We have consulted with named agencies, and we considered their views when reaching our audit conclusions. As required by the Audit Act 1994, we gave a draft copy of this report, or relevant extracts, to those agencies and asked for their submissions and comments. We also provided a copy of the report to DPC.
Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.
Overall, DTF implemented effective internal controls to support the preparation of a complete and accurate AFR.
Except for VicTrack and DJCS, the internal control frameworks at the other 24 material entities were adequate to support their preparation of complete and accurate financial reports. However, some entities need to strengthen some important internal controls, particularly information system security controls.
The financial performance of both the state and the GGS deteriorated significantly compared to last year as the state responded to the COVID-19 pandemic.
In 2019–20, the state generated revenue of $77.3 billion ($78.6 billion in 2018–19) and outlaid $86.3 billion ($80.4 billion in 2018–19). This reflects a net loss from transactions of $9.0 billion ($1.8 billion in 2018–19).
The Treasurer of Victoria tabled the AFR in Parliament on 15 October 2020.
We provided a clear audit opinion on the AFR again this year.
Except for VicTrack, we provided clear opinions on the other 25 material entities, whose results are consolidated in the AFR. Our qualification on VicTrack did not flow through to the AFR because the State of Victoria adjusted its results on consolidation.
The AFR contains the audited financial statements of the State of Victoria and the GGS.
Our report, which is required by section 57 of the Audit Act 1994, contains matters we judge as significant that arise from the audit and pertain to either the effective and efficient management of public resources or the keeping of proper accounts and records.
Central agencies and whole of government |
The table below lists the adjustments we have made to our performance audit work program in response to the impact of COVID-19.
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Audit topic and year |
Details |
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New audits introduced |
The Auditor-General undertakes financial audits for over 580 public sector entities each year. The Auditor-General uses VAGO staff to undertake around a third of these financial report audits. For the remaining financial report audits, the Auditor-General contracts private sector firms (audit service providers) to assist with these. VAGO reviews this work and all audit opinions are issued on behalf of the Auditor-General.
We largely use our own professionally qualified and trained staff to deliver our performance audits. However, we periodically engage experts to advise our performance audit teams on complex and technical issues. We also use contractors to supplement our staff resources where required.