The Treasurer tabled the 2016–17 Annual Financial Report of the State of Victoria (AFR) in Parliament on 21 September 2017. The AFR includes the financial statements of the State of Victoria (the State) and the general government sector (GGS).

This report provides Parliament with information about matters arising from our financial audit of the 2016–17 AFR. It also provides our assessment of the financial sustainability of the State at 30 June 2017.

Conclusion

We issued a clear audit opinion on the AFR for the financial year ended 30 June 2017.

Ordered to be published

VICTORIAN GOVERNMENT PRINTER November 2017

PP No 345, Session 2014–17

Figure F1 is a copy of the IIA Internal Audit Quality Analysis to conduct self‑assessment against the IIA standards.

Figure F1
IIA Internal Audit Quality Analysis

Figure E1 shows an example of balanced scorecard reporting of better practice performance measures.

Figure E1
Better practice performance measures

Figure D1 shows a model assurance map for internal audit.

Figure D1
Model assurance map

Figure C1 is an assessment of recommended internal audit charter content against actual department charter content.

Figure C1
Recommended internal audit charter content

Appendix B Legislation, guidance and better practice

The figures in this appendix list the detailed legislation and guidance in the Victorian public sector, and in better practice guides, for managing internal audit, measuring performance and communicating insights. The section numbers in the figures are cross-references to sections of this report.

Figure B1
Figures in this appendix

We have consulted with DEDJTR, DELWP, DET, DHHS, DJR, DPC and DTF, and we considered their views when reaching our audit conclusions. As required by section 16(3) of the Audit Act 1994, we gave a draft copy of this report, or relevant extracts, to those agencies and asked for their submissions and comments.

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

Responses were received as follows:

Internal audit should demonstrate its performance and value as part of the department's governance framework. It can do this by delivering on its objectives, communicating meaningful insights, reporting on implementation of audit recommendations, and showing commitment to quality and continuous improvement by establishing, measuring and reporting against performance measures. This builds credibility and trust with the audit committee and management.