
Introduction
Over the past 200 years, the Auditor-General for New South Wales has supported Parliament in holding government accountable for its use of public resources. The audit work is broad and covers the entire spectrum of public services in NSW, which have evolved significantly and continue to do so.
Every year, reports on the consolidated findings of several government entities (financial audits) are tabled in NSW Parliament. The Audit Office also undertakes performance audits to help improve public administration.
Explore below a small selection of the thousands of audits that have improved how government services are delivered to meet the needs of citizens. The services enjoyed by citizens today have been improved by these audit findings, made by public sector auditors at the Audit Office.
Health

In the 1990s, initiatives were launched to achieve over 95% immunisation rates by 2000, reducing vaccine preventable diseases. This policy received wide support from the public, medical community, and all government levels but success required effective collaboration at national and local levels. This report assessed implementation of the national immunisation register and vaccine distribution, pointing out management issues, delays, and unclear responsibilities. It recommended better data reliability, more defined responsibilities, and service agreements for the register. Read the report.

Programs designed to improve emergency department waiting times and delays in accessing a hospital bed had been limited in success according to this report. Although waiting times for seriously ill patients had decreased, waiting times for around 95% of emergency department patients had increased or remained unchanged and performance against benchmarks for access to a hospital bed had declined each year. It was determined that only a better balance of resources between in-patient access programs (that is, systems to pre-book beds and assign emergency beds) would bring about improvements in access. Read the report.

This audit considered rising healthcare costs consuming the State Budget. Out-of-hospital programs in place at the time treated 45,000 patients annually at about half the in-hospital cost, saving $55 million. However, one key program that was still in pilot phase at the time, hadn’t achieved its objectives. The audit highlighted the potential of these programs but noted a need for better quality measures, up-to-date data, and coordinated implementation. It recommended strategies for effective expansion, engaging health professionals and the public, and demonstrating the impact on hospital demand and State Plan targets. Read the report.

This report found that NSW’s public health palliative care planning and evaluation was poorly coordinated. There was no comprehensive policy framework or monitoring of services and outcomes and the government lacked insight into the quality and extent of palliative care statewide, impairing future service planning and workforce needs. District-level planning was often ad hoc with unclear performance accountability. Issues included fragmented information systems, inconsistent use of patient outcome data, and inadequate data collection for service planning and improvement. Recommendations included establishing an integrated policy framework, enhancing data use, and improving information systems. Read the report.




Education

An audit of the ‘Computers in Schools Program’ revealed substantial progress in integrating technology into education. With $170.6 million spent over four years, significant achievements included improved computer-student ratios, internet connectivity for all schools, and the training of 15,000 teachers. Despite these strides, challenges persisted, particularly in the uneven distribution of computer resources across schools and varied levels of technology use by teachers. The audit recommended establishing standards and systems to ensure equitable access and effective integration of computers into teaching. In response, the government emphasised its commitment to ongoing infrastructure and training improvements. Read the report.
Related reports: • 2007: Follow-up audit on using computers in schools for teaching and learning • 2017: Information and Communication Technologies in schools for teaching and learning

This report reviewed efforts to enhance literacy and numeracy in NSW public schools over the previous decade. It noted a significant funding increase for programs, with mixed outcomes. While NSW students generally performed well nationally, there was a notable disparity in results, especially among students from Indigenous, rural, and lower socio-economic backgrounds. The report identified a need for targeted support and individualised learning plans for at-risk students. It also emphasised the importance of teacher capacity building and the development of comprehensive programs to address specific learning needs. Recommendations included more effective resource allocation, improved monitoring and accountability, and enhanced parental and community involvement to support student learning. Read the report.
Related report: • 2021: COVID Intensive Learning Support Program

The Learning Management and Business Reform (LMBR) program was established in 2006, with a $483 million budget, to improve service delivery to schools, corporate staff and TAFE NSW. This audit revealed significant time and budget overruns, and the program was found to have faced challenges in governance, management, and achieving expected benefits. A major cause of cost increases and delays were changes in business requirements and scope. The support that schools needed to successfully implement LMBR was also underestimated. Read the report.
Related report: • 2020: One TAFE NSW modernisation program.

This report examined how the government ensured that rural and remote students had access to the same quality of early childhood, school education, and skills pathways as metropolitan students. It found that a decade after the previous (2013) strategy to address educational disadvantage, considerable gaps remained in access and outcomes between rural and remote students and metropolitan students. The report made recommendations to develop a new strategy to better address educational disadvantage in regional, rural and remote areas, report publicly on key performance indicators, and improve data collection. Read the report.




Transport

The audit of NSW school zone safety initiatives, showed a significant decrease in road crash casualties involving school-aged pedestrians from 1998 to 2008. Despite establishing 40 km/h limits in 10,000 zones across 3,154 schools by 2003, many motorists still exceeded these limits. Recommendations included maintaining current safety measures, enhancing awareness through better signage, flashing lights, GPS integration, and publicising infringements. The report also suggested higher speeding fines, consistent speed limit application, and collaborative efforts to minimise vehicle conflicts and standardise school hours. Read the report.
Related report: • 2023: Regional road safety

Assurance provided to the NSW Government for the initial phases of the WestConnex project was assessed in this audit, with a focus on concept development to the pre-tender phase for Stage 1A (M4 Parramatta to Homebush Bay). It didn’t evaluate the project’s merit or value for money. Several governance shortcomings were identified, and recommendations were made to improve project governance and minimise the risk of failure. The audit found that the assurance processes for WestConnex didn’t meet best practice standards, and the Major Projects Assurance Framework was not fully implemented. Only one external gateway review was conducted when four should have occurred, revealing deficiencies in the preliminary business case. Governance arrangements were criticised for not clearly separating commissioning, delivery, and assurance roles. The Auditor-General recommended rectifying these deficiencies to ensure WestConnex achieved expected benefits at a reasonable cost. Read the report.
Follow-up report: • 2021: WestConnex: changes since

This report found that Transport for NSW (TfNSW) and Sydney Trains were not effectively managing their cyber security risks. Despite plans being in place to address cyber security risks, neither agency had reached target ratings and maturity was low in relation to significant risks and vulnerabilities exposed (which were not disclosed in the tabled report as they had not yet been remediated). A number of recommendations were made, including the development and implementation of a plan to uplift the Essential 8 controls to the target state; that vulnerabilities should be addressed as a matter of priority; and the reporting of cyber security risks to executives and the Audit and Risk Committee should improve. Read the report.

This audit was requested by the Minister for Transport and Roads, and examined whether TfNSW had conducted an effective process to purchase 4-6 Grand Avenue at Camellia, and whether it had effective processes and procedures to identify and acquire property to deliver the government’s major infrastructure projects. It found that there had not been an effective process, and that internal policies and procedures were insufficient. A number of recommendations were made, including that the Minister take steps to ensure effective and ethical stewardship of public resources, and that TfNSW undertake an independent investigation to identify whether the acquisition involved maladministration, fraudulent activity or misconduct. Read the report.




Community Services | Justice

This report discussed the origins and growth of the HomeFund program, which aimed to help people who were ineligible for public housing but unable to obtain private home finance. Initially, the program also sought to establish a mortgage market in NSW to reduce finance costs and improve the state’s financial position. Over time, eligibility expanded to include public housing beneficiaries, with the goal of diverting State funds from public to private housing. The report highlighted that the program was designed to distance the government from day-today involvement and responsibility, with funds not classified as government borrowing and not guaranteed by the government. However, the government bore significant risks due to poor program design and management, with potential exposure exceeding $500 million. The Audit Office emphasised a need for better risk management and financial reporting in government programs. Today, this program is closed to new participants but still in run-off and its current state was included in the Audit Office’s Stronger Communities 2023 report.

With two in three victims of violence not going to the police, under-reporting was a significant issue at the time of this audit. Ineffective sharing of information and fragmented responses, before and after a crisis, were reported and strong links to homelessness and child abuse were found. There was no standardised way to access help, and outcomes varied depending on where people lived. The lack of coordination was a particular problem for repeat victims and perpetrators, many of whom had complex mental health, drug and alcohol problems. The Audit Office recommended a common framework be established to identify domestic and family violence, assess risk, prioritise need and refer people to services. Read the report.
Related report: • 2022: Police responses to domestic and family violence

The NSW State Emergency Service (SES) faces challenges in ensuring a sustainable workforce because of its reliance on volunteers. This audit identified a need to better understand the location, availability and skills of volunteers to properly plan for emergency events. Regional capability plans were recommended to establish an overall picture of the state’s volunteer workforce, and training programs needed updating in order to comply with national public safety training standards. Read the report.
Related reports: • 2021: Managing climate risks to assets and services • 2022: COVID-19: response, recovery and impact • 2023: Natural disasters

‘Their Futures Matter’ was a government reform aimed at delivering improved outcomes for vulnerable children, young people and their families. It was a four-year response to the 2015 Tune Review of out-of-home care. The audit found that while important foundations were put in place, and new programs trialled, the key objective to establish an evidence-based whole-of-government early intervention approach was not achieved. Governance and cross-agency partnership arrangements were ineffective, and without sufficient leadership and action to achieve portfolio buy-in, there was no authority to drive reprioritisation of government investment. The reform concluded in June 2020 without a strategy or plan in place to achieve its intent. Read the report.




Environment | Planning | Industry

This audit of the NSW Department of Agriculture’s savings program found hastily implemented redundancies and facility closures without thorough investigation or adherence to planning guidelines. Over 700 staff redundancies cost around $9.8 million, leading to the hiring of 230 new positions, despite the original plan focusing on increased cost recovery. The audit highlighted a need for better strategic planning, criticising the rapid implementation and lack of detailed cost-benefit analysis, particularly regarding the decentralisation of a research laboratory. Read the report.

This was one of the first performance audits in New South Wales to address environmental issues. Native vegetation is a complex and difficult area to regulate, with an inherent tension between economic development and conservation. This audit indicated complexities and lack of accountability. There was no whole-of-government approach to the protection of native vegetation, no objectives or targets to measure progress in conserving native vegetation, and a lack of comprehensive information about the status of, and changes to, native vegetation across rural NSW. Read the report.
Related reports: • 2017: Mining rehabilitation security deposits • 2019: Managing native vegetation • 2022: Effectiveness of the Biodiversity Offsets Scheme 2005

This audit of Sydney’s water supply highlighted a critical challenge: the system in place could not sustain the city’s long-term water needs due to increasing demand and limited resources. Sydney’s water scarcity extended beyond drought issues, encompassing climate change, population growth, and consumption patterns. The Metropolitan Water Plan 2004 aimed to address these issues through integrated planning and demand management. However, the plan was based on specific assumptions, with risks around climate change and population growth adding uncertainty. The audit emphasised a need for adaptive, flexible strategies, improved transparency, public engagement, and robust risk management to ensure a reliable water supply for Sydney’s future. Read the report.
Related report: • 2020: Water conservation in Greater Sydney

This audit examined whether relevant agencies were effectively facilitating and administering Aboriginal land claim processes. Consultation with Local Aboriginal Land Councils and other Aboriginal community representative groups took place, and it was determined that the Department of Premier and Cabinet (DPC) and the Department of Planning and Environment (DPE) had not established the resources to meet the requirements and intent of the Aboriginal Land Rights Act 1983. At the time of the report’s tabling, there were 38,200 claims awaiting assessment and determination by the DPE (about 70% of all claims lodged). A number of recommendations were made, including that DPC should lead strategic governance to oversee a resourced, coordinated program and that DPE should implement a resourced, ten-year plan to increase the rate of claim processing. Read the report.




State Finances | NSW Treasury

In 1994, the Legislative Assembly tasked the Auditor-General with evaluating the State Bank of New South Wales’ proposed sale, focusing on the whether the economic return for the sale was reasonable. The report concluded that the sale’s consideration exceeded the financial return the State would have achieved if it retained ownership. It was determined that the sale offered a fair and reasonable economic return, considering factors like guarantees, warranties, and anticipated operating profits. The report also highlighted how the government’s preferred terms of sale and the effects of the policies of the Reserve Bank came at a cost, combining to limit the number of eligible tenderers with the likely effect of reducing the consideration received from the sale.

Over a number of years, audits of the then Roads and Traffic Authority (RTA) called out concerns around the accounting adopted for the Sydney Harbour Tunnel. The Auditor-General put forward that the associated risks and benefits meant that the tunnel was State-owned. After many years, including a period when the Treasury-prepared State accounts agreed with the Audit Office but the RTA accounts did not, the matter was resolved with agreement that the State owned the tunnel. This resolution helped to influence the Australian Accounting Standards Board to formulate a standard to address accounting for public-private partnership assets and liabilities, in essence accepting the risk-benefit argument for determining the appropriate accounting treatment.

This report was undertaken after Parliament specifically amended the Public Finance and Audit Act to enable its delivery. Initially reluctant to comment on what was believed to be a matter for Parliament, Schedule 1A’s addition to the Act meant the Auditor-General was required to undertake the review. It was eventually determined that, based on the information provided, there was no reason to believe that the proposed strategy for transferring assets to the private sector was inappropriate for maximising financial value for taxpayers. This review did not make a judgment on whether electricity privatisation should proceed and no significant problems were found with the government’s proposed sale-lease arrangements. The plan involved selling Energy Australia, a public share offering of Integral Energy and Eraring Energy, selling Country Energy, and leasing Delta Electricity and Macquarie Generation. The review suggested a reserve price, selling-leasing retailers and generators simultaneously, and tendering development sites separately. Employee protections and customer safeguards were generally found to be consistent with past privatisations.
Related reports: • 2016: Managing unsolicited proposals in New South Wales • 2018: Unsolicited proposal process for lease of Ausgrid

The 2020–21 financial statement audits for NSW’s General Government Sector (GGS) and Total State Sector (TSS) highlighted significant issues. The Independent Auditor’s Report was unqualified but included an emphasis of matter due to uncertainties related to the GGS’s $2.4 billion investment in the Transport Asset Holding Entity (TAHE). The NSW Government’s late interventions avoided a qualified audit opinion. Major concerns involved TAHE’s uncertain future fees, funding for its key customers, and reliance on increasing non-government revenues. Recommendations focused on improving quality controls, establishing return rate policies for equity injections, and ensuring robust projections for TAHE beyond financial year (FY) 2031. Concerns were also raised about overreliance on consultants and timely sharing of key information. Read the report.




Internals Controls | Governance | Cyber
Each year the Auditor-General tables a report on whole-of-government findings around internal controls and governance. In recent years there’s been a strong focus on cyber.

Upon request by the Minister for Customer Service, an assessment of how effectively Service NSW handled customer’s personal information to ensure privacy took place in 2020. The report concluded that the agency’s business processes posed a risk to privacy, and found that one ineffective process had contributed to a data breach earlier in the year. Eight recommendations were made to improve processes, technologies and governance arrangements. Read the report.

This report assessed whether nine state government agencies were complying with the NSW Cyber Security Policy. It found that key elements to strengthen cyber security governance, controls and culture were not sufficiently robust and were not consistently applied. As a result, the policy was not achieving its key objectives. Several recommendations were made, including a number of repeat recommendations, and the Audit Office concluded that poor levels of agency cyber security maturity were a significant concern, and that improvement required leadership and resourcing. Read the report.

This latest report evaluated the internal controls, governance, and cyber security of 25 major agencies in the NSW public sector. The analysis revealed a mixed picture of progress and areas needing improvement. Notably, the proportion of high-risk control deficiencies decreased to 4.5% from 8.2% in the previous year, indicating a positive trend. However, repeat findings still accounted for a significant 38% of all deficiencies. In the realm of information technology, over half of the agencies struggled with managing user access to their systems, and more than a third had deficiencies in controlling privileged user accounts. Cyber security emerged as a critical concern. Over 80% of the agencies failed to consistently meet mandatory requirements of the NSW Cyber Security Policy. The implementation of the Essential Eight cyber controls also showed no significant improvement, highlighting a pressing need for stronger cyber resilience measures. Governance frameworks within these agencies exhibited shortcomings, including outdated risk management policies, absence of risk appetite statements, and a lack of external evaluation for internal audit functions. In terms of financial management, overtime expenses surged by 40% from 2020 to 2023, outpacing the 16% increase in salaries and wages. Additionally, five agencies were found to have work health and safety (WHS) policies that did not align with current regulations. The report recommended that agencies prioritise enhancing their cyber security controls and cyber resilience. It also urged agencies to periodically review and upgrade their risk management maturity, implement comprehensive action plans, and ensure that WHS policies and procedures are up to date, especially in managing psychosocial risks. Read the report.



Local Government
The Auditor-General was mandated to audit the NSW local government sector in 2016 and the first consolidated report to Parliament on the audits of local government was published in 2018. A consolidated report has been tabled each year since then, as well as performance audits conducted on the sector. Here’s a snapshot of sector insights from the last Auditor-General’s Report to Parliament on the local government sector in NSW.

This report summarised the results of financial audits of 126 councils, 11 joint organisations and nine county councils. It recognised that the year had again been challenging for many local councils still recovering from the impact of emergency events, and facing cost and resourcing pressures. The Audit Office commended the efforts of council staff and management in meeting their financial reporting obligations under the difficult conditions. While unqualified audit opinions were issued for 83 councils, there were 43 statements qualified because councils did not account for rural firefighting equipment. It was recommended that the Office of Local Government should intervene when councils fail to comply with Australian Accounting Standards by not recognising assets vested to them under section 119 (2) of the Rural Fires Act 1997. Of the 1,045 audit observations, half were unresolved from previous years. These findings primarily concerned asset management, IT, financial accounting, and governance procedures, with 93 high-risk matters identified. Asset management was a particular area of concern, with 267 findings and numerous councils having deficiencies in asset valuation processes and fixed asset register integrity. Moreover, with almost half of the councils lacking a cyber security plan, the report emphasised a need for all councils to develop robust cyber security plans to safeguard data and assets. Read the report.

Natural disaster events, including bushfires, storms and floods, have directly and significantly impacted a number of NSW local councils in recent years. Increasing variability in climatic conditions is expected to bring more heatwaves, storms, droughts, floods and bushfires in the future. This audit assessed the business and service continuity arrangements in place for two councils that had previously been heavily impacted by emergencies. Recommendations included updating and regularly reviewing plans, providing training, and improving the monitoring and documentation of risks and controls. Read the report.

The Office of Local Government (OLG) is responsible for strengthening the local government sector in NSW, including through its regulatory functions. One finding from this audit was that OLG was not conducting effective, proactive monitoring to enable timely risk-based responses to council performance and compliance issues. Recommendations included publishing a tool to support councils to self-assess risks and report on their performance and compliance, and also ensuring its council engagement strategy is consistent with its regulatory approach. Read the report.



Universities
Every year a report on the consolidated findings of university entity financial audits is tabled in NSW Parliament.
The ten public universities in New South Wales were formed under NSW legislation which requires them to prepare financial statements and provide these to the Auditor-General to audit.
Here’s a snapshot of sector insights from the last Auditor-General’s Report to Parliament on universities.

The latest audit report on New South Wales’ ten public universities, encompassing 51 domestic and 23 overseas entities, recognised a challenging financial landscape for the sector. Although each university received a clean audit opinion, the underlying data revealed some trends that need addressing. In contrast to 2021, nine universities posted net deficits, primarily due to lower investment returns and government funding, coupled with the cost of resuming in-person classes post-COVID-19.
A significant fiscal burden was the 116% surge in wage remediation provisions, totalling $110 million. Additionally, income from international students, vital for these universities, slightly decreased by 0.5%, with 42% of this revenue dependent on students from just three countries. The audit also revealed 88 key internal control issues, including six high-risk findings involving IT security, financial processes, and contract reviews. Notably, two universities suffered financial losses from cyber incidents.
The Audit Office urged all universities to ensure a thorough review of employment contracts and pay practices occurs to identify staff underpayments. The need to address recurrent internal control deficiencies was also emphasised, and it was particularly recommended that universities review their policies on retaining personally identifiable information to ensure its security and appropriate retention. Read the report.

Whole of Government

This audit stemmed from concerns about government accountability and openness in its use of taxpayer dollars. It found that despite some notable attempts, the quality of performance information was variable, and in most cases fell short of accepted best practice. The report recommended that departments move beyond reporting on activities and plans, to transparently communicate whether program outcomes had been achieved, and if this has been efficient and effective. Few annual reports were found to discuss setbacks and failures, or to compare actual performance with goals or targets. And none of the agencies at the time benchmarked their achievements against the results of similar operators in the public or private sectors. Read the report.

This report on NSW’s integrity agencies highlighted a need for reform to ensure their independence and effective operation. It recommended enhancing parliamentary oversight and transparency in funding decisions, alongside ensuring these agencies demonstrate financial accountability. The report criticised the funding approach in place at the time for threatening the agencies’ autonomy, particularly through non-transparent funding practices and restrictive financial measures. Changes were deemed essential for the integrity agencies to maintain independence and fulfill their legislative roles without government influence. As a result of this report and subsequent recommendations from the Public Accountability Committee, a new funding model was implemented as part of the NSW Budget 2022-23. Read the report.

When two grant programs had the integrity of their assessment and approval processes examined by the Audit Office, a number of significant issues were found. In particular, the grants selection and assessment process for Round 2 of the Stronger Communities Fund was found to lack integrity because the government did not prioritise grant recipients according to project merit. Ultimately, 96% of funds allocated in this grant round went to coalition state seats. The report recommended the development of a new model for grant administration in NSW based on impartiality, equity and transparency. An inquiry was undertaken by the Public Accountability Committee for the Legislative Council, and after its own subsequent review, the government supported and addressed the recommendations. Read the report.

This audit of NSW government agencies revealed inefficient procurement and management of consultants. Despite efforts by NSW Procurement and the NSW Procurement Board, agencies showed a lack of strategic use and evaluation of consultants, and instances of non-compliance with procurement rules were noted. The audit, using various data sources, identified a concerning concentration of consultancy spending on four large firms, posing strategic risks. Contrary to a 2019 policy goal, there was a significant shortfall in reducing consultancy expenses. The report recommended enhancing transparency in spending data, better monitoring of strategic risks, compliance with procurement rules, and improved strategic utilisation of consultants, including effective evaluation and knowledge retention. An inquiry into the government’s use and management of consulting services is currently underway in the Legislative Council. Read the report.



