Report 21: 2019-20

Audit Results Report – Annual 2019 Financial Audits

Audit opinions for universities, TAFEs and others

Management of the universities and TAFEs are responsible for keeping proper accounts and records to enable the timely and accurate preparation of financial reports.

An effective internal control system should operate to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and to alert management to irregularities in procedures. They also assist universities and TAFEs to prevent, detect and investigate errors and fraud.

The Auditor General is required to issue an audit opinion for each university and TAFE to the responsible Minister. The opinion relates to:

  • financial statements – assurance that the financial statements and supporting notes are materially complete, accurate, reliable and comply with relevant legislation and applicable accounting standards. The vast majority of State government financial statements are general purpose and, as a minimum, comply with Australian Accounting Standards and, for most, with the Treasurer’s Instructions.
  • controls – assurance that, in all material respects, controls were adequate to provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property and the incurring of liabilities were in accordance with legislative provisions.
  • The scope of this opinion addresses the specific requirements of the AG Act, and is not as broad as it would be if required to address all aspects of Australian Auditing Standard ASAE 3150 Assurance Engagements on Controls. To issue our opinion, we test the design and implementation of key controls.
  • key performance indicators (KPIs) – assurance that the KPIs are relevant, appropriate, based on reliable data and, in all material respects, fairly present the performance of the entity in achieving its desired outcomes. Our audits include testing manual and computerised processes for collecting and reporting the KPIs, and verifying the accuracy and completeness of the information reported.

It should be noted that the audit opinions relate to historical information reported in the financial statements and KPIs and are not predictive of future expectations.

Clear opinions were issued for all universities and TAFEs

For the year ended 31 December 2019, we issued clear audit opinions on the financial statements, controls and KPIs of all universities, university subsidiaries and for the 5 TAFEs. University and TAFE audit opinions are included in their annual reports which are tabled in Parliament.

UNIVERSITIES
Opinion on financial statements, controls and KPIs
Opinion issued
Curtin University (Curtin) 12/03/2020
Edith Cowan University (ECU) 12/03/2020
Murdoch University (Murdoch) 13/03/2020
The University of Western Australia (UWA) 11/03/2020

Table 1: Audit opinions issued for universities       Source: OAG

TAFEs
Opinion on financial statements, controls and KPIs
Opinion issued
Central Regional TAFE 06/03/2020
North Metropolitan TAFE 09/03/2020
North Regional TAFE 11/03/2020
South Metropolitan TAFE 09/03/2020
South Regional TAFE 17/03/2020

Table 2: Audit opinions issued for TAFEs       Source: OAG

Some universities use subsidiary companies to conduct activities on their behalf. The audit opinions we issued for these subsidiaries relate to financial statements only as they are not required to submit KPIs. The financial results of the subsidiaries are included in the consolidated financial statements of their controlling university. Annual reports of subsidiaries are not required to be tabled in Parliament.

UNIVERSITIES’ SUBSIDIARIES AND REQUEST AUDITS
Opinion on financial statements only
Opinion issued
Edith Cowan University

Australian Pathways Education Group Pty Ltd (for year ended 30/06/2019)

 

09/03/2020

Murdoch University

Alan and Iris Peacocke Research Foundation

Innovative Chiropractic Learning Pty Ltd

Murdoch College Properties Pty Ltd

Murdoch Retirement Services Pty Ltd

 

16/03/2020

20/03/2020

31/03/2020

18/03/2020

The University of Western Australia

Perth USAsia Centre Limited

The University Club of Western Australia Pty Ltd

UWA Accommodation Services Pty Ltd

UWA Sport Pty Ltd

Young Lives Matter Foundation UWA Ltd

 

04/03/2020

15/03/2020

Audit in progress

Audit in progress

Audit in progress

Table 3: Audit opinions issued for universities, TAFEs, subsidiaries and request audits       Source: OAG

Emphasis of Matter paragraph in some opinions

If a matter is appropriately presented or disclosed in the financial report but, in our judgement, is of such importance that it should be drawn to the attention of financial report users, we may include an Emphasis of Matter paragraph in our audit opinion.

The universities and the 2 metropolitan TAFEs recognised the uncertain effect of COVID-19 in an ‘event occurring after reporting date’ Note to their financial statements.  

Eleven other audit opinions were issued

In addition to the tertiary education sector audits reported above, we issued a further 8 opinions for State government entities since 5 November 2019. We also issued 3 opinions for local government entities since our Report 16: March 2020 (Audit Results Report – Annual 2018-19 Financial Audits of Local Government Entities). Please refer to Appendix 1.

Ten audit certifications were issued

Throughout the year, we conduct audit work to certify financial and statistical information produced by entities. The audit opinion enables entities to meet conditions of State or Commonwealth funding or specific grant requirements or legislation. Our opinion is usually also required to enable entities to receive ongoing funding under existing agreements or to apply for new funding.

Our Report 12: November 2019 (Audit Results Report – Annual 2018-19 Financial Audits of State Government Entities) detailed 141 certifications issued by 5 November 2019, including 121 certifications under the Royalties for Regions program – predominantly for the 30 June 2019 period.

We have since issued a further 10 certifications including 1 for a local government entity. Please refer to Appendix 2.

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