The Australian Institute of Superannuation Trustees (AIST) has flagged concerns around the transition period required for Australian Prudential Regulation Authority’s (APRA) amendments to SPS 310 Audit and Related Matters.
In December, APRA announced it was consulting on updates to the SPS 310 to align with changes to APRA’s reporting standards for superannuation.
“APRA observed a relatively high number of data resubmissions leading into the initial Your Future, Your Super (YFYS) performance test. It is crucial that registrable superannuation entity (RSE) licensees develop and maintain systems, procedures and internal controls to ensure a robust approach to data management and reliable reporting to APRA.”
Proposed changes including removing the requirement to review seven reporting standards because the data would be superseded by new reporting standards, requiring assurance over six new reporting standards and leaving the requirements applying to six existing reporting standards unchanged.
AIST’s submission provided an alternative stating that it would be beneficial for the changes to be effective from 1 July, 2023.
AIST chief executive, Eva Scheerlinck, said: “We acknowledge APRA’s letter stating the changes are minor. However, the changes are in fact significant and necessitate sufficient time for fund trustees and auditors to prepare.”
Scheerlinck said it was unclear when the proposals would become effective but that short notice for changes would be costly at this stage of the financial year.
This was because auditors had already outlined their audit scope to committees and any changes would result in additional costs for RSE licensees and ultimately their members.
“In addition, it places fund trustees at risk of not complying with annual returns and lodgement within the required timeframe,” Scheerlinck said.
“In addition, APRA and industry stakeholders continue to liaise in relation to new reporting forms SRF 332.0 Expenses and those under SRS 550.0 Asset Allocation. We consider that it is appropriate to allow more time for the proposed changes to apply given these considerations, noting that reporting under SRS 332.0 Expenses is on a best endeavours basis.”
