21    Tasmanian Audit Office

Agency Outline

The Tasmanian Audit Office provides support and services to enable the Auditor‑General to fulfil his role and responsibilities under the Audit Act 2008. The primary responsibility of the Auditor‑General and Tasmanian Audit Office is to:

·       provide an audit report on the Total State, General Government Sector and Public Account Statements, which form part of the Treasurer’s Annual Financial Report;

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

·       issue audit reports and other formal communications of audit findings to State entities, audited subsidiaries, responsible Ministers and relevant accountable authorities; and

·       report to Parliament on the results of the audits of State entities and audited subsidiaries of State entities in respect of the preceding financial year.

The Auditor‑General and the Tasmanian Audit Office also undertake performance audits examining the efficiency, effectiveness and economy of State entities and compliance audits examining the compliance by State entities with written laws or their own internal policies. Examinations or investigations are also undertaken for the purpose of:

·       examining the accounting and financial management information systems of the Treasurer, State entities or subsidiaries of State entities to determine their effectiveness in achieving or monitoring program results;

·       investigating any matter relating to the accounts of the Treasurer, State entities or subsidiaries of State entities;

·       investigating any matter relating to public money or other money, or to public property or other property; and

·       examining the performance and exercise of the Employer’s functions and powers under the State Service Act 2000.

Reports on the results of performance or compliance audits, examinations or investigations are, in the majority of cases, reported to Parliament for its consideration.

This chapter provides financial information about the Output to be delivered by the Office during 2021‑22 and over the Forward Estimates (2022‑23 to 2024‑25). 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, examinations and investigations through the enhancement of reported information; report style and readability; financial analysis; and more informed commentary;

·       ongoing development of a forward program of performance and compliance audits for inclusion in annual plans of work;

·       completion of 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 appropriate);

·       development and implementation of the Office’s four‑year strategic plan 2021‑2024; and

·       responding to new and revised accounting and auditing standards and contributing to their development at the Exposure Draft stages.


 

Output Information

The Office’s Output is provided under the following Output Group:

·       Output Group 1 ‑ Public Sector Performance and Accountability.

Table 21.1 provides an Output Group Expense Summary for the Office.

Table 21.1:       Output Group Expense Summary

 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 ‑ Public Sector Performance and Accountability

 

 

 

 

 

1.1 Public Sector Performance and Accountability

8 241 

8 322 

8 567 

8 710 

8 767 

 

8 241 

8 322 

8 567 

8 710 

8 767 

 

 

 

 

 

 

TOTAL

8 241 

8 322 

8 567 

8 710 

8 767 

 

 

 

 

 

 

 

Output Group 1:    Public Sector Performance and Accountability

1.1 Public Sector Performance and Accountability

This Output enables the Office to provide independent assurance to the Parliament and community on the performance and accountability of the Tasmanian Public Sector. This is achieved through an annual program of:

·       attest assurance engagements ‑ where the accountable authority of a state entity or audited subsidiary of a state entity ‘attests’ the financial statements or other financial information as being true and fair or fairly presented and the Auditor‑General or delegate expresses an opinion on that assertion; and

·       direct assurance engagements and Parliamentary reporting ‑ which incorporates performance and/or compliance audits, examinations and investigations and the reporting of results therefrom to Parliament.

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

2018‑19 Actual

2019‑20 Actual

2020‑21 Actual

2021‑22 Target

 

 

 

 

 

 

Attest assurance engagements

 

 

 

 

 

Financial statement audit opinions issued within 45 days of receipt of final signed financial statements1

%

88

61

56

100

Overall client satisfaction survey2

%

77

nm

nm

75

 

 

 

 

 

 

Direct assurance engagements and Parliamentary reporting3,4

 

 

 

 

 

Parliamentarian general satisfaction index2

%

100

nm

nm

75

Overall client satisfaction survey2

%

69

nm

nm

75

Number of direct assurance engagement reports tabled5

Number

4

4

10

10

Number of statutory reports on outcomes of financial audits tabled

Number

1

1

1

1

Average number of months direct assurance engagements are completed within6

Average

17.8

17.5

12.0

9.0

Recommendations agreed and acted upon from direct assurance engagement7

%

nm

nm

nm

70

 

 

 

 

 

 

Office‑wide Efficiency Indicators8

 

 

 

 

 

Total audit costs per $'000 of public sector transactions

$

0.4

0.4

nm

0.4

Total audit costs per $'000 of public sector assets

$

0.2

0.2

nm

0.2

Percentage of total (whole of office) paid hours charged to audit activities9

%

42

43

nm

55

 

 

 

 

 

 

nm = not measured

 

 

 

 

 

 

 

 

 

 

 

Notes:

1.    Financial statement audits are completed on a cyclical basis. Audits of financial statements at 30 June 2020 were completed in 2020‑21. The 2019‑20 and 2020‑21 actuals reflect challenges faced by the Office as a result of COVID‑19 pandemic.

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

3.    Previously titled Parliamentary Reports and Services, Direct assurance engagements and Parliamentary reporting encompass performance, compliance, examinations and investigations. Reference to direct assurance engagements replaces reference to Performance Audits within this category of Performance Measures.

4.    The measurement of Number of ‘employer’ performance audits that was previously reported as a separate measure will now be reported as part of all direct assurance engagement reporting in the future.

5.    The number of reports tabled includes compliance audits and investigations, where applicable. The increase in number of reports in 2020‑21 and the associated target for 2021‑22 is due to the deferral of tabling reports during the COVID‑19 pandemic.

6.    The length of time taken to table direct assurance engagements increased compared to the target of nine months due to COVID‑19 restrictions, and the complexity of reports.

7.    Recommendations agreed and acted upon from direct assurance engagements are determined via follow‑up audits. No follow‑up audits have been conducted since 2017‑18.

8.    The 2020‑21 actuals for Office‑wide Efficiency Indicators are not available until 30 September 2021.

9.    The lower percentages in 2018‑19 and 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.

Detailed Budget Statements

Table 21.3:       Statement of Comprehensive Income

 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Revenue and other income

 

 

 

 

 

Appropriation revenue ‑ operating

2 626 

2 693 

2 756 

2 823 

2 880 

Sales of goods and services

5 525 

5 587 

5 834 

5 934 

5 934 

Other revenue

30 

30 

30 

30 

30 

Total revenue

8 181 

8 310 

8 620 

8 787 

8 844 

Total income

8 181 

8 310 

8 620 

8 787 

8 844 

 

 

 

 

 

 

Expenses

 

 

 

 

 

Employee benefits

5 624 

6 048 

6 226 

6 277 

6 337 

Depreciation and amortisation

64 

59 

49 

49 

49 

Supplies and consumables1

2 195 

1 850 

1 923 

2 015 

2 012 

Other expenses

358 

365 

369 

369 

369 

Total expenses

8 241 

8 322 

8 567 

8 710 

8 767 

 

 

 

 

 

 

Net result

(60)

(12)

53 

77 

77 

 

 

 

 

 

 

Comprehensive result

(60)

(12)

53 

77 

77 

 

 

 

 

 

 

Note:

1.    The decrease in Supplies and consumables reflects updated expense estimates to align with the Office’s internal budget.


 

Table 21.4:       Revenue from Appropriation by Output

 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 ‑ Public Sector Performance and Accountability

 

 

 

 

 

1.1 Public Sector Performance and Accountability

2 110 

2 167 

2 220 

2 277 

2 324 

 

2 110 

2 167 

2 220 

2 277 

2 324 

 

 

 

 

 

 

Tasmanian Audit Office

 

 

 

 

 

Total Operating Services

2 110 

2 167 

2 220 

2 277 

2 324 

 

2 110 

2 167 

2 220 

2 277 

2 324 

 

 

 

 

 

 

Reserved by Law

 

 

 

 

 

Salary and Travelling Allowance, Auditor‑General (Audit Act 2008)

516 

526 

536 

546 

556 

 

516 

526 

536 

546 

556 

 

 

 

 

 

 

Total Revenue from Appropriation

2 626 

2 693 

2 756 

2 823 

2 880 

 

 

 

 

 

 

Controlled Revenue from Appropriation

2 626 

2 693 

2 756 

2 823 

2 880 

 

2 626 

2 693 

2 756 

2 823 

2 880 

 

 

 

 

 

 

 

 


 

Table 21.5:       Statement of Financial Position as at 30 June

 

2021 

2022 

2023 

2024 

2025 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits

2 079 

2 087 

2 063 

2 153 

2 243 

Receivables1

618 

828 

823 

818 

813 

 

2 697 

2 915 

2 886 

2 971 

3 056 

 

 

 

 

 

 

Non‑financial assets

 

 

 

 

 

Property, plant and equipment2

206 

122 

198 

184 

170 

Intangibles

13 

10 

10 

10 

10 

Other assets

250 

69 

60 

51 

42 

 

469 

201 

268 

245 

222 

 

 

 

 

 

 

Total assets

3 166 

3 116 

3 154 

3 216 

3 278 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables1

56 

79 

76 

73 

70 

Employee benefits

1 106 

1 134 

1 129 

1 124 

1 119 

Superannuation

140 

138 

138 

138 

138 

Other liabilities1

312 

396 

389 

382 

375 

Total liabilities

1 614 

1 747 

1 732 

1 717 

1 702 

 

 

 

 

 

 

Net assets (liabilities)

1 552 

1 369 

1 422 

1 499 

1 576 

 

 

 

 

 

 

Equity

 

 

 

 

 

Accumulated funds

384 

201 

254 

331 

408 

Other Equity

1 168 

1 168 

1 168 

1 168 

1 168 

Total equity

1 552 

1 369 

1 422 

1 499 

1 576 

 

 

 

 

 

 

Notes:

1.    The variation in Receivables, Payables and Other liabilities reflects revised estimates based on 30 June 2020 actuals.

2.    The variation in Property, plant and equipment reflects revised estimates based on 30 June 2020 actuals and office refurbishment activity initiated in 2021‑22.


 

Table 21.6:       Statement of Cash Flows

 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts ‑ operating

2 626 

2 693 

2 756 

2 823 

2 880 

Sales of goods and services

5 741 

5 790 

6 087 

6 187 

6 187 

GST receipts

672 

672 

672 

672 

672 

Other cash receipts

30 

30 

30 

30 

30 

Total cash inflows

9 069 

9 185 

9 545 

9 712 

9 769 

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits

(5 285)

(5 687)

(5 830)

(5 854)

(5 889)

Superannuation

(594)

(616)

(651)

(678)

(703)

GST payments

(672)

(672)

(672)

(672)

(672)

Supplies and consumables

(2 183)

(1 813)

(1 936)

(2 028)

(2 025)

Other cash payments

(346)

(365)

(369)

(369)

(369)

Total cash outflows

(9 080)

(9 153)

(9 458)

(9 601)

(9 658)

 

 

 

 

 

 

Net cash from (used by) operating activities

(11)

32 

87 

111 

111 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non‑financial assets

(21)

(171)

(111)

(21)

(21)

Net cash from (used by) investing activities

(21)

(171)

(111)

(21)

(21)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

(32)

(139)

(24)

90 

90 

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

2 111 

2 226 

2 087 

2 063 

2 153 

Cash and deposits at the end of the reporting period

2 079 

2 087 

2 063 

2 153 

2 243