and consequences of that use or relying upon the
information provided.
HIP IPS Report on Record Keeping: v3.0
10 February 2015
15