The Family and Community Services report was released today by the Acting Deputy Auditor-General. Financial reporting within the cluster continues to improve but there are opportunities to improve governance and performance reporting.

This report analyses the results of the financial statement audit of the Total State and General Government Sectors for the year ended 30 June 2016.

This report focuses on key observations from financial and performance audits in 2015. The findings have been broadly classified into four themes, which has informed the focus of financial and performance audits for 2016.

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.

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

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.

The report includes comments on financial audits of government agencies in the Education and Communities sectors. The audits of the above entities’ financial statements for the year ended 30 June 2011 resulted in unmodified audit opinions within the Independent Auditor’s Reports. A key finding was that Treasury should consider issuing further guidance to arts and cultural bodies on collection valuation methodologies due to the significance of these assets to the State’s asset base.

On 31 October 2011, the Auditor-General, Mr Peter Achterstraat, released Volume Three Report to Parliament on the 2010-11 NSW Total State Sector Accounts. The audited budget surplus was $1,340 million. The Auditor-General issued a qualified independent auditor’s opinion as the State could not identify the full extent and value of its land and infrastructure holdings for the eighth year in a row. The government needs to address its processes for identifying, valuing and recording land and related assets it controls as a matter of priority so it can effectively manage the full extent of its land and infrastructure holdings.

The Audit Office acknowledges that this is an extremely complex and difficult area of Government activity and that putting in place effective systems is a significant challenge. Nevertheless, it is a critical task, given the vulnerability of clients and the scarcity of resources. Whilst there has been progress in improving systems, and further enhancements are planned, nevertheless, five years after the creation of the Ageing and Disability Department as the industry regulator, there are a number of fundamental issues which remain to be resolved.

The Audit Office is of the opinion that significant further development of performance information systems is required before there can be an adequate level of assurance that Government funding is provided in conformity with the Disability Services Act 1993 and that services provided represent value for money.

Parliamentary reference - Report number #74 - released 27 June 2000