The Institute, a body corporate, was established under the Institute of Medical and Veterinary Science Act 1982. It is administered by a Council and is subject to the control and direction of the Minister for Human Services.
The Institute conducts its operations through 15 metropolitan, country and regional locations, including an animal research centre at Gilles Plains.
As at 30 June 2000 the Institute had one controlled entity being Medvet Science Pty Ltd.
Medvet Science Pty Ltd is a proprietary company incorporated under the provisions of the Corporations Law.
The principal activities of the Company are:
production and sale of products for use in the provision of medical diagnostic services and scientific research;
commercial exploitation of knowledge acquired by the IMVS in the course of conducting research;
provision of consulting and other related services.
Available revenue for provision of general health services increased by $14.3 million to $61.2 million.
Recurrent revenue increased by $10.5 million.
The IMVS receives funding from the Commonwealth Government through the Health Program Grant in relation to Pathology Services provided. The grant provided in 1999-2000 was adjusted for movements in the Medical Benefits Schedule fee level over classifications for both prior and current financial years. This, in addition to increased services provision, resulted in increased payments from the Commonwealth to the States.
A further increase in funding relates to enterprise bargaining agreement payments and an additional payroll fortnight in 1999-2000.
Capital revenue from government increased by $3.8 million.
The increase in capital revenue is mainly as a result of the new IMVS building which is currently under construction.
Subsection 21(2) of the Institute of Medical and Veterinary Science Act 1982 provides for the Auditor-General to audit the accounts of the Institute in respect of each financial year.
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 1999-2000 specific areas of audit attention included:
salaries and wages
property, plant and equipment
accounts payable
liabilities
revenue
general ledger
inventory.
The scope of audit review and issues arising were conveyed to the Director of the Institute in an audit management letter. The response from the Institute indicated action taken or proposed to address the issues raised by Audit.
Although the Institute’s general control environment was considered satisfactory, a number of areas were identified where internal control practices could be strengthened and others where established controls had not been applied consistently throughout the year. Issues raised included:
certain control reconciliations were not performed on a regular basis;
lack of independent check of bankings to ascertain their completeness;
purchasing system would allow purchases to be made without appropriate authorisation.
As required by subsection 36(1)(a)(iii) of the Public Finance and Audit Act 1987, the audit of the Institute of Medical and Veterinary Science 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 Institute of Medical and Veterinary Science 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.