2016-06-09
In committee:
Ms PENNICUIK (Southern Metropolitan) — I move:
That the Council take note of the report.
I start by thanking my colleagues on the Public Accounts and Estimates Committee: the chair and deputy chair and the members of the committee, in particular Dr Carling-Jenkins, who has now left the committee but worked very hard on the committee.
The committee has had a very full load of work, as members would be aware. The general work of the Public Accounts and Estimates Committee and budget estimates, but also the inquiry into national partnership agreements, hearings into the financial statements and of course the extraordinary events regarding the resignation of the Auditor-General, have put a large load on the committee and particularly on the committee staff.
I would like to thank the staff of the committee — Mr Phil Mithen, the acting executive officer; Ms Leah Brohm, senior research office; Mr Jeff Fang, senior research officer; Ms Melanie Hondros, business support officer; and Ms Amber Candy, desktop publisher and administrative officer — for their very hard work with very tight deadlines and juggling many things at once.
Turning to the report, the Audit Act 1994 as amended requires that an independent financial auditor be appointed in each of the next three financial years, beginning with the year ending 30 June 2016, to conduct an annual financial audit of the Victorian Auditor-General's Office (VAGO). The Public Accounts and Estimates Committee is responsible under the act for recommending to both houses of Parliament the appointment of a suitably qualified person to undertake that financial audit.
The role of the financial auditor is, amongst other things, to conduct an audit of VAGO's financial statements in each of the next three financial years in accordance with applicable accounting standards and other mandatory professional reporting requirements; to verify that the financial statements of VAGO comply with the financial reporting requirements of the Financial Management Act 1994, as amended, and relevant provisions of any successor legislation to that act; to conduct the financial audit in compliance with the Audit Act 1994, Australian auditing standards and professional reporting requirements and the relevant compliance obligations of the Standing Directions of the Minister for Finance 2016, commencing 1 July 2016; to prepare a management letter and/or operations letter to VAGO; and to take note of any, one, related policy changes from the Department of Treasury and Finance and, two, potential changes to the Audit Act 1994 during the engagement period.
The committee resolved to recommend the appointment of Mr Geoff Parker to conduct the financial audit of VAGO for the financial years ending 30 June 2016, 2017 and 2018. Mr Geoff Parker is a director at Nexia Melbourne Audit Pty Ltd, an accounting firm in Melbourne which is also a member of Nexia Australia, with offices in capital city locations across Australia and in Christchurch, New Zealand. He is a member of Chartered Accountants Australia and New Zealand and a registered company auditor. The committee considers that Mr Geoff Parker has the relevant strength of experience in auditing and has demonstrated an excellent audit approach and understanding of the responsibilities demanded of a financial auditor of VAGO. The committee supports Mr Geoff Parker being appointed for a period of three years at the fixed total fees tendered for each year, as outlined in the report that I am tabling.
As well as the performance audit of the Victorian Auditor-General's Office recommendation that Ms Shing just tabled a couple of minutes ago, it is important that the Auditor-General's office is also financially audited to the satisfaction of the Parliament and the community. There are details in this report, and if people are interested in them they should avail themselves of a look at the report. Of course the financial audit, as with the performance audit, does not take away the independence of the Victorian Auditor-General's Office but makes sure that the public of Victoria and Parliament have confidence in the expenditure of funds that are allocated to the Victorian Auditor-General's Office. I commend the report to the house.
Motion agreed to.
Read more of the discussion here.