We have consulted with named portfolio departments and agencies, and we considered their views when reaching our audit conclusions. As required by section 16(3) of the Audit Act 1994, we gave relevant extracts of this report to those agencies and asked for their submissions or comments.

Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.

Full responses from the Department of Treasury & Finance and the Department of Education & Training are included in this Appendix.

Machinery-of-government (MOG) changes amend the administrative structure of government agencies. They can be small changes—such as the transfer of a function from one entity to another—or significant changes—such as the creation or discontinuation of a portfolio department.

In last year's Portfolio Departments and Associated Entities: 2014–15 Audit Snapshot report to Parliament, we highlighted that the Department of Education & Training's (DET) financial reporting processes were poor.

We qualified the 2013–14 and 2014–15 financial statements of DET and its predecessor:

In this Part, we outline the audit opinions issued on the 2015–16 financial statements of the portfolio departments and associated entities. We also summarise the number of issues raised and reported to portfolio departments during the course of our audits. We make particular mention of how the alpine resorts have addressed significant issues previously reported.

This report presents the findings of the 2015–16 financial audits of the seven portfolio departments and the 207 associated entities that are not included in our other audit snapshot reports. In Appendix B, we detail the entities covered in this report.

All these entities report in accordance with the Australian Accounting Standards. The Financial Management Act 1994 and the Corporations Act 2001 are themost common reporting frameworks the entities use.

This report details the outcome of the financial audits of seven portfolio departments and 207 associated entities for the financial year ending 30 June 2016. We table separate sector-based reports on the financial audit outcomes for the water, local government, public hospital, tertiary education and university sectors.

Ordered to be published

VICTORIAN GOVERNMENT PRINTER November 2015

PP No 222, Session 2014–16 

Acronyms

AAS—Australian Auditing Standard

AASB—Australian Accounting Standards Board

DELWP—Department of Environment, Land, Water & Planning

DTF—Department of Treasury & Finance

ESC—Essential Services Commission

FMA—Financial Management Act 1994

FRD—Financial Reporting Direction

MRD—Ministerial Reporting Direction

VAGO—Victorian Auditor-General's Office

VGV—Valuer-General Victoria

WIRO—Water Industry Regulatory Order

Figure E1 shows the key elements of an effective asset valuation framework. Part 4 discusses the results of the 2015–16 valuation exercise.

Figure E1

Key elements of an effective asset valuation framework