Responses to 2012–13 Performance Audit Recommendations
Body
This audit determined the extent of agency response to, and monitoring of, VAGO's performance audit recommendations from 2012–13.
Appendix F.Audit Act 1994 section 16—submissions and comments
Introduction
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 the Department of Education and Early Childhood Development, the Department of Treasury and Finance and each of the 14 technical and further education institutes with a request for submissions or comments.
Appendix E. Glossary
Accountability
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.
Amortisation
The systematic allocation of the depreciable amount of an intangible asset over its expected useful life.
Asset
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.
Appendix D. Financial sustainability indicators and criteria
Indicators of financial sustainability
Figure D1
Financial sustainability indicators
|
Indicator |
Formula |
Description |
|---|---|---|
|
Underlying result (%) |
Adjusted net surplus / Total underlying revenue |
Appendix C. Financial audit frameworks
The financial audit framework applied in the conduct of the 2013 audits covered by this report is set out in Figure C1.
Figure C1
Financial audit framework
Source: Victorian Auditor-General's Office.
Internal control framework
Figure C2 identifies the main components of an effective internal control framework.
Appendix B. Completed audit listing
TAFEs and associated entities
Entity |
Audit type |
Financial statements | ||
|---|---|---|---|---|
Appendix A. VAGO reports on the results of financial audits
Figure A1
VAGO reports on the results of the 2012–13 financial audits
|
Report |
Description |
|---|---|
|
Auditor-General's Report on the Annual Financial Report of the State of Victoria, 2012–13 |
6 Internal controls
At a glance
Background
This Part presents the results of our review of the procurement practices and financial policies and delegations in the technical and further education (TAFE) sector.
Conclusion
Overall we found that documented policies and clear financial delegations had been established across the TAFE sector. Controls over procurement were generally adequate, but improvements could still be made in documenting the key integrity activities that underpin a tender process.
5 Financial sustainability
At a glance
Background
To be financially sustainable, entities need to be able to meet current and future expenditure as it falls due. They also need to absorb foreseeable changes and risks, and adapt their revenue and expenditure policies to address changes in their operating environment. This Part provides an insight into the financial sustainability of technical and further education (TAFE) institutes based on an analysis of the trends in their key financial indicators over the past five years.
4 Financial results
At a glance
Background
This Part analyses the financial results of the 14 technical and further education (TAFE) institutes for the year ended 31 December 2013.