Report snapshot: Local Small Commitments Allocation Program

About this report 

This audit assessed the compliance of the Local Small Commitments Allocation Program (LSCA Program) with the NSW Grants Administration Guide (the Guide) and the Government Sector Finance Act 2018 (the Act).

The LSCA Program Office (the Program Office) was established in the NSW Premier’s Department in July 2023 to administer the LSCA Program.

Findings

Since its formation in July 2023, the Program Office effectively administered the LSCA Program in compliance with the Guide and the Act. The audit identified two exceptions: 54 assessment panel members’ conflicts were not identified and managed from a total of 644 approved projects, and there were some other minor administrative errors.

NSW Labor oversaw initial aspects of the administration of the LSCA Program. Where aspects of the LSCA Program were not performed by an auditable entity, nor by a non-government entity that received state government funding or other resources to deliver a state purpose, these activities fall outside the scope of the Auditor-General’s mandate.

The Guide could be clearer about how the public sector is to administer grants involving election commitments. 

The Program Office’s review of conflicts of interest at the candidate level, was limited to 17 candidates put forward by the Special Minister of State. The Program Office advises it received verbal confirmation that conflicts of interest processes had been implemented by NSW Labor for all electorates, but did not seek documentation supporting NSW Labor’s conflicts of interest assessments.

The summarised merit assessment criteria do not fully reflect the legislative purposes of the funding source for the LSCA Program. As a result, there is a risk that the Minister was not provided with sufficient guidance to reach the state of satisfaction required by legislation.

Recommendations 

The report made the following recommendations:

• the NSW Government should consider updating the Grants Administration Guide to include additional guidance on how the public sector is to address financial accountability, probity, record keeping and administrative obligations when a grants administration process has been initiated as an election commitment
• the Department should ensure conflicts of interest processes are implemented as intended for all future grant programs.

Further information

Please contact Renee O'Kane, Chief of Staff, on 9275 7347 or by email.