Agency Outline

The Tasmanian Audit Office provides support and services to 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 issuing 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 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 a 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 in 2022‑23 and over the Forward Estimates (2023‑24 to 2025‑26). Further information about the Office can be found at www.audit.tas.gov.au.

 

Key Deliverables

Table 22.1 provides a summary of the Budget and Forward Estimates allocations for the key deliverables being undertaken by the Office.

Table 22.1:       Key Deliverables Statement

	2022‑23   Budget	2023‑24 Forward Estimate	2024‑25 Forward Estimate	2025‑26 Forward Estimate
	$'000	$'000	$'000	$'000
Implementation of Data Analytics	325	339	345	355

Implementation of Data Analytics

Funding is provided on a fixed‑term basis to employ additional staff in the Office to implement data analytics into audit processes. The initiative will enable the Office to establish and embed processes, infrastructure and skills for the ongoing use of data analytics for financial and performance audits, providing more insights and value to the users of the financial statements and performance reports.

Ongoing Key Deliverables

In addition to the key deliverables identified above, the ongoing 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, in order to further enhance the audit process;

·       ongoing development and improvement of 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 the 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, where appropriate, reporting of outcomes to Parliament;

·       completion of examinations or investigations within the functions and powers under the Audit Act and, where appropriate, reporting of outcomes to Parliament;

·       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 stage.

Output Information

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

·       Output Group 1 ‑ Public Sector Performance and Accountability.

Table 22.2 provides an Output Group Expense Summary for the Office.

Table 22.2:       Output Group Expense Summary

	2021‑22	2022‑23	2023‑24	2024‑25	2025‑26
			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 Accountability1	8 322	8 981	9 150	9 221	9 291
	8 322	8 981	9 150	9 221	9 291
TOTAL	8 322	8 981	9 150	9 221	9 291

Note:

1.    The increase in this Output in 2022‑23 primarily reflects funding for the Implementation of Data Analytics initiative.

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, where appropriate, reporting of outcomes therefrom to Parliament.

Table 22.3 provides details of performance measures to be applied in assessing the Office’s effectiveness and efficiency in achieving its outcomes.

Table 22.3:       Performance Information ‑ Output Group 1

Performance Measure	Unit of  Measure	2019‑20 Actual	2020‑21 Actual	2021‑22 Target	2022‑23 Target
Attest assurance engagements
Financial statement audit opinions issued within 45 days of receipt of final signed financial statements1	%	61	55	100	100
Overall client satisfaction survey2	%	nm	nm	75	75
Direct assurance engagements and Parliamentary reporting
Parliamentarian general satisfaction index2	%	nm	nm	75	75
Overall client satisfaction survey2	%	nm	nm	75	75
Number of direct assurance engagement reports tabled3	Number	4	10	6	6
Number of statutory reports on outcomes of financial audits tabled	Number	1	1	1	1
Average number of months direct assurance engagements are completed within4	Average	17.5	12.0	9.0	9.0
Recommendations agreed and acted upon from direct assurance engagement5	%	nm	nm	nm	70
Office‑wide Efficiency Indicators
Total audit costs per $'000 of public sector transactions	$	0.4	0.3	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	%	43	48	55	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 the COVID‑19 pandemic, including the inability to obtain appropriately skilled staff. The 2020‑21 actual has been corrected to reflect the figure reported in the Office’s 2020‑21 Annual Report.

2.    The Satisfaction Indexes are calculated when the Parliamentarian and Client Surveys are conducted. The next survey results are expected in June 2022.

3.    The number of reports tabled includes compliance audits and investigations, where applicable. The increase in 2020‑21 is due to the deferral of tabling reports during the COVID‑19 pandemic. The targeted number of reports is in line with the Auditor‑General’s annual plan of work.

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

5.    Recommendations agreed and acted upon from direct assurance engagements are determined via follow‑up audits. The most recent follow‑up audits were conducted in 2017‑18. A follow‑up report is scheduled to be tabled in Parliament in 2022‑23.

6.    The lower percentage of total paid hours charged to audit activities in 2019‑20 reflects the employment of new staff requiring substantial on‑the‑job training and an increase in personal and recreational leave taken during the year. The lower percentage in 2020‑21 is a result of the effects of the COVID‑19 pandemic.

 

Detailed Budget Statements

Table 22.4:       Statement of Comprehensive Income

	2021‑22	2022‑23	2023‑24	2024‑25	2025‑26
			Forward	Forward	Forward
	Budget	Budget	Estimate	Estimate	Estimate
	$'000	$'000	$'000	$'000	$'000
Revenue and other income
Appropriation revenue ‑ operating1	2 693	3 089	3 182	3 258	3 334
Sales of goods and services	5 587	5 834	5 934	5 934	5 934
Other revenue	30	30	30	30	30
Total revenue	8 310	8 953	9 146	9 222	9 298
Total income	8 310	8 953	9 146	9 222	9 298
Expenses
Employee benefits1	6 048	6 582	6 654	6 722	6 793
Depreciation and amortisation	59	49	49	49	49
Supplies and consumables1	1 850	1 981	2 078	2 081	2 080
Other expenses	365	369	369	369	369
Total expenses	8 322	8 981	9 150	9 221	9 291
Net result	(12)	(28)	(4)	1	7
Comprehensive result	(12)	(28)	(4)	1	7

Note:

1.    The increase in Appropriation revenue ‑ operating, Employee benefits, and Supplies and consumables in 2022‑23 primarily reflects funding for the Implementation of Data Analytics initiative.

 

Table 22.5:       Revenue from Appropriation by Output

	2021‑22	2022‑23	2023‑24	2024‑25	2025‑26
			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 Accountability1	2 167	2 553	2 636	2 702	2 778
	2 167	2 553	2 636	2 702	2 778
Tasmanian Audit Office
Total Operating Services	2 167	2 553	2 636	2 702	2 778
	2 167	2 553	2 636	2 702	2 778
Reserved by Law
Salary and Travelling Allowance, Auditor‑General (Audit Act 2008)	526	536	546	556	556
	526	536	546	556	556
Total Revenue from Appropriation	2 693	3 089	3 182	3 258	3 334
Controlled Revenue from Appropriation	2 693	3 089	3 182	3 258	3 334
	2 693	3 089	3 182	3 258	3 334

Note:

1.     The increase in this Output in 2022‑23 reflects additional revenue from appropriation for the Implementation of Data Analytics initiative.

2.     

Table 22.6:       Statement of Financial Position as at 30 June

	2022	2023	2024	2025	2026
			Forward	Forward	Forward
	Budget	Budget	Estimate	Estimate	Estimate
	$'000	$'000	$'000	$'000	$'000
Assets
Financial assets
Cash and deposits1	2 087	2 551	2 641	2 731	2 821
Receivables2	828	984	979	974	969
	2 915	3 535	3 620	3 705	3 790
Non‑financial assets
Property, plant and equipment2	122	212	198	184	170
Intangibles	10	21	21	21	21
Other assets2	69	117	108	99	90
	201	350	327	304	281
Total assets	3 116	3 885	3 947	4 009	4 071
Liabilities
Payables2	79	228	225	222	219
Employee benefits	1 134	1 385	1 461	1 532	1 597
Superannuation	138	129	129	129	129
Other liabilities3	396	639	632	625	618
Total liabilities	1 747	2 381	2 447	2 508	2 563
Net assets (liabilities)	1 369	1 504	1 500	1 501	1 508
Equity
Accumulated funds	201	336	332	333	340
Other Equity	1 168	1 168	1 168	1 168	1 168
Total equity	1 369	1 504	1 500	1 501	1 508

Notes:

1.    The increase in Cash and deposits in 2023 reflects the receipt of audit fees from 2021‑22 due to delays in the delivery of the audit program as a result of the COVID‑19 pandemic.

2.    The increase in this item in 2023 reflects revised estimates based on 30 June 2021 actuals.

3.    The increase in Other liabilities in 2023 reflects revenue received in advance, which is expected to be higher due to changes in the timing of the audit program.

 

Table 22.7:       Statement of Cash Flows

	2021‑22	2022‑23	2023‑24	2024‑25	2025‑26
			Forward	Forward	Forward
	Budget	Budget	Estimate	Estimate	Estimate
	$'000	$'000	$'000	$'000	$'000
Cash flows from operating activities
Cash inflows
Appropriation receipts ‑ operating	2 693	3 089	3 182	3 258	3 334
Sales of goods and services	5 790	6 087	6 187	6 187	6 187
GST receipts	672	672	672	672	672
Other cash receipts	30	30	30	30	30
Total cash inflows	9 185	9 878	10 071	10 147	10 223
Cash outflows
Employee benefits	(5 687)	(6 079)	(6 121)	(6 168)	(6 215)
Superannuation	(616)	(677)	(707)	(733)	(763)
GST payments	(672)	(672)	(672)	(672)	(672)
Supplies and consumables	(1 813)	(1 994)	(2 091)	(2 094)	(2 093)
Other cash payments	(365)	(369)	(369)	(369)	(369)
Total cash outflows	(9 153)	(9 791)	(9 960)	(10 036)	(10 112)
Net cash from (used by) operating activities	32	87	111	111	111
Cash flows from investing activities
Payments for acquisition of non‑financial assets	(171)	(111)	(21)	(21)	(21)
Net cash from (used by) investing activities	(171)	(111)	(21)	(21)	(21)
Net increase (decrease) in cash and cash equivalents held	(139)	(24)	90	90	90
Cash and deposits at the beginning of the reporting period	2 226	2 575	2 551	2 641	2 731
Cash and deposits at the end of the reporting period	2 087	2 551	2 641	2 731	2 821