Appendix C. Audit status
Financial audits
Audit types |
Financial statements |
Timeliness of audited financial statement completion | ||||||
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Appendix B. Frameworks
Internal control framework
Figure B1 identifies the main components of an effective internal control framework.
Figure B1
Components of an internal control framework
Source: Victorian Auditor-General’s Office.
In the diagram:
Appendix A. VAGO Reports on the results of the 2012–13 financial audits
This report is part of a suite of reports presented to Parliament covering the results of our audits of public sector financial reports. The reports are outlined in Figure A1.
Figure A1
VAGO reports on the results of the 2012–13 financial audits
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Report |
Description |
|---|
8 Treasury management
At a glance
Background
An effective treasury function should monitor and manage cash flows to minimise borrowing costs while providing sufficient cash to meet obligations when they fall due. In this Part we comment on treasury management at the 19 water entities.
7 Procurement
At a glance
Background
The water industry spent around $2.7 billion on goods, services and capital items in 2012–13. In this Part we comment on the controls over procurement at the 19 water entities.
Conclusion
Procurement frameworks were observed to be generally adequate. However, the high incidence of noncompliance with procurement policies, procedures and control activities identified by internal audits indicates there are opportunities for the governing bodies and management to improve practices.
6 Information technology
At a glance
Background
This Part presents the results of our assessment of controls over the general information technology (IT) controls related to preparing financial reports, including the controls over IT security and change management.
5 Financial sustainability
At a glance
Background
To be financially sustainable, entities need to be able to meet current and future expenditure as it falls due and to absorb foreseeable changes and risks without significantly changing their revenue and expenditure policies. This Part provides insight into the financial sustainability of the 19 water entities.
4 Financial results
At a glance
Background
This Part covers the financial results of the 19 water entities for the year-ended 30 June 2013.
Conclusion
The 19 water entities generated a net profit before income tax of $110 million for the year-ended 30 June 2013, a decrease of $497 million, or 82 per cent, from the prior year.
The industry also continued to access new borrowings to finance the construction of infrastructure assets and facilitate the payment of dividends.
3 Performance reporting
At a glance
Background
Sixteen of the 19 water entities are required to include an audited statement of performance in their annual report. This Part covers the results of the 2012–13 audits of water entity performance reports. It also details the progress made by an industry working group to influence the indicators to be included in performance reports for 2013–14.
2 Financial reporting
At a glance
Background
This Part covers the results of the 2012–13 audits of the 19 water entities and one controlled entity. It also compares financial reporting practices in 2012–13 against better practice, legislated time lines and 2011–12 performance.