Financial statement audits

Auditing financial reports is a mandated function of the Auditor-General.

Financial reports are the main way public sector entities report on their financial performance. Independent audits provide assurance on these financial reports; that they are fairly presented, that there are no material errors and that information in them can be relied on for decision making and to hold the executive government to account.

Specific requirements to audit public sector entities are contained in various acts and enabling legislation.

Statutory bodies, government owned corporations and government business divisions

Required by various acts of Parliament to prepare financial reports and to submit those reports to the Auditor‑General for audit.

Proprietary limited companies

A small number of Territory controlled entities are incorporated under the Corporations Act 2001. Audits of these companies are performed subject to the Corporations Act 2001, with the Auditor‑General deemed to be a registered company auditor.

Agencies and government departments

Section 11 of the Financial Management Act 1995 provides for the Treasurer to determine the financial reporting and audit requirements of agencies.

Treasurer’s Directions on Agency Reporting - section R2.1: agency financial statements requires government department and agencies to prepare financial statements, have the financial statements certified by their accountable officer (eg chief executive officer) and chief finance officer and include those financial statements in the annual report.

Agencies are not, however, required to submit their financial statements to the Auditor‑General unless directed to do so by the Treasurer pursuant to section 11(3) of the Financial Management Act 1995. As no such direction has been given, financial statements of government departments and agencies are not independently audited.

Higher education sector

Financial reporting and audit requirements of university, higher education and vocational education and training providers in the Northern Territory are governed by specific legislation. The Charles Darwin University Act 2003, the Menzies School of Health Research Act 1985 and the Batchelor Institute of Indigenous Tertiary Education Act 1999 require these entities to prepared financial statements and have them audited by the Auditor‑General. Tertiary reporting cycle is a calendar year.

Local government councils

Must prepare financial statements and have those financial statements audited by either the Auditor‑General or a suitable auditor appointed by the council. Currently, the Auditor‑General does not audit local government.