Appendix 1: Our strategic plan

Our Executive team has reviewed our existing strategic plan (page 19) and confirmed the actions, measures and targets remain relevant and current. This includes the 2018-2019 activities highlighted throughout this report. As we are entering the fourth year of our 5-year strategic plan we will start focusing on a new strategic plan in the next 12-months. We will review our desired outcomes and strategic direction, ensuring our strategies and actions are relevant and contemporary.

Our people – motivated, innovative, collaborative, accountable, valued, skilled, knowledgeable Outcomes Strategies An appropriately skilled • Maintain an environment where learning opportunities are readily available; employees actively workforce capable of meeting pursue learning; and acquired learning can be applied current and future business • Maintain a meaningful employee performance review process needs • Ensure flexible and adaptive recruitment, contracting and employment arrangements to match work skills with demand High performing people who • Invest in organisational capability that will give the OAG a long-term benefit contribute to strategic objectives • Empower staff to complete all of their responsibilities on an audit or business project • Encourage innovation and acknowledge staff for being innovative in their approach A work environment that is • Assist staff wishing to undertake relevant further studies recognised as a workplace of • Provide opportunities for professional growth within the OAG choice • Provide national and international secondment opportunities • Ensure a safe and healthy working environment

Office of the Auditor General | Annual Report 2018-2019 128 Our tools – robust, efficient, user-friendly, flexible, agile, reliant, compliant Outcomes Strategies Efficient, effective and responsive • Work within a framework and governance structure which is current and effective business operations that meet • Respond effectively to changes in our environment by maintaining a strategic focus current and emerging needs • Maintain an appropriate and effective approach to risk management • Ensure accurate and reliable technical advice is available Sound information systems that • Ensure IT systems are efficient, effective and supported support operational needs • Capitalise where possible on our existing systems to improve our business operations • Have an approach to IT that recognises and addresses operational and strategic business requirements • Continuously improve internal and external accessibility and useability of our tools Sound financial management of • Maintain a strong, sound and transparent financial management approach our business • Use accurate business data that informs management decision-making • Continuously improve our processes to ensure quality and compliance of internal financial management practices Audit methodology tools are • Ensure our methodology remains current and compliant current, reliable and compliant

Office of the Auditor General | Annual Report 2018-2019 129 Our approach – consistent, fair and balanced, independent, transparent, pragmatic, professional, contemporary Outcomes Strategies Audits completed in accordance • Maintain a contemporary and quality audit approach with auditing and professional • All reports to go through the OAG quality framework standards Relationships with audit clients • Communicate, consult and develop quality relationships with clients professionally managed Our reputation for independence, • Further enhance transparency and accountability of our topic selection process and outcomes integrity and impartiality is • Continuously reinforce to staff the OAG principles of independence, integrity and impartiality maintained • Maintain an awareness of the external perception of the OAG A well informed Parliament and • Set clear expectations and communicate our role and purpose to Parliament, agencies and the public community • Identify and implement strategies to address Parliament’s needs and expectations • Prepare for performance and legislative reviews

Our products – value for money, timely, relevant, accurate, quality, innovative Outcomes Strategies Timely, relevant and quality • Table reports on time and on budget reports on public sector performance and accountability Value for money reporting that • Use benchmarking to ensure audit costs reflect value for money addresses issues of public • Produce reports that are considered valuable and relevant to Parliament interest • Ensure that the right audit product (broad scope/narrow scope/focus) is selected to achieve value for money Reports and opinions that • Include consideration of topics important to Parliament and agencies when developing forward lead to improved public sector audit program performance and accountability • Ensure clearly articulated and accessible report findings and recommendations

Office of the Auditor General | Annual Report 2018-2019 130 Appendix 2: Financial audit clients 2018-19

Audits under Financial Department of the Registrar, Western Botanic Gardens and Parks Authority Australian Industrial Relations Building and Construction Industry Training Management Act 2006 Commission Board Department of Training and Workforce Central Regional TAFE Departments Development Chemistry Centre (WA) Commissioner for Equal Opportunity Department of Transport Child and Adolescent Health Service Department of Biodiversity, Conservation Department of Treasury and Attractions Combat Sports Commission Department of Water and Environment Department of Communities Regulation Commissioner of Main Roads Department of Education Governor’s Establishment Construction Industry Long Service Leave Payments Board Department of Finance Mental Health Commission Corruption and Crime Commission Department of Fire and Emergency Office of the Commissioner for Children and Services Young People Country Housing Authority Department of Health Office of the Director of Public Prosecutions Curtin University of Technology Department of Jobs, Tourism, Science and Office of the Government Chief Information Disability Services Commission Innovation Officer East Metropolitan Health Service Department of Justice Office of the Information Commissioner Economic Regulation Authority Department of Local Government, Sport Office of the Inspector of Custodial Services Edith Cowan University and Cultural Activities Parliamentary Commissioner for Fire and Emergency Services Department of Mines, Industry Administrative Investigations Superannuation Board Regulation and Safety Parliamentary Services Department Forest Products Commission Department of Planning, Lands and Heritage Police Service Gaming and Wagering Commission of Department of Primary Industries and Public Sector Commission Regional Development Western Australian Electoral Commission Development Commission Department of the Legislative Assembly Gold Corporation Statutory authorities Department of the Legislative Council Goldfields-Esperance Development Agricultural Produce Commission Commission Department of the Premier and Cabinet Animal Resources Authority

Office of the Auditor General | Annual Report 2018-2019 131 Government Employees Superannuation Parliamentary Inspector of the Corruption The Coal Miners’ Welfare Board of Western Board and Crime Commission Australia Great Southern Development Commission Development Commission The Library Board of Western Australia Health and Disability Services Complaints Theatre Trust The National Trust of Australia (W.A.) Office Development Commission The Queen Elizabeth II Medical Centre Health Support Services Professional Standards Council Trust Heritage Council of Western Australia Public Transport Authority of Western The University of Western Australia Housing Authority Australia The Western Australian Museum Insurance Commission of Western Australia Public Trustee Trustees of the Public Education Keep Australia Beautiful Council (W.A.) Quadriplegic Centre Endowment Kimberley Development Commission Racing and Wagering Western Australia WA Country Health Service Landcare Trust Racing Penalties Appeal Tribunal of Western Australian Building Management Authority Law Reform Commission of Western Western Australia Australia Rottnest Island Authority Western Australian Coastal Shipping Commission Legal Aid Commission of Western Australia Rural Business Development Corporation Western Australian Energy Disputes Legal Contribution Trust School Curriculum and Standards Authority Arbitrator Legal Costs Committee Small Business Development Corporation Western Australian Greyhound Racing Local Health Authorities Analytical South Metropolitan Health Service Association Committee South Metropolitan TAFE Western Australian Health Promotion Lotteries Commission South Regional TAFE Foundation Metropolitan Cemeteries Board South West Development Commission Western Australian Institute of Sport Metropolitan Redevelopment Authority State Supply Commission Western Australian Land Information Authority Mid West Development Commission Swan Bells Foundation Inc Western Australian Meat Industry Authority Minerals Research Institute of Western The Aboriginal Affairs Planning Authority Australia Western Australian Planning Commission The Anzac Day Trust Murdoch University Western Australian Sports Centre Trust The Board of the Art Gallery of Western North Metropolitan Health Service Australia Western Australian Tourism Commission North Metropolitan TAFE The Burswood Park Board Western Australian Treasury Corporation North Regional TAFE Wheatbelt Development Commission

Office of the Auditor General | Annual Report 2018-2019 132 WorkCover Western Australia Authority The Delegate to the Queen Elizabeth II Water Corporation Medical Centre Trust Zoological Gardens Authority Western Australian Land Authority Western Power – Electricity Networks Subsidiaries Audits under other Corporation Advara Ltd legislation Goldmaster Enterprises Pty Ltd Subsidiaries South West Solar Development Holdings Homeswest Loan Scheme Trust Cemeteries Act 1986 Albany Cemetery Board Pty Ltd Innovative Chiropractic Learning Pty Ltd Bunbury Cemetery Board Vinalco Energy Pty Ltd Keystart Bonds Limited Chowerup Cemetery Board Vinalco Energy Trust Keystart Housing Scheme Trust Dwellingup Cemetery Board Keystart Loans Limited Local government audits Geraldton Cemetery Board Keystart Support Trust Kalgoorlie-Boulder Cemetery Board 2017-18 Murdoch College Properties Pty Ltd Murdoch Retirement Services Ltd Port Authorities Act 1999 Murdoch University Foundation Fremantle Port Authority Murdoch University Veterinary Centre Trust Kimberley Ports Authority St Stephen’s College Pty Ltd Mid West Ports Authority Bunbury-Harvey Regional Council The University Club of Western Australia Pilbara Ports Authority Pty Ltd Southern Ports Authority UWA Accommodation Services Pty Ltd UWA Sport Pty Ltd Other legislation Young Lives Matter Foundation UWA Ltd Annual Report on State Finances Bunbury Water Corporation Request audits Busselton Water Corporation Alan and Iris Peacocke Research Horizon Power – Regional Power Foundation Corporation Perth USAsia Centre Pty Ltd Independent Market Operator Tertiary Institutions Service Centre (Inc) Synergy – Electricity Generation and Retail Eastern Metropolitan Regional Council Tertiary Institutions Service Centre Ltd Corporation

Office of the Auditor General | Annual Report 2018-2019 133 City of Kalgoorlie-Boulder 2018-19 City of Greater Geraldton Shire of Bridgetown-Greenbushes Pilbara Regional Council Shire of Rivers Regional Council (Keeling) Islands Shire of Derby-West Kimberley Murchison Regional Vermin Council Shire of Donnybrook-Balingup

Office of the Auditor General | Annual Report 2018-2019 134 Shire of Peppermint Grove Shire of Serpentine-Jarrahdale Mindarie Regional Council Southern Metropolitan Regional Council 2020-21 Western Metropolitan Regional Council 2019-20 Shire of Augusta-Margaret River Tamala Park Regional Council Shire of Broomehill-Tambellup Shire of Wongan-Ballidu Shire of Wyndham-East Kimberley

Office of the Auditor General | Annual Report 2018-2019 135 Appendix 3: Acronyms

ABN Australian Business Number JAC Joint Audit Committee AAS Australian Accounting Standards KPI key performance indicator ACAG Australasian Council of Auditors General LG local government AFH Albert Facey House LG Local Government Professionals Australia WA ARMC Audit and Risk Management Committee Professionals CA ANZ Chartered Accountants Australia and New Zealand LIS laboratory information system DAIP disability access and inclusion plan MOU memorandum of understanding Department of Local Government, Sports and National Aborigines and Islanders Day Observance DLGSC NAIDOC Cultural Industries Committee ECL expected credit loss OAG Office of the Auditor General EFOC Estimates and Financial Operations Committee OSH occupational safety and health FTE full time equivalent employee PAC Public Accounts Committee GCC general computer control PID public interest disclosure GESB Government Employees Superannuation Board PSLR Public Sector Labour Relations GSS Gold State Superannuation Scheme RAP reconciliation action plan GST Goods and Services Tax TAFE technical and further education ICT information and communications technology TI Treasurer’s Instructions International Organisation of Supreme Audit W3C World Wide Web Consortium INTOSAI Institutions WALGA WA Local Government Association IS information systems WSS West State Superannuation Scheme IT information technology

Office of the Auditor General | Annual Report 2018-2019 136 Appendix 4: Glossary

Accountability is traditionally Assurance audit or financial from material misstatement Efficiency indicators are established when Parliament audit is audit work performed and, if necessary, the key key performance indicators confers responsibility on public to enable an opinion to be performance indicators are that generally relate services sector entities to account expressed on the financial relevant and appropriate and to the level of resource inputs through a Minister of the statements of a State or local fairly represent indicated required to deliver them. Crown for all that is done in the government entity. For State performance, or controls are exercise of their authority, the government entities, it also adequate. Financial statements are manner in which it is done and includes audit work to enable a structured set of financial the ends sought to be achieved. an opinion to be expressed Compliance audits are information including on their controls and key audits that provide information explanatory notes derived Across government performance indicators. about entity compliance with from accounting records to benchmarking audits legislation, public sector communicate for a period (AGBA) build on the annual Audit includes to examine, policies and good practice. of time an entity’s financial assurance audits and are investigate, inspect and review. performance and cash flows, aimed at providing an Corporatised entities operate and at a point of time its indication to Parliament and Auditor General’s report is under enabling legislation in a financial position, that is useful entity management of how the vehicle used to report to similar manner to companies to a wide range of users in entities are performing relative Parliament the results of audits under the Corporations Act 2001. making economic decisions. and examinations conducted to each other on selected key Department means a control activities. under sections 12 to 20 of the Focus area audit are audits Auditor General Act 2006. department of the public sector which assess how well Annual Report on State established under the Public public sector entities perform Finances is a report Broad scope performance Sector Management Act 1994. common business practices audits focus primarily on the prepared in accordance with Effectiveness indicators are and related controls. They are the Government Financial effective management and carried out as an extension of operations of State and local key performance indicators Responsibility Act 2000 that that provide information on our annual financial audits. provides the State’s whole-of- government programs and activities. the extent to which entity level A follow-up audit reviews government financial results for government desired outcomes the financial year and outlines the extent to which Clear audit opinion is have been achieved, or recommendations from a material differences between expressed when the audit contributed to, through the these results and the financial previous performance audit concludes, based on the delivery of services. have been implemented, forecasts contained in the State audit evidence obtained, that, Budget for that financial year. generally 3 to 5 years after in all material respects, the tabling a report. financial statements are free

Office of the Auditor General | Annual Report 2018-2019 137 A follow-on audit examines Matters of significance Service means the supply of Statutory authority means the progress in implementing (MoS) are the ‘key messages’ an activity or good to a user a person or body specified in recommendations from in Auditor General’s reports external to the entity providing Schedule 1 of the Financial a previous report and defined as the issues a the service. Services comprise Management Act 2006. These has additional scope in general parliamentary programs and outputs. entities are established by covering significant issues or reader would take away Parliament under legislation for developments in the area or from the report after the A State government entity specified purposes. activity. detail of specific findings and (state entity) is a Western recommendations has receded Australian government Treasurer’s Instructions (TI) Key performance indicator into the background. department or agency, are prescribed requirements (KPI) is information about parliamentary department, at a minimum level with critical or material aspects Narrow scope performance statutory authority, university respect to matters of financial of service performance or audit focus on entity or state training provider, administration that have the outcome achievement. compliance with legislation, superannuation fund, force of law and must be public sector policies and corporatised entity, cemetery observed by State government Key performance indicator accepted good practice across board or subsidiary entity. entities under the Financial audit is an audit performed state and local government Management Act 2006. to enable an opinion to be entities. expressed about whether or not the key performance Outcomes are the effect, indicators are relevant impact, result on or and appropriate having consequence for the community, regard to their purpose and environment or target clients of fairly represent indicated government services. performance. Performance audits are A local government entity audits that examine efficiency (LG entity) is one of the 139 and effectiveness of public local governments or 9 regional sector entities. councils in Western Australia. Public sector entities is the Management letter is a collective term for all Western letter to senior management Australian State and local of an entity that conveys the government entities. audit findings and results of an audit. It may include recommendations for improvements in controls and other matters.

Office of the Auditor General | Annual Report 2018-2019 138