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Checklist - Setting up a new entity

Finance matters (including taxation issues)

  • Memorandums of understanding to be developed covering implementation issues, including decisions regarding costs, payment of invoices, recovery of moneys and transfer of assets, liabilities, revenues and expenses.
  • Recovery of moneys expended on transition costs to be effected as soon as possible.
  • Recruit or second a Chief Financial Officer.
  • Chief Financial Officers of transferring and gaining agencies to agree on the amount of appropriation balances relating to the transferred function to be transferred within the indicative timeframe agreed during the planning phase. The agreement is to cover any unspent receipts due to the transferred function.
  • Arrange for bank accounts to be renamed or opened and for signatories to be changed.
  • Gaining agency to develop financial management and payroll systems or arrange to remain on transferring agency's systems for interim period.
  • Gaining agency to liaise with Finance to arrange access to the Central Budget Management System and ensure new responsibilities are reflected in outcomes and programme framework.
  • Liaise with Finance regarding any expected requirements to transfer, establish, abolish or vary Special Accounts.
  • Gaining agency to consider whether outcomes are still appropriate and, if not, seek changes through Additional Estimates or Budget process.
  • Gaining and transferring agencies to arrange to report on functions in financial statements for relevant period and include notes to financial statements about the restructure and partial reporting of a function.
  • Financial statements of an abolished agency must be prepared and signed by a Chief Executive nominated by the Finance Minister.
  • Take appropriate action to cancel or obtain an Australian Business Number, if relevant.
  • Review Accountable Authority Instructions and issue new internal delegations as required.
  • The PS Act requirements for annual reports require that gaining agencies must report on the transferring function for the entire reporting period.
  • Gaining agency and transferring agency to contact Comcover to discuss whether a review of the risk profile and adjustment of premiums needs to be considered.
  • Gaining agency and transferring agency to contact Finance to discuss whether adjustment of the agencies' superannuation employer contribution rate is required.