Figure B1 lists the entities included in this report. It details the date an audit opinion was issued to each entity for their 2017 financial reports, and the nature of the opinion.

Figure B1
Audit opinions issued for TAFEs and their controlled entities

We have consulted with DET and the 12 TAFE entities and we considered their views when reaching our conclusions. As required by section 16(3) of the Audit Act 1994, we gave a draft copy of this report to those agencies and asked for their submissions or comments. We also provided a copy of the report to the Department of Premier and Cabinet.

Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.

The response from DET is included below.

RESPONSE provided by the Secretary, DET

In this part of the report, we summarise the financial outcomes of the TAFE sector for the year ended 31 December 2017 and comment on the sustainability of the sector in the context of information we obtained and observed during our audits.

Effective internal controls help entities meet their objectives reliably and cost‑effectively. Entities also require strong internal controls to deliver reliable, accurate and timely external and internal financial reports.

In our annual financial audits, we consider the internal controls relevant to financial reporting and assess whether entities have managed the risk that their financial reports may not be complete and accurate. Poor internal controls make it more difficult for entities to comply with relevant legislation and increase the risk of fraud and error.

All TAFEs are required to prepare a financial report and performance report annually. Their financial reports show their financial result for the year and are prepared in line with relevant Australia Accounting Standards, the FMA and applicable legislation. Their performance reports outline performance against indicators set by the Minister for Training and Skills and each TAFE's board. We audit the financial reports and performance reports of all TAFEs.

The Victorian TAFE sector is made up of 12 TAFE institutes and their 16 controlled entities.

The TAFE sector delivers vocational education and training (VET) throughout Victoria. VET courses equip students with the practical and educational skills for a variety of careers and provide pathways to university courses.

In Victoria, registered training organisations (RTO) also provide VET courses to students. RTOs are private-sector organisations, and are not included in this report.

Figure 1A provides an overview of the sector.

The Victorian technical and further education (TAFE) sector is made up of 12 TAFE institutes and 16 controlled entities.

This report outlines the results of our financial audits of these entities and our observations for the year ended 31 December 2017. We also analyse the financial results and outcomes of the sector.

Conclusion

The financial reports of entities within the TAFE sector are reliable. Parliament and the community can have confidence in these reports.