21    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:

·       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;

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

·       issuing audit reports and other formal communications of audit findings to State entities, audited subsidiaries, 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 2019‑20 and over the Forward Estimates period (2020‑21 to 2022‑2023). 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 and audited subsidiaries 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, such as data analytics, in order to further enhance the audit process;

·       ongoing development and improvement of Statutory Reports to Parliament on outcomes of 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 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);

·       continued 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 21.1 provides an Output Group Expense Summary for the Office.

Table 21.1:       Output Group Expense Summary

 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23 

 

 

 

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

8 252 

8 096 

8 378 

8 590 

8 828 

 

8 252 

8 096 

8 378 

8 590 

8 828 

 

 

 

 

 

 

TOTAL

8 252 

8 096 

8 378 

8 590 

8 828 

 

 

 

 

 

 

 

 

 

 

 

 

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

Table 21.2:       Performance Information ‑ Output Group 1

Performance Measure

Unit of

Measure

2016‑17 Actual

2017‑18 Actual

2018‑19 Target

2019‑20 Target

 

 

 

 

 

 

Audit Assurance

 

 

 

 

 

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

%

97

90

100

100

Overall client satisfaction survey ‑ Financial Audit2

%

79

nm

75

75

 

 

 

 

 

 

Parliamentary Reports and Services

 

 

 

 

 

Parliamentarian general satisfaction index2

%

100

nm

75

nm

Overall client satisfaction survey - Performance Audit2

%

 

73

 

nm

 

75

 

nm

Number of Performance Audit reports tabled3

Number

6

4

7

6

Number of Statutory Reports on outcomes of financial audits

Number

 

1

 

1

 

1

 

1

Average number of months Performance Audits are completed within4

Average

 

10.4

 

10.8

 

9.0

 

9.0

Recommendations agreed and acted upon from Performance Audits

%

 

84

 

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 activities5

%

 

44

 

44

 

55

 

55

 

 

 

 

 

 

nm = not measured

 

 

 

 

 

 

 

 

 

 

 

Notes:

1.    Financial statement audits are completed on a cyclical basis. Audits of financial statements at 30 June 2018 were completed in 2018‑19.

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 in reports tabled in 2016‑17 and 2017‑18 was due to staffing absences and increased complexity of reports.

4.    The length of time taken to table performance reports has been due to staffing absences and the complexity of reports.

5.    The lower percentages in 2016‑17 and 2017‑18 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. Staff recruitment for permanent positions has been undertaken in the first half of 2019.

Detailed Budget Statements

Table 21.3:       Statement of Comprehensive Income

 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Appropriation revenue - operating

2 532 

2 560 

2 616 

2 674 

2 727 

Sales of goods and services1

5 693 

5 568 

5 735 

5 907 

6 084 

Other revenue1

13 

30 

30 

30 

30 

Total revenue and other income from transactions

8 238 

8 158 

8 381 

8 611 

8 841 

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Employee benefits

5 455 

5 486 

5 723 

5 951 

6 128 

Depreciation and amortisation

49 

249 

265 

261 

251 

Supplies and consumables

2 455 

1 979 

1 995 

1 982 

2 055 

Borrowing costs

.... 

37 

31 

25 

Other expenses1

293 

374 

358 

365 

369 

Total expenses from transactions

8 252 

8 096 

8 378 

8 590 

8 828 

 

 

 

 

 

 

Net result from transactions (net operating balance)

(14)

62 

21 

13 

 

 

 

 

 

 

Net result

(14)

62 

21 

13 

 

 

 

 

 

 

Comprehensive result

(14)

62 

21 

13 

 

 

 

 

 

 

Note:

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

Table 21.4:       Revenue from Appropriation by Output

 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23 

 

 

 

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

2 038 

2 054 

2 100 

2 148 

2 191 

 

2 038 

2 054 

2 100 

2 148 

2 191 

 

 

 

 

 

 

Tasmanian Audit Office

 

 

 

 

 

Total Operating Services Expenditure

2 038 

2 054 

2 100 

2 148 

2 191 

 

2 038 

2 054 

2 100 

2 148 

2 191 

 

 

 

 

 

 

Reserved by Law

 

 

 

 

 

Salary and Travelling Allowance, Auditor-General

(Audit Act 2008)

494 

506 

516 

526 

536 

 

494 

506 

516 

526 

536 

 

 

 

 

 

 

Total Revenue from Appropriation

2 532 

2 560 

2 616 

2 674 

2 727 

 

 

 

 

 

 

Controlled Revenue from Appropriation

2 532 

2 560 

2 616 

2 674 

2 727 

 

2 532 

2 560 

2 616 

2 674 

2 727 

 

 

 

 

 

 

 

 

 

 

 

 


 

Table 21.5:       Statement of Financial Position as at 30 June

 

2019 

2020 

2021 

2022 

2023 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits

3 141 

3 334 

3 396 

3 460 

3 493 

Receivables1

579 

623 

618 

613 

608 

Other financial assets1

83 

.... 

.... 

.... 

.... 

 

3 803 

3 957 

4 014 

4 073 

4 101 

 

 

 

 

 

 

Non-financial assets

 

 

 

 

 

Property, plant and equipment1

204 

192 

178 

164 

150 

Intangibles

16 

15 

15 

15 

15 

Other assets

34 

433 

1 054 

885 

716 

 

254 

640 

1 247 

1 064 

881 

 

 

 

 

 

 

Total assets

4 057 

4 597 

5 261 

5 137 

4 982 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables1

40 

59 

56 

53 

50 

Interest bearing liabilities

.... 

113 

789 

659 

506 

Employee benefits

1 080 

1 073 

1 068 

1 063 

1 058 

Superannuation

136 

133 

133 

133 

133 

Other liabilities1

503 

319 

312 

305 

298 

Total liabilities

1 759 

1 697 

2 358 

2 213 

2 045 

 

 

 

 

 

 

Net assets (liabilities)

2 298 

2 900 

2 903 

2 924 

2 937 

 

 

 

 

 

 

Equity

 

 

 

 

 

Accumulated funds

1 130 

1 732 

1 735 

1 756 

1 769 

Other Equity

1 168 

1 168 

1 168 

1 168 

1 168 

Total equity

2 298 

2 900 

2 903 

2 924 

2 937 

 

 

 

 

 

 

Note:

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


 

Table 21.6:       Statement of Cash Flows

 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts - operating

2 532 

2 560 

2 616 

2 674 

2 727 

Sales of goods and services1

5 946 

5 821 

5 951 

6 110 

6 337 

GST receipts

672 

672 

672 

672 

672 

Other cash receipts1

13 

30 

30 

30 

30 

Total cash inflows

9 163 

9 083 

9 269 

9 486 

9 766 

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits

(5 011)

(5 176)

(5 195)

(5 611)

(5 701)

Superannuation1

(699)

(565)

(783)

(595)

(682)

Borrowing costs

.... 

(8)

(37)

(31)

(25)

GST payments

(672)

(672)

(672)

(672)

(672)

Supplies and consumables

(2 448)

(2 282)

(1 983)

(1 945)

(2 068)

Other cash payments1

(293)

(374)

(346)

(365)

(369)

Total cash outflows

(9 123)

(9 077)

(9 016)

(9 219)

(9 517)

 

 

 

 

 

 

Net cash from (used by) operating activities

40 

253 

267 

249 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non-financial assets

(21)

(21)

(21)

(21)

(21)

Net cash from (used by) investing activities

(21)

(21)

(21)

(21)

(21)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Net borrowings

.... 

(200)

(170)

(182)

(195)

Net cash from (used by) financing activities

.... 

(200)

(170)

(182)

(195)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

held

19 

(215)

62 

64 

33 

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting

period

3 122 

3 549 

3 334 

3 396 

3 460 

Cash and deposits at the end of the reporting period

3 141 

3 334 

3 396 

3 460 

3 493 

 

 

 

 

 

 

Note:

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