Victorian Auditor-General's Office

2 Audit opinions and quality of reporting

At a glance

Background

Independent audit opinions add credibility to financial and performance reports by providing reasonable assurance that the information reported is reliable. The quality of an entity's reporting can be measured by the timeliness and accuracy of the preparation of the reports. This Part covers the results of the 2010–11 audits of the 19 water entities and one controlled entity. It also compares financial reporting practices in 2010–11 against better practice, legislated time lines and 2009–10 performance.

1 Background

1.1 Introduction

The Victorian water industry consists of 20 entities, comprising 19 water entities and one controlled entity. All entities are wholly owned by the state government. The entities are stand-alone businesses responsible for their own management and performance. Each governing board appoints a managing director responsible for the day-to-day operating activities of the entity. An overview of the accountability arrangements of the water industry is provided at Appendix B.

Audit summary

Background

This report covers the results of our financial audits of 20 entities in the water industry, comprising 19 water entities and one controlled entity. It 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 entities' annual reports.

Water Entities: Results of the 2010–11 Audits

Body
This report provides the results of the audits of 20 entities and addresses the timeliness of their financial and performance reporting, their financial sustainability and aspects of how they manage declarations of interest, asset valuations and outsourcing.

Appendix D. Audit Act 1994 section 16—submissions and comments

Introduction

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 Department of Health 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.

Appendix A. Glossary

Accountability

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.

Asset

A resource controlled by an entity as a result of past events, and from which future economic benefits are expected to flow to the entity.

5 Internal controls

At a glance

Background

This Part presents the results of our assessment of general internal controls and controls over procurement and information technology security in public hospitals.

Conclusion

Internal controls at public hospitals and controlled entities were adequate for producing reliable, accurate and timely financial reports. Nevertheless, a number of areas for improvement were identified.

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