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Correctional Services Department for Correctional Services Financial report for the year ended 30 June 2020 ~ Government of South Australia INDEPENDENT AUDITOR'S REPORT (e:~M1 Auditor-General's Department Level 9 State Administration Centre 200 Victoria Square Adelaide SA 5000 Tel +618 8226 9640 Fax +618 8226 9688 ABN 53 327 061 410 [email protected] www.audit.sa.gov.au To the Chief Executive Department for Correctional Services Opinion I have audited the financial report of the Department for Correctional Services for the financial year ended 30 June 2020. In my opinion, the accompanying financial report gives a true and fair view of the financial position of the Department for Correctional Services as at 30 June 2020, its financial performance and its cash flows for year then ended in accordance with relevant Treasurer's Instructions issued under the provisions of the Public Finance and Audit Act 1987 and Australian Accounting Standards. The financial report comprises: a Statement of Comprehensive Income for the year ended 30 June 2020 a Statement of Financial Position as at 30 June 2020 a Statement of Changes in Equity for the year ended 30 June 2020 a Statement of Cash Flows for the year ended 30 June 2020 • notes, comprising significant accounting policies and other explanatory information • a Certificate from the Chief Executive and the Executive Director, People and Business Services. Basis for opinion I conducted the audit in accordance with the Public Finance and Audit Act 1987 and Australian Auditing Standards. My responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the financial report' section of my report. I am independent of the Department for Correctional Services. The Public Finance and Audit Act 1987 establishes the independence of the Auditor-General. In conducting the audit, the relevant ethical requirements of APES 110 Code ofEthics for Professional Accountants (including Independence Standards) have been met. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Responsibilities of the Chief Executive for the financial report The Chief Executive is responsible for the preparation of the financial report that gives a true and fair view in accordance with the Treasurer's Instructions issue under the provisions of the Public Finance and Audit Act 1987 and Australian Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of the financial report that gives a true and fair view and that is free from material misstatement, whether due to fraud or error. Auditor's responsibilities for the audit of the financial report As required by section 31 (1 )(b) of the Public Finance and Audit Act 1987, I have audited the financial report of the Department for Correctional Services for the financial year ended 30 June 2020. My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: • identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Department for Correctional Services' internal control • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Chief Executive • evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. My report refers only to the financial report described above and does not provide assurance over the integrity of electronic publication by the entity on any website nor does it provide an opinion on other information which may have been hyperlinked to/from the report. I communicate with the Chief Executive about, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during the audit. \ ~J"-:------_ Andrew Richardson Auditor-General 7 September 2020 Department for Correctional Services Financial Statements For the year ended 30 June 2020 Department for Correctional Services Statement of Certification For the year ended 30 June 2020 Certification of the Financial Statements We certify that the attached general purpose financial statements for the Department for Correctional Services: • comply with relevant Treasurer's Instructions issued under section 41 of the Public Finance and Audit Act 1987, and relevant Australian Accounting Standards; • are in accordance with the accounts and records of the Department; and • present a true and fair view of the financial position of the Department for Correctional Services as at 30 June 2020 and the results of its operation and cash flows for the financial year. We certify that the internal controls employed by the Department for Correctional Services for the financial year over its financial reporting and its preparation of the general purpose financial statements have been effective throughout the reporting period. David Brown Chief Executive or, People & Business Services 3 September 2020 J September 2020 Department for Correctional Services Statement of Comprehensive Income For the year ended 30 June 2020 2020 2019 Note $'000 $'000 Income Appropriation 2.1 368 372 346 927 Prison labour 2.2 5 881 5 802 Commonwealth-sourced grants and funding 2.3 3 008 767 Intra-government transfers 2.4 6 768 9 617 Canteen and kitchen sales 2.5 733 1 004 Resources received free of charge 2.6 1 942 2 147 Other income 2.8 2 554 2 467 Salaries and goods and services recoups 1 533 1 957 Total income 390 791 370 688 Expenses Employee benefit expenses 3.3 201 691 225 590 Supplies and services 4.1 124 109 113 404 Depreciation and amortisation 4.2 22 812 21 632 Payments to prisoners 4 221 4309 Grants 366 292 Borrowing costs 4.3 240 Net loss from disposal of non-current assets 2.7 27 2 098 Impairment loss on receivables (30) 320 Other expenses 4.4 777 845 Total expenses 354 213 368 490 Net result 36 578 2198 Other comprehensive income Items that will not be reclassified to net result Changes in revaluation surplus 5.1 60 384 Total comprehensive result 36 578 62 582 The accompanying notes form part of these financial statements. The net result and total comprehensive result are attributable to the SA Government as owner. Department for Correctional Services Statement of Financial Position As at 30 June 2020 2020 2019 Note $'000 $'000 Current assets Cash and cash equivalents 6.1 23 471 19 573 Receivables 6.2 3 835 4498 Inventory 5.7 2 068 1 896 Total current assets 29 374 25 967 Non-current assets Property, plant and equipment 5.1 703 018 671 442 Capital works in progress 5.4 33 250 39 029 Intangible assets 5.5 2 593 2 593 Biological assets 5.6 414 414 Total non-current assets 739 275 713 478 Total assets 768 649 739 445 Current liabilities Payables 7.1 15 813 23 732 Employee benefits 3.4 22 667 28 874 Provisions 7.3 3 868 3 311 Financial liabilities 7.2 1 502 Total current liabilities 43 850 55 917 Non-current liabilities Payables 7.1 3 247 3 552 Employee benefits 3.4 33 209 37108 Provisions 7.3 26168 26 714 Financial liabilities 7.2 8 952 Total non-current liabilities 71 576 67 374 Total liabilities 115 426 123 291 Net assets 653 223 616 154 Equity Retained earnings 8.1 105 331 68177 Prisoner amenities reserve 8.1 116 201 Asset revaluation surplus 8.1 382 308 382 308 Contributed capital 8.1 165 468 165 468 Total equity 653 223 616 154 The accompanying notes form part of these financial statements. The total equity is attributable to the SA Government as owner. Department for Correctional Services Statement of Changes in Equity For the year ended 30 June 2020 Prisoner Asset Contributed Retained Total amenities revaluation capital earnings equity reserve surplus Note $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2018 213 321 924 165 468 66 061 553 666 Adjustments on initial adoption of AASB9 (94} (94) Adjusted balance at 1 July 2018 213 321 924 165 468 65 967 553 572 Net result for 2018-19 2 198 2 198 Gain on revaluation of land
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