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R.153/2024
In This Guide
Introduction 1 Overarching principles 4
Strategy 5 Risks 6 Operations 8 Performance analysis 9 Financial performance 10 External factors 11
Accountability report 13 Financial statements 16 Supporting accountability 17
Accessibility 18 Transparent 19
Annual reports are a key means by which an entity tells the story of its year. Public annual reporting, done well, enables stakeholders to understand – with trust and confidence – an entity's strategy and the risks it faces, how much money has been spent and on what, and what has been achieved as a result. It enables stakeholders to hold the entity to account effectively. The key elements of a good practice annual report are shown below.
Single Annual Report
Supporting accountability Transparent
Accessibility Understandable
Performance Report Accountability Report Financial Statements
Strategy Directors' or equivalent report Prepared under a suitable framework
Risks A statement of responsibilities Suitably assured Operations A governance report
Performance analysis A remuneration and staff report
Financial performance
External factors
This updated Good Practice Guide sets out some good practice principles for transparency and excellence in annual reporting by public bodies and provides some illustrative examples drawn from annual reports.
Overarching principles
The best reports:
• tell the story of the organisation in a fair and balanced way
• comply with relevant reporting requirements; and
• include clear action points to take forward.
The best reports include:
• frank and honest analysis
• consideration of the challenges an organisation is facing
• appropriate use of data; and
• quantification of risks and performance measures.
These principles should be evident across all parts of the annual report.
- Accessibility
The best reports:
• highlight key trends in the financial statements
• include concise summaries of key points; and
• consider how the organisation engages with key stakeholders and meets their needs.
Understandable
The best reports use:
• plain English to explain difficult concepts
• infographics and diagrams to communicate important messages; and
• a clearly integrated structure to help users navigate it effectively.
Strategy
The best reports include:
• a statement of the purpose and activities of the entity, including:
- a brief description of the business model and environment
- organisational structure and priorities; and
- any other organisational strategic objectives and goals
• clarity around purpose, strategic objectives and key programmes/projects
• balanced view of progress against objectives
• details of plans to implement priorities; and
• strategy clearly linked to performance measures and risks.
Digital Jersey sets out its strategy clearly in a diagram. The colour coded quadrants are then used in the pages that follow the diagram to comment on performance against the strategy.
• clear articulation of the entity's risk management process
• the key issues and risks that could affect the entity in delivering its objectives, how they have changed, how they have been mitigated and any emerging risks that may affect future performance
• risks that reflect the external environment and implications for the entity (for example, the COVID - 19 pandemic)
• clear links between risks, strategic objectives and the annual report narrative
• quantified risks and realistic planned and implemented mitigations; and
• discussion about how the dynamic of the risk profile has changed over time, including developments in relation to specific risks disclosed.
Jersey Water provides a clear description of risk management processes.
Jersey Water also provides a clear link between risks and strategy and sets out the risk trends
Operations
The best reports include:
• discussion of the different delivery models, the reasons for using these models and how they achieve value for money
• narrative around how business operations support wider Government (or other) objectives
• for significant contracted-out services, discussion of how these contracts are awarded and how the entity manages the ongoing contract; and
• consideration of capital investment and how it achieves value for money.
The Jersey Finance annual report contains a clear visual representation of how its objectives are delivered by teams.
Jersey Sport provides an analysis of performance against targets and each objective in a clear The best reports include:
way which makes it easy to understand.
• a statement from the entity's lead Minister or chief executive, accountable officer or equivalent
• a performance analysis showing how the organisation has performed against priorities using qualitative and quantitative information and prior year trend information where possible
• non-financial information including on environmental protection, social responsibility, respect for human rights, anti-corruption and anti-bribery matters and diversity
• information on environmental matters including the impact of the entity's business on the environment and identifying where its performance contributes towards the delivery of United Nations Sustainable Development Goals (SDGs)
• quantified Key Performance Indicators (KPIs) aligned to strategic objectives and making appropriate use of financial and non-financial data
• balanced assessment of goals achieved and performance against targets; and
• graphics used to illustrate performance. Jersey Sport Annual-Report 2023
The Jersey Police Authority's report on the States of Jersey Police contains a commentary on financial The best reports include:
performance comparing actual and budgeted expenditure in a clear and understandable way.
• a financial review detailing financial performance
• a fair and balanced reflection of financial performance which is consistent with the underlying financial statements
• an explanation of the adoption of the going concern basis where this might be called into doubt; and
• discussion of actual performance against expected/budgeted performance.
Andium Homes includes a commentary on how its activities and performance link to the Jersey Performance The best reports include:
Framework and Island Outcome Indicators.
• consideration of the external drivers that influence and impact on current objectives; and
• innovative reporting on sustainability and climate change.
Andium Homes Annual Report 2023
Jersey Electricity's annual report includes information based on the Task Force on Climate-related Financial Disclosures (TCFD) requirements. In doing so, the report includes a clear table of compliance with TCFD requirements with signposting to
where the disclosures can be found in the body of the report.
The best reports include an The Channel Islands Financial Services Ombudsman report contains clear data on Board members
attendance, remuneration and register of interests.
accountability report that encompasses:
Directors' or equivalent report A statement of responsibilities A governance report
A remuneration and staff report
These include sensitive areas such as assessments of the effectiveness of the board (or equivalent) and senior pay.
Channel Islands Financial Services Ombudsman Annual Report 2023
The Jersey Care Commission Annual Report includes a clear commentary on how the Board assesses its own effectiveness.
Jersey Care Commission Annual Report 2023
Andium Homes Annual Report includes good practice Fair Pay Disclosures
Andium Homes Annual Report 2023
The JT Annual Report includes a specific section on Our People' with relevant data presented in an easy to understand and engaging way.
The Digital Jersey annual report includes the audited financial statements and independent auditor's report. Where entities are required to The financial statements are prepared under the UK Financial Reporting Standard (FRS) 102. Digital Jersey takes
prepare financial statements, the advantage of the FRS 102(1A) exemption from preparing a statement of cash flows. It also discloses how the best reports include financial directors are satisfied with the going concern basis.
statements that are:
Prepared under a suitable
framework; and
Suitably assured.
- Supporting accountability
The best reports: The Jersey Care Commission Annual Report includes a clear and balanced commentary on performance against
strategic objectives. For each area, the Report provides disclosure on action points to take forward.
• tell the story of the organisation in a fair and balanced way
• comply with relevant reporting requirements; and
• include clear action points to take forward.
Jersey Care Commission Annual Report 2023
- Accessibility
The best reports: The States of Jersey Group Annual Report includes trend analysis for key elements of the financial statements.
• highlight key trends in the financial statements
• include concise summaries of key points; and
• consider how the organisation engages with key stakeholders and meets their needs.
States of Jersey Group 2023 Annual Report and Accounts
Transparent
The best reports include: The Jersey Care Commission Annual Report includes a commentary on all key performance measures in a
transparent and easy to understand manner.
• frank and honest analysis
• consideration of the challenges an organisation is facing
• appropriate use of data; and
• quantification of risks and performance measures.
Jersey Care Commission Annual Report 2023
Understandable
The best reports use: Jersey Water introduces a colour scheme for its strategy early in its Annual Report and continues the colour
scheme in the commentary on performance helping the user navigate the report more easily.
• plain English to explain difficult concepts
• infographics and diagrams to communicate important messages; and
• a clearly integrated structure to help users navigate it effectively.
The purpose of the Comptroller and Auditor General (C&AG), fulfilled through the Jersey Audit Office (JAO), is to provide independent assurance to the people of Jersey on the extent to which public money is spent economically, efficiently and effectively and on whether the controls and governance arrangements in place within public bodies demonstrate value for money. The C&AG's remit includes the audit of financial statements and wider consideration of public funds, including internal financial control, value for money and corporate governance.
This Guide can be found on the Jersey Audit Office website at https://www.jerseyauditoffice.je/ If you need a version of this report in an alternative format for accessibility reasons, or any of the exhibits in a different format, please contact enquiries@jerseyauditoffice.je with details of your request.
All information contained in this Guide is current at the date of publication.
The Comptroller and Auditor General and Jersey Audit Office are not responsible for the future validity of external links contained within the report. All information contained in this Guide is © Copyright Office of the Comptroller and Auditor General and the Jersey Audit Office, with the exception or extracts included from external sources, which are © Copyright to those external sources. The information contained in this Guide is for non-commercial purposes only and may not be copied, reproduced, or published without proper reference to its source. If you require the material contained in the report for any other purpose, you are required to contact enquiries@jerseyauditoffice.je with full details of your request.
LYNN PAMMENT CBE Comptroller and Auditor General
Jersey Audit Office, De Carteret House, 7 Castle Street, St Helier, Jersey JE2 3BT T: +44 1534 716800 E: enquiries@jerseyauditoffice.je W: www.jerseyauditoffice.je