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 responsibilities of the Auditor‑General and Tasmanian Audit Office are 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 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 2023‑24 and over the Forward Estimates (2024‑25 to 2026‑27). Further information about the Office is provided at www.audit.tas.gov.au.
Table 21.1 provides a summary of the Budget and Forward Estimates allocations for key deliverables being undertaken by the Office.
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2023-24
Budget |
2024-25 Forward Estimate |
2025-26 Forward Estimate |
2026-27 Forward Estimate |
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|
$'000 |
$'000 |
$'000 |
$'000 |
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|
|
|
|
|
|
Implementation of Data Analytics |
339 |
345 |
355 |
.... |
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The Implementation of Data Analytics, which commenced in 2022-23, 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.
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.
·
The Output of the Office is provided under:
· Output Group 1 ‑ Public Sector Performance and Accountability.
Table 21.2 provides an Output Group Expense Summary for the Office.
1. The variation in this Output reflects: the funding profile of the 2022‑23 Budget initiative for Implementation of Data Analytics; and a revision to the budget projections of staffing and a reprofiling of expenditures following a full review undertaken by the Office.
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 21.3 provides details of performance measures to be applied in assessing the Office’s effectiveness and efficiency in achieving its outcomes.
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Performance Measure |
Unit of Measure |
2020‑21 Actual |
2021‑22 Actual |
2022‑23 Target |
2023‑24 Target |
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Attest assurance engagements |
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Financial statement audit opinions issued within 45 days of receipt of final signed financial statements1 |
% |
55 |
59 |
100 |
100 |
|
Overall client satisfaction survey2 |
% |
nm |
74 |
75 |
75 |
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Direct assurance engagements and Parliamentary reporting |
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Parliamentarian general satisfaction index2 |
% |
nm |
100 |
75 |
75 |
|
Overall client satisfaction survey2 |
% |
nm |
72 |
75 |
75 |
|
Number of direct assurance engagement reports tabled3 |
Number |
10 |
5 |
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 within |
Average |
12.0 |
9.0 |
9.0 |
9.0 |
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Recommendations agreed and acted upon from direct assurance engagement4 |
% |
nm |
nm |
70 |
nm |
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Office‑wide Efficiency Indicators |
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Total audit costs per $'000 of public sector transactions |
$ |
0.3 |
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 activities5 |
% |
48 |
44 |
55 |
55 |
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|
nm = not measured |
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Notes:
1. Financial statement audits are completed on a cyclical basis. Audits of financial statements at 30 June 2021 were completed in 2021‑22. The 2020‑21 and 2021‑22 actuals reflect challenges faced by the Office as a result of the COVID‑19 pandemic, including the inability to obtain access to appropriately skilled staff.
2. The satisfaction indexes are calculated when the Parliamentarian and client surveys are conducted.
3. The number of reports tabled includes compliance audits and investigations, where applicable. The increase in 2020‑21 was 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. 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.
5. The lower percentage of total paid hours charged to audit activities in 2020‑21 is a result of the effects of the COVID‑19 pandemic. In 2021‑22 the lower result is due to high staff turnover which increased on‑boarding and training effort.
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|
2022‑23 |
2023‑24 |
2024‑25 |
2025‑26 |
2026‑27 |
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|
|
Forward |
Forward |
Forward |
|
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
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Revenue and other income |
|
|
|
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|
|
Appropriation revenue ‑ operating1 |
3 089 |
3 259 |
3 337 |
3 425 |
3 208 |
|
Sales of goods and services2 |
5 834 |
6 578 |
7 069 |
7 395 |
7 631 |
|
Other revenue |
30 |
30 |
31 |
33 |
34 |
|
Total revenue |
8 953 |
9 867 |
10 437 |
10 853 |
10 873 |
|
Total income |
8 953 |
9 867 |
10 437 |
10 853 |
10 873 |
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Expenses |
|
|
|
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|
Employee benefits2 |
6 582 |
7 664 |
8 209 |
8 630 |
8 611 |
|
Depreciation and amortisation |
49 |
28 |
.... |
.... |
.... |
|
Supplies and consumables |
1 981 |
1 801 |
1 721 |
1 736 |
1 734 |
|
Other expenses |
369 |
425 |
446 |
468 |
491 |
|
Total expenses |
8 981 |
9 918 |
10 376 |
10 834 |
10 836 |
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Net result |
(28) |
(51) |
61 |
19 |
37 |
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Comprehensive result |
(28) |
(51) |
61 |
19 |
37 |
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Notes:
1. The decrease in Appropriation revenue ‑ operating in 2026-27 reflects the completion of the 2022‑23 Budget initiative for Implementation of Data Analytics, partially offset by additional appropriation for expenditure associated with the 27th pay occurring in that financial year.
2. The increase in Sales of goods and services and Employee benefits reflects a revision to the Office’s audit fee and expenditure estimates following a review of audit costs.
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2022‑23 |
2023‑24 |
2024‑25 |
2025‑26 |
2026‑27 |
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|
|
|
Forward |
Forward |
Forward |
|
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
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Treasurer |
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Output Group 1 ‑ Public Sector Performance and Accountability |
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1.1 Public Sector Performance and Accountability1 |
2 553 |
2 713 |
2 781 |
2 859 |
2 632 |
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|
2 553 |
2 713 |
2 781 |
2 859 |
2 632 |
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Tasmanian Audit Office |
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Total Operating Services |
2 553 |
2 713 |
2 781 |
2 859 |
2 632 |
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|
2 553 |
2 713 |
2 781 |
2 859 |
2 632 |
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Reserved by Law |
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Salary and Travelling Allowance, Auditor‑General (Audit Act 2008) |
536 |
546 |
556 |
566 |
576 |
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|
536 |
546 |
556 |
566 |
576 |
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Total Revenue from Appropriation |
3 089 |
3 259 |
3 337 |
3 425 |
3 208 |
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Controlled Revenue from Appropriation |
3 089 |
3 259 |
3 337 |
3 425 |
3 208 |
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|
3 089 |
3 259 |
3 337 |
3 425 |
3 208 |
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Note:
1. The
decrease in Public Sector Performance and Accountability in 2026-27
reflects the completion of the 2022‑23 Budget initiative for Implementation
of Data Analytics, partially offset by an additional appropriation for
expenditure associated with the 27th pay occurring in that financial year.
Notes:
1. The variation in this item in 2024 primarily reflects revised estimates based on 30 June 2022 actuals.
2. The decrease in Receivables and increase in Other financial assets in 2024 reflects: a reclassification between these items based on 30 June 2022 actuals; and work in progress not billed as at the reporting date.
3. The decrease in Employee benefits in 2027 recognises the payment of the 27th pay in 2026-27 and the reduction in the associated liability accrued over prior years for this purpose.
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2022‑23 |
2023‑24 |
2024‑25 |
2025‑26 |
2026‑27 |
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|
|
|
Forward |
Forward |
Forward |
|
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
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Cash flows from operating activities |
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Cash inflows |
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|
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|
Appropriation receipts ‑ operating |
3 089 |
3 259 |
3 337 |
3 425 |
3 208 |
|
Sales of goods and services |
6 087 |
6 831 |
7 322 |
7 648 |
7 884 |
|
GST receipts |
672 |
672 |
672 |
672 |
672 |
|
Other cash receipts |
30 |
30 |
31 |
33 |
34 |
|
Total cash inflows |
9 878 |
10 792 |
11 362 |
11 778 |
11 798 |
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|
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Cash outflows |
|
|
|
|
|
|
Employee benefits |
(6 079) |
(6 902) |
(7 360) |
(7 694) |
(7 732) |
|
Superannuation |
(677) |
(936) |
(1 028) |
(1 121) |
(1 142) |
|
GST payments |
(672) |
(672) |
(672) |
(672) |
(672) |
|
Supplies and consumables |
(1 994) |
(1 814) |
(1 734) |
(1 749) |
(1 747) |
|
Other cash payments |
(369) |
(425) |
(446) |
(468) |
(491) |
|
Total cash outflows |
(9 791) |
(10 749) |
(11 240) |
(11 704) |
(11 784) |
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|
Net cash from (used by) operating activities |
87 |
43 |
122 |
74 |
14 |
|
|
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Cash flows from investing activities |
|
|
|
|
|
|
Payments for acquisition of non‑financial assets |
(111) |
(21) |
(21) |
(21) |
(21) |
|
Net cash from (used by) investing activities |
(111) |
(21) |
(21) |
(21) |
(21) |
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents held |
(24) |
22 |
101 |
53 |
(7) |
|
|
|
|
|
|
|
|
Cash and deposits at the beginning of the reporting period |
2 575 |
2 762 |
2 784 |
2 885 |
2 938 |
|
Cash and deposits at the end of the reporting period |
2 551 |
2 784 |
2 885 |
2 938 |
2 931 |
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