Reports
Actions for Volume Ten 2013 focusing on Health
Volume Ten 2013 focusing on Health
Unqualified opinions were issued for all agencies audited in the following report.
Some of the reports findings include:
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Most cultural bodies rely heavily on government grants to fund services
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The Sydney Opera House Trust earns most of its revenue from commercial operations
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Less than half of the 2014-16 service agreements between HealthShare NSW and its customers have been signed. HealthShare NSW and health entities should finalise their 2014-2016 service agreements by no later than 31 January 2014
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Five service level agreements with NSW Health Pathology for 2012-13 were never signed. NSW Health Pathology and local health districts/speciality networks should finalise their 2013-14 service agreements by no later than 31 December 2013
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HealthShare NSW is committed to sharing internal audit findings across NSW Health
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The Ministry has started a long-term project to review its policy directives
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A recent review concluded the health sector has mature risk management practices
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When changes to the Aboriginal Land Rights Act 1983 occur, the Minister should identify and assess any risks from the changes and develop strategies to mitigate against them.
Actions for Volume Eight 2013 focusing on Transport and Ports
Volume Eight 2013 focusing on Transport and Ports
Unqualified audit opinions were issued on the above corporations’ 30 June 2013 financial statements. During the year, Treasury issued TC 13/01 ‘Mandatory early close procedures for 2013’. This Circular aimed to improve the quality and timeliness of agencies’ annual financial statements. In 2012-13, application of the circular was made mandatory for State owned corporations. As a result, the port corporations were required to perform the early close procedures. All the port corporations were successful in performing the procedures, which helped them submit financial statements by an earlier due date. The early close procedures also resulted in general improvements to the quality of most financial statements.
The report recommends all transport entities should do more to reduce excessive annual leave balances to ensure they will comply with new targets set by the Premier, RailCorp, Sydney Trains and NSW Trains should minimise the amount of overtime bonuses paid to train drivers and that Transport for NSW should set targets to measure the overall satisfaction of train users.
Actions for Volume Five 2013 focusing on Education
Volume Five 2013 focusing on Education
Unqualified audit opinions were issued on the following financial statements for the year ended 30 June 2013: Department of Education and Communities (including the TAFE Commission), Technical and Further Education Commission, Board of Studies, Office of the Board of Studies, Board of Studies Casual Staff Division, Institute of Teachers, Office of the Institute of Teachers, NSW Board of Vocational Education and Training.
A key issue of focus was around the revaluation of School and TAFE NSW buildings. The report found that the Department’s approach to revaluing its buildings addressed previous concerns, however more work is required to refine the revaluation model and to build on the evidence available for cost rates.
Actions for Volume Four 2013 focusing on Electricity
Volume Four 2013 focusing on Electricity
During the year, Treasury issued TC 13/01 ‘Mandatory early close procedures for 2013’. This circular aimed to improve the quality and timeliness of agencies’ annual financial statements. In 2012-13, application of the circular was made mandatory for State owned corporations. As a result, the NSW Generators, Distributors and Transgrid were required to perform the early close procedures. All the electricity entities were broadly successful in performing the procedures, which helped them submit financial statements by an earlier due date.
This in turn enabled the financial statement audits to be finalised within an earlier timeframe of eight weeks (nine weeks in 2011-12), with the exception of Eraring Energy’s audit, which is yet to be finalised. The early close procedures also resulted in improvements to the quality of the financial statements, as evidenced by fewer reported misstatements in 2012-13 compared to 2011-12.
Actions for Volume Three 2013 focusing on New South Wales State Finances
Volume Three 2013 focusing on New South Wales State Finances
The Total State Sector Accounts for the year ended 30 June 2013 received an unqualified independent auditor’s opinion. This is the first time in over a decade the Total State Sector Accounts have not been qualified.
In looking into the resolution of qualifications:
- We obtained enough evidence supporting the value of education buildings and their depreciation expense
- Sufficent evidence has been obtained to support the existence and value of the State archives
- We obtained enough evidence supporting the completeness of land and infrastructure holdings recognised
- Improvements are still needed in the accuracy of information used to record the State’s land holdings.
Actions for Cost of Alcohol Abuse to the NSW Government
Cost of Alcohol Abuse to the NSW Government
The NSW Government does not estimate or report the total cost of alcohol abuse. The Audit Office of New South Wales’ sponsored research estimates it costs the government over $1 billion a year, or around $416 from each NSW household.
Parliamentary reference - Report number #235 - released 6 August 2013
Actions for Making the Best Use of Public Housing
Making the Best Use of Public Housing
There are 55,000 eligible applicants on the social housing waiting list, with some people waiting for more than ten years to get a house. The waiting list could be more than 86,000 by 2016 unless things change.
Social housing only meets about 44 per cent of need in New South Wales even though we have the largest social housing portfolio in Australia. Social housing falls into three groups. About 80 per cent is public housing which is owned and operated by government. The remaining stock is community housing and Aboriginal housing.
Parliamentary reference - Report number #234 - released 30 July 2013
Actions for Volume Two 2013 focusing on Universities
Volume Two 2013 focusing on Universities
Except for the matters noted, the Members we reviewed substantially complied with the requirements of the Parliamentary Remuneration Tribunal’s Determination (the PRT Determination) for the year ended 30 June 2012.
The review identified the following material exceptions:
- nine Member claims were not submitted for payment within 60 days of receipt or occurrence of the expense
- eight Members did not return their unspent Sydney Allowance amounts by 30 September 2012
- sixteen Members did not complete an annual declaration stating the benefits accrued by way of loyalty/incentive schemes, as a consequence of using their allowance and entitlements, were used only for Parliamentary duties and not for private purposes.
There are inherent limitations in undertaking an engagement of this nature. The work was conducted as a review engagement, not an audit. Consequently, the procedures were not designed to detect all instances of non-compliance. The review provides limited assurance and expresses our conclusion about whether the Members reviewed complied with the PRT Determination’s requirements for Member entitlements.
Actions for Management of the ClubGRANTS Scheme
Management of the ClubGRANTS Scheme
The ClubGRANTS scheme gives tax rebates to clubs for supporting their local community. Since 2002, $417 million of ClubGRANTS tax rebates have been given to clubs. The scheme recognises the valuable role played by registered clubs in their local communities. However, the public must have confidence that the scheme is delivering genuine services to the community.
Parliamentary reference - Report number #229 - released 2 May 2013
Actions for Volume One 2013 focusing on themes from 2012
Volume One 2013 focusing on themes from 2012
This overview summarises the significant findings included in my 2012 financial audit report, volumes three to eleven, and highlights NSW agencies’ overall achievements and challenges. The overview summarises key themes and messages arising from these audits to help readers understand common findings. Agencies and their audit and risk committees can use the overview to self-assess and identify issues that may be relevant to their organisations.
It found more than 85 per cent of the recommendations in my 2011 financial audit reports to Parliament were implemented in 2012. Whilst this is less than 100 per cent, NSW government agencies clearly acted on my significant recommendations. However, NSW government agencies need to do more to follow up more detailed recommendations that are made directly to management.