Since 2008, the DMO has expended considerable resources and effort to produce - where practicable - Base Date Dollar calculations solely for the purpose of completing the PDSS financial management information in the MPR. Despite the difficulty in calculating this information, the DMO has been able to provide this information for 14 of the 28 MPR projects that are reported in this MPR. Importantly, the qualification in this report does not indicate or infer any issues with the overall system of financial management in the DMO. The DMO effectively manages its finances in accordance with legislation and associated policy requirements. As further confirmation of the quality of DMO's financial management, the Auditor-General has again provided an unmodified audit opinion on the DMO's financial statements in 2010-11.
As indicated in previous MPRs, the standard project management and performance reporting requirements for DMO projects do not require management and/or reporting in base date dollars. Hence, projects report performance to our stakeholders in current-day dollars. The conversion of financial data, particularly contract expenditure, into base date dollars for a number of MPR projects has proven a time consuming exercise offering limited value for project management outcomes.
The DMO Accounting Policy Manual provides a reference source for the accounting policies that are applicable to financial transactions undertaken within the DMO. The accounting policies contained within this Manual recognise the requirements of the Australian Accounting Standards Board, Australian Government legislation, and the Finance Minister's Orders for Financial Reporting, issued by the Minister for Finance and Deregulation.
The DMO intends to produce a paper for the JCPAA's consideration in early 2012 that establishes a foundation for a revised financial reporting methodology for future MPR's.