|
View full document in separate window
1992/93 - THE YEAR IN REVIEW
Some of the significant events of the Office in 1992/93 are as follows:-
Negotiations almost completed to fund the Office from an Operating Account in the Special Deposit and Trust Fund from 1 July 1993.
Completion of an independent Efficiency Audit on the operations of the Office.
Restructure and retitling of the Office.
Tabling of the following Reports:-
Report on the audit of the Public Account due
30 September 1992 - dated 29 September 1992,
Report on the audit of Government departments and public bodies due 31 May 1993 - dated 30 November 1992,
Annual Report due 30 November 1992 - dated
26 October 1992, and
Four Performance (VFM) Audit Reports.
Establishment of a Consultative Committee.
Participation in a staff exchange program with two other Audit Offices.
INTRODUCTION
This Annual Report describes the functions and operations of the Tasmanian Audit Office and includes the audited financial statements of the Office for the year ended 30 June 1993. The Report focuses on matters relating to the organisation and management of resources available to the Auditor-General during the year, and is submitted to Parliament in accordance with the annual reporting requirements of the Financial Management and Audit Act 1990 and the Tasmanian State Service Act 1984.
ROLE OF THE AUDITOR-GENERAL
The system of democratic government which Australia enjoys grew in part from a demand by the people that they have some form of control over funds they provide to those who govern them. Our parliamentary form of government requires that the Government of the day, before it collects or spends public moneys, must have the express approval of Parliament, the representatives of the people. Just as importantly, the Government must also account for its handling of the funds entrusted to it.
To assist Parliament in holding the Government to account, the Auditor-General is empowered to examine the accounts of the Treasurer, Government departments, and public bodies. As a result of the audits undertaken, and the subsequent reporting process, Members of Parliament are provided with information which assists them to judge whether the Government has spent public funds for the purposes authorised by Parliament and that public resources are used economically and efficiently.
The Auditor-General, therefore, plays an important role in the process by which Tasmanians are governed.
The responsibilities, duties and powers of the Auditor-General are outlined in the Financial Management and Audit Act 1990.
MISSION STATEMENT
Our mission is to:-
Perform independent audits of the financial information and statements of the Treasurer, Government departments and public bodies.
Contribute to the quality of the management of Government departments and public bodies by reviewing the economy, efficiency and effectiveness of operations (performance audits).
Report to Parliament on the results of such audits and reviews.
Specific Objectives for 1992/93 were to:-
Continuously improve the quality of audits.
Enhance the professionalism of the staff.
Improve conformity of audit outcomes with allocated hours.
Increase the proportion of resources devoted to performance audits
Increase the timeliness of Reports to Parliament.
SCOPE OF ACTIVITIES
AREAS OF OPERATION
The activities of the public sector are divided into two main areas, generally referred to as the budget and non-budget sectors:-
The budget sector includes most Government departments. These departments are funded by way of annual appropriations and their financial operations are processed through the central accounting system operated by the Department of Treasury and Finance.
The non-budget sector includes the remaining Government departments and a large number of public bodies, many of which are established by special legislation. These bodies have greater financial autonomy and are not generally funded by parliamentary appropriations, but are required in the main to individually report on their activities to Parliament.
AUDIT RESPONSIBILITIES OF THE OFFICE
As at 30 June 1993, the Auditor-General had specific responsibility for the audit of auditees as follows:-
Appropriations from the Public Account to the Governor, Legislative Council, House of Assembly and Legislature-General.
14 Departments including branch offices, schools, technical and further education colleges and courts located throughout Tasmania.
7 Marine Boards
29 Local Government Authorities
3 Regional Health Boards which control public hospitals, State nursing homes, nursing homes, mental health services, community health centres, domiciliary care and other health support services throughout the State, and
91 other public bodies including water, trading, registration, superannuation, marketing and other authorities.
As a result of the Government's modernisation process, 28 Local Government Authorities were abolished on 1 April 1993. In these cases financial statements for the period ended 1 April were submitted for audit. These changes resulted in a reduced number of authorities in existence at 30 June.
AUDIT REPORTS
In respect of some of the auditees listed above more than one audit report has been issued in cases where other activities were undertaken or different bases of accounting were adopted.
Audit reports issued totalled 194. In addition 10 reports were issued to the Commonwealth in respect to special purpose grants to the State and 8 reports to the Insurance and Superannuation Commission. Of the total reports issued in the 1991/92 audit cycle 31 were qualified.
The qualifications in the main referred to departures from accounting standards and deficient accounting records.
AUDITS CONTRACTED OUT
Fees for audits contracted out in the 1992/93 audit cycle represent 4.9% of fees raised for that year (1991-92 2.2%).
ORGANISATIONAL STRUCTURE
During the year the Head Office was reorganised to provide an appropriate structure for the conduct of performance audits and financial audits. The change reduced the number of financial audit teams from 6 to 5 and provided for the establishment of a performance audit team on a project basis whereby staff are "contracted in" from other teams to undertake particular tasks.
The Computer Services Section undertakes EDP audits as well as providing computer support for the equipment utilised by the Office, whilst the Administration Section provides general support for the Office.
ORGANISATION CHART
RELATIONSHIP BETWEEN CORPORATE AND PROGRAM STRUCTURE
Sections A, B, D and T are responsible for the sub-programs financial audits and reporting to Parliament whilst D section by "contracting in" staff from other sections is also responsible for the performance audit sub-program.
LEGISLATION ADMINISTERED AND MAJOR DOCUMENTS PRODUCED
LEGISLATION ADMINISTERED
Financial Management and Audit Act 1990 in so far as it relates to audit except for the office of Auditor-General and the appointment of an auditor to perform an audit of the financial statements relating to the Tasmanian Audit Office.
MAJOR DOCUMENTS PRODUCED
Report No 1 of 1992 - September 1992
Report on the audit of the Public Account
Report No 2 of 1992 - November 1992
Report on the audit of Government departments and public bodies.
Annual Report on the Operations of the Office in 1991/92
Performance (VFM) Audits
Special Report No. 1 - August 1992 Regional Health Support Services
Special Report No. 2 - November 1992 Student Transport
Special Report No. 3 - May 1993 Education Institutions Cleaning Services
Special Report No. 4 - May 1993 Standard of Annual Reporting by Government
Departments
PERFORMANCE INFORMATION
In 1992/93 the Office operated under one Program, however for reporting purposes that Program is segregated into its 3 sub-Programs:-
Financial Audits
Performance Audits
Reporting to Parliament
The cost of the sub-Programs have been determined on the basis of actual salaries plus a percentage to cover overheads.
FINANCIAL AUDITS
Mission
Perform independent audits of the financial information and statements of the Treasurer, Government departments and public bodies.
Cost of the sub-Program $3 061 000
Performance Measures
The performance measures in this sub-program are either expressed in terms of a financial year or on the basis of the audit cycle, which in respect to 1991/92 audits refers to the period
1 November 1991 to 31 October 1992.
Goal -Continuously improve the quality of audits
A new chapter has been included in the Audit Manual on Materiality and the Audit Process and training on this issue has been given to staff;
For the 1992/93 audit cycle there were 50 audits where the hours allocated to complete these audits exceeded 300. Three of these audits were contracted out and coverage was given to the remainder as follows:-
EDP audit input at the planning stage (40);
A review of controls (30); and
Computer Assisted Audit Techniques (CAATS) have been utilised in the substantive testing phase of the audit (24).
An assessment of risk and materiality was undertaken at the commencement of all 1992/93 audits.
An independent review of the operations of the Office was conducted and a number of the major recommendations of the report have been implemented.
Goal - Enhance the professionalism of the staff
Goal Actual
Expenditure on staff training in 1992/93 4% 4.2%
Average days training per employee
Auditors, Managers and Directors 8 days 8.6
days
Administration staff 3 days 3.7
days
Requirement Actual
Eligible expenditure under the Training Guarantee $37 500 $104
(Administration Act) 1990 000
All audit staff received training on new Concept statements, accounting standards and audit standards and practice statements within 3 months of their publication date.
Goal - Improve conformity of audit outcomes with allocated hours
At 31 October 1992 (end of the 1992 audit cycle) all 1991/92 audits were completed with the exception of 83 or (36% of the total) or 54% of allocated hours. By 30 November 1992 a total of 22 audits (11% of the total or 13% of allocated hours) had not been completed. The main reasons for non completion of these audits were that there were unresolved issues and that financial statements were submitted late. The final audit report on 1991/92 financial statements was issued on 13 August 1993.
Complete 1991/92 audits within 105% of allocated hours
Goal Actual Performance
105% 112%
1991 1992
Productive hours per employee for the audit 1377 1330
cycle
Productive hours per employee refers to the average audit field staff hours costed to auditees after allowing for such "unproductive time" as leave, administration and training. The main reasons for the reduction in 1992 are the increase in sick leave experienced by the Office, which is referred to on page 12 of this Report, and the increasing commitment to training.
Timeliness standards for the completion of the final phases of audits have been established and will be monitored in the finalisation of 1992/93 audits. The standards set are:-
Auditors Report Days
Reviewed by Managers 7
Reviewed by Director 2
Audit Report signed by Auditor-General 2
Total time from the date of Auditors Report to the
issue of the Audit Report on financial statements. 11
PERFORMANCE AUDITS
Mission
Contribute to the quality of the management of Government departments and public bodies by reviewing the economy, efficiency and effectiveness of operations (Performance Audits).
Cost of the sub-Program $181 000
Performance Measures
Goal - Increase the proportion of resources devoted to performance audits
Performance audits account for 10% of the total annual allocated hours for the twelve months July 1992 - June 1993.
Total Allocated hours Goal Actual
1991/92
52114 5211 hours 3775 hours*
*Includes time taken to complete performance audits for which reports have been issued or are in progress and a preliminary survey for a project which was not proceeded with.
REPORTING TO PARLIAMENT
Mission
Report to Parliament on the results of audits and reviews.
Cost of the sub-program $43 000
Performance Measures
Reports to Parliament on financial audits are required to be tabled in Parliament by specific dates in accordance with the provisions of Section 57 of the Financial Management and Audit Act 1990.
In respect to Reports to Parliament on Performance Audits, no statutory limits exist, however the Office has adopted a policy of completing audits within seven months of commencement and tabling the resultant Reports before 30 September in any year to compliment the financial statement audit cycle. The following table reflects the goals set for each project in the planning phase within the policy framework of the Office.
Goal - Increase the timeliness of Reports to Parliament
Statutory Date Goal Actual
Reports on Financial
Audits
Public Account 30 September 30 September 30 September
1992 1992 1992
Government departments and 31 May 1993 30 November 30 November
public bodies 1992 1992
Performance Audits
Health Support Services Nil 31 July 1992 18 August 1992
Student Transport Nil 31 July 1992 30 November
1992
Review of Medical and Nil 31 August 1992 30 November
Health Professional Staff 1992
Work Practices at Royal
Hobart Hospital (included
in Report on Government
departments and public
bodies)
Education Institutions Nil 31 May 1993 3 May 1993
Cleaning Services
Standard of Annual Nil 15 April 1993 3 May 1993
Reporting by Government
Departments
Municipal Solid Waste Nil 31 July 1993 Not yet
Management complete
HUMAN RESOURCE MANAGEMENT
STAFFING INFORMATION
Recruitment
Advertisements for field staff at all levels resulted in a successful recruitment campaign in July and August 1992.
Appointments were made to 10 vacant positions from 79 applications during 1992-93, details being as follows:
Total Male Female State Non-State
Service Service
Appointments 10 8 2 1 9
Applications 79 62 17 30 49
All field audit staff appointed to positions in the Office during the year possessed accounting qualifications.
Staff turnover
The rate of staff turnover in the Office is always of concern. However, it is recognised that if employees leave the Office and remain in the State Service the benefit of their experience is not lost to the Government. Auditors-General of other States and the Commonwealth have also expressed similar concerns at their high staff turnover rate.
1991 1992 1993
Total staff as at 30 June 63.4 58 59.5
1990/91 1991/92 1992/93
Departures 10 9.4 8
Departures expressed as a percentage of staff employed at 30 June are as follows:-
1990-91 1991-92 1992-93
15.8% 16.2% 13.4%
Staff Exchange
Arrangements were made with the Auditors-General of Victoria and New Zealand to participate in a staff exchange program.
One staff member of this Office is working with the New Zealand Audit Office for the period 1 January 1993 - 31 December 1993.
One staff member from the Victorian Audit Office is working in my Office for the period 31 May 1993 - 30 November 1993.
Reciprocal arrangements have been negotiated with both offices.
Objectives for the Program have been developed in consultation with the staff and offices involved, and in the case of my staff I will receive a report on the:-
achievement of the objectives of the program, and
recommendations to improve the function of the Office in respect of each of the matters outlined in the objectives.
Sick leave
Sick leave taken by staff during 1992-93 totalled 3788 (full pay 3472, half pay 316) hours, which averaged 61.9 hours (or 8.4 days) per employee.
Total Sick Leave Average per Employee
1992-93 3788 hours 61.9 hours (8.4 days)
1991-92 1 691 hours 27.8 hours (3.8 days)
1990-91 2 652 hours 41.2 hours (5.6 days)
Six officers took leave totalling 2400 hours (327 days) in the year. In the case of one officer, leave taken was 1250 hours (170 days). All of these officers had extended periods of hospitalisation in the year.
Staff Profile
The staff profile of the Office is depicted in the following diagrams. Staff employed at 30 June 1993 totalled 59.5. Average staff for the year was 61.15 FTE's.
% TOTAL STAFF BY GENDER FOR THE PERIOD JUNE 1990 TO JUNE 1993
NUMBER OF EMPLOYEES BY CLASSIFICATION AND GENDER
- 30 JUNE 1993
PERCENTAGE OF EMPLOYEES BY CLASSIFICATION AND GENDER
- 30 JUNE 1993
BREAKDOWN OF STAFF BY AGE AND GENDER - 30 JUNE 1993
Eligible Training Courses and Staff Development Activities
Details of the statistics on ??? (this section was corrupted) and progressive enhancement of computerised systems.
COMPUTER SYSTEMS, STRATEGIES AND DEVELOPMENTS
The Office Information Technology (IT) Strategy Plan specifies programs for the continued upgrading and improvement of IT facilities. A component of the Works and Services Appropriation is required each year to ensure that the initiatives in the plan are carried out.
During 1992/93 no capital funds were appropriated to the Office for this purpose, which meant that obsolete and out-dated equipment could not be replaced as targeted.
The Office did however, enter into a 4 year leasing agreement for the replacement of its central processor hardware at a cost of $7 800 per quarter, commencing in November 1992. Maintenance funds saved from de-commissioning older hardware were used to pay for this item, which was cost neutral for the Office.
In addition, the Office purchased a new Financial Management system ("Finance One") in June 1993, which will be operational from 1 October 1993 and will assist the Office to account on an accrual basis.
The move to self funding (refer page 18) will mean that the Office will not have to rely on Appropriations for the replacement and upgrading of its computing facilities. The Office's aging personal and portable computers are targeted for replacement in 1993/94 and depreciation charges will be recovered through client billing.
The Office is continuing to enhance its Management Information and Planning System (MIPS) with the addition of better reporting, fee determination, auditee and staffing profiles and integration with the new Financial System.
RISK POLICIES AND INITIATIVES
The major risk exposures for the Office are associated with the conduct of audits. To minimise such risks, audits are conducted in accordance with Australian Auditing Standards and Practice Statements which are issued jointly by the Australian Society of Certified Practising Accountants and the Institute of Chartered Accountants in Australia. These standards and practice statements provide the fundamental benchmarks and quality assurance guidelines which are mandatory for members of the accounting profession to follow.
To facilitate the minimisation of this risk, a revised audit methodology was introduced into the 1992-93 audit cycle. An evaluation of commercially developed and automated audit methodologies is planned in the future.
Other risks such as workers compensation are covered by contributions to the State's compensation arrangements administered by the Department of Treasury and Finance, and, where appropriate, computer systems components and other equipment are covered for damage and maintenance.
PRICING POLICIES AND FEES RECEIVED
For many years the Office has been funded by annual appropriation from Parliament, a component of which, as determined by the Treasurer in consultation with the Auditor-General, is recouped through the imposition of audit fees. Such fees have been determined on the basis of the full cost (funded and unfunded excluding certain long service leave costs and depreciation) of running the Office. Individual fees are determined on a number of criteria which include size, history, risk/complexity, systems in place including internal controls, organisational and accounting changes and location.
Following recent reviews of Office operations and funding mechanisms, (involving outside consultants, an inter-departmental committee and senior Office personnel) approval has been received to fund future operations (as from 1 July 1993) through a Treasury Trust Account. Under this arrangement, the State will contribute a minor component to fund Performance Audits and other "Whole of Government" type obligations. The full cost of the remainder of activities which form the Financial Audit sub-program are to be charged against all auditees, including inner budget Departments (from 1 July 1993).
Details of audit fees received over the past four years compared to Appropriation expenditure are as follows:
1989-90 1990-91 1991-92 1992-93
$'000 $'000 $'000 $'000
Audit Fees $1 518 $1 644 $2 131 $2 112
Recurrent Expenditure $2 554 $2 895 $2 878 $2 986
Recurrent Costs 59.4% 56.7% 74.0% 70.1%
Recovered
AUDIT FEES AND RECURRENT EXPENDITURE COSTS
The fees payable in respect of the 1991-92 audits were raised on completion of those audits and in the main are reflected in the revenue received in 1992-93. The same collection cycle relates to prior years. The increase in fees recovered since 1991-92 is principally due to charging auditees who were previously exempt.
EXTERNAL AND INTERNAL SCRUTINY
EFFICIENCY REVIEW
As indicated earlier an Efficiency Audit was conducted by a firm of Chartered Accountants, and a formal report was issued on 26 November 1992. The review was initiated by the Budget Review Committee and focused primarily on audit methodology, organisational structure, EDP audit , management information systems, resource utilisation and funding arrangements.
I am pleased to report that the majority of the recommendations have been implemented and the remainder are in the process of being implemented.
INTERNAL AUDIT
As part of the system of internal control, internal audit is conducted annually by a Senior Officer from within the Office. The 1992/93 audit focused primarily on the integrity of the financial systems and associated registers and was completed in June 1993 with satisfactory results.
EXTERNAL AUDIT
Under Section 45 of the Financial Management and Audit Act 1990, the Governor may appoint an independent Registered Company Auditor to perform an audit of the financial statements of the Tasmanian Audit Office. Deloitte Touche Tohmatsu, Chartered Accountants, Hobart, were appointed for a term of three years expiring on 30 June 1994. Their Audit Report is attached to the financial statements contained in this Report.
TASMANIAN AUDIT OFFICE
Consolidated Fund
Summary of Expenditure and Receipts for the year ended 30 June 1993
Expenditure
1991-92 1992-93
Actual Notes Estimate Actual
Variation
$'000 $'000 $'000 $'000
PROGRAM: 1 AUDIT
Recurrent Services:
Operating Expenses (A100) -
2 Salaries and Related Expenses 2 2 48
456 439 487
24 Materials and Supplies 17 23 6
34 Communications 37 34 (3)
76 Travel 109 94 (15)
6 Transport 9 11 2
13 Office Machines and Equipment 3 5 2
96 Automatic Data Processing 94 123 29
64 Recruitment and Other Personnel 22 42 20
Services
1 Miscellaneous 21 54 33
2770 3 2 2 122
751 873
108 Salary and Travelling Allowance
Auditor-General (R007) - 3 109 113 4
$2 Total Recurrent Services $2 $2 $126
878 860 986
Works and Services:
Other Works and Purposes (H100) -
38 Computer Hardware
7 Computer Software .
8 Computer Communications
4 Training
4 Other Computer Costs
46 Purchase of Motor Vehicles 17 17 -
107 Total Works and Services 17 17 -
$2 Total Expenditure $2 $3 $126
985 877 003
Receipts
2 Audit Fees (Y327) - 2 2 33
131 079 112
$2 Total Receipts $2 $2 $33
131 079 112
SPECIAL DEPOSITS AND TRUST FUND
T577 - TASMANIAN AUDIT OFFICE ASSET MANAGEMENT ACCOUNT
STATEMENTS OF RECEIPTS AND EXPENDITURE FOR YEAR ENDED 30 JUNE 1993
Function and Purpose of Account:
To record:
a) the receipt of proceeds from the sale of motor vehicles and the disbursement of these proceeds to assist in purchasing replacement vehicles; and
b) contributions from the Consolidated Fund to fund shortfalls between the sale proceeds of motor vehicles and replacement costs; and
c) the receipt of proceeds from the sale of equipment with a value of up to $2 000 per item, and the disbursement of the proceeds for any purpose at the discretion of the Agency.
1991-92 1992-93
Actual Actual
$'000 $'000
0 Opening Balance 1
1 Plus Receipts - Asset Sales 1
1 2
0 Less Expenditure 1
$1 Closing Balance $1
STATEMENT OF ASSETS
AS AT 30 JUNE 1993
Plant Equipment and Vehicles
Note 1993 1992
$ $
Computer Equipment 2 623 600
805 557
Accumulated Depreciation (458 (337
982) 882)
164 262
823 675
Office Equipment 2 15 184 15 184
Accumulated Depreciation (6 (4
907) 361)
8 277 10 823
Motor Vehicles 2 63 686 45 897
Accumulated Depreciation (7 (3
520) 141)
56 166 42 756
TOTAL $229 $316
266 254
Supplementary Information and Statement of Balances as at 30 June 1993
Cash and Investment Balances
An advance was held of $2 500 for Salaries, Travelling and Petty Cash. The unexpended balance of the advance at 30 June 1993 was $593 (30 June 1992, $1 875) which sum was held in a bank account outside the Public Account.
Summary of Debts Due, Doubtful Debts and Write-offs
30 June
1993 1992
$ $
Outstanding Audit Fees 28 497 23 982
Allowance for Doubtful Debts .... ....
Amount Written-Off .... ....
Creditors
30 June
1993 1992
$ $
Operating Expenses 1 821 3 225
Employee Entitlements
30 June
1993 1992
$ $
Accrued - Recreation Leave 243 235
639 414
- Long Service 464 496
Leave 525 768
- Leave Other 5 851
Notes to the Financial Statements
1. a) Cash Basis of Accounting
The financial statements have been prepared on a cash basis for
those expenditure Items met from Division 16 of the Consolidated
Fund Appropriation Act 1992-93 and for the audit fees received by
the Department.
b) The Statements are consistent with the requirements of the Financial
Management and Audit Act 1990.
c) The statements only include identifiable direct costs and do not
represent the total costs of the operations of the Office. No
provision has been made in the financial statements for indirect
costs or costs met by other Departments such as rent or
accommodation, employee entitlements and employee superannuation
contributions to the Retirement Benefits Fund
d) Fees payable in respect of the audit of 1991-92 accounts were raised
in accordance with the provisions of Section 56 of the Financial
Management and Audit Act 1990 and are reflected in these accounts.
No account has been taken for work-in-progress completed prior to 30
June 1993.
e) The basis of calculation for the liability in respect of
long-service leave represents the Office's liability in respect of
employees with greater than 5 years of service.
f) All amounts have been rounded off to the nearest thousand dollars.
2. Statement of Assets
Asset Registers are maintained to record assets controlled by the
Office. Assets recorded include motor vehicles, all computer
equipment of value greater than $300 and all office equipment of
value greater than $1 000.
In addition to the motor vehicles included as assets, the Office
leases two vehicles from the Government Car Pool. These leases are
operating leases and are cancellable at the option of the Office.
All non-current assets having a limited useful life are
systematically depreciated over their useful lives in a manner which
reflects the consumption of their service potential. Some items of
computer equipment were written down to reflect their written down
current cost at 30 June 1993. All other items are recorded at
historical cost less an allowance for depreciation.
3. Variations
Operating expenses exceeded the estimate by $122 434 due primarily
to variances in the following:
Salaries and Related Expenses 47 758
Miscellaneous 33 356
Automatic Data Processing 29 227
Recruitment and Other Personnel 19 615
Comments on variations:
Salaries and Related Expenses
There was an additional pay period in the financial year, the full
effect of which was partly offset by savings in salaries due to a
reduction in staff numbers. ??? (this section was corrupted)
54 1
Depreciation 2(b),10 128 122
Asset Decrements 11 19 6
TOTAL OPERATING EXPENSES $3 285 $3 260
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $16 ($7)
Abnormal Expenses
Long Service Leave - Auditor-General 2(d) - 51
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS 8 $16 ($58)
AFTER ABNORMAL ITEMS
TASMANIAN AUDIT OFFICE
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 1993
ITEM NOTES 1992-93 1991-92
$'000 $'000 $'000 $'000
Current Assets
Cash on Hand and Deposit 1 2
Prepayments 1 -
Debtors 2 1
4 3
Non-Current Assets
Computer Equipment 2(b),9,10 624 600
,11
Accumulated Depreciation (459) 165 (338) 262
Office Equipment 2(b), 9, 15 15
10, 11
Accumulated Depreciation (7) 8 (5) 10
Motor Vehicles 2(b), 4, 63 46
9, 10,11
Accumulated Depreciation (8) 55 (3) 43
Total Assets $232 $318
Current Liabilities
Accrued salaries/related 6 83
payment
Creditors 2 3
Provision for Annual Leave 2(d) 244 235
Provision for Long Service 2(d) 430 -
Leave
$682 $321
Non-Current Liabilities
Provision for Long Service 2(d) 34 497
Leave
Total Liabilities $716 $818
Equity
Accumulated Changes in Net 6 ($484) ($500)
Assets
TASMANIAN AUDIT OFFICE
STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 JUNE 1993
ITEM NOTES 1992-93 1991-92
$'000 $'000
Cash Flows from Operating Activities
Receipts from Appropriation 7(a)
Recurrent 2 986 2 878
Capital 17 107
Advance Account Reimbursement 1 3
Total Receipts $3 004 $2 988
Payments
Salaries and Related Expenses 2 600 2 564
Materials and Supplies 23 24
Communications 34 34
Travel 94 76
Transport 10 6
Office Machines and Equipment 5 5
Automatic Data Processing 94 99
Recruitment and Other 42 64
Personnel
Miscellaneous 54 1
Unreimbursed Payments from 2 1
Advance Account
Total Payments $2 958 $2 874
Net Cash from Operating Activities 8 46 114
Cash Flows from Investing Activities
Payments for Purchase of Non-Current 9 47 112
Assets
Net Cash from Investing Activities 47 112
Net Increase(Decrease) in Cash Held ($1) $2
Cash at the beginning of the 2 0
reporting period
Cash at the end of the reporting $1 $2
period
NOTES TO THE FINANCIAL STATEMENTS
1. Funding
The Office is funded by Parliamentary appropriations. Appropriations are recognised as revenue in the period the Office gains control of the funds.
2. Significant Accounting Policies
a) Basis of Accounting
The Supplementary Financial Statements have been prepared on the accrual basis of accounting in accordance with Statements of Accounting Concepts, Exposure Draft 55 (Financial Reporting by Government Departments) and applicable Australian Accounting Standards.
b) Depreciation of Non-Current Assets
All non-current assets having a limited useful life are systematically depreciated over their useful lives in a manner which reflects the consumption of their service potential. All computer equipment of value greater than $300 has been brought to account. All office equipment of value greater than $1 000 has been brought to account.
Major depreciation rates are:
Basis of Depreciation
Motor Vehicles 7% Reducing balance
Office Equipment 25% Reducing balance
Computer Equipment 25% Straight line
c) Salaries and Related Payments
Salaries and Related payments include entitlements to wages, salaries and leave loading.
d) Employee Entitlements
Long Service Leave is recognised on a pro-rata basis in respect of services provided by employees up to the reporting date. Liabilities in respect of these entitlements are assessed having regard to period of service.
The basis of calculation for the liability in respect of long-service leave represents the Office's liability in respect of employees with greater than five years of service.
The classification of the liability for long service leave has been completed on the basis that entitlements in respect of services greater than ten years are shown as a current liability whilst the remainder are shown as a non-current liability.
Long Service Leave attributable to the Auditor-General was accepted by the Office as part of his contract of appointment.
Amounts shown for recreation and long-service leave are based on the provisions of the Tasmanian State Service Act and Regulations, and the General Conditions of Service Award S085.
Obligations to employees in respect of accumulated leave credits in lieu of overtime is included with employee entitlements.
3. Superannuation
Employees of the Office contribute to the Retirement Benefits Fund (RBF) Scheme.
The RBF Scheme is a defined benefit pension scheme established in 1970 for employees in the Tasmanian public sector. The Scheme is unfunded with respect to the employer component, with the State's contribution being made on an emerging cost basis.
4. Motor Vehicles
In addition to the motor vehicles which have been depreciated, the Office leases two vehicles from the Government Car Pool. These leases are operating leases and are cancellable at the option of the Audit Office.
5. Audit Fees
Fees payable in respect of the audit of 1991-92 accounts were raised in the 1992-93 financial year in accordance with the provisions of Section 56 of the Financial Management and Audit Act 1990. Audit fees are not controlled by the Office but are paid directly to the Consolidated Fund and are therefore not recognised as revenue.
1992-93 1991-92
$'000 $'000
Audit Fees raised 2 159 2 084
Miscellaneous Charges raised 3 25
$2 162 $2 109
Collection of audit fees and charges on behalf of the Consolidated Fund
1992-93 1991-92
$'000 $'000
1991-92 audits 2 111 2 085
Fees paid in advance 1 46
$2 112 $2 131
In addition to the audit fees received from Statutory Authorities and others of
$2 112 446, the Audit Office audits other government agencies for which no inter-agency charge was raised. In the event that the Office had charged the other agencies at the standard rate for the allocated hours involved, additional revenue of approximately $924 000 would have been recovered.
Additional Information
1992-93 1991-92
$'000 $'000
Fees and Charges Outstanding 28 24
Work In Progress 1 137 1 189
Amounts are based on allocated hours and the rate charged to auditees.
6. Equity
Equity represents the residual interest in the net assets of the Office.
Changes in Equity
1992-93 1991-92
Balance at beginning (500) (442)
Change during the period 16 (7)
Abnormal items 0 (51)
Balance at end (484) (500)
7. Appropriations
a) Appropriation Summary
1992-1993 1991-1992
Estimate Expenditure Estimate Expenditure
$'000 $'000 $'000 $'000
Recurrent
Program 1 Audit 2 751 2 873 2 681 2 770
Salary and Travelling 109 113 106 108
Allowance,
Auditor-General
Capital 17 17 107 107
Advance from Treasury 3
Total Appropriations $2 877 $3 003 $2 894 $2 988
b) Assumption of Liabilities
During the previous two reporting periods the Government agreed to settle the Office's obligations in respect of the following items. .
1992-93 1991-92
$'000 $'000
Employee entitlements - Long Service 19 51
Leave
Accommodation Expenses 279 213
$298 $264
8. Reconciliation of Net Cash provided by Operating Activities to Change in Net Assets resulting from Operations.
For the purposes of the statement of cash flows, "cash" includes cash on hand and deposit accounts.
1992-93 1991-92
$'000 $'000
Net cash provided by operating 46 114
activities
Depreciation (128) (122)
Asset Decrement (19) (6)
Salaries capitalised 13 (23)
Employee entitlements .. (7)
Expenses paid by Government (298) (213)
Assumption of Liabilities 298 264
Acquisition of Equipment 1
Decrease (Increase) in accrued salaries
and related payments 77 (14)
Decrease (Increase) in Creditors 1 (2)
Decrease (Increase) in provisions 24 (51)
Increase in Prepayments 1
Increase in Debtors 1 1
Change in net Assets resulting from $16 (58)
operations after Abnormal Items
9. Purchases of Non-Current Assets
1992-93 1991-92
$'000 $'000
Payments for acquisition of Motor 17 46
Vehicle
Payments for acquisition of Computer 30 58
Equipment
Payments for acquisition of Office - 8
Equipment
$47 $112
10. Depreciation
Depreciation expense for the reporting period was charged in respect of:
1992-93 1991-92
$'000 $'000
Computer Equipment 121 118
Motor Vehicles 4 3
Office Equipment 3 1
$128 $122
11. Non-Current Assets
Some items of Computer Equipment and Software ($18 875) were written down during the reporting period to reflect their written down current cost at 30 June 1993. All other items are recorded at historical cost less an allowance for depreciation.
CERTIFICATION OF SUPPLEMENTARY ACCRUAL FINANCIAL STATEMENTS
The accompanying supplementary accrual financial statements of the Tasmanian Audit Office have been prepared in accordance with Statement of Accounting Concepts, Exposure Draft 55 (Financial Reporting by Government Departments) and applicable Australian Accounting Standards so as to present fairly the financial operations of the Office during 1992-93 and the financial position of the Office as at 30 June 1993.
At the date of signing I am not aware of any circumstances which would render the particulars included in the financial statements misleading or inaccurate.
A J McHugh
AUDITOR-GENERAL
11 August 1993
COMPLIANCE INDEX TO DISCLOSURE REQUIREMENTS: 1992-1993
This index has been prepared to facilitate identification of compliance with statutory disclosure requirements: Financial Management and Audit Act 1990 (FMAA) and Treasurer's Instructions (TI), the Tasmanian State Service Act 1984 (TSS) including Statutory Rule No. 123 of 1990 Tasmanian State Service (Agency Reporting) Regulations (TSS(AR)R) and other contemporary reporting practices.
REFERENCE DESCRIPTION PAGE
AIDS TO ACCESS
Table of Contents
Alphabetical index N/A
Glossary of abbreviations and acronyms N/A
OVERVIEW
TSS(AR)R3(a)(i) Overall mission and objectives of the 3
Office.
FMAAs.27(1)(a) A report on the performance of the functions 3 & 4
TSSs.33AB(1)(a) and powers of the Auditor-General under any
written law.
FMAAs.27(1)(b)subject A report by any statutory office holder N/A
to employed in or attached to the Office.
S.27(2)TSSs.33AB(1)(b)
TSS(AR)r3(a)(v) Major initiatives taken to develop and give N/A
effect to Government policy
T1701(1)(b) Details of major changes affecting programs, 6
TSS(AR)R3(a)(iv) objectives or organisational structure
STATUTORY/NON-STATUTORY BODIES AND COMPANIES
A list of statutory and non-statutory bodies N/A
A list of names of companies N/A
LEGISLATION ADMINISTERED AND MAJOR DOCUMENTS PRODUCED
TSS(AR)R3(e) A list of legislation administered by the 7
Office
TSS(AR)R3(d)(i) A list of major documents or publications 7
produced
ORGANISATIONAL STRUCTURE
TSS(AR)R3(a)(ii) Organisation Chart as at the end of the 6
reporting year
TSS(AR)R3(a)(iii) Details of relationship between corporate 6
and program structure
PERFORMANCE INFORMATION
TI701(1)(a) & (e) Performance information on sub-programs of 8
the Office
HUMAN RESOURCE MANAGEMENT
TSS(AR)Re(c)(i) Staffing information as at 30 June. 11
TSS(AR)R3(c)(ii) Eligible training courses and staff 14
development activities
TSS(AR)R3(c)(iii) Equal Employment Opportunity 14
TSS(AR)R3(c)(iv) Industrial democracy 15
TSS(AR)R3(d)(iii)
TSS(AR)R3(c)(v) Occupational health and safety strategies 15
ASSET MANAGEMENT, RISK MANAGEMENT AND PRICING POLICIES
TI 701(1)(d)(i) & Major capital projects 17
(ii)
|
