Policies and procedures

• Month- and year‑end reporting policies and procedures are not documented
• Reconciliations are not performed
• Reporting is on a cash basis

• Month- and year‑end reporting policies and procedures are updated regularly
• Reconciliations are performed for some accounts, including all material accounts
• Estimates and accruals are used for some accounts

• Month- and year‑end reporting policies and procedures are reviewed in a two‑year cycle
• Manual reconciliations are prepared for all accounts
• Estimates and accruals are used every reporting end

• Month- and year‑end reporting policies, processes and procedures are annually reviewed and updated with extensive consultation and are well understood
• Automated / partially automated reconciliations are performed for all accounts
• Estimates and accruals are used every reporting end and adjusted periodically where appropriate

People and organisation

• Roles and responsibilities are broad / not clear or not defined
• Staff always work overtime during reporting end
• No training exists

• Roles and responsibilities are assigned but some confusion and overlap exists
• Staff sometimes work overtime during reporting end
• Informal training / on‑the-job training exists

• Roles and responsibilities are clear and well understood
• Occasional overtime is required
• Training is provided as part of the onboarding process

• Roles and responsibilities are clearly understood and well documented
• Overtime is rare
• Training is provided as part of the onboarding process, with a formal training program in place to aid with staff development

Data and technology

• Sub-ledger is manually uploaded to the general ledge with adjustments to entries required
• Financial statements are manually prepared
• Statutory entity reporting and management reporting are two separate processes

• Sub-ledger data is interfaced with the general ledger, with manual intervention and reconciliations required to ensure accuracy
• Financial statement preparation is automated, with manual adjustments required
• Statutory entity reporting and management reporting are two separate processes, with a formal reconciliation process

• Sub-ledger is electronically transferred to the general ledger, with few adjustments required
• Financial statement preparation is mostly automated
• Statutory entity and management reporting have been made consistent, with manual intervention required

• Sub-ledger data automatically interfaces with the general ledger and is balanced daily
• All financial statement preparation is automated
• Statutory entity and management reporting is consistent

Internal controls over financial reporting

• Controls are mostly manual
• Controls are reviewed by management on an ad hoc basis
• Key accounts are included in the financial statement risk assessment, but this process is not documented

• Controls are typically system based and integrated with core financial applications
• Controls are routinely monitored by management
• Key accounts are included in the financial statement risk assessment based on a predetermined assessment

• Majority of controls are automated and managed electronically
• Controls are effectively monitored against process effectiveness
• A formal risk assessment has been completed where key accounts are reviewed more frequently than others

• Controls are highly automated and managed through core financial application roles
• Controls are monitored against defined criteria and balanced against process effectiveness
• A formal risk assessment has been completed where key accounts are reviewed monthly; all accounts are reviewed at least once annually