The Commission, a body corporate, was established pursuant to the South Australian Tourism Commission Act 1993.
The principal goal of the Commission is to promote and expand South Australia’s tourism industry for the benefit of both residents and visitors. To meet this the Commission’s objectives are to:
facilitate the development of a strong, competitive industry;
develop a strong competitive market position;
build strong networks and partnerships for mutual benefit;
achieve sustainability of environment and economic benefits.
In 1999-2000 the Sector Development and Business Development divisions were established as separate divisions. Functions of these divisions were undertaken formerly by the Industry Development division.
Subsection 23(3) of the South Australian Tourism Commission Act 1993 provides for the Auditor-General to audit the accounts of the Commission in respect of each financial year.
During 1999-2000 specific areas of audit attention included:
accounts payable
salaries and wages
credit card expenditure
revenue, receipting and banking
non-current assets
budgetary control
general ledger
preparation for the Goods and Services Tax
compliance with the Financial Management Framework.
The review of the specific areas of financial accounting activity included a general assessment of the adequacy of the financial accounting record keeping systems and processes (including internal control practices) and the test verification of financial transactions processed and recorded during the year.
In relation to the Financial Management Framework the review process included consideration of the Commission’s application of the prescribed elements of this framework.
Matters relating to audit coverage and findings in respect of the 1999-2000 review were conveyed in an audit management letter to the Chief Executive of the Commission in July 2000. A response received in August 2000 has adequately responded to the audit issues raised.
As mentioned the audit review process included an assessment of the Commission’s compliance with the prescribed elements of the Financial Management Framework. The Commission has progressed well in regard to application of many of the elements covering strategic and financial planning, asset and liability management and management and financial reporting. However, progress is still required in regard to certain other matters which were the subject of communication with the Commission and these related to:
The implementation of the Financial Management Framework from 1 July 1998 meant that a structured risk management practice is now formalised as an integral part of an overall effective agency management and control process.
Although the Commission undertook risk review activity in relation to certain operational areas of the Commission, it had not yet formulated a Risk Management Plan covering all operational areas of the organisation.
The Commission is in the process of establishing such a Plan for 2000-01.
The Financial Management Framework requires agency Chief Executives to implement a mechanism for monitoring and reporting on the effectiveness of the internal controls of the agency and the manner in which the controls support the agency’s overall objectives. The Financial Management Framework suggests that the agency Chief Executive should consider the potential role that an internal audit activity could play in relation to monitoring and reporting on internal controls.
A formal program of internal audit activity under the supervision of an Audit Committee did not operate during 1999-2000 consistent with the previous year. The Commission focussed resource effort to ensuring the adequate implementation of the Goods and Services Tax.
The Commission intends to proceed with a formal program of internal audit activity, utilising the 2000-01 Risk Management Plan as a basis to perform such activity.
The Financial Management Framework also emphasises the importance of the agency establishing and monitoring an effective control environment by, among other things, documenting and distributing policies and procedures covering all major activities.
The Commission is in the process of completing a Policies and Procedures Manual and intends finalisation of the Manual in November 2000.
The audit of the financial accounts and accounting systems and processes operating within the Commission indicated a generally satisfactory position.
As required by subsection 36(1)(a)(iii) of the Public Finance and Audit Act 1987, the audit of the South Australian Tourism Commission 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 South Australian Tourism Commission 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.
The Commission’s overall expenditure for 1999-2000 amounted to $49.9 million ($43.1 million). Principal items of expenditure related to Advertising and Promotion of $14.3 million ($15.3 million) and Industry Assistance of $15.8 million ($6.6 million).
In relation to Advertising and Promotion, expenditure for 1999-2000 included the costs for the second phase of ‘The Secrets Book’ campaign initiated during 1998-99. The second phase encompassed several smaller more focussed editions of ‘The Secrets Book’, cinema, radio and press advertising and associated media familiarisation program. With the lead up to the Sydney 2000 Olympics, a greater emphasis was also placed on the international market place with additional resources channelled into overseas marketing and the visiting journalist program.
As regards Industry Assistance the increase of $9.2 million is due mainly to expenditure during 1999-2000 on Tourism Infrastructure projects.
The Commission’s ‘Cash’ balance at 30 June 2000 was $9.1 ($5.6 million). This balance includes funds committed to projects of an infrastructure nature. To reflect these committed but unspent funds a reserve has been created within Equity (Note 13 to the financial statements refers).
In 1998-99 the South Australian Tourism Commission received an appropriation of $5.9 million towards the costs Administered Items of the expansion of the Adelaide Convention Centre. These funds were transferred to the Adelaide Convention Centre during 1999-2000.
In January 2000 the South Australian Tourism Commission took on the administration of the Olympic Football Tournament on behalf of the Department of the Premier and Cabinet. Note 1 to the financial statements refers.
Major Events that occurred during the year which were supported by the Commission included:
Tour Down Under
Adelaide International Horse Trials
World Solar Challenge
Australian Open Golf
AAPT Tennis Championship
Christmas Pageant.
In addition the Commission is committed to supporting future events including:
Tasting Australia
International Rose Festival
Encounter 2002
Wagner’s Parsifal Opera.