19   Tasmanian Audit Office

Agency Outline

The Tasmanian Audit Office (the Office) assists the Auditor‑General to provide an independent view of the financial and operational performance of State entities. The Audit Act 2008 sets out the Auditor‑General's functions, mandate and powers.

The Office's mandate is explicit in identifying its primary client as the Parliament. The Office will continue to satisfy Parliament's requirements by engaging with the Public Accounts Committee and individual Members, and by producing relevant reports aimed at providing independent assurance to the Parliament and community on the performance and accountability of the Tasmanian Public Sector.

It is the independence of the Auditor‑General and the Office, and the quality and objectivity of their work, that underpins its reputation.

The Office satisfies its mandate by:

·       conducting audits of financial statements of State entities and issuing audit reports outlining their compliance with relevant accounting standards and legislation;

·       providing an audit report on the Total State, General Government Sector and Public Account Statements, which form part of the Treasurer's Annual Financial Report;

·       issuing audit reports and other formal communications of audit findings to State entities, responsible Ministers and to relevant accountable authorities;

·       conducting audits of efficiency, effectiveness and economy of a State entity, a number of State entities, a part of a State entity or a subsidiary of a State entity;

·       examining or investigating any matter relating to the accounts of the Treasurer, a State entity or a subsidiary of a State entity;

·       examining or investigating any matter relating to public money, other money, or to public property or other property;

·       conducting compliance audits to examine compliance by a State entity, or a subsidiary of a State entity, with written laws or its own internal policies;

·       carrying out audits of employer functions outlined in the State Service Act 2000; and

·       managing its own activities efficiently and effectively.

The results of all audits conducted by the Auditor‑General are reported to Parliament for its consideration.

This chapter provides financial information about the Outputs to be delivered by the Office during 2015‑16 and over the Forward Estimates period (2016‑17 to 2018‑19). Further information about the Office is provided at www.audit.tas.gov.au.

Key Deliverables

The key deliverables for the Office include:

·       continuous improvement to financial audit processes and engagement with State entities to ensure financial statements, and audit reports thereon, are issued in a timely manner and in accordance with the requirements of the Audit Act. This will include upgrading the final audit methodology and associated tools in order to further enhance the audit process;

·       ongoing development and improvement of Statutory Reports to Parliament on outcomes of financial audits through the enhancement of reported information, report style and readability, financial analysis and more informed commentary;

·       ongoing development of a forward program of probity, performance and compliance audits for inclusion in annual plans of work;

·       development of a five-year forward strategic plan 2016-2020.

·       ongoing implementation of the Office's strategic plan 2012‑2015 and its revised supplementary strategic plan 2012‑2015;

·       responding to new and revised accounting and auditing standards and contributing to their development at the Exposure Draft stages;

·       addressing recommendations arising from an independent review of the Office pursuant to Section 44 of the Audit Act;

·       relocating to more cost effective office accommodation; and

·       continuing to undertake functions around the State Service Act as follows:

-  investigations referred by the Employer under the State Service Act which the Auditor‑General agrees to conduct; and

-  own‑motion investigations, audits or reviews initiated by the Auditor‑General.


 

Output Information

The Office's individual Output is provided under:

·       Output Group 1 ‑ Public Sector Management and Accountability.

Table 19.1 provides an Output Group Expense Summary for the Office.

Table 19.1:        Output Group Expense Summary

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Output Group 1 - Public Sector Management and Accountability

 

 

 

 

 

1.1  Public Sector Management and Accountability1

 7 368)

 7 733)

 7 925)

 8 080)

 8 206)

 

 7 368)

 7 733)

 7 925)

 8 080)

 8 206)

 

 

 

 

 

 

TOTAL

 7 368)

 7 733)

 7 925)

 8 080)

 8 206)

 

 

 

 

 

 

Note:

1.   The increase from 2015-16 reflects additional funding provided for probity/cross sector reviews of $50 000 and revised estimates of expenditure.

Output Group 1:  Public Sector Management and Accountability

1.1 Public Sector Management and Accountability

This Output Group enables the Office to provide independent assurance to the Parliament and community on the performance and accountability of the Tasmanian Public Sector. The services the Office must deliver to enable achievement of this Outcome are:

·       Audit Assurance ‑ independent assurance of Tasmanian public sector financial reporting, administration, control and accountability; and

·       Parliamentary Reports and Services ‑ independent assessment of the performance of selected State entity activities, including scope for improving economy, efficiency, effectiveness and compliance.


Table 19.2 provides details of the performance measures to be applied in assessing the Office's effectiveness and efficiency in achieving its outcomes.

Table 19.2:        Performance Information ‑ Output Group 1

 

Unit of Measure

2012-13

Actual

2013-14

Actual

2014-15

Target

2015-16

Target

 

 

 

 

 

 

Audit Assurance

 

 

 

 

 

All financial audit opinions to be issued within 45 days of receipt of final signed financial statements1

%

96

96

100

100

Overall client satisfaction survey - Financial Audit2

%

77

nm

75

nm

 

 

 

 

 

 

Parliamentary Reports and Services

 

 

 

 

 

Parliamentarian general satisfaction index2,3

%

96

nm

75

nm

Overall client satisfaction survey - Performance Audit2

%

79

nm

75

nm

Number of Performance Audit reports tabled4

Number

7

7

7

7

Number of Statutory Reports on outcomes of financial audits5

Number

 

1

 

1

1

1

Average number of months Performance Audits are completed within6

Average months

10.0

9.0

9.0

9.0

Recommendations agreed and acted upon from performance audits

%

 

nm

 

nm

70

70

Number of 'employer' Performance Audits completed7

Number

....

1

2

1

 

 

 

 

 

 

Office‑wide Efficiency Indicators

 

 

 

 

 

Total audit costs per $'000 of public sector transactions

$

0.4

0.4

0.4

0.4

Total audit costs per $'000 of public sector assets

$

0.2

0.2

0.2

0.2

Percentage of total (whole of office) paid hours charged to audit activities

%

 

51

 

50

 

55

 

55

 

 

 

 

 

 

nm = not measured

 

 

 

 

 

 

 

 

 

 

 

Notes:

1.   Financial statement audits are completed on a cyclical basis. Audits of financial statements at 30 June 2014 were completed in 2014-15.

2.   The Satisfaction Indexes are calculated when the biennial Parliamentarian and Client Surveys are conducted.

3.   The 2014‑15 Target represents the Australasian benchmark as used by Audit Offices in other jurisdictions.

4.   The number of reports tabled includes compliance audits and investigations where applicable.

5.   From 2010‑11, the Office has produced one Report which comprises five or six volumes annually.

6.   This measure previously reported the percentage of Performance Audits completed within eight months. The target from 2014-15 is to have these audits conducted on average within nine months due to their increased complexity.

7.   From 4 February 2013, the Office took on additional responsibilities under the State Service Act. One State Service Employer related project was completed in 2013-14. Of the two projects targeted for completion in 2014‑15, one was completed in August 2014 and one is due for completion by 30 June 2015.


 

Detailed Budget Statements

Table 19.3:        Statement of Comprehensive Income

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Appropriation revenue - recurrent1

 2 206)

 2 347)

 2 315)

 2 354)

 2 390)

Sales of goods and services

 5 010)

 5 262)

 5 329)

 5 398)

 5 398)

Other revenue

  185)

  165)

  165)

  158)

  158)

Total revenue and other income from transactions

 7 401)

 7 774)

 7 809)

 7 910)

 7 946)

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Employee benefits

 5 042)

 5 267)

 5 357)

 5 489)

 5 547)

Depreciation and amortisation

  53)

  72)

  54)

  49)

  49)

Supplies and consumables

 2 248)

 2 371)

 2 490)

 2 518)

 2 586)

Other expenses

  25)

  23)

  24)

  24)

  24)

Total expenses from transactions

 7 368)

 7 733)

 7 925)

 8 080)

 8 206)

 

 

 

 

 

 

Net result from transactions (net operating balance)

  33)

  41)

(116)

(170)

(260)

 

 

 

 

 

 

Net result

  33)

  41)

(116)

(170)

(260)

 

 

 

 

 

 

Comprehensive result

  33)

  41)

(116)

(170)

(260)

 

 

 

 

 

 

Note:

1.   The increase in Appropriation revenue - recurrent in 2015‑16 reflects additional expenditure for the 27th pay (refer to Chapter 1 of this Budget paper for further information) and the provision of an additional $50 000 for probity/cross sector reviews.


 

Table 19.4:        Revenue from Appropriation by Output

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 - Public Sector Management and Accountability

 

 

 

 

 

1.1  Public Sector Management and Accountability1

 1 662)

 1 779)

 1 756)

 1 795)

 1 831)

 

 1 662)

 1 779)

 1 756)

 1 795)

 1 831)

 

 

 

 

 

 

Recurrent Services

 1 662)

 1 779)

 1 756)

 1 795)

 1 831)

 

 1 662)

 1 779)

 1 756)

 1 795)

 1 831)

 

 

 

 

 

 

Reserved by Law

 

 

 

 

 

Salary and Travelling Allowance, Auditor‑General (Audit Act 2008)

  544)

  568)

  559)

  559)

  559)

 

  544)

  568)

  559)

  559)

  559)

 

 

 

 

 

 

Total Revenue from Appropriation

 2 206)

 2 347)

 2 315)

 2 354)

 2 390)

 

 

 

 

 

 

Controlled Revenue from Appropriation

 2 206)

 2 347)

 2 315)

 2 354)

 2 390)

 

 2 206)

 2 347)

 2 315)

 2 354)

 2 390)

 

 

 

 

 

 

Note:

1.   The increase in 2015-16 reflects additional expenditure for the 27th pay (refer to Chapter 1 of this Budget paper for further information) and the provision of an additional $50 000 for probity/cross sector reviews.


 

Table 19.5:        Statement of Financial Position as at 30 June

 

2015)

 

Budget)

2016)

 

Budget1)

2017)

Forward)

Estimate)

2018)

Forward)

Estimate)

2019)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits

 1 492)

 2 363)

 2 281)

 2 136)

 1 909)

Receivables

  393)

  513)

  508)

  503)

  498)

Other financial assets

  290)

  355)

  350)

  345)

  340)

 

 2 175)

 3 231)

 3 139)

 2 984)

 2 747)

Non-financial assets

 

 

 

 

 

Property, plant and equipment

  280)

  169)

  142)

  116)

  82)

Other assets

  45)

  28)

  26)

  22)

  18)

 

  325)

  197)

  168)

  138)

  100)

 

 

 

 

 

 

Total assets

 2 500)

 3 428)

 3 307)

 3 122)

 2 847)

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables

  65)

  128)

  125)

  122)

  119)

Employee benefits

  925)

 1 127)

 1 117)

 1 112)

 1 107)

Other liabilities

  346)

  168)

  176)

  169)

  162)

Total liabilities

 1 336)

 1 423)

 1 418)

 1 403)

 1 388)

 

 

 

 

 

 

Net assets (liabilities)

 1 164)

 2 005)

 1 889)

 1 719)

 1 459)

 

 

 

 

 

 

Equity

 

 

 

 

 

Accumulated funds

(4)

  837)

  721)

  551)

  291)

Other equity

 1 168)

 1 168)

 1 168)

 1 168)

 1 168)

Total equity

 1 164)

 2 005)

 1 889)

 1 719)

 1 459)

 

 

 

 

 

 

Note:

1.   Movements in statement items between 2015 Budget and 2016 Budget reflect revised estimates based on 30 June 2014 actuals.


 

Table 19.6:        Statement of Cash Flows

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts - recurrent1

 2 206)

 2 347)

 2 315)

 2 354)

 2 390)

Sales of goods and services

 5 219)

 5 614)

 5 597)

 5 651)

 5 651)

GST receipts

  639)

  598)

  635)

  672)

  672)

Other cash receipts

  185)

  165)

  165)

  158)

  158)

 Total cash inflows

 8 249)

 8 724)

 8 712)

 8 835)

 8 871)

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits1

(4 724)

(5 220)

(5 163)

(5 291)

(5 349)

Superannuation

(486)

(399)

(454)

(453)

(453)

GST payments

(639)

(598)

(635)

(672)

(672)

Supplies and consumables

(2 252)

(2 367)

(2 487)

(2 511)

(2 579)

Other cash payments

(25)

(23)

(24)

(24)

(24)

Total cash outflows

(8 126)

(8 607)

(8 763)

(8 951)

(9 077)

 

 

 

 

 

 

Net cash from (used by) operating activities

  123)

  117)

(51)

(116)

(206)

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non-financial assets

(81)

(131)

(31)

(29)

(21)

Net cash from (used by) investing activities

(81)

(131)

(31)

(29)

(21)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

  42)

(14)

(82)

(145)

(227)

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

 1 450)

 2 377)

 2 363)

 2 281)

 2 136)

Cash and deposits at the end of the reporting period

 1 492)

 2 363)

 2 281)

 2 136)

 1 909)

 

 

 

 

 

 

Note:

1.   The increase in Appropriation receipts - recurrent and Employee benefits in 2015‑16 reflects additional expenditure for the 27th pay (refer to Chapter 1 of this Budget paper for further information) and the provision of additional funding of $50 000 for probity/cross sector reviews.