During 2022–23 there has been an ongoing focus and public discourse on government acting with integrity in the delivery of public services. This debate was heightened by inquiries here in NSW and in other jurisdictions, and by the Royal Commission into Robodebt at the Commonwealth level.

While much of government works well, some audits during this and previous years have contributed findings that call into question the integrity of the systems, processes and controls that support good governance. Too often, findings include records of advice and key decisions not being kept, conflicts of interest not declared, procurement guidelines and delegations not followed.

Based on these findings, we built a focus on integrity, on the provision of good advice and good governance, into our work program this year and next. A full list of financial audit reports and performance audits tabled in the NSW Parliament in 2022–23 can be found on pages 118–119 of this report.  

Our audit reports are a trusted source of information for the Parliament of NSW. They are often cited in debates, and we provide evidence to parliamentary committees and inquiries. For example, during 2022–23, we were invited to give evidence to the Public Accountability and Works Committee’s inquiry into the government’s use of consultants.

In addition, the Public Accounts Committee tabled their reports examining performance audit reports published between June and December 2020, and our 2021 financial audit reports to the Parliament.

Recognising the importance of the assurance provided by the Audit Office, long overdue amendments were made to the Government Sector Audit Act 1983, in the lead up to the 2023 state election. The amendments enhance the mandate of the Auditor-General by providing ‘follow the dollar’ powers and access to confidential information, including cabinet-in-confidence and legal professional privilege documents.

These hard-won reforms help secure the independence of the role of the Auditor-General. They are described in more detail on page 18 of this report.  

Recommendations proposing these legislative reforms were included in the 2022 Quadrennial Review of the Audit Office tabled by the Public Accounts Committee in September 2022. Overall, the review concluded that the Audit Office is a well-functioning office that is staffed by professional and dedicated auditors.  

As I approach the end of my term as Auditor-General I want to endorse and amplify this conclusion. The quality of work that all the staff in this office deliver every day, and the values-based manner in which they do this is exceptional. 

In addition to our focus on quality, and our investment in technologies to support our staff and clients, this annual report showcases our commitment to promoting an inclusive environment for all employees and how we celebrate diversity. Our staff come from 44 countries and speak 35 languages. In the foreword to my first annual report, I committed to improving the representation of Aboriginal and Torres Strait Islander people and to continue to support and develop more women into leadership roles.  

I am pleased today to report that we have enjoyed a constructive partnership with the CareerTrackers organisation that has seen some 16 interns work with us over the last seven years. A number of this cohort have continued as graduate recruits in our financial audit practice. More recently we engaged an experienced Aboriginal leader to build cultural competence and support performance audits that include First Nations people.  

In respect of women employees, I am proud to report they now make up over 50 per cent of roles at every level, including the Office Executive, and we have almost eliminated an historical gender pay gap.  

I want to thank staff who have shared their story for publication in this report. They demonstrate our values in action.  

This will be my last introduction to an annual report of the Audit Office of NSW. My eight-year term as Auditor-General will end on  3 April 2024. I am very proud of the important role we have played as one of a small number of integrity bodies that support good government in NSW. I am also honoured to be just one of a long line of Auditors-General for NSW dating back to 1824.

Next year, the Audit Office will celebrate its bicentenary. This is a significant milestone in the history of our system of government here in NSW. Our bicentenary is shared with the NSW Treasury and Parliament’s Legislative Council. Assurance over government spending and the colonial accounts by an Auditor-General was considered necessary for the proper workings of the fledgling Parliament in 1824, and remains just as vital today.

I am privileged to finish my term in our 200th year and to share this celebration with my current executive team and all the staff of the Audit Office. I thank them for their loyalty, support and friendship over my term to date. They are an exceptional group of people.