This report presents the results of our financial audits of 106
entities mainly with a 31 December financial year end. It focuses
on technical and further education (TAFE) institutes, universities
and alpine resort management boards (ARMBs) and provides detailed
analysis of their financial reporting, performance reporting,
financial results, financial sustainability and internal controls.
It informs Parliament about significant issues arising from the
audits and complements the assurance provided through individual
audit opinions included in the entities' annual reports.
Clear audit opinions were issued on the financial reports of all
but three entities. The three qualified opinions related to the
financial reports of The University of Melbourne, Deakin University
and the Anti-Cancer Council of Victoria.
Clear opinions were issued on all 20 performance statement
Overall, internal controls in TAFEs and universities were
adequate for producing reliable, accurate and timely financial
reports. Internal audit functions were well developed, although
four universities and five TAFEs did not have arrangements for
internal auditors to report their conflicts of interests.
Improvements could be made in relation to internal audit coverage,
with a number of key business areas not subject to recent internal
Controls over credit card purchasing were generally sound, however
improvements can be made in relation to risk identification.
Sample-based testing produced positive results, with identified
internal controls operating in a majority of instances.
Ten of the 22 tertiary education entities (three universities and
seven TAFEs) had not assessed themselves as being compliant with
the requirements of the Payment Card Industry-Data Security
Standard. This shows a lack of understanding of the importance of
this high-risk activity, and potentially exposes students to risks
of identity theft or fraud if their credit card information is
accessed by unauthorised persons.