Portfolio Departments and Associated Entities: Results of the 2013–14 Audits

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Tabled: 12 FEBRUARY 2015

This report presents the results of the 2013–14 financial audits of the nine portfolio departments and 201 associated entities, including the alpine resort management boards.

Parliament and the citizens of Victoria can have confidence in the 2013–14 financial reports of the portfolio departments and associated entities, other than in respect of the former Department of Education and Early Childhood Development (DEECD) which was issued with a qualified audit opinion. Confidence can nevertheless be placed on that financial report, except for the effect of the audit qualifications.

The report highlights that portfolio departments had not resolved 47 high or medium risk-rated control weaknesses identified during the 2012–13 financial year audits, or earlier. This lack of timely resolution means that the control frameworks in place at the portfolio departments are not as effective as they could be.
Of the 210 entities, 48 are considered to be self-funded entities, as a majority of their revenue is generated from their own operations. Eight of these have been consistently identified as being at a high financial sustainability risk. For these entities there are significant financial challenges, which if not addressed, may lead to a reduction in the services they provide to the community. In order for these entities to be financially sustainable over the long term, the pricing model used to generate revenue may need amendment, another funding source found or additional government support provided.

The report reviews the prudential oversight of the state's insurance agencies, which could be strengthened if the Department of Treasury and Finance appointed a prudential auditor to provide independent assurance about each insurance agency's compliance with the Prudential Insurance Standards for Victorian Government insurance agencies. 

The report also comments on the Auditor-General’s eroding legislative mandate to review public expenditure on Public Private Partnerships. The report also comments on the operation of internal audit at portfolio departments, certain categories of infringements and provides a status update of significant state projects.

 

 

 

 

 

 

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Last updated on 11/20/2015