Figure B1
Audit opinion issued for the 2018–19 Annual Financial Report of the State of Victoria

As required by the Audit Act 1994, we gave a draft copy of this report to the Treasurer of Victoria and relevant extracts to named agencies and asked for their submissions or comments.

We have considered their views when reaching our conclusions.

The Department of Premier and Cabinet was also provided a copy of the report.

The Treasurer of Victoria or agency head is solely responsible for the accuracy, fairness and balance of those comments.

Ongoing financial sustainability underpins the government's ability to deliver services and investment commitments to the people of Victoria.

To assist it to deliver public services and infrastructure on a sustainable basis, the government has set itself the long-term financial management objectives detailed in Figure 4A.

Figure 4A
The government's long-term financial management objectives

Effective internal controls help entities reliably and cost-effectively meet their objectives. Good financial reporting controls are also a prerequisite for delivering sound, accurate and timely external financial reports.

2.1 Audit opinions for the year ended 30 June 2019

We provided a clear audit opinion on the AFR this year, and on the 29 significant state-controlled entities whose results are included within it.

A clear audit opinion adds credibility to the financial statements by providing reasonable assurance that reported information is reliable and accurate, in keeping with the requirements of relevant Australian accounting standards and applicable legislation. A copy of the AFR audit opinion is in Appendix B.

Each year we audit the AFR, which measures the financial position of the state and GGS at the end of the financial year, and how they performed for the year.

The Audit Act 1994 requires the Auditor-General to report to Parliament on our AFR audit. This report satisfies that obligation.

1.1 Entities included in the AFR

The AFR combines the financial results of 267 state-controlled entities. The government classifies these entities into three sectors, as shown in Figure 1A.

Figure 1A
Categories of state-controlled entities

The Treasurer of Victoria tabled the 2018–19 Annual Financial Report of the State of Victoria (AFR) in Parliament on 15 October 2019. The AFR includes the financial statements of the State of Victoria (the state) and the general government sector (GGS).

This report provides Parliament with information about matters arising from our financial audit of the 2018–19 AFR. It also provides our assessment of the state's financial sustainability at 30 June 2019.

The Victorian Auditor-General’s Annual Plan 2019–20 was prepared pursuant to the requirements of section 7A of the Audit Act 1994, and tabled in the Victorian Parliament on 27 June 2019.