Appendix A. Submissions and comments

We have consulted with the agencies named in this report and considered their views when reaching our audit conclusions. As required by the Audit Act 1994, we gave a draft copy of this report, or relevant extracts, to those agencies and asked for their submissions or comments. We also provided a copy of this report to DPC.

Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.

3. Proper accounts and records

Conclusion

DTF implemented effective internal controls to support the preparation of a complete and accurate AFR.

The internal control framework of VicTrack was not adequate. The internal control frameworks of the other material entities were generally adequate to support their preparation of complete and accurate financial reports. However, some entities need to strengthen some internal controls to ensure their financial reports remain reliable. 

2. Financial performance and position

Conclusion

The financial performance and position of the state deteriorated significantly in 2020–21.

This year the state made an operating loss of $18.3 billion (compared to $9.0 billion in 2019–20) and had net operating cash outflows of $9.3 billion ($375 million net inflows in 2019–20). This was largely a result of increased costs incurred by the GGS responding to the COVID-19 pandemic.

1. Results of audits

Conclusion

Our unmodified opinion provides reasonable assurance that the financial performance and position of the state of Victoria, and within that the general government sector, 
as reported in the 2020–21 AFR, is reliable.

The separate financial statements of 24 of the 26 material entities (entities that contribute most to the consolidated financial results in the AFR) are also reliable. We identified material errors in the financial statements of VicTrack, but they were corrected on consolidation into the AFR.