The Office of Venue Management is an administrative unit established on 21 December 2000 under the Public Sector Management Act 1995. The Office is responsible to the Minister for Tourism.
The principal function of the Office is to manage, on behalf of the Government, the Hindmarsh Stadium. The Government acquired ownership of the Hindmarsh Stadium from the City of Charles Sturt in September 2001.
Subsection 31(1)(b) of the Public Finance and Audit Act 1987 provides for the Auditor-General to audit the accounts of the Office in respect of each financial year.
From 1 July 2001 the South Australian Tourism Commission provided the Office with a range of accounting services including processing of financial transactions, financial management recording and reporting and preparation of annual financial statements.
The audit of the financial operations of the Office was covered as part of the review of financial systems of the South Australian Tourism Commission.
The audit program covered all major financial systems and was directed primarily towards obtaining sufficient evidence to enable an audit opinion to be formed with respect to the financial statements and internal control.
During 2001-02 specific areas of Audit attention included:
revenue collection
accounts payable
payroll
non-current assets.
An Audit management letter conveying the scope of the audit and audit findings was forwarded to the Chief Executive of the Office. Matters referred to the Chief Executive included the need:
to establish a Service Level Agreement between the Office and the South Australian Tourism Commission for the services provided;
to recognise the value of the Hindmarsh Stadium in the financial records of the Office;
for the Office to finalise its annual report for the year ending 30 June 2001 in accordance with Department of the Premier and Cabinet Circular Number 13 ‘Annual Reporting Requirements’.
A satisfactory response was received to the matters raised.
The overall internal control environment was assessed as satisfactory.
As required by subsection 36(1)(a)(iii) of the Public Finance and Audit Act 1987, the audit of the Office of Venue Management included an assessment of the controls exercised in relation to the receipt, expenditure and investment of money, the acquisition and disposal of property and the incurring of liabilities. The assessment also considered whether those controls were consistent with the prescribed elements of the Financial Management Framework as required by Treasurer’s Instruction 2 ‘Financial Management Policies’.
Audit formed the opinion that the controls exercised by the Office of Venue Management in relation to the receipt, expenditure and investment of money; the acquisition and disposal of property; and the incurring of liabilities, were sufficient to provide reasonable assurance that the financial transactions of the organisation were conducted properly and in accordance with law.
Operating Result
The operating surplus of $25.6 million is due mainly to the recognition of the Hindmarsh Stadium acquisition by the Government. The valuation accorded to the building as at 30 June 2002 was $23.7 million. Notes 2(b) and 8 to the financial statements disclose financial details concerning the acquisition.
Loan Obligations relating to the Hindmarsh Stadium Construction
The construction of the Hindmarsh Stadium involved both government outlays and debt financing by the South Australian Soccer Federation guaranteed by the Treasurer.
Due to the inability of the South Australian Soccer Federation to meet the loan repayment obligations these have been met by the Government through the operation of the Treasurer’s guarantee.
Payments during 2001-02 concerning these obligations were made by the Office for Recreation and Sport of the Department for Administrative and Information Services and are recognised in that Department’s financial statements.