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

This Appendix sets out the definitions and criterion applied in this report from prior years that assist us in conducting our assessment of risks to financial sustainability across the water sector.

The financial sustainability indicators used in this report are indicative and highlight risks to ongoing financial sustainability at a sector and cohort level—metropolitan, regional urban and rural.

Figure C1 shows the risk ratings applied to management letter points raised during an audit.

Figure C1

Risk definitions applied to issues reported in audit management letters

Figure B1 lists the legal and trading names of the 20 entities including one controlled entity that form part of the Victorian water industry.

Figure B1

Water entities and controlled entity