This audit assesses the assurance provided to the NSW Government for the initial stages of the WestConnex project.

The audit examined the WestConnex project from concept development to the pre-tender phase for Stage 1A – M4 (Parramatta to Homebush Bay). It did not examine the merit of the project or whether it represented value-for-money.

This audit found a number of shortcomings with the governance of the WestConnex project during its early stages and makes recommendations on how to better govern the remainder of the project to minimise the risk of failure.

Parliamentary reference - Report number #247 - released 18 December 2014

The Learning Management and Business Reform (LMBR) program was established in 2006 to improve service delivery to schools, corporate staff and TAFE NSW. Some parts of the three major components of the LMBR program have been delivered to different areas of the Department of Education and Communities. However, complete implementation is behind schedule and over budget, and the Department has yet to demonstrate that it will achieve the expected benefits.

Parliamentary reference - Report number #246 - released 16 December 2014

NSW Government agencies with large landholdings need to better manage their contaminated sites.

When contaminated sites are reported to the Environmental Protection Authority (EPA) there are long delays in assessing the extent of contamination. The EPA also lacks the management controls to ensure that all significantly contaminated sites are actively monitored and key milestones for remediation are met.

Parliamentary reference - Report number #245 - released 10 July 2014

The Auditor-General has found that agencies have consistently failed to negotiate the best price for their telecommunication contracts and are not getting value for money because of inadequate contract and expense management processes.

The audit examined six agencies to assess whether the government was getting value for money from its telecommunications contracts. It again raised problems with the way NSW government agencies manage contracts.

Parliamentary reference - Report number #244 - released 26 June 2014

NSW government agencies are not making sufficient use of purchasing cards and EFTs to pay for goods and services. There are potential savings in processing costs of around $22 per transaction from purchasing cards and over $7 when using EFTs instead of cheques.

Parliamentary reference - Report number #243 - released 5 June 2014

The Audit Office is of the opinion that the basis for environmental impact assessment of major projects in NSW is sound. The key concept of 'environmental significance' is well defined. The system is closely specified. The Department of Urban Affairs and Planning (DUAP) leads a whole-of-government approach to environmental impact assessment and its assessments are comprehensive. However, the Audit Office considers that there are opportunities for improvement by more actively managing the participants and the performance of the environmental impact assessment system. DUAP needs to strengthen its internal documentation and must ensure the public have greater involvement.

Parliamentary reference - Report number #92 - released 28 November 2001

Notwithstanding the considerable effort, it is not apparent that the Government's vision can be fully achieved without increased efforts. Based on the current position, to ensure that the Government's vision can be achieved the Audit Office is of the view that the following key issues need to be urgently addressed: 

• more robust mechanisms are needed to monitor, review and report publicly on progress and benefits

• a greater emphasis should be placed on central coordination to ensure that agencies act in a more uniform and integrated manner  

• the achievement of significant reform of business processes will require a substantial strengthening of accountability mechanisms and more comprehensive, rigorous and systematic approaches to e-government project and risk management. 

• despite an array of guidance material and support provided by central agencies, line agency needs for assistance do not seem to be being met to sufficiently advance matters across the sector at the pace and scope desired

• the Government’s e-government aspirations and funding are not always effectively harmonised. Agencies typically have limited resources available to trial or experience new technologies, and display an aversion to the associated risks.

Parliamentary reference - Report number #87 - released 19 September 2001

The regulatory framework introduced under the Protection of the Environment Operations Act 1997, along with other initiatives progressively being implemented by the Environment Protection Authority (EPA), should enhance the overall effectiveness of environment protection in NSW. The Audit Office is of the opinion that the framework is consistent with best practice and once fully implemented, should contribute to the achievement of further improvements in the environmental performance of industry.

However while the legislative framework supports best practice in regulation and enforcement, there are a number of issues which limit the effectiveness of the reforms. Some of the problems, such as the quality of licences and the effectiveness of compliance activities, have been identified by the EPA and may be addressed through recent initiatives.

Parliamentary reference - Report number #82 - released 18 April 2001

The Audit Office has undertaken an audit on Government Office Accommodation. The audit examined the cost effectiveness of long-term leasing versus ownership and the housing of agencies involved with the delivery of core government activities.  Core activities are those intrinsically linked to basic and ongoing functions of Government and Parliament.

It recommends that:

• the Government consider owning office accommodation, as opposed to leasing, for its long-term core needs, subject to a case by case analysis of the relevant financial and nonfinancial factors

• the Government undertake an analysis of the costs/savings from proposed asset sales of office accommodation in light of the demonstrated need for long-term office accommodation (for core needs) New, Expired and Expiring Leases

• given the findings of the own versus lease case studies presented in this report, it is recommended that the Government require agencies to undertake, in collaboration with the Department of Public Works and Services (DPWS) a cost/benefit analysis of available accommodation options prior to committing to any proposed major new leases

• the Government direct the DPWS, in collaboration with all agencies, to negotiate the renewal of all major expired/expiring leases (where continued occupancy is warranted) in order to reduce the financial risk of above-market rent increases and the risk of cancellation of leases (Major leases are defined, for the purposes of these recommendations, to be those over $500,000 rental per annum or a net lettable area over 1,000 square metres) Management of Property Information

•  in order to improve the integrity of the Government Office Accommodation Database, agencies be required to respond to the annual data request from DPWS by a predetermined date

• a senior officer within each agency be required to certify to the accuracy of information provided by an agency as input to the database maintained by DPWS

• DPWS verify, on a sample basis, information provided by agencies as input to the Government Office Accommodation Database Premier’s Memorandum No 97-2

• the compliance by agencies with Premier’s Memorandum No 97-2 Government Office Accommodation and Property Disposal be established by DPWS.

Parliamentary reference - Report number #45 - released 11 December 1997

The audit found that the process for the lease and development of the Showground site commenced on the basis that no Government moneys would be provided and no theme park activities would be allowed. However despite this a State Government subsidy of between $84.8m and $106.8m (in net present value terms) is to be provided for the development and the area of the Showground to be leased to Fox was extended to comprise 24.3 hectares of the 28.8 hectare site to allow Fox also to develop a family entertainment park.

The audit also found that the process commenced under the former Government were intended to ensure that no one party was placed above another however, the actual processes employed up to the General Election in March 1995 were so flawed as not to be relied upon to select a preferred proponent or to justify dispensing with a tender process.

Parliamentary reference - Report number #44 - released 8 December 1997