AUDITOR-GENERAL’S REPORT FINANCIAL AUDITS Volume Three 2010_part1 pot

AUDITOR-GENERAL’S REPORT
FINANCIAL AUDITS

Volume Three 2010







The Legislative Assembly The Legislative Council
Parliament House Parliament House
Sydney NSW 2000 Sydney NSW 2000



Pursuant to section 52A of the Public Finance and Audit Act 1983, I present
Volume Three of my 2010 Report.






Peter Achterstraat
Auditor-General


Sydney
October 2010

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Auditor-General’s Report to Parliament 2010 Volume Three ___________________________________________ 1
Contents

Significant Matters 3

Audit Result 3
Quality and Timeliness of Financial Reporting 4
Financial Analysis 5
Major Capital Projects 5
Net Operating Balance – General Government Sector 5
Compliance with the Fiscal Responsibility Act 2005 5
Agency Amalgamations 6
Legal Opinions Provided by the Attorney General or Crown Solicitor 6
Audit Result 7
Introduction 7
The General Government Sector and Total State Sector 7
Audit Opinion 8
Other Significant Issues 8
Quality and Timeliness of Financial Reporting 11
Preparation of Financial Statements 11
Current status of previous recommendations 13
Financial Analysis 15
Introduction 15
Compliance with Accounting Standards 15

Revenues 17
Expenses 19
Assets 22
Liabilities 23
Major Capital Projects 25
Net Operating Balance - General Government Sector 29
Introduction 29
Net Operating balance – Variance to Original Budget (June 2009) 29
NET OPERATING BALANCE – Variance to Revised Budget (June 2010) 31
Compliance with the Fiscal Responsibility Act 2005 35
Long Term Measures 36
Agency Amalgamations 39
Governance Arrangements 39
Financial Reporting Requirements 40
Appendix A: Legal Opinions Provided by the Attorney General or Crown Solicitor 41
1. Summary of advice 46
2. Background 46
3. Advice sought 47
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Contents ________________________________________________________________________________________

2 ___________________________________________ Auditor-General’s Report to Parliament 2010 Volume Three
4. Advice as to question 1 47
Financial reports of small proprietary companies for the purposes of the PFA Act 47
Financial reports of small proprietary companies for the purposes of the Corporations Act 48
5. Advice as to question 2 - Reporting to ASIC of contraventions of the Corporations Act 48
Conducting audit for purposes of PFA Act 48
Conducting audit for purposes of Corporations Act 49
Conducting audit where financial report not required for purposes of Corporations Act 49

Appendix: Relevant legislation 50
1. Summary of supplementary advice 64
2. Background 64
3. Advice 64
Effect of s.63B PFA Act 64
Appendix: Relevant legislation 68
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