The Queensland Auditor-General has announced the results of a financial audit of State Government entities, including the 21 Departments.
In his report, Brendan Worrall (pictured) said most Government Departments had robust financial reporting processes and systems, allowing them to produce their financial statements in a timely manner.
“There is room to improve quality assurance processes, with six Departments making changes to their final draft financial statements. They should only make changes if they will influence a reader’s understanding,” Mr Worrall said.
“We raised several matters with entities relating to controls over information systems, financial delegations and conflicts of interest for procurement processes, asset valuations and payroll monitoring.”
He said Departments had been well prepared for the implementation of new accounting standards for revenue and leases that took effect on 1 July.
“There was an increase in fraud attempts this year, mostly relating to requests to change employee and supplier bank account details,” Mr Worrall said.
“Entities must ensure they check all change requests with an independent source. Where frauds occurred, the requests had not been checked effectively.”
He said the audits identified a number of actions for all entities to consider. These included efforts to decrease risk of fraud by checking requests to change employee and supplier details and building more secure information systems to prevent unauthorised user access that could result in fraud or error.
“Entities should ensure all procurement is appropriately approved and any conflicts of interest are declared and managed,” Mr Worrall said.
“Payroll reports and reconciliations should be regularly reviewed to ensure payments made to employees are correct, and any fraud or error is promptly detected.”
He noted that eight modified opinions had been issued in 2018-19, including three disclaimers and five qualified opinions.
“The disclaimers relate to three small water boards and highlight the lack of appropriate evidence for the auditor to form an opinion on the financial statements,” Mr Worrall said.
“The three water boards also failed to meet the minimum reporting requirements published by Queensland Treasury.”
He said the five qualified opinions related to two hospital foundations, two water boards, and a training college.
The Auditor-General’s 60-page report can be accessed at this PS News link.
