Report 21: 2017

Audit Results Report – Annual 2016-17 Financial Audits

Auditor General’s overview

This report summarises the results of the annual audits of agencies, for the year ending 30 June 2017.

It is pleasing to note that the timeliness of agency reporting processes continues to improve and the vast majority of agencies received clear audit opinions across all 3 aspects of their financial statements, controls and key performance indicators (KPIs). Unfortunately, this year there was a slight increase in the number of agencies receiving qualified audit opinions, from 7 in 2016 to 9 this year. We also reported slightly more financial control weaknesses to management for corrective action, a reversal of the improving trend in recent years.

We also reported 43 KPI issues, up from 31 the previous year. Several agencies again experienced difficulty collecting reliable data for measuring their performance, and for this reason 3 agencies decided not to report some of the KPIs they were required to report.

The report also includes commentary on a number of accounting and auditing changes that were implemented this year. Most agencies were required for the first time to disclose any material transactions with related parties in the financial report. Related parties in a public sector context include key management personnel of the agency, Ministers, and their close family members. We have recommended that Treasury assist agencies to improve data collection processes for this purpose.

We have also reported on the generally successful first audits of the new metropolitan health services.

To improve the communication value of auditor’s reports we have included Key Audit Matters in our auditor’s reports of 15 agencies listed in this report. These matters provide greater transparency about the audit that was performed.

In looking forward, the report also includes a summary of changes to accounting standards that are not yet applicable, but will impact many agencies in the near future. It is pleasing to note that Treasury has commenced assisting agencies to prepare for these changes.

Consistent with recent practice, we have included brief details of selected significant agency transactions that we noted during our audits as well as selected key financial ratios and information commonly used for assessing financial health and performance. We have also supplemented the information contained in the Annual Report on State Finances with other high level information that some readers might find useful.

I have also highlighted my view, expressed in several previous reports to Parliament, that there are benefits and savings in reducing the reporting burden on the 60 smaller agencies that account for only 1% of total government operating expenditure.

 

 

 
Page last updated: November 7, 2017

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