Figure B1 shows the risk ratings applied to management letter points raised during an audit review.
Figure B1
Risk definitions applied to issues reported in audit management letters
Rating |
Definition |
Management action required |
|---|---|---|
Extreme |
The issue represents: |
Figure A1
Audit status of TAFE sector for year ending 31 December 2014
Entity |
Financial statements |
Performance statement | ||||
|---|---|---|---|---|---|---|
Risk management is a combination of organisational systems, processes and procedures that identify, assess, evaluate and mitigate risks to an organisation. An effective risk management framework plays a significant role in reducing an entity's exposure to potentially unfavourable events.
Fundamental changes were made to performance reporting by technical and further education (TAFE) institutes in 2014, moving away from reporting against mandated indicators to reporting against individually set measures. This Part covers the results of the 2014 audits of performance statements for the 10 TAFEs who had prepared them for 31 December 2014, and comments on the changes implemented for 2014.
This Part looks at the collective 31 December 2014 financial position of the 10 technical and further education (TAFE) institutes that had completed their financial statements at the time of preparing this report. It details the main drivers behind the net results achieved, and analyses the sector against four financial sustainability risk indicators.
This report details the outcomes of the 2014 financial audits of the 12 Technical and Further Education (TAFE) Institutes and the 16 entities they control.
During the 2014 financial year, there were two amalgamations of pre-existing TAFE entities. On 1 May 2014, Advance TAFE and Central Gippsland Institute of TAFE amalgamated to create Federation Training. On 1 July 2014, Bendigo Institute and Kangan Institute amalgamated to form the new Bendigo Kangan Institute.
 John Doyle Auditor-General |
Audit team Simone Bohan—Engagement Leader Helen Grube—Team Leader Matthew Graver—Audit Senior Ryan Ackland—Auditor |
Ordered to be published
VICTORIAN GOVERNMENT PRINTER May 2015
PP No 35, Session 2014–15
In accordance with section 16(3) of the Audit Act 1994, a copy of this report, or relevant extracts from the report, was provided to the Department of Education & Training, the Department of Treasury and Finance and each of the eight universities with a request for submissions or comments.
The submissions and comments provided are not subject to audit nor the evidentiary standards required to reach an audit conclusion. Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.