In accordance with section 16(3) of the Audit Act 1994, a copy of this report, or relevant extracts from the report, was provided to all portfolio departments and named agencies with a request for submissions or comments.
The submissions and comments provided are not subject to audit nor the evidentiary standards required to reach an audit conclusion. Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.
Responses were received as follows:
Responsibility on public sector entities to achieve their objectives, with regard to reliability of financial reporting, effectiveness and efficiency of operations, compliance with applicable laws, and reporting to interested parties.
A resource controlled by an entity as a result of past events, and from which future economic benefits are expected to flow to the entity.
This Appendix sets out the definitions, criteria and changes made to the financial indicators from prior years that assist us in conducting our assessment of risks to financial sustainability across the public sector.
The financial sustainability indicators used in this report are indicative and merely highlight risks to ongoing financial sustainability.
The table below shows the risk ratings applied to management letter points raised during an audit review.
Figure A1
Risk definitions applied to issues reported in audit management letters
Rating |
Definition |
Management action required |
|---|---|---|
Extreme |
This Part analyses the financial reporting of the five Victorian alpine resorts for the year ended 31 October 2014. It also discusses the oversight and internal control issues observed during the 31 October 2014 financial audits.
This Part comments on the financial sustainability risks of self-funded entities. These entities generate the majority of their revenue from their own operations, rather than from government funding.
Self-funded entities should aim to generate sufficient revenue from their operations to meet their financial obligations and to fund asset replacement.
In 2014–15 the Department of Education & Training (DET) failed to adequately address a number of previously identified deficiencies in relation to records supporting property, plant and equipment, and school-based transactions and balances. As a result, we issued a disclaimer of audit opinion on DET's 2014–15 financial report.
This Part covers the results of the 2014–15 audits of the seven portfolio departments, the two former portfolio departments and 221 associated entities.
This report covers the outcomes of the 2014–15 financial audits of the seven current portfolio departments, the two former portfolio departments and 221 associated entities that are not included in our other Audit Snapshot reports. Included in these associated entities are the five alpine resort management boards (alpine resorts) which have a financial year ending on 31 October.