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.
Access the Report
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PDF of the presentation
Engagement Quality Control
Last updated on 4/21/2015