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COMMITTEE'S CONSIDERATION

In its Report No. 34, 57th Parliament - Annual Report 2021-22, tabled on 17 October 2022, the committee reported on its consideration of a number of Auditor-General's reports referred to it, including Auditor-General Report 13: 2020-21 - State entities 2020. The committee did not resolve to hold further inquiries into these audit reports and made no recommendations to the Legislative Assembly.

Overview

Role of the Auditor-General

The role of the Auditor-General is to provide Parliament with independent assurance of public sector accountability and performance. This is achieved through reporting to Parliament on the results of its financial and performance audits and other insights.

About the Auditor-General Report

The report summarises the results of the Queensland Audit Office’s (QAO’s) 2019-20 financial audits of Queensland state government entities, including the 22 government departments.

The report found the financial statements of all departments and government owned corporations, most statutory bodies, and the entities they control, are reliable and comply with reporting requirements. However, the QAO concluded that the Queensland Rural and Industry Development Authority’s (QRIDA’s) estimate of future repayments of loans issued under its COVID-19 Jobs Support Loans Scheme could not be relied upon ‘given the uncertain economic conditions’ and their effect on businesses’ ability to repay. The QAO stated that as a result, this aspect of QRIDA’s financial statements could not be relied upon.

In terms of the timeliness of reporting, most entities’ statements were certified by their legislative deadlines, which the QAO described as ‘a significant achievement given the challenges presented by COVID-19’. However, the QAO noted some delays between the certification of financial statements and their tabling in parliament by the relevant minister as part of the entity’s annual report.

In addressing internal controls at state entities, the QAO found that most government departments have effective processes and systems in place that allow them to produce good quality financial statements. The QAO also noted that the government shared service provider adapted well to maintaining processes and controls throughout changes in working arrangements associated with the COVID-19 restrictions. However, the QAO also identified a number of common, recurring weaknesses – particularly in relation to the security of information systems. Given that the number of cyber attacks doubled in 2019-20 as cyber criminals attempted to take advantage of the disruption caused by COVID-19, the QAO reminded entities to avoid taking a ‘set and forget’ approach and ensure they update their systems promptly to respond to changes and maintain protection from external threats. Other identified areas for improvement related to reviews of payment systems and processes for fraud prevention, and reviews to ensure the consistency of key processes and compliance with financial accountability requirements during machinery of government changes.

The report includes 7 recommendations for all Queensland state government entities to continue to strengthen their financial reporting frameworks and internal controls. Responses were received from 5 government departments, all of which noted the recommendations and committed to reviewing and enhancing existing controls and taking action where required.

Referral to Committee 

Standing Order 194B provides that the Committee of the Legislative Assembly shall as soon as practicable after a report of the Auditor-General is tabled in the Assembly refer that report to the relevant portfolio committee(s) for consideration. 

The committee is responsible under section 94 of the Parliament of Queensland Act 2001 for assessing the integrity, economy, efficiency and effectiveness of government financial management by examining government financial documents and considering reports of the Auditor-General.

The Committee of the Legislative Assembly referred this Auditor-General’s report to the committee on 26 February 2021.