Unqualified opinions were issued for all agencies audited in the following report.

Some of the reports findings include:

• Most cultural bodies rely heavily on government grants to fund services

• The Sydney Opera House Trust earns most of its revenue from commercial operations

• 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

• 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

• HealthShare NSW is committed to sharing internal audit findings across NSW Health

• The Ministry has started a long-term project to review its policy directives

• A recent review concluded the health sector has mature risk management practices

• 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.

Unqualified audit opinions were issued on the NSW Government controlled insurance and compensation entities’ 30 June 2013 financial statements, except the NSW Self Insurance Corporation (SICorp). SICorp’s audit opinion was qualified due to non-compliance with Australian Accounting Standards applicable to general insurance contracts. The auditor’s reports drew attention to the significant uncertainty in estimating outstanding claims liabilities of $14.0 billion in the Workers’ Compensation Nominal Insurer and $2.1 billion in the Lifetime Care and Support Authority. The audit of the Building Insurers’ Guarantee Corporation was not complete at the time of this report and is excluded from this commentary. 

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.

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.

Under appropriate conditions, shared service arrangements are a proven method for obtaining significant cost savings from productivity improvements and economies of scale. Benefits realised in NSW from shared services are significantly below what was expected. At June 2003 general government agencies had achieved savings of $13.6 million, or 5 per cent, of projected accumulated savings of $297 million to be achieved by 2006. Implementation costs are estimated to be $79.4 million. Most agencies had yet to fully implement the Government’s shared services strategy supporting productivity and salary increases.

Parliamentary reference - Report number #128 - released 3 November 2004

This audit follows our earlier studies on ambulance response times, on waiting times for elective (i.e. non-urgent) surgery and on the ‘Code Red’ status of hospital emergency departments. Those audits indicated that matching resources to the ever-increasing numbers of people seeking emergency treatment was certainly an issue, but not the only issue. We found that problems were also occurring at the ‘interface’ between different parts of the health system – when patients arrive in ambulances at emergency departments or when they need to be admitted from emergency departments to hospital wards.

Parliamentary reference - Report number #125 - released 28 July 2004

The Audit Office is of the opinion that the Department’s levels of regulatory activity in respect of road passenger transport regulation may have exceeded optimum levels. The Department’s current focus on processing activity limits the Department in achieving all of its desired outcomes. The Audit Office considers that a change in the approach to undertaking and managing road passenger transport regulatory activities would achieve better outcomes for the community and a better use of resources within the Department.

The Audit Office believes that while there is scope to make some improvements from procedural changes, such changes would not be sufficient to generate significant improvements.

Parliamentary reference - Report number #75 - released 6 September 2000

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