Responsibility on public sector entities to achieve their objectives, with regard to reliability of financial reporting, effectiveness and efficiency of operations, compliance with applicable laws, and reporting to interested parties.
A resource controlled by an entity as a result of past events, and from which future economic benefits are expected to flow to the entity.
Figure D1 outlines the key elements of an effective internal control framework for travel and accommodation expenditure.
The framework draws upon the:
Figure D1
Key elements of an effective internal control framework for
travel and accommodation
Figure C1 shows the indicators used in assessing the financial sustainability of the universities in Part 2 of this report. These indicators should be considered collectively, and are more useful when assessed over time as part of a trend analysis.
Figure C1
Financial sustainability risk indicators
|
Indicator |
|---|
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 university sector for year ending 31 December 2014
Entity |
Financial statements |
||
|---|---|---|---|
Clear opinion | |||
Universities in Victoria collectively spent $137.0 million on travel and accommodation in 2014. Travel by university staff, paid for with public funds must be appropriately controlled to mitigate the risk of waste or lack of financial prudence.
This Part looks at the collective financial position of the eight universities as at 31 December 2014 and analyses the sector against five financial sustainability risk indicators.
The university sector is in a healthy financial position, posting surpluses year on year and continuing to hold large asset portfolios. While overall the university sector has been assessed as having a low financial sustainability risk, there are longer-term risks that need to be monitored.
This report details the outcomes of the 2014 financial audits of the eight universities and the 51 entities that they control.
The report includes a review of the financial sustainability of the sector and the frameworks in place for managing the travel and accommodation expenses incurred by university staff.
Figure 1A outlines the structure of this report.
Figure 1A
Report structure
 John Doyle Auditor-General |
Audit team Simone Bohan—Engagement Leader Helen Grube—Team Leader Kevin Chan—Audit Senior Engagement Quality Control Reviewer Tim Loughnan |
Ordered to be published
VICTORIAN GOVERNMENT PRINTER May 2015
PP No 37, Session 2014–15