19   Tasmanian Audit Office

Agency Outline

The Tasmanian Audit Office (the Office) assists the Auditor‑General 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 forms part of the Treasurer's Annual Financial Report;

·       issuing audit reports and other formal communications of audit findings to State entities, responsible Ministers and 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 Output to be delivered by the Office during 2016‑17 and over the Forward Estimates period (2017‑18 to 2019‑20). 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;

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

·       facilitating the Fiji Twinning arrangement between the Office and the Office of the Auditor‑General of Fiji with funding provided by the Department of Foreign Affairs and Trade;

·       finalising the implementation of recommendations arising from an independent review of the Office pursuant to section 44 of the Audit Act; 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

 

2015-16)

 

Budget)

2016-17)

 

Budget)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

2019-20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Output Group 1 - Public Sector Management and Accountability

 

 

 

 

 

1.1  Public Sector Management and Accountability1

 7 733)

 8 191)

 8 186)

 8 250)

 8 317)

 

 7 733)

 8 191)

 8 186)

 8 250)

 8 317)

 

 

 

 

 

 

TOTAL

 7 733)

 8 191)

 8 186)

 8 250)

 8 317)

 

 

 

 

 

 

Note:

1.   The increase in Public Sector Management and Accountability in 2016‑17 reflects revised estimates based on 30 June 2015 actuals.

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

2013-14

Actual

2014-15

Actual

2015-16

Target

2016-17

Target

 

 

 

 

 

 

Audit Assurance

 

 

 

 

 

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

%

96

92

100

100

Overall client satisfaction survey - Financial Audit2

%

nm

80

nm

75

 

 

 

 

 

 

Parliamentary Reports and Services

 

 

 

 

 

Parliamentarian general satisfaction index2,3

%

nm

97

nm

75

Overall client satisfaction survey - Performance Audit2

%

nm

69

nm

75

Number of Performance Audit reports tabled4

Number

7

6

7

7

Number of Statutory Reports on outcomes of financial audits

Number

 

1

1

1

1

Average number of months Performance Audits are completed within5

Average Months

9.0

10.0

9.0

9.0

Recommendations agreed and acted upon from performance audits

%

 

nm

64

70

70

Number of 'employer' Performance Audits completed

Number

1

1

1

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 activities6

%

 

50

 

48

 

55

 

55

 

 

 

 

 

 

nm = not measured

 

 

 

 

 

 

 

 

 

 

 

Notes:

1.   Financial statement audits are completed on a cyclical basis. Audits of financial statements at 30 June 2015 were completed in 2015‑16.

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

3.   The 2016‑17 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. The decrease by one report in 2014‑15 was due to staff absences and one staff departure.

5.   The length of time taken to table performance reports for 2014‑15 was 10 months. This was mainly due to the complexity in scoping of one of the reports.

6.   The percentage decrease in 2014‑15 reflects the extra time taken to implement the upgrade of new audit methodology (IPSAM 4). This required an increase in training hours for all financial audit services staff.


 

Detailed Budget Statements

Table 19.3:        Statement of Comprehensive Income

 

2015-16)

 

Budget)

2016-17)

 

Budget)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

2019-20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Appropriation revenue ‑ recurrent1

 2 347)

 2 313)

 2 350)

 2 385)

 2 408)

Sales of goods and services2

 5 262)

 5 604)

 5 683)

 5 693)

 5 703)

Other revenue

  165)

  165)

  158)

  158)

  158)

Total revenue and other income from transactions

 7 774)

 8 082)

 8 191)

 8 236)

 8 269)

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Employee benefits2

 5 267)

 5 256)

 5 356)

 5 455)

 5 572)

Depreciation and amortisation3

  72)

  54)

  49)

  49)

  49)

Supplies and consumables2

 2 371)

 2 582)

 2 487)

 2 453)

 2 391)

Other expenses2

  23)

  299)

  294)

  293)

  305)

Total expenses from transactions

 7 733)

 8 191)

 8 186)

 8 250)

 8 317)

 

 

 

 

 

 

Net result from transactions (net operating balance)

  41)

(109)

  5)

(14)

(48)

 

 

 

 

 

 

Net result

  41)

(109)

  5)

(14)

(48)

 

 

 

 

 

 

Comprehensive result

  41)

(109)

  5)

(14)

(48)

 

 

 

 

 

 

Notes:

1.   The decrease in Appropriation revenue - recurrent in 2016‑17 reflects the cessation of one‑off funding for the 27th pay in 2015-16.

2.   The variations in Sales of goods and services, Employee benefits, Supplies and consumables and Other expenses in 2016‑17 reflect revised estimates based on 30 June 2015 actuals.

3.   The decrease in Depreciation and amortisation in 2016‑17 reflects a reduction in amortisation due to all intangible assets being fully depreciated.

 


1.    

Table 19.4:        Revenue from Appropriation by Output

 

2015-16)

 

Budget)

2016-17)

 

Budget)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

2019-20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 - Public Sector Management and Accountability

 

 

 

 

 

1.1  Public Sector Management and Accountability1

 1 779)

 1 853)

 1 871)

 1 891)

 1 902)

 

 1 779)

 1 853)

 1 871)

 1 891)

 1 902)

 

 

 

 

 

 

Tasmanian Audit Office

 

 

 

 

 

Total Recurrent Services

 1 779)

 1 853)

 1 871)

 1 891)

 1 902)

 

 1 779)

 1 853)

 1 871)

 1 891)

 1 902)

 

 

 

 

 

 

Reserved by Law

 

 

 

 

 

Salary and Travelling Allowance, Auditor-General (Audit Act 2008)1

  568)

  460)

  479)

  494)

  506)

 

  568)

  460)

  479)

  494)

  506)

 

 

 

 

 

 

Total Revenue from Appropriation

 2 347)

 2 313)

 2 350)

 2 385)

 2 408)

 

 

 

 

 

 

Controlled Revenue from Appropriation

 2 347)

 2 313)

 2 350)

 2 385)

 2 408)

 

 2 347)

 2 313)

 2 350)

 2 385)

 2 408)

 

 

 

 

 

 

Note:

1.   Variations include the impact of a Budget neutral reallocation of $99 000 between Reserved by Law and general Consolidated Fund funding. Further information on this change is provided in chapter 1 of this Budget Paper.


 

Table 19.5:        Statement of Financial Position as at 30 June

 

2016)

 

Budget)

2017)

 

Budget1)

2018)

Forward)

Estimate)

2019)

Forward)

Estimate)

2020)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits

 2 363)

 1 989)

 2 019)

 2 038)

 2 023)

Receivables

  513)

  509)

  504)

  499)

  494)

Other financial assets

  355)

  533)

  528)

  523)

  518)

 

 3 231)

 3 031)

 3 051)

 3 060)

 3 035)

Non-financial assets

 

 

 

 

 

Property, plant and equipment2

  169)

  300)

  274)

  240)

  206)

Other assets

  28)

  27)

  23)

  19)

  15)

 

  197)

  327)

  297)

  259)

  221)

 

 

 

 

 

 

Total assets

 3 428)

 3 358)

 3 348)

 3 319)

 3 256)

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables

  128)

  79)

  76)

  73)

  70)

Employee benefits

 1 127)

 1 170)

 1 165)

 1 160)

 1 155)

Superannuation

....)

  149)

  149)

  149)

  149)

Other liabilities

  168)

  233)

  226)

  219)

  212)

Total liabilities

 1 423)

 1 631)

 1 616)

 1 601)

 1 586)

 

 

 

 

 

 

Net assets (liabilities)

 2 005)

 1 727)

 1 732)

 1 718)

 1 670)

 

 

 

 

 

 

Equity

 

 

 

 

 

Accumulated funds

  837)

  559)

  564)

  550)

  502)

Other equity

 1 168)

 1 168)

 1 168)

 1 168)

 1 168)

Total equity

 2 005)

 1 727)

 1 732)

 1 718)

 1 670)

 

 

 

 

 

 

Notes:

1.   The variation in statement items between 2016 Budget and 2017 Budget reflect revised estimates based on 30 June 2015 actuals.

2.   The increase in Property, plant and equipment in 2017 reflects the capitalisation of refurbishment costs incurred during the Office's relocation to new premises in June 2015.


 

Table 19.6:        Statement of Cash Flows

 

2015-16)

 

Budget)

2016-17)

 

Budget)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

2019-20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts ‑ recurrent1

 2 347)

 2 313)

 2 350)

 2 385)

 2 408)

Sales of goods and services2

 5 614)

 5 872)

 5 936)

 5 946)

 5 956)

GST receipts

  598)

  635)

  672)

  672)

  672)

Other cash receipts

  165)

  165)

  158)

  158)

  158)

 Total cash inflows

 8 724)

 8 985)

 9 116)

 9 161)

 9 194)

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits3

(5 220)

(4 868)

(4 954)

(5 011)

(5 152)

Superannuation2

(399)

(648)

(657)

(699)

(675)

GST payments

(598)

(635)

(672)

(672)

(672)

Supplies and consumables2

(2 367)

(2 579)

(2 480)

(2 446)

(2 384)

Other cash payments2

(23)

(299)

(294)

(293)

(305)

Total cash outflows

(8 607)

(9 029)

(9 057)

(9 121)

(9 188)

 

 

 

 

 

 

Net cash from (used by) operating activities

  117)

(44)

  59)

  40)

  6)

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non-financial assets

(131)

(31)

(29)

(21)

(21)

Net cash from (used by) investing activities

(131)

(31)

(29)

(21)

(21)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

(14)

(75)

  30)

  19)

(15)

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

 2 377)

 2 064)

 1 989)

 2 019)

 2 038)

Cash and deposits at the end of the reporting period

 2 363)

 1 989)

 2 019)

 2 038)

 2 023)

 

 

 

 

 

 

Notes:

1.   The decrease in Appropriation receipts - recurrent in 2016‑17 reflects the cessation of funding in 2015‑16 for the 27th pay.

2.   The increases in Sales of goods and services, Superannuation, Supplies and consumables and Other cash payments in 2016‑17 reflect revised estimates based on 30 June 2015 actuals.

3.   The decrease in Employee benefits in 2016‑17 reflects the cessation of funding in 2015‑16 for the 27th pay and revised estimates based on 30 June 2015 actuals.