Auditor-General
Purpose
The Auditor-General for the ACT is an independent statutory position established under the Auditor-General Act 1996 (the Act).  The main objective of the Auditor-General’s Office (Audit Office) is to promote public accountability in the public administration of the Territory.  This is mainly achieved by conducting financial and performance audits and performing other activities that are conducive to meeting this objective.
The Audit Office seeks to improve the delivery of public services by:
•	drawing the attention of ACT Government agencies to those areas where the delivery of public services could be improved; and 
•	providing practical recommendations and advice to ACT Government agencies on how improvements could be made.
The Audit Office also performs other activities such as responding to representations by the members of the Legislative Assembly and community and conducting investigations under the Public Interest Disclosure Act 1994.
2011-12 Priorities
The priorities for 2011-12 include:
•	developing a performance audit program that considers the needs of the community, ACT Legislative Assembly and ACT Government agencies;
•	completing a planned program of performance and financial audits and other investigations as required in an effective and timely manner;
•	implementing audit software to assist in the completion of financial and performance audits;
•	continuing to respond to representations and public interest disclosures in a timely and effective manner;
•	maintaining sound quality control and review systems to provide assurance that the Audit Office is adhering to requirements of current auditing standards and to identify opportunities for the Office to improve its work practices;
•	improving the Audit Office’s capacity to complete performance audits following the recent departure of key senior staff; 
•	enhancing the Office’s reporting, budgeting and time recording systems; and
•	considering the impact of any changes to the Auditor-General Act 1996 resulting from the Public Accounts Committee’s inquiry into the Act.

Business and Corporate Strategies 
The major strategies to be pursued in 2011-12 include:  
•	providing informative and timely information to the ACT Legislative Assembly through reports, advice and briefings;
•	maintaining effective relationships with the ACT Legislative Committees, especially the Public Accounts Committee, through regular briefings;
•	working with ACT Government agencies to improve their performance by alerting agencies to areas of improvement and providing sound recommendations;
•	applying efficient and effective audit methodologies;
•	providing staff with learning and development opportunities that maintains their technical expertise and knowledge of whole-of-government issues; 
•	maintaining strong quality control systems for financial and performance audits; and
•	improving operations by implementing agreed recommendations from internal audits and quality assurance reviews of financial and performance audits.
Estimated Employment Level
2009‑10
Actual Outcome		2010-11
Budget
	2010-11
Est.  Outcome	2011-12
Budget
	
36	Staffing (FTE) 	35	35	361	
Note:
1.  The increase of one FTE in 2011-12 reflects the appointment of staff, offset by reduction of contractors.

Changes to Appropriation
Changes to Appropriation - Controlled						
 	2010-11	2011-12	2012-13	2013-14	2014-15	
Government Payment for Outputs	Est.  Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2010-11 Budget	2,165	2,215	2,252	2,291	2,291	
						
2011-12 Budget Policy Adjustments						
Revised Wage Parameters	(6)	(4)	12	13	13	
Savings Initiative	 - 	(1)	(2)	(2)	(2)	
						
2011-12 Budget Technical Adjustments						
Revised Indexation Parameters	 - 	4	4	4	42	
						
2011-12 Budget	2,159	2,214	2,266	2,306	2,344	

Auditor-General
Operating Statement
  2010-11			  2010-11	   2011-12		  2012-13	    2013-14	  2014-15		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
2,165		Government Payment for Outputs	2,159	2,214	3	2,266	2,306	2,344		
921		User Charges - Non ACT Government	800	799	..	825	854	879		
2,536		User Charges - ACT Government	2,693	2,622	-3	2,690	2,761	2,830		
40		Interest	96	103	7	103	103	103		
5,662		Total Revenue	5,748	5,738	..	5,884	6,024	6,156		
		Gains								
0		Total Gains	0	0	-	0	0	0		
5,662		Total Income	5,748	5,738	..	5,884	6,024	6,156		
		Expenses								
3,326		Employee Expenses	3,346	3,674	10	3,758	3,820	3,908		
572		Superannuation Expenses	478	485	1	497	503	508		
1,738		Supplies and Services	1,738	1,600	-8	1,618	1,629	1,651		
75		Depreciation and Amortisation	72	75	4	75	75	75		
5,711		Total Ordinary Expenses	5,634	5,834	4	5,948	6,027	6,142		
-49		Operating Result	114	-96	-184	-64	-3	14		
0		Inc/Dec in Asset Revaluation Reserve Surpluses	-6	6	200	0	0	0		
0		Total Other Comprehensive Income	-6	6	200	0	0	0		
-49		Total Comprehensive Income	108	-90	-183	-64	-3	14		

Auditor-General
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/11			as at 30/6/11	as at 30/6/12	   Var	as at 30/6/13	as at 30/6/14	as at 30/6/15		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
1,296		Cash and Cash Equivalents	1,269	1,438	13	1,479	1,568	1,710		
1,276		Receivables	1,497	1,497	-	1,497	1,497	1,497		
22		Other	44	44	-	44	44	44		
2,594		Total Current Assets	2,810	2,979	6	3,020	3,109	3,251		
		Non Current Assets								
395		Property, Plant and Equipment	363	364	..	327	304	267		
395		Total Non Current Assets	363	364	..	327	304	267		
2,989		TOTAL ASSETS	3,173	3,343	5	3,347	3,413	3,518		
		Current Liabilities								
53		Payables	100	100	-	100	100	100		
3		Finance Leases	0	8	#	8	8	8		
1,173		Employee Benefits	940	1,160	23	1,204	1,249	1,316		
1,229		Total Current Liabilities	1,040	1,268	22	1,312	1,357	1,424		
		Non Current Liabilities								
25		Finance Leases	0	8	#	8	8	8		
58		Employee Benefits	110	134	22	158	182	206		
73		Other Provisions	0	0	-	0	0	0		
0		Other	73	73	-	73	73	73		
156		Total Non Current Liabilities	183	215	17	239	263	287		
1,385		TOTAL LIABILITIES	1,223	1,483	21	1,551	1,620	1,711		
1,604		NET ASSETS	1,950	1,860	-5	1,796	1,793	1,807		
		REPRESENTED BY FUNDS EMPLOYED								
1,585		Accumulated Funds	1,937	1,841	-5	1,777	1,774	1,788		
19		Reserves	13	19	46	19	19	19		
1,604		TOTAL FUNDS EMPLOYED	1,950	1,860	-5	1,796	1,793	1,807		

Auditor-General
Cash Flow Statement
  2010-11			  2010-11	   2011-12		  2012-13	    2013-14	  2014-15		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
2,165		Cash from Government for Outputs	2,159	2,214	3	2,266	2,306	2,344		
3,431		User Charges	3,467	3,422	-1	3,508	3,600	3,694		
40		Interest Received	96	103	7	103	103	103		
439		Other Revenue	439	452	3	466	472	472		
6,075		Operating Receipts	6,161	6,191	0	6,343	6,481	6,613		
		Payments								
3,344		Related to Employees	3,582	3,430	-4	3,494	3,536	3,581		
564		Related to Superannuation	562	559	-1	572	588	591		
1,829		Related to Supplies and Services	1,890	1,749	-7	1,923	1,975	1,986		
288		Other	288	276	-4	285	285	285		
6,025		Operating Payments	6,322	6,014	-5	6,274	6,384	6,443		
50		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	-161	177	-210	69	97	170		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
0		Proceeds from Sale of Property, Plant & Equipment	37	0	-100	0	0	0		
0		Investing Receipts	37	0	-100	0	0	0		
0		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	37	0	-100	0	0	0		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
0		Repayment of Finance Lease	25	8	-68	28	8	28		
0		Financing Payments	25	8	-68	28	8	28		
0		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	-25	-8	-68	-28	-8	-28		
50		NET INCREASE/ (DECREASE) IN CASH HELD	-149	169	-213	41	89	142		
1,246		CASH AT BEGINNING OF REPORTING PERIOD	1,418	1,269	-11	1,438	1,479	1,568		
1,296		CASH AT THE END OF THE REPORTING PERIOD	1,269	1,438	13	1,479	1,568	1,710		

Auditor-General
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/11			as at 30/6/11	as at 30/6/12	   Var	as at 30/6/13	as at 30/6/14	as at 30/6/15		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Opening Equity								
1,634		Opening Accumulated Funds	1,823	1,937	6	1,841	1,777	1,774		
19		Opening Asset Revaluation Reserve	19	13	-32	19	19	19		
1,653		Balance at the Start of the Reporting Period	1,842	1,950	6	1,860	1,796	1,793		
		Comprehensive Income								
-49		Operating Result for the Period	114	-96	-184	-64	-3	14		
0		Increase/(Decrease) in Asset Revaluation Reserve Surpluses	-6	6	200	0	0	0		
-49		Total Comprehensive Income	108	-90	-183	-64	-3	14		
0		Total Movement In Reserves	0	0	-	0	0	0		
		Transactions Involving Owners Affecting Accumulated Funds								
		Closing Equity								
1,585		Closing Accumulated Funds	1,937	1,841	-5	1,777	1,774	1,788		
19		Closing Asset Revaluation Reserve	13	19	46	19	19	19		
1,604		Balance at the End of the Reporting Period	1,950	1,860	-5	1,796	1,793	1,807		

Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	employee expenses:  the increase of $0.328 million in the 2011-12 budget from the 2010‑11 estimated outcome mainly reflects the expected appointment of staff to fill vacancies resulting from the departure of senior audit staff in 2010-11.  The increase also includes an allowance for the estimated impact of revised annual salary rates.
•	supplies and services:  the decrease of $0.138 million in the 2011-12 Budget from the 2010-11 estimated outcome mainly reflects an expected reduction in contractor costs.  Audit contractors were engaged in 2010-11 to assist in completing the financial audit program due to the loss of senior audit staff and difficulty in recruiting suitable replacements.  These contractor costs are not anticipated in 2011-12. 

Balance Sheet
•	cash and cash equivalents:  the increase of $0.169 million in the 2011‑12 Budget from the 2010-2011 estimated outcome is due to the Audit Office expecting to set aside cash for meeting future expected increases in employee benefit liabilities.
•	current and non current employee benefits:  the decrease of $0.181 million in the 2010‑11 estimated outcome from the original budget is a result of payments of annual and long services leave entitlements to staff who left the Audit Office during 2010-11.  The increase of $0.244 million in the 2011‑12 Budget from the 2010-11 estimated outcome is mainly due to the anticipated recruitment of more senior staff. 
Cash Flow Statement
Variances in the statement are explained in the notes above.
Statement of Changes in Equity
Variances in the statement are explained in the notes above.