Auditor-General's Report on the Annual Financial Report of the State of Victoria,

VAGO Publication large

Tabled: 16 OCTOBER 2014

On 2 October 2014 a qualified audit opinion was issued on the Annual Financial Report of the State of Victoria, 2013–14 (AFR) on the basis that we do not agree with the accounting policy used to assess the level of economic obsolescence in schools. 

The state has determined that seven out of every 10 Victorian schools are partly economically obsolete. It has therefore written down $1.58 billion of taxpayers' investments in those schools buildings as at 30 June 2014. However, those schools are continuing to deliver educational outcomes for the citizens of Victoria and had recently received significant investments of taxpayer funds through Commonwealth and state government funding programs. Further, in our review of the practices applied across other Australian jurisdictions we found that Victoria is alone in its approach to this matter.

The state's decision to write down those schools it deemed partly obsolete significantly reduces certain state funding for the renewal and replacement of those schools.

Overall, except for the effect of the audit qualification matters set out in our audit opinion and discussed in our report on the AFR, the Parliament and the public can have confidence that the AFR is reliable.








VAGO Icon Download

Access the Report

Full report as HTML

Full report as PDF Adobe PDF (3 MB)

PDF of the presentation Adobe PDF


Audit team

Anna Higgs
Simone Bohan
Sector Directors

Timothy Maxfield
Team Leader

Kevin Chan

Jenny Tien
Audit Seniors

Ryan Ackland

Jessica Cross

Thamali Jayasekera

Laurence McGlade

Amit Patkar

Jie Yang

Team Members

Engagement Quality Control Reviewer

Craig Burke




Last updated on 31/08/2016