Treasurer’s Annual Financial Statement cont… between the three entities. I was unable to confirm or verify these financial statement items by alternative means. As a result I was unable to determine whether any adjustments to the records of Power and Water Corporation might have been required in respect of these balances, and the corresponding elements making up the comprehensive operating statement, the balance sheet, statement of changes in equity and the cash flow statement for the Public Corporation Sector. Property, plant and equipment valuation – Power and Water Corporation At the time of my audit opinion on the TAFS, the Power and Water Corporation changed its accounting policy effective 1 July 2014 in relation to the measurement of its property, plant and equipment from historical cost to fair value. The Power and Water Corporation commissioned independent valuations to provide a fair value which resulted in the value of property, plant and equipment reported in the balance sheet increasing by $2,063,769,000 to $3,992,140,000. The valuations were performed using depreciated optimised replacement cost and have not considered the Power and Water Corporation’s ability to generate economic benefits by using the assets or by selling them to another market participant. In addition, the financial records used to derive the fair value at 1 July 2014 were complex and contained numerous errors, both individually and cumulatively material, with some of these errors remaining unresolved as at the date of this audit report. As a result of the above, I was unable to satisfy myself that the amount reported in the balance sheet as at 30 June 2015 attributable to the Power and Water Corporation accurately represented the fair value of property, plant and equipment and that the amounts for depreciation and asset impairment attributable to the Power and Water Corporation were accurately reported in the comprehensive operating statement for the year ended 30 June 2015 for the Public Non-Financial Corporation Sector. Auditor’s Opinion – General Government Sector and Public Financial Corporation Sector In my opinion, the Treasurer’s Annual Financial Report a true and fair view of the financial position of the General Government Sector and Public Financial Corporation Sector as at 30 June 2015 and of their performance and cash flows for the year then ended in accordance with Australian Accounting Standards and the financial reporting requirements of the Financial Management Act and the Fiscal Integrity and Transparency Act.
Treasurer’s Annual Financial Statement cont… General Government Sector – Components of Financial Performance 2015 2014 $’million $’million Taxation revenue 714.9 566.3 Grants 4,394.1 3,891.2 of goods and services 334.7 306.6 Interest income 88.8 76.4 Dividend and income tax equivalent income 206.3 79.1 Other 528.4 232.0 Total revenues 6,267.2 5,151.6 Employee expenses (2,034.1) (1,947.3) Other operating expenses (1,273.0) (1,204.1) Depreciation (313.6) (298.9) Superannuation expense (332.3) (336.2) Interest expenses (246.0) (210.5) Other property expenses (2.1) (2.8) Grants and subsidies (1,178.8) (1,032.7) expenses (5,379.9) (5,032.5) Net operating balance 887.3 119.1 Other economic flows 20.1 (43.9) Operating result 907.4 75.2 Net operating balance 887.3 119.1 Less net acquisition of non financial assets (591.6) (210.0) Fiscal balance 295.7 (90.9)
Selected Agencies – Stella cont… DLPE Recommendations – current status DLPE was responsible for the implementation of 10 of the Inquiry’s recommendations. The current status of the DLPE recommendation implementation process is that five recommendations have been fully implemented with a further five in progress at the time of the review. The items identified as ‘in progress’ are either dependent on the consideration and results of Cabinet Submissions or are on-going in nature. DCM Recommendations – current status With the exception of recommendation 21, DCM was responsible for the implementation of the remaining recommendations accepted by government, leaving DCM with 6 in total. The findings of my review are that all but one recommendation for which DCM had responsibility have been fully and appropriately implemented. The remaining item relates to recommended changes to the Inquiries Act. A Cabinet Submission has been drafted and is awaiting government consideration. The specific status of each recommendation is detailed in the following table: Inquiry Recommendation Agency Assessed Status Review Comments I recommend that the Northern Territory Government (the government), as a result of this report, immediately request Unions NT to relinquish any interest it may claim in the proposed Crown lease of Lot 5260 Town of Darwin (1 McMinn St), commonly known as the Stella Maris site (the site) and invite Unions NT to join a future expression of interest process. DLPE Complete Agency assessed status confirmed as correct. Written communication to effect the recommendation has been issued by the Northern Territory Government. No response has been received from Unions NT.
Selected Agencies – Stella cont… Inquiry Recommendation Agency Assessed Status Review Comments 10. I recommend that with any future Cabinet decision, made in conjunction with a community land of direct sale of Crown land, that the Cabinet decision should be the starting point in ensuring the full departmental business process is followed, as reflected in the Crown Lands Regulations (NT) (as amended in accordance with Recommendation 8). DLPE In progress Agency assessed status confirmed as correct. Internal processes and templates have been developed to support adoption of this recommendation however implementation is dependent upon Government consideration and action in response to the proposed policy submitted to Cabinet (as mentioned in the above response to Inquiry Recommendation 8). 11. I recommend that the department prepares a Cabinet Submission updating the Northern Territory Land Sale Policy. DLPE Complete The status of this recommendation should be listed as ‘in progress’, as although the Cabinet Submission has been drafted, it is awaiting consideration and thus the Northern Territory Land Sale Policy has not been updated.
Selected Agencies – Stella Maris cont… Inquiry Recommendation Agency Assessed Status Review Comments 20. I recommend the department fully implement the necessary business improvements as set out in Appendix H (of the report [sic]). DLPE In progress Agency assessed status confirmed as correct. Further detail on the progress of the business improvement implementation continues on the subsequent pages of this report. 21. I recommend that, with extra support, the Auditor-General conducts a performance management system audit, in consultation with the Inquiry Commissioner, on the effectiveness of and progress made in implementing the recommendations of this Inquiry that are accepted by government. I recommend that the Auditor-General presents a report to the Speaker for tabling in the Legislative Assembly by 26 October 2015. In progress Will be finalised upon the tabling of this report to the Legislative Assembly, this the first report to the Legislative Assembly since undertaking the assessment.
Selected Agencies – Stella Maris cont… Recommendation 20 encompassed a range of improvements, the status of which I assessed below [Appendix H, referred to above]. Recommendation 20 Stella Maris Inquiry – Appendix H Improvements to community land grants process Agency Assessed Status Review Comments 1 Establish an organisational structure in the department to create a secretariat and Policy Unit. Complete. Agency assessed status confirmed as correct. The current structure is as recommended. 2 Instigate Regular Policy Workshops Established Agency assessed status confirmed as correct. The establishment of regular policy workshops has occurred. 3 Developed and implemented an Apex Project Management database. Completed Agency assessed status confirmed as correct. The Apex Project Management database has been developed and implemented. 4 Review the checklist for land grants (Direct Sales and Community Land Grants) and ensure alignment with the business process. Completed Agency assessed status confirmed as correct. Should subsequent policy changes eventuate, the Agency will need to review and may need to update the checklist.
Selected Agencies – Stella Maris cont… Recommendation 20 Stella Maris Inquiry – Appendix H Improvements to community land grants process Agency Assessed Status Review Comments 5 Ensure the business process and checklist for land grants contain hold points for the delegate of the Minister to sign off the stages of the application. Completed Agency assessed status confirmed as correct. As in my comments to Inquiry Recommendation 9 within the body of this letter, these changes have yet to be reflected in the Agency’s ‘Direct Sale and Community Grant of Crown Land Business Process’ document. Whilst the existing business processes have been updated, implementation of the changes is dependent upon Government approval of the proposed policy. 6 Review Induction Program and Induction Checklist to ensure that staff are aware of legislation, policy and business processes that relate to the grant of Crown Land. Completed Agency assessed status confirmed as correct. Should subsequent policy changes eventuate, the Agency will need to review and may need to update the checklist. 7 Review central information technology and ensure land grant policies are current and up to date. Completed Agency assessed status confirmed as correct. Should subsequent policy changes eventuate, the Agency will need to review and may need to update the central information technology drive.
Selected Agencies – Stella cont… Recommendation 20 Stella Maris Inquiry – Appendix H Improvements to community land grants process Agency Assessed Status Review Comments 10 a] Review the Direct Sale and Community Land Grant Policy and Brochures and provide advice to Government on policy improvements for consideration. b] Refine Application Fee Policy. Commenced Agency assessed status confirmed as correct. Whilst the existing business processes have been updated, implementation of the changes is dependent upon Government approval of the proposed policy. 11 Develop and train staff. Ongoing Agency assessed status confirmed as correct. Training and development of staff will continue as an ongoing process. 12 Review all policies associated with the administration of the Crown Lands Act and recommend amendments where required. Commenced Agency assessed status confirmed as correct. A review of existing policies associated with the Lands Act has been undertaken and recommendations drafted. Review of new and amended documents will be ongoing as required.