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Networking the Nation (NTN) Audit statement requirements

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One for each Deed over $100 000.

(1) A statement of receipts and expenditures in respect of the project.

It is important the statement only includes expenditure and income in relation to the Deed and does not include any other revenues and expenditure. Where an organisation has more than one project/Deed, you should make sure that you do not count the same expenses for both projects. Having a separate audit statement and statement of receipts and expenditures for each project is aimed at eliminating this possibility. The receipts should include all income including NTN grant funds, community contributions, trading revenue from the project and interest earned on grant funds.

(2) An audit statement from an auditor that must include all of the following elements:

A statement as to whether the statement of receipts and expenditures in (1) above are 'true and fair';
and
A statement of the balance of the account established for that project/Deed.
If you did not establish a separate bank account, then this statement must be of the balance of the sub-account established for the project/deed.

(3) The audit statement should also have all of the following items (and if it doesn't you should provide justification)

A title and the addressee (preferably the Commonwealth but we can accept the grantee, but only if the auditor mentions that the purpose of the audit is to advise the Commonwealth whether or not the grant funds were used in accordance with the Deed);
- Identification of the financial statements in (1) above being audited>;
- The entity being audited (i.e. the grantee);
- The reporting period covered by the statements (this should correspond to the grant period specified in the Deed);
- The purpose of the audit and the fact that the audit is a special purpose report in respect of the Deed of Agreement with the Commonwealth (reference to the relevant Deed clause);
- Who was responsible for preparing the financial report in (1) above that is being audited (it is preferable that the receipts and expenditure statements are not prepared by the auditor!);
- That the audit was conducted as an independent audit;
- A statement as to which standard(s) the audit has been conducted (eg AUS702, s27 of AUS802 etc);
A statement that the auditor's procedures included the examination on a test basis of the statements audited and that these procedures were undertaken to form the audit opinion;
When the audit is qualified, a section describing the qualification>;
A section expressing the auditor's opinion (i.e. this is the section that is to include the matters required under (2) above);
Any emphasis or findings (this is the only optional part);
The auditor's signature, address and the date of the audit.

More information on acceptable audit standards

The Statement must include the following key elements:

Section 13 of AUS702: The Audit Report on a General Purpose Financial Report.
'The audit report includes the following basic elements, ordinarily in the following layout:

(a) a title;
(b) the addressee;
(c) a section describing the audit scope;
(d) when the audit opinion is qualified, a section describing the qualification;
(e) a section expressing the auditor's opinion on the financial report;
(f) when appropriate, a section describing an emphasis of matter;
(g) the auditor's signature;
(h) the auditor's address; and
(i) the date of the audit report.'

Section 27 of AUS802: The Audit Report on Financial Information Other than a General Purpose Financial Report
- identification of the financial report being audited, including the name of the entity and the reporting period covered by the financial report, and indicating that the financial report is a special purpose financial report;

- identification of the party responsible for the financial report;

- a statement that the auditor has conducted an independent audit of the financial report in order to express an opinion thereon to the addressee;

- identification of the purpose for which the financial report has been prepared;

- a statement that the audit has been conducted in accordance with Australian Auditing Standards;

a statement that the auditor's procedures included the examination, on a test basis;

- a statement indicating that these procedures have been undertaken to form an opinion whether, in all material respects, the financial report is presented fairly in accordance with the identified financial reporting framework; and

- a statement that the audit opinion has been formed on the basis of the above.

Document ID: 6336 |
Last modified: 6 February 2008, 1:34pm