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