Figure D1 shows the financial sustainability indicators for self-funded entities. These indicators should be considered collectively, and are more useful when assessed over time as part of a trend analysis.

Figure D1

Financial sustainability risk indicators

Figure C1 shows the risk ratings applied to the points we raise in management letters during an audit.

Figure C1

Risk definitions applied to issues reported in audit management letters

Figure B1 shows the list of portfolio departments and associated entities named in this report and illustrates the outcome of their audit opinions.

Figure B1

Audit opinions issued by portfolio department

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