To be financially sustainable, entities need to be able to meet current and future expenditure as it falls due and to absorb foreseeable changes and risks without significantly changing their revenue and expenditure policies. This Part provides insight into the financial sustainability of the 19 water entities.
This Part covers the financial results of the 19 water entities for the year-ended 30 June 2013.
The 19 water entities generated a net profit before income tax of $110 million for the year-ended 30 June 2013, a decrease of $497 million, or 82 per cent, from the prior year.
The industry also continued to access new borrowings to finance the construction of infrastructure assets and facilitate the payment of dividends.
Sixteen of the 19 water entities are required to include an audited statement of performance in their annual report. This Part covers the results of the 2012–13 audits of water entity performance reports. It also details the progress made by an industry working group to influence the indicators to be included in performance reports for 2013–14.
This Part covers the results of the 2012–13 audits of the 19 water entities and one controlled entity. It also compares financial reporting practices in 2012–13 against better practice, legislated time lines and 2011–12 performance.
The Victorian water industry consists of 20 entities, comprising 19 water entities and one controlled entity. All entities are wholly owned by the state. The entities are stand‑alone businesses responsible for their own management and performance. The 19 water entities are expected to adopt sustainable management practices which give due regard to environmental impacts and which allow water resources to be conserved, properly managed, and sustained.
The Victorian water industry consists of 20 entities, comprising 19 water entities and one controlled entity. The 19 water entities provide water, sewage and trade waste services to the Victorian community.
This report presents the results of our financial audits of these 20 entities. It provides a detailed analysis of their financial and performance reporting, financial results and financial sustainability. It also comments on the effectiveness of internal controls, in particular, information technology security, change management, procurement and treasury management.
Ordered to be printed
VICTORIAN GOVERNMENT PRINTER November 2012
PP No 290, Session 2010–13
In accordance with section 16A and 16(3) of the Audit Act 1994, a copy of this report, or relevant extracts from the report, was provided to the Department of Health and named hospitals with a request for submissions or comments.
The submission 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 of 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.
The period over which an asset is expected to provide the entity with economic benefits. Depending on the nature of the asset, the useful life can be expressed in terms of time or output.
The fair value of a non-current asset on a particular date.