3 Financial sustainability
The Annual Financial Report of the State of Victoria (AFR) shows the financial performance and position of the State of Victoria and the general government sector (GGS).
2 Results of audit
Independent audit opinions add credibility to financial statements by providing reasonable assurance that the information reported is reliable and accurate. A clear audit opinion confirms that the financial statements present fairly the transactions and balances for the reporting period, in accordance with the requirements of relevant legislation. Auditors issue a qualified opinion on an audit when they cannot state clearly that financial statements are fairly presented in all material respects.
1 Context
Each year, we audit the annual financial report that the state government prepares under section 24 of the Financial Management Act 1994. Section 16A of the Audit Act 1994 requires that we report to Parliament on our audit.
This report satisfies our obligation. In it, we discuss the results of our audit and we analyse the financial performance and position of the State of Victoria.
Audit overview
The 2015–16 Annual Financial Report of the State of Victoria (AFR) was tabled in Parliament by the Treasurer on 13 October 2016. The AFR includes the financial statements of the State of Victoria and the general government sector.
This report provides Parliament with information about matters arising from our 2015−16 financial audit of the AFR. It also provides our assessment of the financial sustainability of the State of Victoria at 30 June 2016.
Auditor-General’s Report on the Annual Financial Report of the State of Victoria, 2015–16: Message
Ordered to be published
VICTORIAN GOVERNMENT PRINTER November 2016
PP No 220, Session 2014–16
The Hon. Bruce Atkinson MLC
President
Legislative Council
Parliament House
Melbourne
President
Legislative Council
Parliament House
Melbourne
The Hon. Telmo Languiller MP
Speaker
Legislative Assembly
Parliament House
Melbourne
Speaker
Legislative Assembly
Parliament House
Melbourne
Dear Presiding Officers
Auditor-General’s Report on the Annual Financial Report of the State of Victoria, 2015–16
Body
The report sets out the results of the audit of the State of Victoria’s Annual Financial Report for 2015–16 and provides commentary on the financial outcomes and position achieved by the state and the general government sector.
Appendix B. Audit Act 1994 section 16—submissions and comments
Introduction
In accordance with section 16(3) of the Audit Act 1994, a copy of this report, or part of this report, was provided to the Department of Economic Development, Jobs, Transport & Resources, the Department of Education & Training, the Department of Environment, Land, Water & Planning, the Department of Health & Human Services, the Department of Justice & Regulation, the Department of Premier & Cabinet, the Department of Treasury & Finance and Victoria Police.
Appendix A. Key Standing Directions requirements for audit committees
Figure A1
Key 2003 and 2016 Standing Directions requirements for audit committees
Category |
2003 Standing Directions |
2016 Standing Directions |
|---|---|---|
Role |
5 Monitoring implementation of audit actions
At a glance
Background
Where significant risks have been identified through audits and agencies have committed to addressing those risks through proposed actions, it is important that actions are completed in a timely manner and in a way that fully addresses the underlying issues. If not, the agency could be exposed to risk.
Audit committees have a key role in monitoring agencies' implementation of agreed actions agreed in response to internal and external audits.
4 Oversight of internal
At a glance
Background
For an audit committee, the internal audit function is a major source of information and assurance about the agency's performance and risk management activities. The audit committee has a key role in directing and reviewing internal audit.