Auditor-General's report published: A review of public sector financial assets and how they are managed and governed

This afternoon, the Auditor-General’s report A review of public sector financial assets and how they are managed and governed was presented to the House of Representatives.

In this report, we discuss the increasing significance of public sector financial assets and review how these assets are being managed and governed.

The public sector’s increased holdings of financial assets has coincided with increasing innovation and technological change in financial markets around the world. Unlike physical assets, many of the financial assets now in use are complex, interconnected, evolving quickly, traded often, and highly responsive to external circumstances. As a result, many of these financial assets offer new opportunities and challenges.

We reviewed the financial assets of 14 public entities that, together, hold about 65% of all financial assets in the public sector. By and large, all 14 had reasonably good structures and systems in place for managing and governing those assets, but there is room for improvement. For example, governors could be supported by using independent expertise more or by public entities pooling financial assets for management purposes. Public entities could also consider how to improve communication with stakeholders (including the public) about the objectives and performance of their financial assets.

As the value and use of financial assets continue to increase, we expect to see a wider set of opportunities, challenges and risks.

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