Figure E1
Risk definitions applied to issues reported in audit management letters

Figure D1
Financial reporting maturity framework

This Appendix provides information on the audit opinions issued for the 265 entities consolidated into the AFR.

Entities are listed in the following order:

Figure B1
Audit opinion issued for the 2017–18 AFR

As required by section 16A of the Audit Act 1994, we gave a draft copy of this report to the Treasurer of Victoria and asked for his submissions or comments.

As required by section 16(3) of the Audit Act 1994, we gave relevant extracts of this report to named agencies and asked for their submissions or comments.

We also provided a copy of the report to the Department of Premier and Cabinet.

We have considered their views when reaching our audit conclusions.

7.1 The sector

PNFCs provide goods and/or services to the community on a user-pays basis. These goods and services are non-financial in nature. At 30 June 2018, there were 72 PNFCs in Victoria.

In 2017–18, PNFCs generated $11.27 billion in revenue and incurred $11.32 billion of expenses. At 30 June 2018, PNFCs reported assets valued at $138.5 billion and liabilities of $41.3 billion.

Figure 7A
Financial information about PNFCs

6.1 Conclusion

PFCs continue to operate sustainably and are positioned well financially.

6.2 The sector

PFCs are public sector entities that deal with the financial aspects of the state, including insurance, lending and investment management. PFCs can accept deposits from other state entities and undertake borrowings on behalf of the state. There are six PFCs in Victoria.

5.1 Conclusion

The GGS continues to operate sustainably and is well positioned financially.

5.2 The sector

The GGS consists of 187 entities that provide goods and services to the community significantly below their production cost. In 2017–18, the GGS generated $64.6 billion in revenue and incurred $62.3 billion of expenses. At 30 June 2018, it reported assets valued at $264.3 billion and liabilities of $80.2 billion.

Figure 5A
Financial information about the GGS

Effective internal controls help entities reliably and cost-effectively meet their objectives. Good financial reporting controls are also a prerequisite for delivering sound, accurate and timely external financial reports.

In our annual financial audits, we consider the internal controls relevant to financial reporting and assess whether entities have managed the risk that their financial reports will not be complete and accurate. Poor internal controls make it more difficult for management to comply with relevant legislation, and increase the risk of fraud and errors.

3.1 Financial reporting processes

Good financial reporting preparation processes reduce the risk of untimely, inefficient, inaccurate or unreliable reporting.