25 October 2006
PUBLIC SECTOR AGENCIES COPE WELL IN A YEAR OF CHALLENGE AND CHANGE
Most WA public sector agencies have been able to meet the dual challenge of
earlier annual reporting to Parliament and presenting for the first time financial
statements based on Australian Equivalents to International Financial Reporting
Standards (AIFRS), introduced by the Government last year.
How well they managed in an unprecedented year of change in public sector
financial reporting and auditing, is outlined in a report tabled in Parliament
today by Acting Auditor General Colin Murphy.
Primarily his “Audit Results Report by Ministerial Portfolio”,
details the results of 176 controls, financial statement and performance
indicator audits across the public sector, as well as drawing to Parliament’s
attention a series of issues arising from those audits.
The report also provides details of continuing and emerging issues and
developments that will impact on accountability, audit practice and financial
reporting in 2006-07.
The report finds that in general agencies improved the timeliness of
their year end reporting practices and submitted their financial reports
earlier for audit – however, this was often achieved without adequate
quality assurance procedures being completed within each agency, requiring
many errors to be corrected during the audit process.
Significant effort from agency and audit staff resulted in the audit
opinions on all except three of 164 agencies with a 30 June 2006 reporting
date being issued by 29 September 2006 (the Department of Education and
Training audit is in progress and two agencies have still to submit their
financial statements and performance indicators for audit) – a
major achievement for both agencies and audit.
The annual reports of 118 agencies were tabled in Parliament within
90 days of their end of financial year in compliance with the earlier
annual reporting requirements – again, a considerable achievement.
Of the 176 audits reported, three agencies (Minister for Health in his
capacity as the Deemed Board of the Metropolitan Public Hospitals, Rottnest
Island Authority and Eastern Goldfields Transport Board) received qualified
opinions – the same number as last year.
Eight agencies did not comply with the legislative requirement to submit
performance indicators.
As a result of the audits over 65 agencies were advised of significant
and/or moderate control weaknesses or issues in their management of assets,
expenditure, revenue and liabilities.
These were in addition to the ongoing information system control weaknesses
which continue to be reported as an audit concern.
Forty agencies with large and complex computer systems were audited,
with security issues, in particular inadequate access controls, accounting
for 70% of findings – pointing to a widespread opportunity for
improvement across government.
Another ongoing concern raised in the report was that Statements of
Corporate Intent, intended to enhance corporate governance and accountability
at corporatised government entities, were again not tabled in a timely
manner to enable the Parliament to consider their contents – an
issue first raised by the Auditor General six years ago.
Only one of 17 agencies complied with the legislative requirement to
table Statements of Corporate Intent in Parliament prior to the commencement
of each financial year.
Concerns over ongoing issues regarding agency use of key performance
indicators and business continuity planning were also raised in the report.
The report also notes that a milestone in State financial reporting
was achieved when the first audited Annual Report on State Finances (ARSF)
was tabled by the Treasurer in Parliament on 27 September 2006.
The ARSF brings together significant financial information for the Government
of Western Australia not previously audited as well as the Consolidated
Financial Statements for the State and summary information on the Treasurer’s
Accounts.
Ends/.
Media Contact: Peter Villiers,
Manager Reporting and Communications
Tel: (08) 9222 7558. Mobile:
0417 936 171 Fax: (08) 9322 5664
4th Floor Dumas House 2 Havelock
Street West Perth
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