It’s that time of year when NSW Government agencies will start thinking about writing and editing their 2024–25 annual report. So, it’s important to note that NSW Treasury has recently updated its guidance on annual reporting requirements for agencies covered by the Government Sector Finance Act 2018, which includes the general government sector, public corporations, state owned corporations and other reporting entities, including universities.
The update has a few mandatory changes, including the requirement to report climate-related exposures. It also outlines areas where teams working on annual reports – including our own expert writers and editors – can use their discretion.
Climate reporting
The big change on the horizon is reporting how an agency’s operations impact the environment.
Mandatory reporting of climate-related financial disclosures, legislated in August 2024, begins in earnest on July 1, when data collection begins. The change affects agencies whose operations generate emissions, with NSW Treasury setting out mandatory requirements for guiding principles and disclosures in October 2024.
Agencies won’t need to report the data until next year, but they should start thinking about it now.
NSW Treasury knows it’s a big task and agencies are given leeway in quantifying the impact of their operations on the environment. In NSW Treasury’s rulebook, this means disclosures must be ‘complete’ (so that the reader understands how climate-related risks will affect the agency’s prospects), ‘neutral’ (free from bias) and ‘accurate’ (as far as possible, considering that authors will rely on estimates).
A wide range of disclosures can be included, from energy use (such as electricity and fuel) to water consumption, use of recycled content and sustainable construction.
NSW Treasury suggests that while writing and/or editing an annual report, anyone looking for examples of relevant climate-related content could look at:
- the Australian Accounting Standards Board’s exposure draft Australian Sustainability Reporting Standards
- the NSW Government Resource Efficiency Policy
- NSW Treasury’s Guidance on how to reflect the effects of climate-related matters in financial statements
- the Climate Risk Ready NSW Guide, released by AdaptNSW.
Disclosures for the first year will not be subject to assurance requirements, and NSW Treasury will consult with agencies about assurance criteria for subsequent reports.
Other changes and tips
NSW Treasury’s update to annual reporting requirements includes a few small changes.
The cost of using a consultant during the year must be included in the annual report, but from 2024–25, it is mandatory to include the expenditure that is capitalised – or recorded on the balance sheet so it can be spread over accounting periods. Formerly, it was just a recommendation.
Following an update to the NSW Cyber Security Policy 2023-2024, it is no longer mandatory for agencies to include evidence of their cybersecurity policy in their annual report.
We recommend reading NSW Treasury’s annual reporting requirements before you start writing your 2024–25 annual report, or feel free to send questions to inbox@editorgroup.com.
What’s not changing
An annual report is no place for waffle – and NSW Treasury’s guiding principles are unchanged from last year. Any information in a report must support accountability and transparency, and it must be material, concise, clear, accessible and consistent.
Although information must appear under six mandated headings – overview; strategy; operations and performance; management and accountability; sustainability; and financial performance – agencies are free to choose which heading is the best fit for which information.
NSW Treasury offers some guidance on content that might be included under mandated headings in Appendix 2 of its annual reporting requirements.
Digital delivery of reports puts them in front of anyone with access to the internet. The 2024 guidelines include suggestions about when to use HTML, PDF or Excel formats to achieve the best search results and user-friendly experience.
How we can help
Since being founded in 1998, Editor Group has helped with writing, editing, proofreading and indexing hundreds of annual reports for government, corporate and not-for-profit clients. We’re also a member of key government supplier panels, including the NSW Government’s Advertising and Digital Communications Services Scheme and the Performance and Management Services Scheme. This makes it easy for agencies to engage our services.
Contact us to learn more.
By Jeremy Chunn, Senior Writer and Editor, Editor Group
