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 its 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; 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 2020‑21 and over the Forward Estimates
(2021‑22 to 2023‑24). 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 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, which will include COVID-19 specific audits;
· 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;
· development of the Office’s five-year strategic plan 2021-2025;
· 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 21.1 provides an Output Group Expense Summary for the Office.
|
2019‑20 |
2020‑21 |
2021‑22 |
2022‑23 |
2023‑24 |
|
|
|
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 |
8 096 |
8 241 |
8 315 |
8 552 |
8 689 |
|
8 096 |
8 241 |
8 315 |
8 552 |
8 689 |
|
|
|
|
|
|
TOTAL |
8 096 |
8 241 |
8 315 |
8 552 |
8 689 |
|
|
|
|
|
|
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.
Performance Measure |
Unit of Measure |
2017-18 Actual |
2018-19 Actual |
2019-20 Actual |
2020-21 Target |
|
|
|
|
|
|
Audit Assurance |
|
|
|
|
|
All financial audit opinions to be issued within 45 days of receipt of final signed financial statements1 |
% |
90 |
88 |
61 |
100 |
Overall client satisfaction survey ‑ Financial Audit2 |
% |
nm |
77 |
nm |
75 |
|
|
|
|
|
|
Parliamentary Reports and Services |
|
|
|
|
|
Parliamentarian general satisfaction index2 |
% |
nm |
100 |
nm |
75 |
Overall client satisfaction survey - Performance Audit2 |
% |
nm |
69 |
nm |
75 |
Number of Performance Audit reports tabled3 |
Number |
4 |
4 |
4 |
10 |
Number of Statutory Reports on outcomes of financial audits |
Number |
1 |
1 |
1 |
1 |
Average number of months Performance Audits are completed within4 |
Average |
10.8 |
17.8 |
17.5 |
9.0 |
Recommendations agreed and acted upon from Performance Audits5 |
% |
64 |
nm |
nm |
70 |
Number of ‘employer’ Performance Audits completed |
Number |
1 |
1 |
1 |
0 |
|
|
|
|
|
|
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 |
% |
44 |
42 |
43 |
55 |
|
|
|
|
|
|
nm = not measured |
|
|
|
|
|
|
|
|
|
|
|
Notes:
1. Financial statement audits are completed on a cyclical basis. Audits of financial statements at 30 June 2019 were completed in 2019-20.
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 increased target number of reports to be tabled in 2020-21 is due to the deferral of tabling reports during the COVID-19 pandemic.
4. The length of time taken to table performance reports increased due to staffing absences and the complexity of reports.
5. Recommendations agreed and acted upon from Performance Audits are determined via follow up audits. No follow-up audits were conducted in 2018-19 or 2019-20.
6. The lower percentages in 2017-18 to 2019-20 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, with a slight increase in personal and recreational leave taken during the years.
|
2019‑20 |
2020‑21 |
2021‑22 |
2022‑23 |
2023‑24 |
|
|
|
Forward |
Forward |
Forward |
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
Revenue and other income |
|
|
|
|
|
Appropriation revenue - operating |
2 560 |
2 626 |
2 686 |
2 741 |
2 802 |
Sales of goods and services |
5 568 |
5 525 |
5 587 |
5 834 |
5 934 |
Other revenue |
30 |
30 |
30 |
30 |
30 |
Total revenue |
8 158 |
8 181 |
8 303 |
8 605 |
8 766 |
Total income |
8 158 |
8 181 |
8 303 |
8 605 |
8 766 |
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Employee benefits |
5 486 |
5 624 |
6 028 |
6 184 |
6 214 |
Depreciation and amortisation1 |
249 |
64 |
59 |
49 |
49 |
Supplies and consumables2 |
1 979 |
2 195 |
1 863 |
1 950 |
2 057 |
Borrowing costs1 |
8 |
.... |
.... |
.... |
.... |
Other expenses |
374 |
358 |
365 |
369 |
369 |
Total expenses |
8 096 |
8 241 |
8 315 |
8 552 |
8 689 |
|
|
|
|
|
|
Net result |
62 |
(60) |
(12) |
53 |
77 |
|
|
|
|
|
|
Comprehensive result |
62 |
(60) |
(12) |
53 |
77 |
|
|
|
|
|
|
Notes:
1. The decrease in Depreciation and amortisation and Borrowing costs primarily reflects a change in the accounting treatment for the recognition of leases. Further information on this change is provided in chapter 1of this Budget Paper.
2. The variation in Supplies and consumables reflects a change in the accounting treatment for the recognition of leases, and reflects an update for expenditure to align with internal budgets.
|
2019‑20 |
2020‑21 |
2021‑22 |
2022‑23 |
2023‑24 |
|
|
|
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 |
2 054 |
2 110 |
2 160 |
2 205 |
2 256 |
|
2 054 |
2 110 |
2 160 |
2 205 |
2 256 |
|
|
|
|
|
|
Tasmanian Audit Office |
|
|
|
|
|
Total Operating Services Expenditure |
2 054 |
2 110 |
2 160 |
2 205 |
2 256 |
|
2 054 |
2 110 |
2 160 |
2 205 |
2 256 |
|
|
|
|
|
|
Reserved by Law |
|
|
|
|
|
Salary and Travelling Allowance, Auditor-General (Audit Act 2008) |
506 |
516 |
526 |
536 |
546 |
|
506 |
516 |
526 |
536 |
546 |
|
|
|
|
|
|
Total Revenue from Appropriation |
2 560 |
2 626 |
2 686 |
2 741 |
2 802 |
|
|
|
|
|
|
Controlled Revenue from Appropriation |
2 560 |
2 626 |
2 686 |
2 741 |
2 802 |
|
2 560 |
2 626 |
2 686 |
2 741 |
2 802 |
|
|
|
|
|
|
|
2020 |
2021 |
2022 |
2023 |
2024 |
|
|
|
Forward |
Forward |
Forward |
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
Assets |
|
|
|
|
|
Financial assets |
|
|
|
|
|
Cash and deposits |
3 334 |
2 079 |
2 090 |
2 156 |
2 246 |
Receivables |
623 |
618 |
613 |
608 |
603 |
|
3 957 |
2 697 |
2 703 |
2 764 |
2 849 |
|
|
|
|
|
|
Non-financial assets |
|
|
|
|
|
Property, plant and equipment |
192 |
206 |
192 |
178 |
164 |
Intangibles |
15 |
13 |
13 |
13 |
13 |
Other assets2 |
433 |
250 |
231 |
222 |
213 |
|
640 |
469 |
436 |
413 |
390 |
|
|
|
|
|
|
Total assets |
4 597 |
3 166 |
3 139 |
3 177 |
3 239 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Payables |
59 |
56 |
53 |
50 |
47 |
Interest bearing liabilities2 |
113 |
.... |
.... |
.... |
.... |
Employee benefits |
1 073 |
1 106 |
1 101 |
1 096 |
1 091 |
Superannuation |
133 |
140 |
140 |
140 |
140 |
Other liabilities |
319 |
312 |
305 |
298 |
291 |
Total liabilities |
1 697 |
1 614 |
1 599 |
1 584 |
1 569 |
|
|
|
|
|
|
Net assets (liabilities) |
2 900 |
1 552 |
1 540 |
1 593 |
1 670 |
|
|
|
|
|
|
Equity |
|
|
|
|
|
Accumulated funds |
1 732 |
384 |
372 |
425 |
502 |
Other Equity |
1 168 |
1 168 |
1 168 |
1 168 |
1 168 |
Total equity |
2 900 |
1 552 |
1 540 |
1 593 |
1 670 |
|
|
|
|
|
|
Notes:
1. Some balance estimates for 2021 and later years will be impacted by final closing balances presented in the Agency’s 2019‑20 Annual Report. Further information on the impact of the timing of the 2020‑21 Budget on opening balances is provided in chapter 1 of this Budget Paper.
2. The decrease in Other assets and Interest bearing liabilities primarily reflects a change in the accounting treatment for the recognition of leases. Further information on this change is provided in chapter 1 of this Budget Paper.
|
2019‑20 |
2020‑21 |
2021‑22 |
2022‑23 |
2023‑24 |
|
|
|
Forward |
Forward |
Forward |
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
Cash inflows |
|
|
|
|
|
Appropriation receipts - operating |
2 560 |
2 626 |
2 686 |
2 741 |
2 802 |
Sales of goods and services1 |
5 821 |
5 741 |
5 790 |
6 087 |
6 187 |
GST receipts |
672 |
672 |
672 |
672 |
672 |
Other cash receipts |
30 |
30 |
30 |
30 |
30 |
Total cash inflows |
9 083 |
9 069 |
9 178 |
9 530 |
9 691 |
|
|
|
|
|
|
Cash outflows |
|
|
|
|
|
Employee benefits |
(5 176) |
(5 285) |
(5 687) |
(5 830) |
(5 854) |
Superannuation |
(565) |
(594) |
(596) |
(609) |
(615) |
Borrowing costs2 |
(8) |
.... |
.... |
.... |
.... |
GST payments |
(672) |
(672) |
(672) |
(672) |
(672) |
Supplies and consumables3 |
(2 282) |
(2 183) |
(1 826) |
(1 963) |
(2 070) |
Other cash payments |
(374) |
(346) |
(365) |
(369) |
(369) |
Total cash outflows |
(9 077) |
(9 080) |
(9 146) |
(9 443) |
(9 580) |
|
|
|
|
|
|
Net cash from (used by) operating activities |
6 |
(11) |
32 |
87 |
111 |
|
|
|
|
|
|
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 borrowings2 |
(200) |
.... |
.... |
.... |
.... |
Net cash from (used by) financing activities |
(200) |
.... |
.... |
.... |
.... |
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents held |
(215) |
(32) |
11 |
66 |
90 |
|
|
|
|
|
|
Cash and deposits at the beginning of the reporting period |
3 549 |
2 111 |
2 079 |
2 090 |
2 156 |
Cash and deposits at the end of the reporting period |
3 334 |
2 079 |
2 090 |
2 156 |
2 246 |
|
|
|
|
|
|
Notes:
1. The variation in Sales of goods and services reflects an update of receipts to better align with internal budgets.
2. The decrease in Borrowing costs and Net borrowings primarily reflects a change in the accounting treatment for the recognition of leases. Further information on the treatment of leases is provided in chapter 1 of this Budget Paper.
3. The variation in Supplies and consumables reflects a change in the accounting treatment for the recognition of leases, and includes an update of expenditure to align with internal budgets.