22    Tasmanian Audit Office

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)

 

 

 

 

 

 

Comprehensive result

(12)

(28)

(4)

 

 

 

 

 

 

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