Trust funds are discrete accounts that receive and distribute money for designated purposes. At 30 June 2012, the state had 111 trust funds that collectively held $2.7 billion. This Part reports on our review of key aspects of the controls, governance, oversight and reporting of trust funds.
The general government sector is funded mainly through Parliamentary appropriations. This Part examines key aspects of the appropriation framework and the supporting policies, controls, governance and oversight.
Oversight of the appropriation framework by the Department of Treasury and Finance (DTF) needs strengthening to demonstrate that the purchaser-provider model is delivering its intended outcomes.
Financially sustainable entities have the capacity to meet current and future expenditure, and absorb foreseeable changes and risks without significantly changing their revenue and expenditure policies. This Part presents the result of our financial sustainability assessments of the 46 self-funded state entities at 30 June 2012. The assessment is based on four financial sustainability indicators that consider both short-term and long-term sustainability.
Independent audit opinions add credibility to financial reports by providing reasonable assurance that the information reported is reliable. This Part covers the results of the 2011–12 audits of the 11 portfolio departments and 193 associated entities that had finalised their financial reports at the time of this report.
This report covers 11 portfolio departments and 193 associated entities with 30 June 2012 balance dates. These entities report under a range of legislation, the most common being the Financial Management Act 1994 (FMA) and the Corporations Act 2001. Figure 1A shows the number of entities per portfolio and legislative reporting framework.
Figure
1A
Entities by portfolio and legislative reporting framework
This report presents the outcomes and observations from the external financial audit of 11 portfolio departments and 193 associated entities. Additionally, it comments on the quality of financial reporting, the financial sustainability of self-funded state entities and the effectiveness of internal controls over the appropriation framework, trust funds and risk management.
Ordered to be printed
VICTORIAN GOVERNMENT PRINTER November 2012
PP No 198, Session 2010–12
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 Treasurer and all relevant 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 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.
Establishing control of an asset, undertaking the risks, and receiving the rights to future benefits, as would be conferred with ownership, in exchange for the cost of acquisition.
Written agreement changing the terms and/or conditions of a contract.