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 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 2017‑18 and over the Forward Estimates period (2018‑19 to 2020‑21). Further information about the Office is provided at www.audit.tas.gov.au.
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 revisions to the 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;
· completion of probity, performance and compliance audits as documented in the annual plan of work, and the reporting of the outcomes to Parliament;
· completion of examinations of, or investigations into, matters relating to public money, other money, or into public property or other property, and the reporting of the outcomes to Parliament;
· continuation of functions under 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;
· implementation of the Office's five‑year strategic plan 2016‑2020;
· responding to new and revised accounting and auditing standards and contributing to their development at the Exposure Draft stages; and
· 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.
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
|
|
2016-17)
Budget) |
2017-18)
Budget) |
2018-19) Forward) Estimate) |
2019-20) Forward) Estimate) |
2020-21) Forward) Estimate) |
|
|
$'000) |
$'000) |
$'000) |
$'000) |
$'000) |
|
|
|
|
|
|
|
|
Output Group 1 - Public Sector Management and Accountability |
|
|
|
|
|
|
1.1 Public Sector Management and Accountability |
8 191) |
8 184) |
8 252) |
8 323) |
8 418) |
|
|
8 191) |
8 184) |
8 252) |
8 323) |
8 418) |
|
|
|
|
|
|
|
|
TOTAL |
8 191) |
8 184) |
8 252) |
8 323) |
8 418) |
|
|
|
|
|
|
|
Output Group 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 |
2014-15 Actual |
2015-16 Actual |
2016-17 Target |
2017-18 Target |
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|
|
|
|
|
|
Audit Assurance |
|
|
|
|
|
|
All financial audit opinions to be issued within 45 days of receipt of final signed financial statements1 |
% |
92 |
97 |
100 |
100 |
|
Overall client satisfaction survey - Financial Audit2 |
% |
80 |
nm |
75 |
nm |
|
|
|
|
|
|
|
|
Parliamentary Reports and Services |
|
|
|
|
|
|
Parliamentarian general satisfaction index2,3 |
% |
97 |
nm |
75 |
nm |
|
Overall client satisfaction survey - Performance Audit2 |
% |
69 |
nm |
75 |
nm |
|
Number of Performance Audit reports tabled4 |
Number |
6 |
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 |
10.0 |
9.0 |
9.0 |
9.0 |
|
Recommendations agreed and acted upon from performance audits |
% |
64 |
77 |
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 |
% |
48 |
49 |
55 |
55 |
|
|
|
|
|
|
|
|
nm = not measured |
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|
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Notes:
1. Financial statement audits are completed on a cyclical basis. Audits of financial statements at 30 June 2016 will be completed in 2016-17.
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 and 2015-16 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 of total (whole of office) paid hours charged to audit activities 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. The effect of this has also been felt in 2015-16 along with the additional recruitment of graduate staff. The Office predicts it will return to expected operational levels in 2016-17 and across the Forward Estimates.
Table 19.3: Statement of Comprehensive Income
|
|
Budget) |
Budget) |
Forward) Estimate) |
Forward) Estimate) |
Forward) Estimate) |
|
|
$'000) |
$'000) |
$'000) |
$'000) |
$'000) |
|
|
|
|
|
|
|
|
Revenue and other income from transactions |
|
|
|
|
|
|
Appropriation revenue - recurrent1 |
2 313) |
2 493) |
2 532) |
2 559) |
2 617) |
|
Sales of goods and services2 |
5 604) |
5 683) |
5 693) |
5 703) |
5 740) |
|
Other revenue3 |
165) |
13) |
13) |
13) |
13) |
|
Total revenue and other income from transactions |
8 082) |
8 189) |
8 238) |
8 275) |
8 370) |
|
|
|
|
|
|
|
|
Expenses from transactions |
|
|
|
|
|
|
Employee benefits |
5 256) |
5 356) |
5 455) |
5 572) |
5 621) |
|
Depreciation and amortisation2 |
54) |
49) |
49) |
49) |
74) |
|
Supplies and consumables2 |
2 582) |
2 485) |
2 455) |
2 397) |
2 406) |
|
Other expenses2 |
299) |
294) |
293) |
305) |
317) |
|
Total expenses from transactions |
8 191) |
8 184) |
8 252) |
8 323) |
8 418) |
|
|
|
|
|
|
|
|
Net result from transactions (net operating balance) |
(109) |
5) |
(14) |
(48) |
(48) |
|
|
|
|
|
|
|
|
Net result |
(109) |
5) |
(14) |
(48) |
(48) |
|
|
|
|
|
|
|
|
Comprehensive result |
(109) |
5) |
(14) |
(48) |
(48) |
|
|
|
|
|
|
|
Notes:
1. The increase in Appropriation revenue - recurrent in 2017‑18 primarily reflects a permanent reallocation from the Department of Premier and Cabinet to the Tasmanian Audit Office of $140 000 per annum for the provision of the State Service Employer Audit Function.
2. The variations in Sales of goods and services, Depreciation and amortisation, Supplies and consumables and Other expenses in 2017‑18 reflect revised estimates based on 30 June 2016 actuals.
3. The decrease in Other revenue in 2017-18 reflects the cessation of the current reimbursement arrangement between the Department of Premier and Cabinet and the Tasmanian Audit Office for the provision of the State Service Employer Audit Function, which has been transferred and is now appropriated to the Audit Office.
Table 19.4: Revenue from Appropriation by Output
Note:
1. The increase in Public Sector Management and Accountability in 2017-18 primarily reflects a permanent reallocation from the Department of Premier and Cabinet to the Tasmanian Audit Office of $140 000 per annum for the provision of the State Service Employer Audit Function.
Table 19.5: Statement of Financial Position as at 30 June
|
|
2017)
Budget) |
2018)
Budget) |
2019) Forward) Estimate) |
2020) Forward) Estimate) |
2021) Forward) Estimate) |
|
|
$'000) |
$'000) |
$'000) |
$'000) |
$'000) |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
Cash and deposits1 |
1 989) |
2 756) |
2 775) |
2 760) |
2 745) |
|
Receivables1 |
509) |
569) |
564) |
559) |
554) |
|
Other financial assets1 |
533) |
257) |
252) |
247) |
242) |
|
|
3 031) |
3 582) |
3 591) |
3 566) |
3 541) |
|
Non-financial assets |
|
|
|
|
|
|
Property, plant and equipment |
300) |
279) |
245) |
211) |
177) |
|
Intangibles |
....) |
5) |
5) |
5) |
5) |
|
Other assets |
27) |
29) |
25) |
21) |
17) |
|
|
327) |
313) |
275) |
237) |
199) |
|
|
|
|
|
|
|
|
Total assets |
3 358) |
3 895) |
3 866) |
3 803) |
3 740) |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Payables1 |
79) |
65) |
62) |
59) |
56) |
|
Employee benefits1 |
1 170) |
995) |
990) |
985) |
980) |
|
Superannuation1 |
149) |
127) |
127) |
127) |
127) |
|
Other liabilities1 |
233) |
360) |
353) |
346) |
339) |
|
Total liabilities |
1 631) |
1 547) |
1 532) |
1 517) |
1 502) |
|
|
|
|
|
|
|
|
Net assets (liabilities) |
1 727) |
2 348) |
2 334) |
2 286) |
2 238) |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Accumulated funds |
559) |
1 180) |
1 166) |
1 118) |
1 070) |
|
Other equity |
1 168) |
1 168) |
1 168) |
1 168) |
1 168) |
|
Total equity |
1 727) |
2 348) |
2 334) |
2 286) |
2 238) |
|
|
|
|
|
|
|
Note:
1. The variations in Cash and deposits, Receivables, Other financial assets, Payables, Employee benefits, Superannuation and Other liabilities between 2017 Budget and 2018 Budget reflect revised estimates based on 30 June 2016 actuals.
Table 19.6: Statement of Cash Flows
|
|
2016-17)
Budget) |
2017-18)
Budget) |
2018-19) Forward) Estimate) |
2019-20) Forward) Estimate) |
2020-21) Forward) Estimate) |
|
|
$'000) |
$'000) |
$'000) |
$'000) |
$'000) |
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
Cash inflows |
|
|
|
|
|
|
Appropriation receipts - recurrent1 |
2 313) |
2 493) |
2 532) |
2 559) |
2 617) |
|
Sales of goods and services2 |
5 872) |
5 936) |
5 946) |
5 956) |
5 956) |
|
GST receipts |
635) |
672) |
672) |
672) |
672) |
|
Other cash receipts3 |
165) |
13) |
13) |
13) |
13) |
|
Total cash inflows |
8 985) |
9 114) |
9 163) |
9 200) |
9 258) |
|
|
|
|
|
|
|
|
Cash outflows |
|
|
|
|
|
|
Employee benefits |
(4 868) |
(4 954) |
(5 011) |
(5 152) |
(5 196) |
|
Superannuation |
(648) |
(657) |
(699) |
(675) |
(680) |
|
GST payments |
(635) |
(672) |
(672) |
(672) |
(672) |
|
Supplies and consumables2 |
(2 579) |
(2 478) |
(2 448) |
(2 390) |
(2 399) |
|
Other cash payments |
(299) |
(294) |
(293) |
(305) |
(305) |
|
Total cash outflows |
(9 029) |
(9 055) |
(9 123) |
(9 194) |
(9 252) |
|
|
|
|
|
|
|
|
Net cash from (used by) operating activities |
(44) |
59) |
40) |
6) |
6) |
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Payments for acquisition of non-financial assets |
(31) |
(29) |
(21) |
(21) |
(21) |
|
Net cash from (used by) investing activities |
(31) |
(29) |
(21) |
(21) |
(21) |
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents held |
(75) |
30) |
19) |
(15) |
(15) |
|
|
|
|
|
|
|
|
Cash and deposits at the beginning of the reporting period |
2 064) |
2 726) |
2 756) |
2 775) |
2 760) |
|
1 989) |
2 756) |
2 775) |
2 760) |
2 745) |
|
|
|
|
|
|
|
|
Notes:
1. The increase in Appropriation receipts - recurrent in 2017‑18 primarily reflects a permanent reallocation from the Department of Premier and Cabinet to the Tasmanian Audit Office of $140 000 per annum for the provision of the State Service Employer Audit Function.
2. The variations in Sales of goods and services and Supplies and consumables in 2017‑18 reflect revised estimates based on 30 June 2016 actuals.
3. The decrease in Other cash receipts in 2017-18 reflects the cessation of the current reimbursement arrangement between the Department of Premier and Cabinet and the Tasmanian Audit Office for the provision of the State Service Employer Audit Function, which has now been permanently transferred to the Tasmanian Audit Office.