Auditor-General
Objectives
Consistent with the functions of the Auditor-General, as set out in the Auditor‑General Act 1996, the objectives of the Auditor-General’s Office (the Office) are to:
•	promote accountability in the public administration of the Territory; and
•	provide independent advice to the ACT Legislative Assembly on the efficiency and effectiveness of ACT public services.
The Office performs its role mainly through conducting financial and performance audits and reporting the results to the ACT Legislative Assembly.
The Office also performs other activities such as responding to representations by the members of the Legislative Assembly and the community, providing advice and briefings to Legislative Assembly committees and agencies, conducting investigations under the Public Interest Disclosure Act 1994 and reporting under the Government Procurement Act 2001.
2007-08 Priorities
Strategic and operational issues to be pursued in 2007‑08 include:
•	completing the financial audit program in accordance with whole-of-government financial reporting and annual reporting timetables;
•	conducting audits in compliance with new and revised national auditing standards;
•	continuing the implementation of an up-to-date audit methodology on financial audits;
•	responding to the community, Legislative Assembly and public sector agencies by delivering timely and cost effective performance audits and other investigations;
•	improving the Office’s capacity to provide advice to agencies on a range of matters, including legislation and governance;
•	establishing and implementing an internal audit function to review the Office’s internal practices and procedures; and
•	developing and implementing the Office’s Strategic Plan 2008‑2011.
Business and Corporate Strategies
In order to achieve its objectives and priorities, the Office will continue to operate under the guidance of its Strategic Plan 2004‑2007.  The Office will be developing a new four year Strategic Plan which will be supported by an Action Plan that assigns responsibility for specific actions.  

Estimated Employment Level
	2006‑07
Est.  Outcome	2007‑08
Budget	
Staffing (FTE)	30	34	

Changes to Appropriation
Changes to Appropriation - Departmental						
 	2006-07	2007-08	2008-09	2009-10	2010-11	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2006-07 Budget	1,946	1,994	2,056	2,095	2,095	
						
2007-08 Budget Technical Adjustments						
Revised Indexation Parameters	 - 	1	2	2	37	
Shared Services Centre SLA Adjustment	 - 	9	11	13	13	
						
2007-08 Budget	1,946	2,004	2,069	2,110	2,145	

Auditor-General	
Operating Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
1,946		Government Payment for Outputs	1,946	2,004	3	2,069	2,110	2,145		
200		User Charges - Non ACT Government	793	896	13	902	901	911		
2,421		User Charges - ACT Government	2,049	2,248	10	2,324	2,389	2,429		
25		Interest	40	40	-	40	40	40		
4,592		Total Revenue	4,828	5,188	7	5,335	5,440	5,525		
		Gains								
0		Total Gains	0	0	-	0	0	0		
4,592		Total Income	4,828	5,188	7	5,335	5,440	5,525		
		Expenses								
2,934		Employee Expenses	2,581	2,895	12	2,981	3,027	3,068		
350		Superannuation Expenses	493	495	..	510	525	541		
1,291		Supplies and Services	1,729	1,784	3	1,820	1,843	1,857		
38		Depreciation and Amortisation	52	35	-33	30	30	30		
4,613		Total Ordinary Expenses	4,855	5,209	7	5,341	5,425	5,496		
-21		Operating Result	-27	-21	22	-6	15	29		

Auditor-General	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/07			as at 30/6/07	as at 30/6/08	   Var	as at 30/6/09	as at 30/6/10	as at 30/6/11		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
1,203		Cash and Cash Equivalents	837	891	6	958	1,045	1,157		
839		Receivables	1,148	1,148	-	1,148	1,148	1,148		
8		Other	6	6	-	6	6	6		
2,050		Total Current Assets	1,991	2,045	3	2,112	2,199	2,311		
		Non Current Assets								
455		Property, Plant and Equipment	509	474	-7	444	414	384		
455		Total Non Current Assets	509	474	-7	444	414	384		
2,505		TOTAL ASSETS	2,500	2,519	1	2,556	2,613	2,695		
		Current Liabilities								
397		Payables	115	115	-	115	115	115		
295		Employee Benefits	809	843	4	878	913	948		
23		Other	16	16	-	16	5	0		
715		Total Current Liabilities	940	974	4	1,009	1,033	1,063		
		Non Current Liabilities								
553		Employee Benefits	47	69	47	92	115	138		
48		Other	36	20	-44	5	0	0		
601		Total Non Current Liabilities	83	89	7	97	115	138		
1,316		TOTAL LIABILITIES	1,023	1,063	4	1,106	1,148	1,201		
1,189		NET ASSETS	1,477	1,456	-1	1,450	1,465	1,494		
		REPRESENTED BY FUNDS EMPLOYED								
1,189		Accumulated Funds	1,477	1,456	-1	1,450	1,465	1,494		
1,189		TOTAL FUNDS EMPLOYED	1,477	1,456	-1	1,450	1,465	1,494		

Auditor-General	
Cash Flow Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
1,946		Cash from Government for Outputs	1,946	2,004	3	2,069	2,110	2,145		
2,621		User Charges	2,842	3,144	11	3,226	3,290	3,340		
25		Interest Received	40	40	-	40	40	40		
215		Other Revenue	215	216	..	216	222	228		
4,807		Operating Receipts	5,043	5,404	7	5,551	5,662	5,753		
		Payments								
3,230		Related to Employees	3,020	3,334	10	3,433	3,494	3,551		
1,307		Related to Supplies and Services	1,745	1,800	3	1,835	1,859	1,862		
215		Other	215	216	..	216	222	228		
4,752		Operating Payments	4,980	5,350	7	5,484	5,575	5,641		
55		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	63	54	-14	67	87	112		
55		NET INCREASE/(DECREASE) IN CASH HELD	63	54	-14	67	87	112		
1,148		CASH AT BEGINNING OF REPORTING PERIOD	774	837	8	891	958	1,045		
1,203		CASH AT THE END OF THE REPORTING PERIOD	837	891	6	958	1,045	1,157		

Auditor-General	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/07			as at 30/6/07	as at 30/6/08	   Var	as at 30/6/09	as at 30/6/10	as at 30/6/11		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
1,210		Opening Balance	1,504	1,477	-2	1,456	1,450	1,465		
		Accumulated Funds								
-21		Operating Result for the Period	-27	-21	22	-6	15	29		
		Reserves								
-21		Total Income And Expense For The Period	-27	-21	22	-6	15	29		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
1,189		Closing Balance	1,477	1,456	-1	1,450	1,465	1,494		
Notes to the Budget Statements
The Auditor-General’s budget is determined by a procedure set in legislation.  After consultation with the Auditor-General, the Standing Committee on Public Accounts advises the Treasurer of the level of funding which the Committee considers appropriate for the Auditor-General’s Office.
Significant variations are as follows:
Operating Statement
•	user charges – non ACT Government:  
–	the increase of $0.593 million in the 2006‑07 estimated outcome from the original budget is due to the reclassification of revenue from ACT Government to non ACT Government user chargers and higher than anticipated audit fees; and
–	the increase of $0.103 million in the 2007‑08 Budget from 2006‑07 estimated outcome is due to higher audit fees charged.  
•	user charges – ACT Government:  
–	the decrease of $0.372 million in the 2006‑07 estimated outcome from the original budget is due to the reclassification of revenue from ACT Government to non ACT Government user charges; and
–	the increase of $0.199 million in the 2007‑08 Budget from 2006‑07 estimated outcome is due to higher audit fees charged to ACT Government agencies.
•	
employee and superannuation expenses: 
–	the decrease of $0.210 million in the 2006‑07 estimated outcome from the original budget reflects continued high staff turnover and the difficulty in recruiting suitable performance and financial audit staff; and
–	the increase of $0.316 million in the 2007‑08 Budget from the 2006‑07 estimated outcome reflects the full year impact of the additional staff to perform audit and investigative activities of the Office.
•	supplies and services:  the increase of $0.438 million in the 2006‑07 estimated outcome from the original budget is primarily due to higher payments to contract audit firms for financial audits.
Balance Sheet
•	cash:  the decrease of $0.366 million in the 2006‑07 estimated outcome from the original budget is due to the Office projecting to hold a higher level of receivables at the end of year.
•	receivables:  the increase of $0.309 million in the 2006‑07 estimated outcome from the original budget reflects a higher level of financial audit work in progress at year end.
•	property, plant and equipment:  
–	the increase of $0.054 million in the 2006‑07 estimated outcome from the original budget is due to higher than budgeted spending on the Office’s fitout; and
–	the decrease of $0.035 million in the 2007‑08 Budget from the 2006‑07 estimated outcome represents the depreciation of the Office’s accommodation fitout.
•	payables:  the decrease of $0.282 million in the 2006‑07 estimated outcome from the original budget is due to revised estimates of the level of outstanding accounts at the end of the financial year.
•	current and non‑current employee benefits:  the increase of $0.056 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is primarily due to increased employee benefits associated with wage increases and additional staff.