Auditor-General’s report on the Annual Financial Report of the State of Victoria, 2012–13

Taxation Australia Victoria

This report informs Parliament about the Annual Financial Report of the State of Victoria, 2012–13 (AFR), the consolidated financial report of the state, and acquits the government’s stewardship of the state’s finances to Parliament.

A clear audit opinion was issued on the AFR on 27 September 2013, providing reasonable assurance that the information in the AFR is reliable, accurate, and prepared in accordance with the requirements of the Financial Management Act 1994 and Australian accounting standards and interpretations.

The net result for the state for 2012–13 was a surplus of $9 525.8 million, largely a result of gains from remeasurements of the state's unfunded superannuation and insurance claims liabilities, and revaluing of the state's financial assets and liabilities.

The government achieved its fiscal target of a net surplus from transactions in the general government sector of at least $100 million. Dividends of $1 167.5 million from state-controlled entities outside the general government sector were key contributors to the surplus of $316 million.

The state’s borrowings increased by $6 799.3 million in 2012–13, largely driven by the recognition of $5 332.9 million of finance lease liabilities relating to three public private partnerships completed during the year.

In December 2012, the government signalled its intention to cease disclosing budgets for major projects at the time of project announcement, citing commercial sensitivities and the potential to inflate tender prices. However, the government has not informed Parliament and the public as to when project costs will be announced.

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