Circulars

What’s new or changing

• The final Code of Accounting Practice and Financial Reporting (Code) is available for preparing councils’ 2021-22 financial statements.
• A Joint Organisation (JO) Supplement to the Code is available for preparing JO 2021-22 financial statements

What this will mean for your council/JO

• The Code must be used by councils and JOs to prepare their annual financial statements in accordance with the Local Government Act 1993 and the Local Government (General) Regulation 2005.

Key Points

• The Code has been prepared in accordance with the Local Government Act 1993, the Australian Accounting Standards and other requirements.
• Changes highlighted in yellow are new for 2021-22.
• Councils and JOs should carefully review the key changes in this year’s Code, which are also detailed within the Summary of key changes to the Code 2021-22.
• The JO Supplement to the Code supports JOs preparing financial statements.
• The introduction and overview of the Code provides guidance to JO’s on the application of the JO Supplement.
• The Code has been developed in consultation with the Code Working Group, which involves key stakeholders, including the NSW Audit Office, council and JO representatives, external auditors and Local Government NSW.

Where to go for further information

OLG’s website has the:

• Code comprising of five documents:
  1. General Purpose Financial Statements (Section 1)
  2. Joint Organisations Supplement (Section 2)
  3. Special Purpose Financial Statements (Section3)
  4. Special Schedules (section 4), and
  5. Appendices (Section 5)
• Summary of key changes to the Code 2021-22

• OLG’s Accounting Practice page can be found here: https://www.olg.nsw.gov.au/councils/council-finances/financial-reporting/local-government-code-of-accounting-practice-and-financial-reporting/