Tertiary Education and Other Entities: Results of the 2010 Audits
Overview
This report covers the results of the annual audit of 113 entities from the tertiary education, sustainability and environment, health, planning and community development and local government sectors, with a financial year end other than 30 June 2010. It focuses principally on 105 tertiary education sector entities, comprising the eight public universities and their 63 controlled entities, 14 technical and further education (TAFE) institutes and their 12 controlled entities, six training entities and the two entities they control.
The report informs Parliament about significant issues arising from the audits of financial and performance reports and augments the assurance provided through audit opinions included in the respective entities’ annual reports.
The report comments on the effectiveness of internal controls, and for the tertiary education sector, controls over creditors and the management of employee leave. It also comments on the financial sustainability of universities, TAFE institutes and alpine resort management boards, and their financial management and reporting activities.
Parliament can have confidence in 107 of the 110 financial reports and all performance reports that received clear audit opinions.
The internal control structures over financial reporting within audited entities were adequate, that is they enabled production of accurate, complete and reliable information for reporting. However, controls over creditors and management of employee leave for universities and TAFEs could be strengthened by developing comprehensive policies, introducing more effective management practices, and enhancing compliance monitoring.
While financial reporting processes, overall, were adequate, the consistency and quality of financial reporting would improve if entities prepared shell financial statements early, undertook rigorous quality control and assurance procedures and prepared materiality assessments.
Overall the financial sustainability risk for the tertiary education and alpine resort sectors is low, consistent with our 2009 assessment.