In Victoria, there are eight public universities, which control a further 50 entities that we audit. Each year, we conduct the financial audits of these 58 entities. This report outlines the results of these financial audits and our observations for the year ended 31 December 2017. We also discuss asset maintenance and management, and comment on the financial sustainability of the sector.
Ordered to be published
VICTORIAN GOVERNMENT PRINTER May 2018
PP No 395, Session 2014–18
Dear Presiding Officers
Ordered to be published
VICTORIAN GOVERNMENT PRINTER May 2018
PP No 394, Session 2014–18
Dear Presiding Officers
Responsibility of public entities to achieve their objectives in reliability of financial reporting, effectiveness and efficiency of operations, compliance with applicable laws, and reporting to interested parties.
The systematic allocation of the depreciable amount of an intangible asset over its expected useful life.
An item or resource controlled by an entity that will be used to generate future economic benefits.
The fair value of a non-current asset on a specified date.
There are several significant changes in accounting standards on the horizon. TAFEs need to be aware of these changes, and start thinking now about how they will comply with the new requirements.
This accounting standard is not mandatory to the not-for-profit sector until 1 January 2019, with comparative information needing to be disclosed.
Figure G1 shows the key elements of an effective asset valuation framework. Section 3.6 of the report discusses the results of the 2017 valuation process.
Figure G1
Key elements of an effective asset valuation framework
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Key area |
Criteria |
|---|---|
|
Policies and procedures |
Figure F1 shows indicators used in assessing the financial sustainability risks of TAFE institutes in Part 4 of this report. These indicators should be considered collectively and are more useful when assessed over time as part of a trend analysis.
Figure F1
Financial sustainability risk indicators
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Indicator |
Formula |
Description |
|---|---|---|
|
Net result margin (%) |
Figure E1 shows the risk ratings applied to issues raised in management letters. It also details what they represent and the expected timeline for the issue to be resolved.
Figure E1
Risk definitions applied to issues reported in audit management letters
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Rating |
Definition |
Management action required |
|---|
Figures D1 to D12 show each TAFE institute's reported performance against the four mandatory performance indicators for 2015 to 2017.
Figure D1
Bendigo Kangan Institute
Source: VAGO.
Our assessment of financial reporting performance against better practice was based on elements outlined in Figure C1.
Figure C1
Better practice elements to financial report preparation
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Better practice elements |
Financial reporting better practice elements |
|---|---|
|
Financial report preparation plan |