This audit focuses on the M4 handback. It looks at whether the road will be in good condition when the State gets it back, and whether it will cope with the extra traffic after the toll is removed. These are critical issues for taxpayers and motorists. Taxpayers don’t want to be responsible for a large repair bill and motorists don’t want to be stuck in traffic jams.

To ensure that future private sector partnerships (PPP) deal adequately with handback, we recommend that the Roads and Traffic Authority (RTA):

• ensure deeds spell out an appropriate inspection and testing program to determine repairs required to bring roads up to a satisfactory condition at handback (p.11)
• ensure deeds link condition standards and maintenance approaches to changing industry standards and approaches over the life of the PPP (p.11)
• consider including in deeds a requirement that operators provide a performance bond or similar security over the cost of handback repairs (p.11)
• review the lessons learnt from the M4 tollway handback and determine whether it should seek to negotiate changes to existing tollway deeds to better deal with handback, by June 2010 (p.11)

Parliamentary reference - Report number #193 - released 27 October 2009

We found no significant difference in the funding of government and opposition electorates. However, more money was given to electorates that were safely held by the major parties. These seats received $1.29 for every dollar given to marginal and independent seats with government marginals getting the least. Electorates also receive different levels of funding according to which region they are in. Such variations may reflect valid agency objectives such as meeting State Plan targets or addressing socio-economic disadvantage.

But while agencies publish who gets what, they do not adequately evaluate or explain what grant programs have achieved. As a result, there is a risk that New South Wales may not get the best value for its spending. We recommend that agencies regularly evaluate their grant programs and publish the results.

Parliamentary reference - Report number #186 - released 6 May 2009

We found that Forests NSW has adequate estimates of how much timber is available from native forests, now and into the future. It uses an industry accepted process to develop estimates, but more could be done to improve reliability. For instance, yield estimates for the South coast, Eden and Tumut are well overdue for review.

We also found that Forests NSW should have sufficient timber to meet its wood supply commitments which are fixed for periods up to 2023 using both native and plantation hardwood. However, the cost and difficulty of harvesting and hauling this timber is likely to increase over time. This presents a significant challenge for Forests NSW to manage.

Parliamentary reference - Report number #185 - released 29 April 2009

The Department of Primary Industries (DPI) has a crucial role in assisting the irrigation industry to respond to the conflicting demands placed upon the state’s water resources. The State Plan emphasises the importance of water to agriculture, and gives DPI responsibility to use its training programs to help farmers continue to increase water use efficiency. DPI needs to work closely with agencies with which it shares responsibilities in the State Plan to ensure that its water use efficiency activities contribute to the State Plan goals. It needs to work closely with Treasury to document the services it will require to do this, the resources which will be needed, and how its success will be measured. This will ensure that DPI is well placed to continue to assist the NSW farming industry to adapt and survive periods of reduced water availability. 

Parliamentary reference - Report number #172 - released 21 November 2007

Between 2004 and 2006, the number of signalling failures, signalling downtime and the number of trains delayed as a result of signal failures all fell. RailCorp’s on-time running performance improved over the same period. The fall in failures is a clear indication of improved performance. Changes in the definition of on-time and to the timetable during 2005 and 2006 however make it difficult to determine whether improvements in response downtime and signalling delays are due to a true performance improvement. To build upon this strong base, RailCorp needs to determine with more confidence the number and duration of signalling failures the network can tolerate without impacting on service levels.

Parliamentary reference - Report number #170 - released 15 August 2007

We see considerable potential for the Ministry of Transport to plan and manage interchanges more effectively, so as to make better use of our public transport network. We believe that the Ministry now needs to focus more on multi-modal transport planning and interchange performance. It needs to assign responsibility for the coordination and oversight of inter-modal operations to an entity resourced for the purpose. Without this it will continue to be very difficult to identify and address unmet needs, seek and secure stakeholder funding, and monitor and evaluate system performance.

Parliamentary reference - Report number #168 - released 6 June 2007

The Audit Office is of the opinion that the RTA is taking positive steps in planning for road maintenance and in many instances follows better practice. There are, however, some important improvements which need to be implemented in order to enhance the efficiency and effectiveness of that function.

Parliamentary reference - Report number #69 - released 1 December 1999

Following a resolution of the Legislative Council, the Audit Office has undertaken a performance audit of the Eastern Distributor. For a number of reasons, The Audit Office is not in the position to determine “whether the proposed toll and concession period represents the best deal”. In part this is the result of time constraints which do not allow a careful analysis of many toll and concession options. Similarly, the audit does not answer “whether the current proposal represents the best environmental outcome”. But each of these issues (toll and concession and environmental consequences) is discussed in the audit report.

The Audit Office recommends that the Roads and Traffic Authority (RTA), for any further major project of this type, ensures that it establishes a process which allows all decision makers to have a thorough understanding of the reasonableness of the proponents’ offers and their implications for the State and for the public. The Audit Office also recommends that the RTA should at the outset consult with TCorp in respect of each major project put to tender.

Parliamentary reference - Report number #42 - released 31 July 1997

The audit identified that overall the agencies had carried out the redundancy process satisfactorily and the process, with some exceptions, complied with Government and internal policies. Government policy states that performance problems should be dealt with by managing the performance of the employee rather than restructuring/redundancy processes. In a limited number of instances certain employees, whose performance had been questioned, had been offered and accepted voluntary redundancy.

The audit also indicates that the process of redundancies has resulted in lower salary costs, in real dollar terms, without undue increase in either overtime or consultancy costs nor any detrimental effect on service quality. However, it is noted that the decrease in staffing levels occurred exclusively in the non-budget sector. Budget sector staffing levels increased by 1.4 per cent during 1989-95. There are also signs that the need for and the benefits arising out of redundancies are not well planned or measured. The need for redundancies often arises from a desire to reduce staff related costs while there is no comparison of the costs of redundancy compared to benefits.

Parliamentary reference - Report number #37 - released 17 April 1997

Following a request from the NSW Legislative Council in September 1996, a performance audit into various matters affecting the operation of the New South Wales Department of Agriculture was undertaken by The Audit Office.

Among the recommendations from this report, the Audit Office found that:

• An economic appraisal should be undertaken before all major developments, including rationalisation plans, are implemented. It should include details of anticipated benefits from the changes planned, so that their achievement can be evaluated after implementation.

• Government policies should be made explicit or else established by directives in writing. Planning Infrastructure and human resources should be planned to maximise efficiency and effectiveness. If Government chooses alternatives that have higher costs or lower benefits for the Department, then these should be explicitly funded.

• The Department should strengthen its system of internal control by strengthening the role of the Board of Management as a means of management control, directing an overhaul of the Charter of the Internal Audit Committee and using it to drive the Department’s internal audit function and ensuring implementation of an effective financial management information system.

Parliamentary reference - Report number #36 - released 27 March 1997