Environment Protection Authority Staff Agency

Natural Resources Commission Staff Agency

Office of the Independent Planning Commission

GSF Regulation prescribes that a GSF agency which comprises solely of persons who are employed to enable another particular GSF agency to exercise its function not to be a reporting GSF agency.

All three staff agencies satisfy this requirement and therefore, they were not required to prepare financial statements in 2020–21.

Energy Corporation of New South Wales

Gaagal Wanggaan (South Beach) Board of Management

Gulaga National Park Board of Management

Ministerial Development Corporation

• the assets, liabilities, income, expense, commitments and contingent liabilities of the agency are each less than $5.0 million
• the total cash or cash equivalent held by the agency is less than $2.5 million
• at least 95 per cent of the agency’s income is derived from money paid out of the Consolidated Fund or money provided by other GSF agencies
• the agency does not administer legislation for a Minister by or under which members of the public are regulated.

The department has assessed these four agencies against the above criteria, and concluded that they have met all the requirements. Therefore, they were not required to prepare financial statements in 2020–21.

• the agency is a CLM
• the assets, liabilities, income, expense, commitments and contingent liabilities of the agency are each less than $5.0 million
• the total cash or cash equivalent held by the agency is less than $2.5 million
• the income of the agency, derived from sources other than money paid out of the Consolidated Fund or money provided by other GSF agencies, is less than $100 thousand
• the agency does not administer legislation for a Minister by or under which members of the public are regulated.

• Revaluation of property, plant and equipment
  The department could not complete the inspections of 40 per cent of the national parks building assets in time for early close, due to difficulties in getting access to the parks after the natural disasters. However, the department completed all the other revaluations.
   
• Significant management judgements and assumptions
  The department did not finalise the following estimations as a part of the early close:
  • the impairment assessment of property, plant and equipment as a result of the March 2021 floods due to the timing of the event
  • the revaluation of the national parks building assets.
     
• Prior year Management Letter and Engagement Closing Report issues
  The department did not address or fully address prior year management letter issues in the following areas:
  • IT general controls and security
  • corporate services catalogues and service level agreements.

• Delegations
  The Environment Protection Authority continued to use the existing financial delegations under the transitional provisions in the GSF Act, until the new delegations were approved in June 2021. The delegation was last updated in 2016.

• Delegations
  The Environmental Trust continued to use the existing financial delegations under the transitional provisions in the GSF Act, until the new delegations were approved in September 2021. The delegation was last updated in 2014.
   
• Complete Commonwealth Funding Agreement – Revenue Assessment Form for Commonwealth Funding
  The Environmental Trust was expecting to receive Commonwealth funding towards the Remanufacture NSW program. Despite the agreement being signed in December 2020, management did not complete and return the revenue assessment form to NSW Treasury as part of early close.

• Correction of material prior period errors
  Following submission of the early close financial statements, a material prior period error was identified relating to the contaminated Cockle Creek Smelter site. Due to the unique nature of this transaction, the accounting treatment and disclosure of the error was finalised prior to the submission of year-end financial statements in August 2021.
  
  Refer to section 2.4 ‘Key accounting issues’ for details of the prior period error.

• Significant management judgements and assumptions
  During the early close, the NSW Biodiversity Conservation Trust identified shortcomings with the model being used to perform the impairment assessment of inventory assets (biodiversity credits) and remeasure the provision for developer payment – biodiversity credits. A more reliable model was identified after early close and this updated model was applied for the year-end reporting process.
  
  Management should finalise their assessment and documentation of any potential change in the methodology used to determine management estimates as part of early close.

• Revaluation of property, plant and equipment
  During 2020–21, Place Management NSW revalued land and buildings relating to the International Convention Centre Sydney (ICC Sydney), Harbourside carpark, Chinese Garden, service concession assets relating to ICC Sydney, infrastructure asset, art and artefacts and investment properties. However, six investment properties were omitted from the initial revaluation exercise.
   
• Correction of material prior period errors
  Prior period errors relating to property, plant and equipment were not appropriately reflected in the early close financial statements. Refer to section 2.4 ‘Key accounting issues’ for details of the errors.

• Revaluation of property, plant and equipment
  Property NSW revalued its land and buildings at 31 March 2021. However, the revaluation and indexation results of the police housing properties were not reflected in the early close financial statements due to delay in receiving relevant information.
   
• Finalise right‑of‑use assets and lease liability balances
  The following issues were identified:
  • incorrect lease incentive amount was applied for the lease calculation
  • management needed to assess if carparks and storage spaces should be excluded from the lease balances as they may not meet the identifiable asset criteria
  • lease modifications for subleases should be processed.
     
• New and updated accounting standards
  Management did not restate comparative figures and include sufficient disclosures in the financial statements for the withdrawal of TPP 06-08 ‘Accounting for Privately Financed Projects’ as required by NSW Treasury’s guidance.

• Significant management judgements and assumptions
  Management did not provide their documented assessment to support the significant judgements and assumptions used for the following estimates:
  • recognition of right-of-use assets and liabilities for motor vehicles and waste service land leases
  • impairment assessment of right-of-use assets
  • revenue recognition under the new accounting standards
  • useful lives of the property, plant and equipment.
     
• Changes in accounting policy
  There was a change in accounting policy relating to the Qudos Arena arrangement. While management communicated this change to the cluster lead agency (i.e. the Department of Planning, Industry and Environment) and NSW Treasury, the finalised position papers, the indicative transition journals and relevant impacts on the financial statements were not provided to the audit team in a timely manner.
   
• Finalise right‑of‑use assets and lease liability balances
  Management did not formally document their review of the lease arrangements for potential impacts such as changes in lease conditions.
   
• Finalise assessment of all revenue contracts
  Management did not formally document their review of all the revenue contracts for new agreements or changes to agreements which may affect when revenue can be recognised.
   
• New and updated accounting standards
  Management conducted a preliminary assessment and concluded that AASB 1059 ‘Service Concession Arrangements: Grantors’ (AASB 1059) would not have significant impact on the Sydney Olympic Park Authority’s financial statements. As part of early close, management did not prepare a comprehensive assessment to support their conclusion.

• New and updated accounting standards
  Management provided work papers to support the assessment of the impact of the transition to AASB 1059. However, the impact assessment did not include:
  • valuation of the new service concession arrangement
  • the financial liability model
  • updated opening balance adjustment journals.
     
• Significant management judgements and assumptions
  As a part of early close, management did not document the significant judgments and assumptions made when determining the fair value of service concession assets.

Planning Ministerial Corporation (PMC)

and Sydney Olympic Park Authority (SOPA)

Management and audit detected that the methods and rates for determining the fair value of contributed assets were not applied consistently. Management reviewed and analysed projects over the period 1 July 2016 to 30 June 2021 and identified an understatement of a total gifted assets revenue of $60.5 million in prior years.

The correction increased the prior year comparatives for property, plant and equipment by $53.9 million, deferred tax liabilities by $16.2 million, retained earnings by $37.7 million, other revenue from contracts with customers by $22.6 million, and depreciation expenses and tax benefits by $9.0 million.

Management considered the impact of these adjustments was material to the financial statements, and therefore adjusted the errors retrospectively.

In October 2019, the contaminated Cockle Creek Smelter site at Lake Macquarie was vested in HCCDC under the Lake Macquarie Site (Perpetual Care of Land) Act 2019 (the Act). HCCDC’s roles are to manage the site and facilitate the development of the land. Under the Act, the legal owner of the site would need to manage the contaminated containment cell in perpetuity. The containment cell land is expected to be transferred to the Waste Asset Management Corporation (WAMC) in the foreseeable future.

During 2019–20, HCCDC recognised a $11.3 million provision for ongoing management obligations for the containment cell, being the net present value of costs to maintain the containment cell in perpetuity of $64.0 million less the net land value expected to be received on sale of $52.7 million. This was to reflect the intention that the sales proceed from the disposal of the uncontaminated land would be used for ongoing maintenance of the containment cell.

However, paragraph 51 of AASB 137 ‘Provisions, Contingent Liabilities and Contingent Assets’ states that the gains from the expected disposal of assets shall not be taken into account in measuring provision. Therefore, the inventory and provision should both be grossed up by $52.7 million.

Whilst there was no net impact on both the Statement of Comprehensive Income and the Statement of Financial Position, the error was considered to be material due to its magnitude, and it was adjusted retrospectively in HCCDC’s 30 June 2021 financial statements.

LHIB did not historically recognise walking tracks in its financial statements. LHIB has 13 walking tracks, which consist of separate components such as stairs, bridges, viewing platforms, ropes and anchors. These assets are considered to be controlled by LHIB and should have previously been recorded in the financial statements. These assets were independently valued at 30 June 2021 with a fair value of $4.2 million.

Management considered this prior period error to be material and therefore, adjusted it retrospectively in LHIB’s 30 June 2021 financial statements.

Management identified and adjusted the following three prior period errors:

• The department administered water bonds in accordance with the Water Management Act 2000 until 6 April 2020, when a change in Minister's delegation on that day transferred this delegation to NRAR. Therefore, at 30 June 2020, $3.4 million of security bonds, with associated cash should have been recognised by NRAR.
• NRAR did not reverse $430,000 of accrued expenditure despite the related invoices already being paid. This resulted in an overstatement of expenses and trade creditors in both 2019 and 2020.
• NRAR has been collecting s60A penalties and reporting them as its fines and penalties revenue. This revenue should have been recognised as administered item on behalf of NSW Treasury. $105,000 penalties relating to 2019 and 2020 were adjusted retrospectively given this error was considered to be material in nature.

Management undertook a revaluation of the Sydney IMAX Theatre building and Sydney International Convention Centre service concession assets in 2017–18, and recorded adjustment journals of $75.2 million decreasing their value. These journals were entered twice into the general ledger, which resulted in assets being understated by $75.2 million at 30 June 2020.

The correction increased the prior year comparatives for property, plant and equipment by $75.2 million.

Management considered these prior period errors to be material and therefore, adjusted them retrospectively in PMNSW’s 30 June 2021 financial statements.

Property, plant and equipment 

$13.1 billion

The department's property, plant and equipment consists of specialised and unique assets, including Crown lands, national parks and reserves and roads and other access infrastructure. These assets collectively account for 95.4 per cent of the department’s total property, plant and equipment.

Our audit risk rating for property, plant and equipment is higher because these assets are proportionately significant to the financial statements of the department, and are subject to management judgements and estimates when determining their fair values. These judgements and estimates often require the assistance of a qualified valuer.

Our audit procedures included testing the accuracy and completeness of the asset register; reviewing the appropriateness of the valuation methods, assumptions and judgements applied; and reviewing the presentation in the financial statements in accordance with Australian Accounting Standards.

Crown land 

$6.2 billion

Historically, there were issues with the department’s recognition of Crown land assets.

Our audit risk rating for Crown land is higher because there have been historical deficiencies in the accuracy and completeness of the recording of Crown land assets in the Crown Land Information Database (CLID) and the general ledger. Crown land assets are considered to be financially significant to the Department.

Our audit procedures included understanding the department’s processes to manage and record Crown land assets; reviewing the reconciliation between CLID and the general ledger including assessing the completeness and accuracy of CLID data; and testing the Crown land asset movements during the financial year.

System assets

$8.3 billion

System assets are highly specialised assets, which comprise infrastructure, land and buildings used for the distribution of electricity, provision of public lighting, and water and sewerage infrastructure. They account for 97 per cent of Essential Energy’s total property, plant and equipment. System assets are measured at fair value using an income approach.

Our audit risk rating for system assets is higher because these assets are proportionately significant to the financial statements of Essential Energy, and the discounted cash flow (DCF) model used to value the system assets is complex and involves significant judgements and assumptions. These judgements and estimates often require the assistance of a qualified valuer.

Our audit procedures included understanding management’s approach to estimating the fair value of system assets; reviewing the appropriateness of the valuation methods, assumptions and judgements applied in the DCF model; and reviewing the presentation in the financial statements in accordance with Australian Accounting Standards.

Accrued revenue from unread meters

$173 million

Essential Energy records accrued revenue from unread meters for customers’ electricity usage. This is an estimate where meter data is not known at balance date.

Our audit risk rating for accrued revenue is higher because significant judgement and uncertainty is involved in calculating the accrual.

Our audit procedures included understanding the processes and key controls in place to determine the estimated unbilled electricity usage charges; reviewing the reasonableness of the key assumptions; and testing the accuracy of the calculation and the historical accuracy of the estimate against subsequent and actual billings.

Essential Energy reports defined benefit superannuation liabilities at each balance date. The administrator of the superannuation schemes determined this liability balance based on independent actuarial assessments.

Our audit risk rating for the defined benefit superannuation liability is higher because the underlying liability valuation model is complex due to the significant degree of judgement involved, and the total value of the liability is sensitive to minor changes in valuation inputs.

Our audit procedures included understanding the processes and key controls in place to support the inputs into the model and the calculation; assessing the completeness and accuracy of the membership data used in the model; reviewing the reasonableness of the methodology and key assumptions; and reviewing the presentation in the financial statements in accordance with Australian Accounting Standards.

Inventory

$480 million

Landcom has a portfolio of long-term land development projects, classified as inventory, that are being developed for future sale. The inventory is measured at the lower of cost and net realisable value, which is assessed at each reporting date.

Our audit risk rating for inventory is higher because these assets are financially significant to Landcom’s financial statements, and the measurement of net realisable value involves significant judgements and estimates.

Our audit procedures included reviewing and assessing the recoverability of recorded inventories at reporting date; understanding the current status of selected projects, key project risks and opportunities; reviewing the reasonableness of the significant judgements and estimates applied; testing a sample of new inventory costs to ensure they were allocated to the relevant project; and assessing whether any write down was required.

Provision to complete projects

$93.4 million

Landcom recognises a provision to capture future development costs, which are based on the original land development schedule and estimates of other known obligations expected to be incurred when the land is ready for settlement.

Our audit risk rating for this provision is higher because the provision is financially significant to Landcom’s financial statements, and its measurement requires the use of significant judgements and estimates.

Our audit procedures included reviewing the nature and value of the provision and any changes from the prior year to determine the reasonableness of the current year provision; reviewing the reasonableness of the significant judgments and estimates applied, testing a sample of payments to ensure they were attributable to the relevant project provision; and reviewing the appropriateness of the rate used to index future cost estimates and discount the provision, and the accuracy of the calculation.

Landcom reports defined benefit superannuation liabilities at each balance date. The administrator of the superannuation schemes determined this liability balance based on independent actuarial assessments.

Our audit risk rating for the defined benefit superannuation liability is higher because the underlying liability valuation model is complex due to the significant degree of judgement involved, and the total value of the liability is sensitive to minor changes in valuation inputs.

Our audit procedures included understanding the processes and key controls in place to support the inputs into the model and the calculation; assessing the completeness and accuracy of the membership data used in the model; reviewing the reasonableness of the methodology and key assumptions; and reviewing the presentation in the financial statements in accordance with Australian Accounting Standards.

Property, plant and equipment

$52.4 billion

LAHC has a large social housing portfolio with property assets being acquired, sold, redeveloped or refurbished on an ongoing basis. The most significant asset class is residential land and buildings, which account for 98 per cent of LAHC’s total property, plant and equipment.

These assets are measured at fair value based on their market value.

Our audit risk rating for property, plant and equipment is higher because these assets are proportionately significant to LAHC’s financial statements and are subject to management judgements and estimates when determining their fair values. These judgements and estimates often require the assistance of a qualified valuer.

Our audit procedures included testing the accuracy and completeness of the asset register; reviewing the appropriateness of the valuation methods, assumptions and judgements applied; and reviewing the presentation in the financial statements in accordance with Australian Accounting Standards.

Property, plant and equipment 

$1.8 billion

PMNSW’s property, plant and equipment mainly consists of:

• land and buildings
• service concession assets.

These assets account for 87 per cent of PMNSW’s total property, plant and equipment.

These assets are measured at fair value based on their current replacement cost or market value.

Our audit risk rating for property, plant and equipment is higher because these assets are proportionately significant to PMNSW’s financial statements and are subject to management judgements and estimates when determining their fair values. These judgements and estimates often require the assistance of a qualified valuer.

Our audit procedures included testing the accuracy and completeness of the asset register; reviewing the appropriateness of the valuation methods, assumptions and judgements applied; and reviewing the presentation in the financial statements in accordance with Australian Accounting Standards.

Service concession arrangement

$464 million

PMNSW adopted AASB 1059 'Service Concession Arrangements: Grantors' (AASB 1059) from 1 July 2020. This resulted in adjustments at the 1 July 2019 as follows:

• increase in total liabilities of $464 million
• decrease in accumulated funds of $464 million.

Our audit risk rating for the service concession arrangements is higher because the related balances are financially significant to PMNSW’s financial statements; PMNSW applied the new standard AASB 1059 for the first time; and the methods used to value the service concession assets and liabilities are complex and involve significant judgements and assumptions.

Our audit procedures included examining contracts, valuation reports and professional accounting advice to assess the reasonableness of the accounting treatment; assessing the appropriateness of the methodology, key assumptions and judgements applied; assessing the adequacy of the financial statement disclosures against the requirements of applicable Australian Accounting Standards.

Property, plant and equipment 

$1.0 billion

Property NSW’s property, plant and equipment mainly consists of land and buildings, which account for 96 per cent of the total property, plant and equipment.

These assets are measured at fair value based on their market value.

Our audit risk rating for property, plant and equipment is higher because these assets are proportionately significant to the financial statements of Property NSW and are subject to management judgements and estimates when determining their fair values. These judgements and estimates often require the assistance of a qualified valuer.

Our audit procedures included testing the accuracy and completeness of the asset register; reviewing the appropriateness of the valuation methods, assumptions and judgements applied; and reviewing the presentation in the financial statements in accordance with Australian Accounting Standards.

Lease Accounting 

$3.6 billion of finance lease receivables

$748 million of right-of-use assets

$4.2 billion of lease liabilities

Property NSW manages the NSW Government’s owned and leased properties. It utilises the LeaseAccelerator (LA) system to calculate and generate lease accounting information for the financial statements of Property NSW, other NSW Government agencies and Total State Sector Accounts (TSSA).

Our audit risk rating for lease accounting is higher because the lease related balances are financially significant to Property NSW’s financial statements. The lease calculation also involves significant management judgements and estimates. These judgements and estimates require assistance from the relevant agencies to ensure accuracy and completeness of the inputs.

Our audit procedures included evaluating the design, implementation and operating effectiveness of controls over lease data administration and master file maintenance process; assessing the validity, completeness and accuracy of the lease balances; verifying the accuracy of lease data incorporated into the systems; and performing recalculation of lease related balances.

System assets

$18.4 billion

SWC's system assets are highly specialised assets, which comprise infrastructure used to deliver water, wastewater and stormwater services to customers through an integrated network. They account for 86 per cent of SWC’s total property, plant and equipment.

These assets are measured at fair value using an income approach.

Our audit risk rating for system assets is higher because these assets are proportionately significant to SWC’s financial statements and the discounted cash flow (DCF) model used to value the system assets is complex and involves significant judgements and assumptions.

Our audit procedures included understanding SWC’s approach to estimating the fair value of system assets; reviewing the reasonableness of the valuation methods, assumptions and judgements applied in the DCF model; and reviewing the presentation in the financial statements in accordance with Australian Accounting Standards.

Service concession arrangement

$194 million

SWC adopted AASB 1059 'Service Concession Arrangements: Grantors' (AASB 1059) from 1 July 2020. This resulted in adjustments at the 1 July 2019 as follows:

• increase in total liabilities of $194 million
• decrease in retained earnings of $194 million.

Our audit risk rating for the service concession arrangements is higher because the related balances are financially significant to SWC’s financial statements; SWC applied the new standard AASB 1059 for the first time; and the methods used to value the service concession assets and liabilities are complex and involve significant judgements and assumptions.

Our audit procedures included examining contracts, valuation reports and professional accounting advice to assess the reasonableness of the accounting treatment; assessing the appropriateness of the methodology, key assumptions and judgements applied; assessing the adequacy of the financial statement disclosures against the requirements of applicable Australian Accounting Standards.

SWC reports defined benefit superannuation liabilities at each balance date. The administrator of the superannuation schemes determined this liability balance based on independent actuarial assessments.

Our audit risk rating for the defined benefit superannuation liability is higher because this liability is financially significant to SWC’s financial statements; the underlying liability valuation model is complex due to the significant degree of judgement involved; and the total value of the liability is sensitive to minor changes in valuation inputs.

Our audit procedures included understanding the processes and key controls in place to support the inputs into the model and the calculation; assessing the completeness and accuracy of the membership data used in the model; reviewing the reasonableness of the methodology and key assumptions; and reviewing the presentation in the financial statements in accordance with Australian Accounting Standards.

SWC records accrued revenue from unread meters for customers’ water usage. This is an estimate where meter data is not known at balance date.

Our audit risk rating for accrued revenue is higher because significant judgement and uncertainty is involved in calculating the accrual.

Our audit procedures included understanding the processes and key controls in place to determine the estimated unbilled water usage charges; reviewing the reasonableness of the key assumptions; and testing the accuracy of the calculation.

Accounting and valuation of tree assets

The Centennial Park and Moore Park Trust (CPMPT) records tree assets in its financial statements, which are subject to fair value measurement. Issues were identified in relation to the tree assets' valuation methodology, depreciation and consumption of utility, accounting treatment for removal/ disposal of trees, and dependency on professional experts.

Not appropriately addressing these issues increases the risk of material misstatements in CPMPT's financial statements.

Access to key SAP transactions were not properly restricted and segregated

The Department maintains three separate SAP application systems: SAP DPE, SAP OEH and SAP MyHQ. Control deficiencies were identified relating to user access to HR and payroll management, vendor master data management and finance journal processing.

HR and payroll management

• Access to change employee master data and payroll processing in SAP DPE and SAP MyHQ were not properly restricted.
• Users with access to change employee master data in SAP DPE and SAP MyHQ also had access to run payroll process (segregation of duties issue).
• Users with access to change employee master data in SAP MyHQ could change their own salary.

Vendor master data management

• Access to approve vendor master data changes in SAP OEH was not properly restricted.
• User with access to initiate vendor creation/ changes in SAP DPE could manually remove the vendor block status prior to approval. Block status aims to prevent a vendor to be used before the vendor details are reviewed and approved.

Finance

• SAP OEH currently does not have system enforced functionality to prevent the preparers of the manual journals to post the journals in the system.

This matter was reported as a high-risk finding because these issues increase the risk of inappropriate or unauthorised transactions and changes to the systems. Furthermore, some of these issues were first identified and reported in 2018 but have not yet been satisfactorily addressed.

In previous years, the above matters were reported as moderate risk issues. Given these issues have been long outstanding and collectively would significantly increase the risk of fraud if not being addressed in a timely manner, the risk rating was escalated to high in 2020–21.

The audit team performed additional audit procedures in response to the above issues, and no inappropriate or unauthorised transactions or changes were identified in 2020–21.

Privileged user access rights

The Lord Howe Island Board (LHIB) has a number of staff who are super users or administrators at the network, application and database levels. External service providers also have privileged access rights using generic accounts. LHIB does not regularly review these user access rights or monitor the activities of the privileged users.

This matter was reported as a high-risk finding because these issues increase the risk of inappropriate or unauthorised transactions and changes to the systems.

Improvement to the financial reporting processes

The Natural Resources Access Regulator (NRAR) identified and adjusted three prior period errors retrospectively (refer to section 2.4 'key accounting issues' for details). To reduce the risk of material misstatements in NRAR's financial statements, management should review and improve the existing financial reporting processes and ensure timely communication between the business and the finance team.

This matter was reported as a high-risk issue because of the large number of prior period errors reported in current year, which indicate deficiencies within the existing financial reporting processes.

Accounting and valuation of tree assets

The Parramatta Park Trust (PPT) records tree assets in its financial statements, which are subject to fair value measurement. Issues were identified in relation to the tree assets' valuation methodology, depreciation and consumption of utility, accounting treatment for removal/ disposal of trees, and dependency on professional experts.

Not appropriately addressing these issues increases the risk of material misstatements in PPT's financial statements.

Finalisation of lease agreements for Penrith Whitewater Stadium and Sydney International Regatta Centre

The Penrith Whitewater Stadium (PWS) and Sydney International Regatta Centre (SIRC) are currently managed by Penrith City Council and the Office of Sport (OoS) based on lease agreements that were never executed. The Planning Ministerial Corporation (PMC) is the legal owner of these properties. For PWS, PMC recognised both the built assets and the related land assets in its financial statements. For SIRC, PMC recognises the land assets whilst OoS recognises the SIRC built assets on the basis that OoS manages and controls the built assets for many years.

Formalising the lease arrangements will provide all parties with certainty over occupancy of the site, responsibility for maintenance, upgrade or any other costs incurred to manage the buildings.

This matter was reported as a high-risk finding because the issue was first reported in 2015 and has not yet been resolved.

Indeterminable loan with Greyhound Racing NSW

The Wentworth Park Sporting Complex land manager (land manager) has a $6.5 million loan with Greyhound Racing NSW (GRNSW). GRNSW requested the land manager to repay the loan. However, the land manager subsequently requested GRNSW to convert the status of the loan to a grant.

Should the loan become payable, the land manager would not be able to continue as a going concern without financial support. This matter has been raised as a repeat high-risk issue for many years and remains unresolved.

• monitoring and management of user access, including privileged users
• segregation of duties
• outdated policies and procedures
• governance of third party providers.

High³
1 new
0 repeat

Moderate²
18 new
11 repeat

Low¹
10 new
3 repeat

• lack of review and approval of payroll reports and master file data
• purchase orders are not raised and approved prior to committing to expenditures.

High³
3 new
1 repeat

Moderate²
12 new
14 repeat

Low¹
13 new
2 repeat

• lack of documentation and review of key assumptions and methodologies used for valuation and fair value assessment
• using incorrect on-cost rates for employee leave entitlement calculations
• lack of documented review of accounting estimates.

High³
0 new
0 repeat

Moderate²
5 new
4 repeat

Low¹
2 new
2 repeat

High³
0 new
0 repeat

Moderate²
9 new
8 repeat

Low¹
3 new
1 repeat

• outdated policies and procedures
• outdated delegation manuals.