Adelaide Festival Corporation

Functional Responsibility and Structure

The Corporation was established as a body corporate on 1 April 1999 pursuant to the Adelaide Festival Corporation Act 1998. The Corporation is an instrumentality of the Crown. The Corporation replaces the Adelaide Festival Board which had delegated power from the Minister for the Arts to operate and manage the Adelaide Festival of Arts.

The functions of the Corporation are to:

• conduct in Adelaide and other parts of the State the multifaceted arts event that is known as the Adelaide Festival of Arts;
• continue to further develop the Adelaide Festival of Arts as an event of international standing and excellence;
• conduct or promote other events and activities;
• provide advisory, consultative, managerial and support services within areas of the Corporation's expertise;
• undertake other activities that promote the arts or public interest in the arts, or that otherwise involve appropriate use of its resources;
• carry out such other functions assigned to the Corporation by or under this or any other Act, or by the Minister.

The Board of the Corporation consists of eight members appointed by the Governor and includes a representative from each of the Friends of the Adelaide Festival Incorporated and the Corporation of the City of Adelaide. The Board is subject to the control and direction of the Minister except in relation to the artistic content and the manner for dealing with a testamentary or other gift.

The Adelaide Festival of Arts is a biennial event with 1999 not being a Festival year.

Audit Mandate and Coverage

Audit Authority

The Auditor-General audits the accounts of the Adelaide Festival Corporation pursuant to subsection 19(3) of the Adelaide Festival Corporation Act 1998.

Scope of Audit

During 1998-99 specific areas of audit attention included:

receipting
general ledger
accounts payable
contracts
salaries and wages
budgetary control

Audit Communications to Management

An audit management letter conveying the scope of the audit and related findings was forwarded to the General Manager of the Corporation and a satisfactory response has been received.

Audit Findings and Comments

Commentary on General Financial Controls

The overall internal control environment was assessed as satisfactory. In 1998-99 the Corporation implemented a new general ledger and accounts payable system. Audit observed that as a result of the implementation of the new system, the accounting records of the Corporation were not maintained in an up to date manner at all times during the year. Audit also observed that there was room for improvement in the approval of invoices and purchase orders in accordance with delegations of authority.

The Corporation has made satisfactory progress in the implementation of the requirements of the Financial Management Framework and has incorporated risk management practices into its operational and financial activities.

Controls Opinion

As required by subsection 36(1)(a)(iii) of the Public Finance and Audit Act 1987, the audit of the Adelaide Festival Corporation 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 and also, whether the controls in operation were consistent with the prescribed principles of the Financial Management Framework as required by Treasurerâs Instruction 2 ÎFinancial Management Policiesâ. The overall aim of that assessment was to establish whether those controls were sufficient to provide reasonable assurance that the financial transactions have been conducted properly and in accordance with the law.

Audit formed the opinion that the controls exercised by the Adelaide Festival Corporation 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 the law.

Interpretation and analysis of financial statements

Adelaide Festival Board

The Adelaide Festival Board operated for the period 1 July 1998 to 31 March 1999 at which time the Adelaide Festival Corporation came into existence. The assets and liabilities of the Adelaide Festival Board as at 31 March 1999 were vested by the Minister for the Arts in the Adelaide Festival Corporation pursuant to clause 2 of the Schedule to the Adelaide Festival Corporation Act 1998.