Planning the Annual Accounts

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Planning the Annual Accounts
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Planning the ACCOUNTS

• Pre-planning
• Objectives
• Manual of Accounts
• The Timetable
• Resources and Priorities
• Managing the Audit
• Annual Report and AGM

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Pre-Planning

• Review previous years processes and audit
  recommendations
• Implement any changes required
• Assess position on
• control accounts
• sub-ledgers
• month 9 agreement of balances
• Closing and opening balances
• Early warning to auditors on contentious issues

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Objectives

• Stress free production of accounts within
  Department of Health deadlines
• No audit qualification
• Contribution to ALE score
• High quality information for internal performance
  benchmarking
• Provision of supporting information for Annual
  Report

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Manual of Accounts

• Download from Finance Manual Site
• Identify key issues and changes from previous
  year see letter dated 16 March
• Key Dates 06/07
• 20 April agreement of debtor/creditor and
  income/expenditure balances
• 1 May fully completed schedules to auditors/DH
• 25 June audited accounts to DH
• 9 July TFRs to DH
• 30 September last date for AGM

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Manual of Accounts

• Key Changes
• Accounts to be completed a week earlier than
  05/06
• Draft to include a full statement on internal
  controls
• Guidelines and interpretation less prescriptive
  (expect increase in audit fees)
• Annual Report and Accounts as a single document
• Partial spells need to assess impact
• Unauthorised invoices do not equal disputed

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The Timetable

• Identify tasks and people what can be done
  prior to 31 March
• Identify Key Dates
• National dates e.g. account submission dates
• Local dates e.g. decide when ledger will close
• Work backwards from submission date to get a
  realistic start date
• Build up detail in chronological order
• Treat as a project project manager with ability
  to shift resources around

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The Timetable

• Ensure departmental heads know what is required
  and when
• Petty cash franking machines sales orders
• Keep communication channels open and remind
  people of dates continuously
• Liaison with management accounting
• Regular team meetings to monitor progress and
  encourage

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The Timetable

• Financial systems
• Availability
• Adequate report writing tools
• Extended trial balance
• Try and allow slack for review and crises
• Working papers preparation and audit file

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Timetable - Sample
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Resources and Priorities

• Identify named individuals for tasks
• Identify the tricky bits
• Agreement of balances key driver for the
  accounts
• Provisions back to backs impairments
• Processes for journals and accruals
• Identify the items not fully under finance
  control
• Stock counts and pricing
• Pension figures from Super Div
• Prepare working papers as the work progresses and
  create audit working file
• Do the variance analysis between financial years

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Resources and Priorities

• Tie up accounts Board Report FIMS
• Early warning to DoF if things going wrong!
• Statement of Internal Control who produces
• Liaise with PR team re the production of the
  annual accounts and requirement for single
  document
• Directors disclosures and consent
• Diarise dates for DoF and Chief Executive

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Managing the Audit

• Agree dates with audit ASAP
• Clear agreement on working papers and evidence
• Clear closure date dont let audit continue
  post audit!
• Definite exit meeting with full list of
  outstanding issues

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The Annual Report and AGM

• Single document for 06/07
• Audit requirements
• Does DoF do presentation for AGM
• Agree what the content will be
• Identify any additional analysis
• Prepare presentation before DoF needs it
• Expect them to change it!
• Web versions and paper copies