2.1 Audit opinion for the year ended 30 June 2018

This year, we provided a clear audit opinion on the AFR. A clear audit opinion adds credibility to the financial statements by providing reasonable assurance that reported information is reliable and accurate, in keeping with the requirements of relevant accounting standards and applicable legislation. A copy is shown in Appendix B.

Each year we audit the AFR, which measures the financial position of the state at the end of the financial year, and how it performed during the year.

Section 16A of the Audit Act 1994 requires that we report to Parliament on our audit. This report satisfies our obligation.

1.1 Entities included in the AFR

The AFR combines the financial results of 265 state-controlled entities. These are classified into three sectors:

The Treasurer tabled the 2017–18 Annual Financial Report of the State of Victoria (AFR) in Parliament on 20 September 2018. The AFR includes the financial statements of the State of Victoria (the state) and the general government sector (GGS).

This report provides Parliament with information about matters arising from our financial audit of the 2017–18 AFR. It also provides our assessment of the financial sustainability of the three sectors that make up the state at 30 June 2018—the GGS, public financial corporations (PFC) and public non‑financial corporations (PNFC).

Figures H1 and H2 show spend and benefits for 2012–13 to 2016–17 reported by lead agencies DTF and DPC across all SPCs they lead.

Figure H1
DTF spend and benefits, 2012–13 to 2016–17

Figures G1 to G3 provide a breakdown of goods and services spend by the seven department by ANZSIC subdivision, group and class categories for 2016–17.

Figure G1
Goods and services spend of more than $5 million by ANZSIC subdivision categories, 2016–17

Figure F1 provides ANZSIC division descriptions.

Figure F1
ANZSIC division descriptions

Step 1: Define scope

The scope of data for the audit included expenditure from the seven departments for the financial years 2014–15, 2015–16 and 2016–17.

We used this expenditure data to perform the following tests:

Figures D1 and D2 provide examples of the type of information publicly available in the WA Department of Finance dashboard.

Figure D1
WA agency expenditure by the United Nations Standard Products and Services Code, 2016–17

Figure C1 shows SPCs as at June 2017 and their sourcing arrangements.

Figure C1
SPCs as at 30 June 2017