For the second consecutive year, the General Government and Total State Sector Accounts received an unqualified auditor’s opinion following more than a decade of qualifications. The quality and timeliness of financial reporting across the NSW public sector has continued to improve. Compared to previous years, there were fewer errors in agencies’ 2013–14 financial statements submitted for audit and used for whole-of-government financial reporting.

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

Today the Auditor-General of New South Wales, Grant Hehir, released his Volume One Report to Parliament for 2014. The observations included in this report are designed to inform readers of common findings from the 2013 financial and performance audits so agencies and audit committees can use them to identify issues that may be relevant to their organisations.

Periodically we review the extent to which agencies have implemented the recommendations they accept from our earlier audits. This gives Parliament
and the public an update on the extent of progress made.

Intellectual property (IP) can have value to the agency concerned and may have the potential for wider commercial use. Poor management of IP can impose risks, including the risk of lost opportunities. Because it is not ‘tangible’ like a building or plant and equipment, the need for properly managing IP may be overlooked.

In this follow-up audit, we examine changes following our October 2001 report on how well public sector agencies were managing intellectual property.

Parliamentary reference - Report number #133 - released 30 March 2005

Periodically we review the extent to which agencies have implemented the recommendations they accept from our earlier audits. This gives Parliament and the public an update on the extent of progress made.

Given the size of the NSW public sector, the potential for fraud could run into billions of dollars if not properly managed. It is an area of risk that warrants close and ongoing attention. Over the last decade, we have responded by issuing three performance audits and a comprehensive guide to better practice on this topic.

In conducting my financial audits, there is now an Auditing Standard that requires me to seek annual assurances from every agency concerning the adequacy of their arrangements for fraud control. This latest performance audit provides a further report card on the extent to which the NSW public sector is managing its fraud risks.

This Report also provides updated guidance on improving arrangements for fraud control both at a whole-of-government level and at the agency level.

I commend the Report for close and careful attention by every agency.

Parliamentary reference - Report number #130 - released 9 February 2005

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 Audit Office observed that there is diversity in the form, content and quality of reports produced by the agencies. This reflects, in the main, that agencies tailor reports to meet local needs and conditions. It is considered that improvement is needed. A more consistent approach to financial reporting through the use of minimum standards is suggested. The Audit Office is of the view that agencies would benefit from a systematic approach to the reporting of outputs and outcomes and using financial and non-financial information to measure, monitor and thereby improve performance.

Parliamentary reference - Report number #85 - released 27 June 2001