Tertiary Education and Other Entities: Results of the 2009 Audits

The report covers 116 entities from the tertiary education, sustainability and environment, health and community development sectors, which have a financial year end other than 30 June 2009. Principally it deals with the audit of 106 tertiary education sector entities, comprising universities, TAFE institutes, training entities and the entities they control.

The purpose of this report is to inform Parliament about significant issues arising from the annual audit of financial and performance reports, augmenting the assurance provided through audit opinions issued that are included in the respective entities’ annual reports.

This report comments on the effectiveness of internal controls, the financial sustainability of universities, TAFE institutes and Alpine Resort Management Boards (ARMBs), and financial management and reporting. It also recommends better practices for improving management controls over travel expenditure.

At 30 April 2010, audit opinions on 111 of the 116 or 96 per cent of financial reports had been issued. Of the 111 opinions issued, 108 were clear and three required qualification (four in the previous year). Clear audit opinions were issued on the 20 performance reports submitted for audit.

In 2009, we found that the overall financial reporting processes were adequate as they relate to accuracy, completeness and reliability. The overall quality of financial reporting improved in 2009, when compared to 2008, due to improved quality control and assurance processes and more comprehensive supporting documentation. However, the entities can still improve when preparing their financial report plans and shell financial reports. Improvement is important as the Public Finance and Accountability Bill, now before Parliament, is proposing shorter reporting time frames.

Overall, our assessment of internal control structures found the systems and processes in place were adequate for financial reporting purposes. Management controls over travel expenditure by universities and TAFEs however needs improvement, particularly in terms of documenting the policy framework and in the reporting of costs and outcomes to the governing body.

The university, TAFE and alpine resort sectors’ overall financial sustainability risk assessments are low.

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