Victorian Auditor-General's Office

Appendix H. Audit Act 1994 section 16— submissions and comments

Introduction

In accordance with section 16A and 16(3) of the Audit Act 1994 a copy of this report, or relevant extracts from the report, was provided to the Department of Treasury and Finance, the Department of Sustainability and Environment, the Valuer-General Victoria, the Essential Services Commission, the State Owned Enterprise for Irrigation Modernisation in Northern Victoria and the 20 entities with a request for submissions or comments.

Responses were received as follows:

Appendix G. Performance indicators

This Appendix sets out the performance indicators against which water entities are required to report. Financial Reporting Direction 27B Presentation and Reporting of Performance Information specifies the entities required to prepare and submit for audit a performance report. Ministerial directives issued under section 51 of the Financial Management Act 1994 specify the performance indicators that need to be reported in a performance report.

Financial indicators

Indicator

Appendix F. Entity level financial sustainability

This Appendix details the overall financial sustainability assessment of each entity over the past five years given six indicators.

The overall financial sustainability risk assessment has been calculated using the ratings determined for each indicator as outlined in Figure F1. Appendix E provides further information on each indicator.

Figure F1

Overall financial sustainability risk assessment

Appendix E. Financial sustainability indicators and criteria

Indicators of financial sustainability

This Appendix sets out the financial indicators used in this report. The indicators should be considered collectively, and are more useful when assessed over time as part of a trend analysis. The indicators have been applied to the published financial information of the 19 water entities for the five-year period 2006–07 to 2010–11.

Appendix B. Accountability arrangements

Governance

The responsible minister for the water industry is the Minister for Water. The relationship between the Minister for Water and the water entities is established by the Water Act 1989 and the Water Industry Act 1994.

The Water Group, a business unit within the Department of Sustainability and Environment, supports and advises the Minister for Water.

The 19 entities also report to the Treasurer of Victoria.

6 Internal controls

At a glance

Background

This Part presents the results of our assessment of general internal controls over declarations of interests, valuation of assets and outsourcing in water entities.

Conclusion

Internal controls at water entities were adequate for producing reliable, accurate and timely financial reports. Nevertheless, a number of areas requiring improvement were identified.

5 Performance reporting

At a glance

Background

Sixteen of the 19 water entities are required to include an audited statement of performance in their annual report. The three water entities that report under the Corporations Act 2001 are encouraged to include these reports.

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