To be financially sustainable, universities and technical and further education (TAFE) institutes need the capacity to meet current and future expenditure as it falls due, and to be able to absorb foreseeable changes and financial risks as they materialise. This Part provides our insight to the financial sustainability of tertiary education bodies obtained from analysing the trends in five indicators over a five-year period.
Accrual-based financial statements enable an assessment of whether universities and technical and further education (TAFE) institutes are generating sufficient surpluses from operations to maintain services, fund asset maintenance, and retire debt.
Student fees represent a significant portion of own-source revenue for the tertiary education sector, with 84.9 per cent of these fees received from international students.
Comprehensive internal controls help entities reliably and cost-effectively meet their objectives. Effective internal controls are a prerequisite for the delivery of reliable, accurate and timely external and internal financial reports.
This Part covers the results of the audits of the 2011 financial reports of eight universities and their 57 controlled entities, 14 technical and further education (TAFE) institutes and their 11 controlled entities, seven training entities and the one entity they control and other entities with a financial year ended on 31 December 2011.
This report covers 106 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 2011. Principally it deals with the results of the audits of 98 tertiary education sector entities, comprising universities, technical and further education (TAFE) institutes, training entities and the entities that they control. The profile of these entities is set out in Figure 1A.
This report presents the results of the 2011 audits of 106 entities mainly with a 31 December financial year end. It focuses on universities, tertiary and further education (TAFE) institutes and alpine resort management boards (ARMBs), providing detailed analysis of their internal controls, financial results and sustainability.
Ordered to be printed
VICTORIAN GOVERNMENT PRINTER May 2012
PP No 131, Session 2010–12
In accordance with section 16(3) of the Audit Act 1994 a copy of this report was provided to the Department of Business and Innovation, the Department of Primary Industries, the Melbourne Market Authority, the Department of Premier and Cabinet and the Department of Treasury and Finance with a request for submissions or comments.
Responses were received as follows:
Sound procurement is necessary to best meet the state’s interests. This includes achieving value-for-money in procurements and promoting confidence in commercial dealings by demonstrating fairness and transparency.
Major Projects Victoria’s (MPV) procurement process was not demonstrably fair and it is likely the government paid more for the trading floor than it should.