The link between the financial health of providers and the delivery of safe, high quality care is well known. The financial and prudential reporting responsibilities ensure providers are transparent about their finances and the management of refundable accommodation deposits.
Approved aged care providers holding refundable deposits must follow the 4 Prudential Standards:
View the Prudential Standards Poster for a summary of the 4 standards.
Reforming financial and prudential regulation
On 1 July 2023, financial monitoring of approved aged care providers transferred from the Department of Health and Aged Care to the Aged Care Quality and Safety Commission.
The change gives us a better understanding of the risks across the aged care sector affecting financial viability and quality of care. Hear from the Commissioner, Janet Anderson PSM, on the transfer of this responsibility, and how it will enhance our existing functions as the prudential regulator.
For more information, visit our Financial viability support for aged care providers webpage.
As part of the proposed new Aged Care Act, we'll be developing Financial and Prudential Standards. This includes a new Liquidity Standard for residential providers. We'll consult with industry on drafting this new Standard in the coming months.
Financial reporting and prudential responsibilities are set out in the:
- Aged Care Act 1997
- Accountability Principles 2014
- Fees and Payments Principles 2014 (No. 2).
Provider financial reporting requirements
Planning and timely submission is vital as extensions are not allowed.
Quarterly financial report (QFR)
You must submit 4 QFRs over the course of the year.
The type of service you deliver determines the sections that need to be completed. For more information, visit the Department of Health and Aged Care’s website.
Aged care financial report (AFCR)
If your financial year ends 30 June, you must:
- complete and lodge an ACFR via the online portal by 31 October
- include an audited General Purpose Financial Report.
If you have a non-standard financial year, you must apply to the Secretary of the Department to report outside the standard financial year. For more information, visit the Department of Health and Aged Care's webpage.
General purpose financial report (GPFR)
If you are required to lodge a GPFR, you must publish it:
- on your website if you have one or another website that is publicly available
- within 5 months of your end of financial year.
Annual prudential compliance statement (APCS)
The APCS is submitted as part of the ACFR. Providers who held a refundable deposit for the reporting period must submit an APCS. For more information, visit our Disclosure Standard webpage.
To ensure you meet your financial reporting obligations, you should:
- ensure effective governance over financial reporting
- keep accurate data and records
- engage your auditors early (for ACFR, GPFR and APCS)
- seek support early
- complete a new declaration from authorised personnel for each submission
- lodge your financial report early.
For more information, see the provider reporting requirements factsheet.
Engaging with the Commission
Stay up to date with financial and prudential regulation information by subscribing to Financial and Prudential Regulatory Insights.
We can help you identify and manage risk and your finances, so you can sustainably deliver high quality care and services.
For support with prudential compliance and financial reporting obligations, please email email@example.com
For support with financial viability support and targeted reviews and audits, please email firstname.lastname@example.org