Areas of focus from 2014

Today the Auditor-General of New South Wales, Grant Hehir, released his Volume One 2015 Report to Parliament focusing on key observations and recommendations from financial and performance audits released in 2014.

The 2014 audits showed that the quality and timeliness of financial reporting have continued to improve. However, many agencies do not have financial sustainability indicators that provide early warning of management issues, such as an inability to meet financial obligations. Weaknesses were identified in information security, management of leave balances, asset management and internal controls.

Governance issues and gaps in performance information and reporting across the sector suggest Chief Financial Officers should have a stronger role and be more involved in strategy and risk management to maximise performance and add value.

For further information, please refer the report’s Executive Summary or Full Report on the Audit Office website. The report’s findings are broadly classified into financial reporting, financial controls, governance and service delivery. These themes will continue to inform and shape the focus of financial and performance audits in 2015.

Included in this report is a revised version of the Audit Office’s Governance Lighthouse, first published in 2011. It provides practical advice and resources on implementing successful governance in the public sector.

A revised Audit Office’s Fraud Control Improvement Kit was also released. This updated version of the kit provides guidance and practical advice to help organisations implement an effective fraud control framework.

For further information please contact Barry Underwood on 9275 7220 or 0403 073 664; email barry.underwood@audit.nsw.gov.au