As we move towards full adoption of integrated reporting principles, we use the concept of materiality to improve how we report on significant changes occurring in our workspace. The following section highlights some of the material developments over the year that have changed how we think and operate.

5.1 Improving how we plan

We design our forward work program to be flexible and responsive. This allows us to direct our efforts towards doing the right audits at the right time, and using our resources to make a difference in the community.

4.1 Our leaders

We implemented a new senior executive structure, shown in Figure 4A, following an organisational review. The new structure lowers our future cost base, creates improved functional spans of control resulting in simpler lines of authority and accountability, and promotes greater cohesion and collaboration across our office.

3.1 Output performance

This report covers the activities of the Victorian Auditor-General’s Office (VAGO) for the reporting period 1 July 2016 to 30 June 2017.

It is prepared under the Financial Management Act 1994 and incorporates the requirements of applicable Australian Accounting Standards, Financial Reporting Directions and Standing Directions for the period ending 30 June 2017. A disclosure index in Appendix I identifies VAGO’s compliance with statutory disclosure requirements.

I am pleased to present my annual report for 2016–17.