26 September 2023

PS audit uncovers financial improvement

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The South Australian Government’s actual financial performance and position for the 2020-21 financial year has been revealed in a report from the Auditor-General which identified an opportunity to improve the way financial information may be classified.

In his Report 3 of 2022: Consolidated Financial Report review, Auditor-General, Andrew Richardson said he had not issued an opinion on the 2020-21 Consolidated Financial Report (CFR) because he was not required to under any legislation.

Mr Richardson said the Report did not identify any material misstatements or control deficiencies, but did identify an opportunity to improve the way financial information was classified.

He said that although the Report did not provide an audit opinion on the CFR, a management letter summarising the results of the review was provided to the Department of Treasury and Finance (DTF).

“It included the Agency specific audit matters we identified that would impact on the audit opinion for the CFR, if we provided one,” he said.

“I noted in the letter that while I had not modified my Independent Auditor’s Reports for the Return to Work Corporation of South Australia (RTWSA) and the Lifetime Support Authority of South Australia (LSA) for 2020‐21, I drew attention to the inherent uncertainty associated with their care, support and claims liabilities.”

Mr Richardson said the management letter to DTF recommended that the South Australian Government Employee Residential Properties (SAGERP) balances were correctly reported in the general government sector for future CFR reporting.

“DTF’s response to our management letter indicated that SAGERP balances will be reported in the general government sector from 1 July 2022,” he said.

“DTF also advised us that 2020‐21 CFR balances will not be restated for the change in SAGERP sector classification, due to the immaterial nature of SAGERP balances and the operational complexities of restating balances.”

The Auditor-General’s 23-page Report can be accessed at this PS News link.

The audit team for the Report was Daniel O’Donohue and Bill Sierros.

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