20    Tasmanian Audit Office

Agency Outline

The Tasmanian Audit 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 2018‑19 and over the Forward Estimates period (2019‑20 to 2021‑2022). 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 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 where resourcing permits;

·       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.


 

Output Information

The Office’s individual Output is provided under:

Output Group 1 - Public Sector Management and Accountability.

Table 20.1 provides an Output Group Expense Summary for the Office.

Table 20.1:       Output Group Expense Summary1

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Output Group 1 - Public Sector Management and

Accountability

 

 

 

 

 

1.1 Public Sector Management and Accountability

8 184 

8 252 

8 323 

8 418 

8 493 

 

8 184 

8 252 

8 323 

8 418 

8 493 

 

 

 

 

 

 

TOTAL

8 184 

8 252 

8 323 

8 418 

8 493 

 

 

 

 

 

 

Note:

1.   Agency estimates do not include the indexation impact of any variations to agency expenditure that have been made since the finalisation of the Revised Estimates Report 2017-18 (including December Quarterly Report). For further information see chapter 1 of this Budget Paper.

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

Table 20.2:       Performance Information - Output Group 1

Performance Measure

Unit of Measure

2015-16

Actual

2016-17

Actual

2017-18

Target

2018-19

Target

 

 

 

 

 

 

Audit Assurance

 

 

 

 

 

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

%

97

97

100

100

Overall client satisfaction survey - Financial Audit2

%

nm

79

nm

75

 

Parliamentary Reports and Services

 

 

 

 

 

Parliamentarian general satisfaction index2

%

nm

100

nm

75

Overall client satisfaction survey - Performance Audit2

%

nm

73

nm

75

Number of Performance Audit reports tabled3

Number

6

6

7

4

Number of Statutory Reports on outcomes of financial audits

Number

1

1

1

1

Average number of months Performance Audits are completed within4

Average

Months

9.0

10.4

9.0

9.0

Recommendations agreed and acted upon from Performance Audits

%

77

84

 

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 activities5

%

49

44

55

55

 

 

 

 

 

 

nm = not measured

 

 

 

 

 

 

 

 

 

 

 

Notes:

1.   Financial statement audits are completed on a cyclical basis. Audits of financial statements at 30 June 2017 were completed in 2017‑18.

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

3.   The number of reports tabled includes compliance audits and investigations where applicable. The decrease by one report in 2016-17 was due to staffing absences. Future targets represent a change to the performance audit program. There will be four performance reports tabled, however, a short audit program will also be implemented. At this stage the number of these short audits are yet to be quantified and are not included in this table. 

4.   The length of time taken to table performance reports for 2016‑17 was 10 months. This was mainly due to the complexity in scoping one of the reports.

5.   The percentage decrease in 2016‑17 reflects the employment of fixed‑term staff to replace vacant positions and the need for a larger amount of on the job training for those new staff and a slight increase in personal and recreational leave taken during the year.


 

Detailed Budget Statements

Table 20.3:       Statement of Comprehensive Income

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Appropriation revenue - recurrent

2 493 

2 532 

2 559 

2 617 

2 679 

Sales of goods and services

5 683 

5 693 

5 703 

5 740 

5 753 

Other revenue

13 

13 

13 

13 

13 

Total revenue and other income from transactions

8 189 

8 238 

8 275 

8 370 

8 445 

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Employee benefits

5 356 

5 455 

5 572 

5 621 

5 674 

Depreciation and amortisation

49 

49 

49 

49 

49 

Supplies and consumables1

2 485 

2 455 

2 397 

2 431 

2 465 

Other expenses

294 

293 

305 

317 

305 

Total expenses from transactions

8 184 

8 252 

8 323 

8 418 

8 493 

 

 

 

 

 

 

Net result from transactions (net operating balance)

(14)

(48)

(48)

(48)

 

 

 

 

 

 

Net result

(14)

(48)

(48)

(48)

 

 

 

 

 

 

Comprehensive result

(14)

(48)

(48)

(48)

 

 

 

 

 

 

Note:

1.   The decrease in Supplies and consumables in 2018‑19 reflects revised estimates based on 30 June 2017 actuals.


 

Table 20.4:       Revenue from Appropriation by Output

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 - Public Sector Management and

Accountability

 

 

 

 

 

1.1 Public Sector Management and Accountability

2 014 

2 038 

2 053 

2 101 

2 153 

 

2 014 

2 038 

2 053 

2 101 

2 153 

 

 

 

 

 

 

Tasmanian Audit Office

 

 

 

 

 

Total Recurrent Services

2 014 

2 038 

2 053 

2 101 

2 153 

 

2 014 

2 038 

2 053 

2 101 

2 153 

 

 

 

 

 

 

Reserved by Law

 

 

 

 

 

Salary and Travelling Allowance, Auditor-General

(Audit Act 2008)

479 

494 

506 

516 

526 

 

479 

494 

506 

516 

526 

 

 

 

 

 

 

Total Revenue from Appropriation

2 493 

2 532 

2 559 

2 617 

2 679 

 

 

 

 

 

 

Controlled Revenue from Appropriation

2 493 

2 532 

2 559 

2 617 

2 679 

 

2 493 

2 532 

2 559 

2 617 

2 679 

 

 

 

 

 

 


 

Table 20.5:       Statement of Financial Position as at 30 June

 

2018 

2019 

2020 

2021 

2022 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits1

2 756 

3 141 

3 126 

3 111 

3 096 

Receivables1

569 

579 

574 

569 

564 

Other financial assets1

257 

83 

78 

73 

68 

 

3 582 

3 803 

3 778 

3 753 

3 728 

 

 

 

 

 

 

Non-financial assets

 

 

 

 

 

Property, plant and equipment1

279 

204 

170 

136 

102 

Intangibles1

16 

16 

16 

16 

Other assets1

29 

34 

30 

26 

22 

 

313 

254 

216 

178 

140 

 

 

 

 

 

 

Total assets

3 895 

4 057 

3 994 

3 931 

3 868 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables1

65 

40 

37 

34 

31 

Employee benefits1

995 

1 080 

1 075 

1 070 

1 065 

Superannuation1

127 

136 

136 

136 

136 

Other liabilities1

360 

503 

496 

489 

482 

Total liabilities

1 547 

1 759 

1 744 

1 729 

1 714 

 

 

 

 

 

 

Net assets (liabilities)

2 348 

2 298 

2 250 

2 202 

2 154 

 

 

 

 

 

 

Equity

 

 

 

 

 

Accumulated funds

1 180 

1 130 

1 082 

1 034 

986 

Other equity

1 168 

1 168 

1 168 

1 168 

1 168 

Total equity

2 348 

2 298 

2 250 

2 202 

2 154 

 

 

 

 

 

 

Note:

1.   The variation in this item reflects revised estimates based on 30 June 2017 actuals.


 

Table 20.6:       Statement of Cash Flows

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts - recurrent

2 493 

2 532 

2 559 

2 617 

2 679 

Sales of goods and services

5 936 

5 946 

5 956 

5 956 

5 956 

GST receipts

672 

672 

672 

672 

672 

Other cash receipts

13 

13 

13 

13 

13 

Total cash inflows

9 114 

9 163 

9 200 

9 258 

9 320 

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits

(4 954)

(5 011)

(5 152)

(5 196)

(5 243)

Superannuation1

(657)

(699)

(675)

(680)

(686)

GST payments

(672)

(672)

(672)

(672)

(672)

Supplies and consumables1

(2 478)

(2 448)

(2 390)

(2 399)

(2 408)

Other cash payments

(294)

(293)

(305)

(305)

(305)

Total cash outflows

(9 055)

(9 123)

(9 194)

(9 252)

(9 314)

 

 

 

 

 

 

Net cash from (used by) operating activities

59 

40 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non-financial assets

(29)

(21)

(21)

(21)

(21)

Net cash from (used by) investing activities

(29)

(21)

(21)

(21)

(21)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

held

30 

19 

(15)

(15)

(15)

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting

period

2 726 

3 122 

3 141 

3 126 

3 111 

Cash and deposits at the end of the reporting period

2 756 

3 141 

3 126 

3 111 

3 096 

 

 

 

 

 

 

Note:

1.   The variation in this item in 2018‑19 reflects revised estimates based on 30 June 2017 actuals.