AUDITOR-GENERAL
Objectives
The Auditor-General for the ACT is a statutory position created under the Auditor-General Act 1996 (the Act).  Consistent with the Act, the main objectives of the Auditor-General and 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 sector agencies.
The Office performs its role mainly by conducting financial and performance audits and reporting the results of these audits 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 government agencies, and conducting investigations under the Public Interest Disclosure Act 1994.
2009-10 Priorities
Strategic and operational issues to be pursued in 2009-10 include:
•	continuing to implement the Office’s Strategic Plan 2008-2011 and the internal Action Plan 2009-2010;
•	delivering a cost-effective financial audit program in accordance with whole of government financial reporting and annual reporting timetables;
•	developing an annual Performance Audit program in response to the needs of the community, the ACT Legislative Assembly and Government agencies;
•	delivering timely and cost-effective performance audits and other investigations; and
•	continuing the implementation of a quality assurance regime in accordance with new professional auditing and ethical standards.

Business and Corporate Strategies
In order to achieve its objectives and priorities, the Office will operate under the guidance of its Strategic Plan 2008-2011.  The internal Action Plan 2009-2010 sets out the actions required to achieve the objectives and priorities in the Strategic Plan 2008-2011.
The major focus for the Office will be to:
•	work collaboratively with agencies to identify opportunities to improve financial reporting and management, and overall performance;
•	maximise opportunities offered in working in partnership with Auditor-General Offices in other jurisdictions;
•	improve the Office’s performance through peer reviews, internal audits and staff surveys;
•	increase the Office’s capacity by providing appropriate training and professional development opportunities to staff; and
•	commence renegotiation of the Audit Office’s 2007-2010 Union Collective Agreement, due to expire on 31 March 2010.

Estimated Employment Level
2008-09
Budget			2008-09
Est. Outcome	2009-10
Budget	
37		  Staffing  (FTE)	35	35	

Changes to Appropriation
Changes to Appropriation - Departmental						
 	2008-09	2009-10	2010-11	2011-12	2012-13	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2008-09 Budget	2,072	2,114	2,149	2,185	2,185	
						
2009-10 Budget Technical Adjustment						
Revised Indexation Parameters	 - 	(2)	(2)	(2)	35	
						
2009-10 Budget	2,072	2,112	2,147	2,183	2,220	

Auditor-General
Operating Statement
2008-09			  2008-09	   2009-10		  2010-11	    2011-12	  2012-13		
Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
$'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
2,072		Government Payment for Outputs	2,072	2,112	2	2,147	2,183	2,220		
842		User Charges - Non ACT Government	815	814	..	824	847	869		
2,284		User Charges - ACT Government	2,335	2,386	2	2,430	2,490	2,551		
60		Interest	60	60	-	60	60	60		
5,258		Total Revenue	5,282	5,372	2	5,461	5,580	5,700		
		Gains								
0		Total Gains	0	0	-	0	0	0		
5,258		Total Income	5,282	5,372	2	5,461	5,580	5,700		
		Expenses								
2,954		Employee Expenses	3,099	3,054	-1	3,102	3,176	3,216		
493		Superannuation Expenses	466	474	2	487	492	499		
1,745		Supplies and Services	1,821	1,724	-5	1,740	1,777	1,799		
70		Depreciation and Amortisation	95	95	-	95	95	95		
5,262		Total Ordinary Expenses	5,481	5,347	-2	5,424	5,540	5,609		
-4		Operating Result	-199	25	113	37	40	91		

Auditor-General
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
993		Cash and Cash Equivalents	917	1,014	11	1,134	1,257	1,431		
1,384		Receivables	1,404	1,404	-	1,404	1,404	1,404		
5		Other	4	4	-	4	4	4		
2,382		Total Current Assets	2,325	2,422	4	2,542	2,665	2,839		
		Non Current Assets								
517		Property, Plant and Equipment	489	459	-6	429	399	369		
517		Total Non Current Assets	489	459	-6	429	399	369		
2,899		TOTAL ASSETS	2,814	2,881	2	2,971	3,064	3,208		
		Current Liabilities								
86		Payables	208	208	-	208	208	208		
14		Finance Leases	10	10	-	10	10	10		
876		Employee Benefits	928	963	4	998	1,028	1,058		
16		Other	16	5	-69	0	0	0		
992		Total Current Liabilities	1,162	1,186	2	1,216	1,246	1,276		
		Non Current Liabilities								
53		Finance Leases	54	54	-	54	54	54		
88		Employee Benefits	80	103	29	126	149	172		
5		Other	6	1	-83	1	1	1		
146		Total Non Current Liabilities	140	158	13	181	204	227		
1,138		TOTAL LIABILITIES	1,302	1,344	3	1,397	1,450	1,503		
1,761		NET ASSETS	1,512	1,537	2	1,574	1,614	1,705		
		REPRESENTED BY FUNDS EMPLOYED								
1,761		Accumulated Funds	1,485	1,510	2	1,547	1,587	1,678		
0		Reserves	27	27	-	27	27	27		
1,761		TOTAL FUNDS EMPLOYED	1,512	1,537	2	1,574	1,614	1,705		

Auditor-General
Cash Flow Statement
  2008-09			  2008-09	   2009-10		  2010-11	    2011-12	  2012-13		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
2,072		Cash from Government for Outputs	2,072	2,112	2	2,147	2,183	2,220		
3,126		User Charges	3,150	3,200	2	3,254	3,337	3,419		
60		Interest Received	60	60	-	60	60	60		
216		Other Revenue	216	222	3	228	234	240		
5,474		Operating Receipts	5,498	5,594	2	5,689	5,814	5,939		
		Payments								
2,923		Related to Employees	3,047	3,022	..	3,063	3,107	3,147		
510		Related to Superannuation	540	498	-8	514	521	528		
1,756		Related to Supplies and Services	1,789	1,755	-2	1,764	1,829	1,850		
216		Other	216	222	3	228	234	240		
5,405		Operating Payments	5,592	5,497	-2	5,569	5,691	5,765		
69		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	-94	97	203	120	123	174		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
0		Purchase of Investments	1	0	-100	0	0	0		
0		Investing Payments	1	0	-100	0	0	0		
0		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-1	0	-100	0	0	0		
69		NET INCREASE/ (DECREASE) IN CASH HELD	-95	97	202	120	123	174		
924		CASH AT BEGINNING OF REPORTING PERIOD	1,012	917	-9	1,014	1,134	1,257		
993		CASH AT THE END OF THE REPORTING PERIOD	917	1,014	11	1,134	1,257	1,431		

Auditor-General
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
1,765		Opening Balance	1,711	1,512	-12	1,537	1,574	1,614		
		Accumulated Funds								
-4		Operating Result for the Period	-199	25	113	37	40	91		
		Reserves								
-4		Total Income And Expense For The Period	-199	25	113	37	40	91		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
1,761		Closing Balance	1,512	1,537	2	1,574	1,614	1,705		
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 Office.
Significant variations are as follows:
Operating Statement
•	employee expenses:  the increase of $0.145 million in the 2008-09 estimated outcome from the original budget is a result of the Office changing its staffing mix to improve its performance audit capacity.  The employee costs are expected to remain at similar levels in 2009-10; and
•	supplies and services expenses:  the increase of $0.076 million in the 2008-09 estimated outcome from the original budget and the decrease of $0.097 million in the 2009-10 Budget from the 2008-09 estimated outcome, are due to higher costs charged by contract audit firms on the outsourced audits in 2008-09 which are not expected to recur in 2009-10.
Balance Sheet
•	payables:  the increase of $0.122 million in the 2008-09 estimated outcome from the original budget reflects the flow on effect of the 2007-08 audited outcome; and
•	current and non current employee benefits:  the increase of $0.044 million in the 2008-09 estimated outcome from the original budget and the increase of $0.058 million in the 2009-10 Budget from the 2008-09 estimated outcome is due to increases in leave liabilities, particularly in relation to senior staff within the Office.