Tuesday, 30 May 2023

Public Accounts and Estimates Committee

Report on the Appointment of a Person to Conduct the Financial Audit of the Victorian Auditor-General’s Office

Nina TAYLOR (Albert Park) (11:21): I am very happy to speak on the Public Accounts and Estimates Committee’s Report on the Appointment of a Person to Conduct the Financial Audit of the Victorian Auditor-General’s Office. We know that this role particularly is one of the very important checks and balances in Parliament. Certainly we expect, and there are, elements in place to ensure the appropriate rigour with the undertaking of this role. As a former member of the Public Accounts and Estimates Committee, I understand the weight of responsibility. Obviously this committee has a number of statutory responsibilities, including this particular appointment. I should thank all the members of the committee for their hard work in this process, because I know that it has to be done very carefully, but also I would like to thank the secretariat – Dr Caroline Williams, executive officer; Dr Krystle Gatt Rapa, lead analyst, public accounts and audit, and Jacqueline Coleman, administrative officer – because I know that it is also very important to make sure that the reporting process is done in an expedient way and a thorough way.

When we look at the parameters here, I know that the committee has to ensure that there are no conflicts of interest. There are many other elements as well, but I am just pointing out some of the most perhaps significant ones that one would be concerned about making sure are taken seriously and adhered to. In terms of the selection process, we can see on 3 February 2020 the committee commenced a public tender process to appoint an independent auditor to undertake the financial audit of the Victorian Auditor-General’s Office. PKF’s tender was successful, as set out in the committee’s report 126, tabled on 23 April 2020. But anyway, that is just to ensure that, as you can see, appropriate governance, checks and balances are undertaken and that public tender process is adhered to.

Further, when we look at the purpose of the financial auditor’s role as specified in the proposed contract, the independent financial auditor’s role will be to conduct an audit of the Victorian Auditor-General’s Office’s financial statements in the 2023–24 financial year, review and provide an audit opinion on VAGO’s performance statement, and form an opinion as to whether the financial statements of VAGO present fairly the financial position of the office as at the end of the financial year and its financial performance and cash flows for the financial year in accordance with applicable accounting standards and other mandatory professional reporting requirements. I could go on there, but I am just giving the chamber a sense of the incredibly important elements of the financial auditor’s role. Further to this, there are expectations which must be adhered to in terms of the time lines and key deliverables. For instance, prior to the commencement of the financial audit the independent auditor must provide an audit plan to the committee and VAGO for comment, preferably by 1 July 2024. These elements must be strictly adhered to for obvious reasons when we are looking at the management of funds and the objectivity with which they are evaluated as part of the parliamentary process as well.

In coming to the recommendation I should also say, because that is perhaps the core element of this report, the committee recommends that:

In accordance with section 79 of the Audit Act 1994 (Vic), the Legislative Council and the Legislative Assembly appoint Mr Kenneth Weldin of PKF Melbourne Audit and Assurance for a period of 12 months:

to conduct the financial audit of the Victorian Auditor‑General’s Office for the financial year ending 30 June 2024;

in accordance with the Agreement for the Provision of Services for the Financial Audit of the Victorian Auditor‑General’s Office …

and there is a fixed fee remuneration which is contained in the report as well. I know it is easy in the busy passage of parliamentary processes sometimes for these elements which may seem a little on the drier end of the scale to be overlooked, but I think it is very important for us to pay due attention to them in this chamber and to be sure that the correct processes have been undertaken. I believe that we can see by the manner in which this report has been delivered – on the balance of probabilities I would say – that those recommendations have been adhered to, and in fact we see a quality report in front of the chamber. So on that note I thank you.