Many important reports were tabled in the Parliament of New South Wales (Parliament) through 2020–24. One key area of focus relates to how the sectors we audit were impacted by, and responded to, emergency events. Bushfires, floods and the COVID-19 pandemic, all presented major challenges to state and local government entities, as well as to universities. 

Following this theme, we completed audits that reviewed the government’s response to homelessness during the first COVID-19 outbreak, as well as its planning for the management of front-line staff health and wellbeing in hospitals. Our consolidated reports on universities and local councils highlighted the financial impact of emergencies on operations, as did our state government cluster financial reports. We tabled the first in a series of grants administration audits, this initial report focused on the effectiveness of the management of Small Business Support Grants administered by Treasury and Service NSW.

Our Office carefully balanced the pressures faced by agencies we audit with the need to provide assurance to Parliament, and the community more broadly, on the effectiveness of public sector responses to the unprecedented events. This will continue to be an area of focus for both financial and performance audits in coming years.

In 2020–21 we completed three audits on specific matters requested by ministers of the government. Request audits are provided for by section 27B(3)(c) of the then named Public Finance and Audit Act 1983 (now replicated in the Government Sector Audit Act 1983). My Office is required to undertake this work. It differs from all other aspects of the audit work program, where the Auditor-General is unfettered in the choice of performance audit topics. Each of these reports received significant scrutiny and will have lasting impact, albeit in different ways.

On 20 October 2020, we tabled a report titled The effectiveness of the financial arrangements and management practices in four integrity agencies. This audit was requested by the Special Minister of State. While recognising that the government of the day is responsible for the prudent management of the state’s finances, the report highlighted threats to the independence of integrity agencies that may arise from the involvement of the executive government in decision making about funding. While the government has not yet formally responded to this report, it is likely to have lasting impact as a source of reference regarding the independence of integrity bodies and how they scrutinise the actions of government. 

On 18 December 2020, we tabled a report titled Service NSW’s handling of personal information. This audit examined the effectiveness of Service NSW’s handling of customers’ personal information to ensure privacy. It was requested by the Minister for Customer Service following public reports in May 2020 of a cyber security attack which led to a breach of privacy in relation to customer information. The audit found that Service NSW’s processes were not effectively handling the privacy of personal and business information, and that there were weaknesses in general IT and security controls in systems used to store customer information. This report adds to a body of work the Audit Office has undertaken to raise awareness of the risk of cyber attack faced by all sectors we audit. Focused attention by public sector leaders is needed to tackle this growing threat.

The third request audit was tabled on 18 May 2021, and titled Acquisition of 4-6 Grand Avenue, Camellia. Requested by the Minster for Transport, this audit concluded that Transport for New South Wales conducted an ineffective process when it purchased the Camellia land and that internal policies and procedures to guide land purchases were insufficient. The findings of this audit were concerning and point to insufficient regard for concepts of probity and value for money in the use of public funds. Given the scale of government involvement in land acquisition, management and disposal, this will continue to be a focus area for our audit program.

Survey results, extensively covered in this annual report, generally show support for the quality and relevance of our work. But, particularly during the uncertain times we have experienced over the last year, it is important for us to work hard to remain connected to people impacted by our work. To that end, during 2020–21 we evaluated how well we engage with Parliament and the agencies we audit, intent on identifying ways to improve those interactions.

The External Stakeholder Engagement Strategy that resulted from this work is profiled in this report. We also reference the new Report Highlights section included in our reports to Parliament, replacing the traditional media release used for many years. Report Highlights are a more accessible summary of an audit’s focus, clearly outlining what we found and what we recommended. It is designed for quick and easy reference for busy parliamentarians and other readers, who can delve more deeply into subjects of interest to them in the main report.

The people who work at the Audit Office have long been known for their professionalism and expertise. Our Office has also had a very strong commitment to building capability, respecting diversity and supporting our people. What was less known, but proven over this past year, is how flexible, agile and open our staff are in responding to change. And how resilient they are in the face of extended disruption to the ‘normal’ ways of working. 

Throughout 2020–21 we delivered on our commitments, adjusted to working in new ways, and evaluated opportunities this presented. Our number one priority was the health and wellbeing of our staff. We worked hard to provide opportunities to stay connected, and as always, our recreation club (ReClub) took up this challenge with gusto. We supported staff to work safely at home and invested in wellbeing and mental health programs. These measures are outlined in this report. And the results of our annual People Matter Employee Survey, supplemented by pulse surveys, are also set out in this report. Many positive improvement strategies were suggested but overall, our employee satisfaction and engagement scores remain pleasingly high.

Like many organisations, we have taken this opportunity to talk with our staff about how they want to work in the future to better support their personal circumstances and perform at their best. We have articulated four key principles upon which our future work arrangements will be based. These are: 

• our people can choose where and when we work
• we focus on the quality of interactions
• our people work together to create and maintain a safe and effective working environment
• we listen and adapt to changing work requirements. This includes client and staff needs, as well as stakeholder perspectives.

The way we work will continue to evolve in response to the challenges we have faced over the last 18 months. But our pride in purpose and determination to promote transparency and good governance will continue to ensure the work of the Audit Office has impact and is valued, and that our staff are empowered and thrive.

As always, this annual report fairly and comprehensively documents our 2020–21 activities and results. What it cannot do justice to is the unwavering professionalism and dedication of the exceptional people that work for Audit Office of New South Wales. 

I thank you for all you have done in this really hard year. And I want to acknowledge the leadership of my executive team, and in particular the Deputy Auditor-General, Ian Goodwin, for navigating a path through unchartered territory to keep us safe and well positioned to produce work that makes a real difference to the people of New South Wales.