Ordered to be published

VICTORIAN GOVERNMENT PRINTER June 2017

PP No 261, Session 2014-2017
 

Accountability

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.

Asset

An item or resource controlled by an entity that will be used to generate future economic benefits.

Asset replacement value

The cost of rebuilding or replacing an existing capital asset to its initial standard.

Figures E1 to E12 show each technical and further education (TAFE) institute's reported performance against the four mandatory performance indicators for 2016 and 2015.

Figure E1

Bendigo Kangan Institute

Figures D1 and D2 set out the definitions and criteria applied in this report from prior years that we use when assessing risks to financial sustainability in the TAFE sector.

The financial sustainability indicators used in this report are indicative and highlight risks to ongoing financial sustainability at a sector level.

Figure C1 shows the risk ratings applied to management letter issues raised during a financial audit.

Figure C1 Definitions of risk ratings for issues reported in audit management letters

Figure B1 lists the entities included in this report. It details the date an audit opinion was issued to each entity for their 2016 financial statements, and the nature of that opinion.

Figure B1

Audit opinions issued

We have consulted with all technical and further education institutes and the Department of Education and Training throughout the course of the audit. As required by section 16(3) of the Audit Act 1994, we gave a draft copy of this report, or relevant extracts, to those entities and asked for their submissions and comments.

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

Responses were received as follows:

An entity is considered to be financially sustainable if it can maintain operations over the long term based on existing revenue and expenditure policies. It must also be able to absorb short-term fluctuations to income and expenditure from reasonably foreseeable internal and external factors.

Effective internal controls help entities to meet their objectives reliably and cost‑effectively. Strong internal controls are a prerequisite for delivering sound, accurate and timely external and internal financial reports.