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) 5  (14) (48) (48) (48)             Net result 5  (14) (48) (48) (48)             Comprehensive result 5  (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 5  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  6  6  6              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.