Reports
Actions for Planning, Industry and Environment 2021
Planning, Industry and Environment 2021
This report analyses the results of our audits of the Planning, Industry and Environment cluster agencies for the year ended 30 June 2021.
Our preferred approach is to table the ‘Report on State Finances’ in Parliament before any other cluster report. This is because the 'Report on State Finances' focuses on the audit results and observations relating to the Total State Sector Accounts, in effect a consolidation of all government agencies. This year the 'Report on State Finances' has been delayed due to significant accounting issues being considered in the Total State Sector Accounts and which may impact the Treasury and Transport clusters.
As there are no outstanding matters relating to audits in the Planning, Industry and Environment cluster impacting the Total State Sector Accounts we have decided to break with normal practice and table this cluster report ahead of the ‘Report on State Finances’.
What the report is about
The results of the Planning, Industry and Environment cluster agencies' financial statements audits for the year ended 30 June 2021.
What we found
Unmodified audit opinions were issued for all completed 30 June 2021 financial statements audits of cluster agencies. Three audits are ongoing.
An 'Other Matter' paragraph was included in the Independent Planning Commission's (the IPC) audit opinion because the prior year comparative figures were not audited. Prior to 2020–21, the IPC was not required to prepare separate financial statements under the Public Finance and Audit Act 1983 (PF&A Act). The financial reporting provisions of the Government Sector Finance Act 2018 now require the IPC to prepare financial statements.
The number of identified misstatements increased from 51 in 2019–20 to 54 in 2020–21.
The 2010–11 to 2019–20 audits of the Water Administration Ministerial Corporation’s (the Corporation) financial statements are incomplete due to insufficient records and evidence to support the transactions of the Corporation, particularly for the earlier years. Management has commenced actions to improve the governance and financial management of the Corporation. These audits are currently in progress and the 2020–21 audit will commence shortly.
There are 609 State controlled Crown land managers (CLMs) across New South Wales that predominantly manage small parcels of Crown land.
Eight CLMs prepared and submitted 2019–20 financial statements by the revised deadline of 30 June 2021. A further 24 CLMs did not prepare financial statements in accordance with the PF&A Act. The remaining CLMs were not required to prepare 2019–20 financial statements as they met NSW Treasury's financial reporting exemption criteria.
The Department of Planning, Industry and Environment's (the department) preliminary assessment indicates that 60 CLMs are required to prepare financial statements in 2020–21. To date, no CLMs have prepared and submitted financial statements for audit in 2020–21.
There are also 120 common trusts that have never submitted financial statements for audit. Common trusts are responsible for the care, control and management of land that has been set aside for specific use in a certain locality, such as grazing, camping or bushwalking.
What the key issues were
The number of matters we reported to management increased from 135 in 2019–20 to 180 in 2020–21, of which 40 per cent were repeat findings.
Seven high-risk issues were identified in 2020–21:
- system control deficiencies at the department relating to user access to HR and payroll management systems, vendor master data management and journal processing, which require manual reviews to mitigate risks
- deficiencies related to the Centennial Park and Moore Park Trust's tree assets valuation methodology
- the Lord Howe Island Board did not regularly review and monitor privileged user access rights to key information systems
- the Natural Resources Access Regulator identified and adjusted three prior period errors retrospectively, which indicate deficiencies within the financial reporting processes
- deficiencies relating to the Parramatta Park Trust's tree assets valuation methodology
- lease arrangements have not been confirmed between the Planning Ministerial Corporation and Office of Sport regarding the Sydney International Regatta Centre
- the Wentworth Park Sporting Complex land manager (the land manager) has a $6.5 million loan with Greyhound Racing NSW (GRNSW). GRNSW requested the land manager to repay the loan. However, the land manager subsequently requested GRNSW to convert the loan to a grant. Should this request be denied, the land manager would not be able to continue as a going concern without financial support. This matter remains unresolved for many years.
There continues to be significant deficiencies in Crown land records. The department uses the Crown Land Information Database (CLID) to record key information relating to Crown land in New South Wales that are managed and controlled by the department and land managers (including councils and land managers controlled by the state). The CLID system was not designed to facilitate financial reporting and the department is required to conduct extensive adjustments and reconciliations to produce accurate information for the financial statements.
The department is implementing a new system to record Crown land (the CrownTracker project). The department advised that the project completion date will be confirmed by June 2022.
What we recommended
The department should ensure CLMs and common trusts meet their statutory reporting obligations.
Cluster agencies should prioritise and action recommendations to address internal control deficiencies, with a focus on addressing high-risk and repeat issues.
The department should prioritise action to ensure the Crown land database is complete and accurate. This will allow the department and CLMs to be better informed about the Crown land they control.
Fast facts
The Planning, Industry and Environment cluster aims to make the lives of people in New South Wales better by developing well-connected communities, preserving the environment, supporting industries and contributing to a strong economy.
There are 54 agencies, 609 State controlled Crown land managers that predominantly manage small parcels of Crown land and 120 common trusts in the cluster.
- 42% of the area of NSW is Crown land
- $33.2b water and electricity infrastructure as at 30 June 2021
- 100% unqualified audit opinions were issued for all completed 30 June 2021 financial statements audits
- 7 high-risk management letter findings were identified
- 54 monetary misstatements were reported in 2020–21
- 40% of reported issues were repeat issues
This report provides parliament and other users of the Planning, Industry and Environment cluster (the cluster) agencies’ financial statements with the results of our audits, our observations, analysis, conclusions and recommendations in the following areas:
- financial reporting
- audit observations.
Financial reporting is an important element of good governance. Confidence and transparency in public sector decision-making are enhanced when financial reporting is accurate and timely.
This chapter outlines our audit observations related to the financial reporting of agencies in the Planning, Industry and Environment cluster (the cluster) for 2021.
Section highlights
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Appropriate financial controls help ensure the efficient and effective use of resources and administration of agency policies. They are essential for quality and timely decision-making.
This chapter outlines our observations and insights from our financial statements audits of agencies in the Planning, Industry and Environment cluster.
Section highlights
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Appendix one - Misstatements in financial statements submitted for audit
Appendix two – Early close procedures
Appendix three – Timeliness of financial reporting
Appendix four – Financial data
Copyright notice
© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.
Actions for Stronger Communities 2021
Stronger Communities 2021
This report analyses the results of our audits of the Stronger Communities cluster agencies for the year ended 30 June 2021.
Our preferred approach is to table the ‘Report on State Finances’ in Parliament before any other cluster report. This is because the 'Report on State Finances' focuses on the audit results and observations relating to the Total State Sector Accounts, in effect a consolidation of all government agencies. This year the 'Report on State Finances' has been delayed due to significant accounting issues being considered in the Total State Sector Accounts and which may impact the Treasury and Transport clusters.
As there are no outstanding matters relating to audits in the Stronger Communities cluster impacting the Total State Sector Accounts we have decided to break with normal practice and table this cluster report ahead of the ‘Report on State Finances’.
What the report is about
The results of the Stronger Communities cluster agencies' financial statement audits for the year ended 30 June 2021.
What we found
Unqualified audit opinions were issued for all 30 June 2021 financial statements of cluster agencies.
Eleven of the 15 cluster agencies required to submit 2020–21 early close financial statements and other mandatory procedures did not meet the statutory deadline. Five agencies did not perform all mandatory procedures.
The implementation of AASB 1059 'Service Concession Arrangements: Grantors' had a significant impact on the Department of Communities and Justice's (the department) 2020–21 financial statements. The department applied a modified retrospective approach upon initial adoption at 1 July 2020 and recognised service concession assets and liabilities of $1.0 billion and $1.2 billion respectively (relating to three correctional centres with private sector operators).
The department was, this year for the first time, able to reliably measure Incurred But Not Reported (IBNR) claims relating to its Victims Support Scheme. The department recorded a liability of $200 million at 30 June 2021. Liabilities for Child Sexual Assault IBNR claim continue to be not recorded on the basis they are unable to be reliably measured.
The number of monetary misstatements identified during the audit of the financial statements for the cluster increased from 61 in 2019–20 to 72 in 2020–21.
What the key issues were
The number of issues reported to management decreased from 191 in 2019–20 to 172 in 2020–21. However, 45 per cent were repeat issues related to information technology, governance and oversight controls.
Seven high risk issues were identified in 2020–21, an increase of five compared to last year. High risk issues related to deficiencies in IT access controls at Sydney Cricket and Sports Ground Trust; a lack of a formal agreement between the Office of Sport and Planning Ministerial Corporation over the management of a sporting venue; asset revaluations at both Fire and Rescue NSW and the Trustees of the Anzac Memorial Building; and three issues related to revenue recognition control deficiencies at New South Wales Aboriginal Land Council and two of its subsidiaries.
What we recommended
Cluster agencies should ensure all applicable mandatory early close procedures are completed and the outcomes provided to the audit team in accordance with the deadlines set by NSW Treasury.
We recommend cluster agencies action recommendations to address internal control weaknesses promptly. Focus should be given to addressing high risk and repeat issues.
Fast factsThe Stronger Communities cluster, consisting of 28 agencies, aims to deliver community services that support a safe and just New South Wales.
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This report provides Parliament and other users of the Stronger Communities cluster’s financial statements with the results of our audits, our observations, analysis, conclusions and recommendations in the following areas:
- financial reporting
- audit observations.
Financial reporting is an important element of good governance. Confidence and transparency in public sector decision making are enhanced when financial reporting is accurate and timely.
This chapter outlines our audit observations related to the financial reporting of agencies in the Stronger Communities cluster (the cluster) for 2021.
Section highlights
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Appropriate financial controls help ensure the efficient and effective use of resources and administration of agency policies. They are essential for quality and timely decision making.
This chapter outlines our observations and insights from our financial statement audits of agencies in the Stronger Communities cluster.
Section highlights
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Findings reported to management
The overall number of findings has decreased, but the level of repeat issues increased
Breakdowns and weaknesses in internal controls increase the risk of fraud and error. Deficiencies in internal controls, matters of governance interest and unresolved issues were reported to management and those charged with governance of agencies. The Audit Office does this through management letters, which include observations, related implications, recommendations and risk ratings.
In 2020–21, there were 172 findings raised across the cluster (191 in 2019–20). 45 per cent of all issues were repeat issues (32 per cent in 2019–20).
Repeat issues largely related to weaknesses in controls over information technology (IT), governance and oversight.
A delay in implementing audit recommendations increases the risk of intentional and accidental errors in processing information, producing management reports and generating financial statements. This can impair decision‑making, affect service delivery and expose agencies to fraud, financial loss and reputational damage. Poor controls may also mean agency staff are less likely to follow internal policies, inadvertently causing the agency not to comply with legislation, regulation and central agency policies.
2020–21 audits identified seven high risk findings
High risk findings were reported at the following cluster agencies. Two high risk findings reported in 2019–20 were resolved.
Agency | Description |
2020–21 findings | |
Sydney Cricket and Sports Ground Trust (new finding) * | The audit of Sydney Cricket and Sports Ground Trust's IT access controls identified:
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Fire and Rescue NSW (new finding) | Fire and Rescue NSW (FRNSW) completed a comprehensive revaluation of its fire appliances in 2020–21. The audit of the revaluation found there was inadequate analysis and quality control by management over the valuation process prior to the outcomes being included in the financial statements. FRNSW had 57 fleet assets that have not been revalued due to problems with data supplied by the valuer. The written down value:
The review also found:
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New South Wales Aboriginal Land Council (NSWALC) (new finding) | The audit of NSWALC's revenue identified there was no formal assessment of relevant contracts for the nature, amount and timing of revenue recognition before preparing the financial statements. This matter has been included as a high risk finding as it contributed to material monetary misstatements and disclosure deficiencies relating to revenue transactions. |
NSWALC Employment and Training Limited (new finding) | The audit of NSWALC Employment and Training Limited's revenue found:
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NSWALC Housing Limited (new finding) | The audit of NSWALC Housing Limited's revenue identified it:
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Office of Sport (new finding) |
The Olympic Co-ordination Authority Dissolution Act 2002 transferred the assets, rights and liabilities relating to the Sydney International Regatta Centre (SIRC) to the Planning Ministerial Corporation (the Corporation) effective from 1 July 2002. The Corporation recognised the related land assets but did not recognise any of the built assets at the time of transfer. The total value of the land and built assets at 30 June 2021 was The SIRC has been managed by the Office of Sport (the Office) for many years in accordance with a not yet executed management agreement. It appears there was a clear intention in 2005 that the control of SIRC built assets was to be transferred from the then Department of Planning to the then Department of Tourism, Sport and Recreation (a predecessor of the Office), through the exchange of letters between the relevant Ministers and an Administrative Order (the Order). The Order transferred the SIRC staff from the then Department of Planning to the then Department of Tourism, Sport and Recreation. However, it was silent on whether the relevant built assets were transferred. Currently, the Office recognises the SIRC built assets in the financial statements whilst the Corporation recognises the land assets as the legal owner of the property. This matter has been included as a high risk finding as the lack of a formal management agreement casts doubt over the accounting treatment of SIRC property. |
The Trustees of the Anzac Memorial Building (new finding) |
The audit of the Trustees of the Anzac Memorial Building's property, plant and equipment identified:
This matter has been included as a high risk finding as it contributed to material monetary misstatements and disclosure deficiencies relating to property, plant and equipment. |
Recommendation (repeat issue)We recommend cluster agencies action recommendations to address internal control weaknesses promptly. Focus should be given to addressing high risk and repeat issues. |
The table below describes issues commonly identified across the cluster by category and risk rating.
Risk rating | Issue |
Information technology | |
High3 |
The financial audits identified weaknesses in information technology processes and controls that support the integrity of financial data used to prepare agencies' financial statements. Of particular concern are issues with:
|
Moderate2 |
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Low1 5 new, 6 repeat |
|
Internal control deficiencies or improvements | |
High3 |
The financial audits identified internal control weaknesses across the following key business processes:
|
Moderate2 |
|
Low1 |
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Financial reporting | |
High3 |
The financial audits identified weaknesses in financial reporting processes, including:
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Moderate2 |
|
Low1 |
|
Governance and oversight | |
High3 1 new |
The financial audits identified areas where agencies could strengthen governance and oversight processes, including:
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Moderate2 5 new, 11 repeat |
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Low1 12 new, 8 repeat |
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Non-compliance with key legislation and/or central agency policies | |
Moderate2 7 new, 6 repeat |
The financial audits identified the need for agencies to improve their compliance with key legislation and/or central agency policies, including:
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Low1 2 new, 8 repeat |
2 Moderate risk from the consequence and/or likelihood of an event that has had, or may have a negative impact on the entity.
1 Low risk from the consequence and/or likelihood of an event that has had, or may have a negative impact on the entity.
Note: Management letter findings are based either on final management letters issued to agencies, or draft letters where findings have been agreed with management.
The number of moderate risk findings decreased from prior year
Seventy‑eight moderate risk findings were reported in 2020–21, representing a 22 per cent decrease from 2019–20. Of these, 43 were repeat findings, and 35 were new issues.
Moderate risk findings reported in 2020–21 include:
- weaknesses in governance arrangements, including outdated policies and procedures and arrangements that do not align with NSW Government guidelines, such as the NSW Government Procurement Policy Framework and NSW Cyber Security Policy
- weaknesses in user access administration including:
- user access reviews
- monitoring of privileged user access and activities
- password policy configuration
- cyber security improvements including:
- implementation and update of governance arrangements
- monitoring of third‑party system access
- patch management improvement
- outdated instruments of financial delegation and non‑compliance with established financial delegations
- weaknesses in supplier and employee masterfile maintenance.
Appendix one – Misstatements in financial statements submitted for audit
Appendix two – Early close procedures
Appendix three – Timeliness of financial reporting
Appendix four – Financial data
Copyright notice
© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.
Actions for Premier and Cabinet 2021
Premier and Cabinet 2021
This report analyses the results of our audits of the Premier and Cabinet cluster agencies for the year ended 30 June 2021.
Our preferred approach is to table the ‘Report on State Finances’ in Parliament before any other cluster report. This is because the 'Report on State Finances' focuses on the audit results and observations relating to the Total State Sector Accounts, in effect a consolidation of all government agencies. This year the 'Report on State Finances' has been delayed due to significant accounting issues being considered in the Total State Sector Accounts and which may impact the Treasury and Transport clusters.
As there are no outstanding matters relating to audits in the Premier and Cabinet cluster impacting the Total State Sector Accounts we have decided to break with normal practice and table this cluster report ahead of the ‘Report on State Finances’.
What the report is about
The results of the Premier and Cabinet cluster (the cluster) agencies' financial statement audits for the year ended 30 June 2021.
What we found
Unmodified audit opinions were issued for all Premier and Cabinet cluster agencies.
The number of monetary misstatements decreased from 49 in 2019–20 to 38 in 2020–21.
The Library Council of New South Wales corrected a prior period error of $325 million. In 2017, the council split its collection assets into six asset classes, but not the related asset revaluation reserves. To correct this error, some revaluation decrements previously recognised in asset revaluation reserves were reclassified to accumulated funds.
Eight agencies did not complete all of the mandatory early close procedures.
What the key issues were
The Premier and Cabinet cluster was impacted by three Machinery of Government (MoG) changes during 2020–21.
The changes resulted in the transfer of activities and functions in and out of the cluster and the creation of a new entity - Investment NSW.
The transferor entities continued to provide services to Investment NSW subsequent to 30 June 2021. There were no formal service level agreements in place for the provision of these services.
The New South Wales Electoral Commission (the Commission) and Sydney Opera House Trust obtained letters of financial support from their relevant Minister and/or NSW Treasury in 2020–21. The postponement of local government elections impacted the Commission's operations due to increased planned expenditure to support a COVID-safe election. Sydney Opera House Trust's ability to generate revenue was impacted due to the closure of the Concert Hall partly due to COVID-19 and planned renovations.
The number of repeated audit issues raised with management and those charged with governance increased from 22 in 2019–20 to 24 in 2020–21.
There were 47 moderate risk and 28 low risk findings identified. Of the total findings there were 24 repeat issues.
What we recommended
Investment NSW should ensure services received from other agencies are governed by service level agreements.
Fast facts
The Department of Premier and Cabinet supports the Premier and Cabinet to deliver the government's objectives, infrastructure, preparedness for disaster, incident recovery, arts and culture.
- $11.9b of property, plant and equipment as at 30 June 2021
- $4.4b total expenditure incurred in 2020-21
- 100% unqualified audit opinions were issued on agencies' 30 June 2021 financial statements
- 47 moderate risk findings were reported to management
- 38 monetary misstatements were reported in 2020-21
- 32% of all reported issues were repeat issues.
This report provides Parliament and other users of the Premier and Cabinet’s financial statements with the results of our audits, our observations, analysis, conclusions and recommendations in the following areas:
- financial reporting
- audit observations.
Financial reporting is an important element of good governance. Confidence and transparency in public sector decision making are enhanced when financial reporting is accurate and timely.
This chapter outlines our audit observations related to the financial reporting of agencies in the Premier and Cabinet cluster (the cluster) for 2021.
Section highlights
|
Appropriate financial controls help ensure the efficient and effective use of resources and administration of agency policies. They are essential for quality and timely decision making.
This chapter outlines our observations and insights from our financial statement audits of agencies in the Premier and Cabinet cluster.
Section highlights
|
Appendix one – Misstatements in financial statements submitted for audit
Appendix two – Early close procedures
Appendix three – Timeliness of financial reporting
Appendix four – Financial data
Copyright notice
© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.
Actions for Grants administration for disaster relief
Grants administration for disaster relief
What the report is about
The report examined whether NSW Treasury, Service NSW and the Department of Customer Service effectively administered grants programs funded under the $750 million Small Business Support Fund, including:
- $10,000 Small Business Support Grant
- $3,000 Small Business Recovery Grant.
What we found
The agencies effectively implemented the grants within required timeframes, reflecting the NSW Government’s decision to deliver urgent financial support to small businesses impacted by the COVID-19 pandemic.
NSW Treasury met urgent timeframes to design the grants and Service NSW made timely payments in line with the grants' objectives and eligibility criteria.
Service NSW and the Department of Customer Service strengthened processes to detect and minimise fraud in response to identified external fraud risks, and to investigate suspected fraudulent applications.
Fraud security checks and investigations are ongoing, and the agencies will not know the full extent of fraud across the grants until these processes have been completed.
The agencies regularly monitored and reported on the timeliness of payments to small business applicants but have not yet measured all benefits of the grants programs.
The $10,000 Support Grant and the $3,000 Recovery Grant have provided around $630 million in one off grant payments to eligible small businesses.
What we recommended
NSW Treasury should finalise and implement an evaluation of both grants programs, including obtaining feedback from businesses.
Service NSW should develop a framework that documents expected controls for how it administers grants, including business processes, fraud control and governance and probity requirements.
Service NSW should publish information on all grants programs, including grants distribution and uptake.
The Department of Customer Service should ensure its processes for managing conflicts of interest meets its policy requirements.
Upcoming performance audit
The Audit Office is conducting a further performance audit into grants administration for disaster relief focussing on bushfire grants. This is planned to complete in 2021-22.
Fast factsSmall Business Support Fund
Grant program administration
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Further information
Please contact Ian Goodwin, Deputy Auditor-General on 9275 7347 or by email.
The NSW Government responded to the partial shutdown of the NSW economy caused by the COVID-19 pandemic in 2020 by, among other measures, announcing on 3 April 2020 that it would place $750 million into the Small Business Support Fund (the Fund).
Under the Fund, the NSW Government would pay one-off grants of up to $10,000 to small business impacted by the shutdown. The objectives of the $10,000 Small Business Support Grant ($10,000 Support Grant) were to:
- ease the pressure on small businesses that have been affected by the COVID-19 pandemic
- support the ongoing operations of small businesses highly impacted by the COVID-19 restrictions
- deliver cash-flow into small businesses as soon as possible so that small businesses could meet pressing financial needs.
Grant applications were assessed against eligibility criteria that were determined by the NSW Government. The eligibility criteria for the $10,000 Support Grant required an employing small business to demonstrate it was significantly impacted by the COVID-19 pandemic by self-declaring or demonstrating a significant decline of 75 per cent or more in turnover compared to 2019. Documentation requirements were relaxed for small businesses within highly impacted industries.
In June 2020, the NSW Government announced a second round of one-off grants of up to $3,000 to small businesses that were highly impacted by the COVID-19 pandemic ($3,000 Recovery Grant). The objective of the $3,000 Recovery Grant was to help small businesses in 'highly impacted industries' — those directly impacted by the restrictions and closures put in place under the Public Health Orders — to meet the costs of safely reopening or scaling up operations.
The eligibility criteria for the $3,000 Recovery Grant required that a small business be in a highly impacted industry, demonstrate that it was significantly impacted by the COVID-19 pandemic by declaring a significant decline in turnover, and had costs associated with reopening under the 'COVID-Safe' requirements.
NSW Treasury and Service NSW implemented both grants on behalf of the NSW Government. The process of applying for a grant was intended to be quick and easy, with Service NSW using automated assessments and simple online application forms to process applications. Applicants applied for the $10,000 Support Grant through the Service NSW website between 14 April 2020 to 30 June 2020 and applied for the $3,000 Small Business Recovery Grant between 1 July 2020 and 31 August 2020.
At May 2021, around $520 million has been paid to over 52,500 grant applicants under the $10,000 Support Grant and around $109 million had been paid to around 36,700 grant applicants under the $3,000 Recovery Grant.
The Audit Office plans to undertake a performance audit into grants administration for disaster relief focussing on bushfire grants in 2021–22.
This audit assessed whether the grants funded under the $750 million Small Business Support Fund were effectively administered and implemented to provide disaster relief. It addressed the following questions:
- Were funded grants programs planned, designed and targeted effectively?
- Were funded grants programs implemented in line with the objectives and criteria and delivery requirements?
- Have agencies established measures to monitor intended benefits and outcomes?
This audit did not seek to assess the effectiveness of any other grant programs or stimulus measures. It also did not seek to assess the impact of the funding on applicants, or the future prospects of small businesses that received support.
ConclusionNSW Treasury and Service NSW effectively implemented two grants within required timeframes reflecting the NSW Government's decision to deliver urgent financial support to small businesses impacted by the COVID-19 pandemic in 2020. The $10,000 Support Grant and the $3,000 Recovery Grant have provided around $630 million in one-off grant payments to eligible small businesses.NSW Treasury met urgent timeframes to design the grants and Service NSW made timely payments in line with the grants' objectives and eligibility criteria.NSW Treasury met urgent timeframes to provide advice to the NSW Government on the grant design, proposed delivery partner, expected numbers of eligible businesses and the suitability of the proposed grant payment amount within the required timeframes. This was achieved within one day for the $10,000 Support Grant and within four days for the $3,000 Support Grant. In the context of the complex and changing pandemic and economic conditions between March and July 2020, NSW Treasury's advice to government outlined the risk, feasibility, expected demand estimates and assumptions for the grants. NSW Treasury's demand projections were limited by uncertainty as to the pandemic's economic impact. Estimated demand for the grants was not met, resulting in around $120 million from the Small Business Support Fund remaining unspent. Service NSW met urgent timeframes to stand-up both grants: 11 days for the $10,000 Support Grant and 26 days for the $3,000 Recovery Grant. It met agreed delivery requirements and made timely payments to small businesses in line with the grants' objectives and eligibility criteria. Over 65,000 businesses have received a payment under either grant, and over 23,000 businesses received both grants. Gaps in project and risk management processes were expected given the tight timeframe to implement the grants.The tight timeframe in which the agencies had to implement the grants contributed to gaps in project and risk management. The agencies advised that compromises were understood by both parties and were a necessary trade-off to ensure payments were made quickly. Service NSW and the Department of Customer Service have acted to strengthen their processes to detect and minimise fraud in response to identified external fraud risks and to investigate suspected fraudulent applications since the grants commenced. Service NSW intends to further enhance fraud controls for grants applications and payments for future grants by implementing a fraud control framework by December 2021. The agencies regularly monitored and reported on the timeliness of payments to small business applicants but have not yet measured all benefits of the grants programs.Service NSW and NSW Treasury established processes to monitor and report on the timeliness of payments to grant applicants. NSW Treasury has not yet measured all intended impacts of the grants, nor undertaken processes to obtain detailed feedback from grant recipients. Without these measures, there is limited insight into the extent to which the grants helped to support small businesses or ability to capture lessons which could be applied in future grants programs. NSW Treasury advises that an evaluation will commence from mid-2021. |
1. Key findings
Around $630 million in timely one-off grant payments have been made to small businesses
Service NSW and NSW Treasury have paid around $630 million in one-off grant payments to small businesses via two grants administered under the $750 million Small Business Support Fund. At May 2021:
- around $520 million has been paid to over 52,500 grant applications received for the $10,000 Small Business Support Grant ($10,000 Support Grant)
- around $109 million has been paid to 36,700 grant applications received for the $3,000 Small Business Recovery Grant ($3,000 Recovery Grant).
Across both grants, over 65,000 small businesses received a payment across either grant, and over 23,000 businesses received payments under both grants.
NSW Treasury advise that, while no data was collected on the time to pay applicants for the $10,000 Support Grant, from its monitoring of the grants' outputs it was satisfied that payment timeframes met its expectations. Service NSW met its targeted time to pay applicants with payments made within ten days for the $3,000 Recovery Grant.
Funds for both grants were not fully spent due to limitations in data and uncertainty of the COVID-19 pandemic's impact. At May 2021, the final demand for the $10,000 Support Grant was around 30 per cent less than initially anticipated and the final demand for the $3,000 Recovery Grant was around 40 per cent less than initially anticipated.
NSW Treasury developed proposals establishing high level design and delivery expectations within rapid timeframes
NSW Treasury put forward proposals to the NSW Government for the two grants administered under the $750 million Small Business Support Fund. It met rapid timeframes for producing this advice: within one day for the $10,000 Support Grant and within four days for the $3,000 Recovery Grant. NSW Treasury's advice to the NSW Government on how to best target the total funding, eligibility criteria and the feasibility of delivering the grants through Service NSW was based on comparable grants programs – including the $10,000 Small Business Bushfire Support Grant – which at that time were ongoing.
The proposals established, at a high-level, the rationale for the grants, expected financial costs, risks and analysis on budget impacts, and confirmation that Service NSW could deliver the grants applications platform. NSW Treasury's demand projections were uncertain due to limited data in the early stages of the pandemic regarding potential economic impact.
Given the tight timeframes, the proposals did not fully consider all planning and design aspects for both grants. For example, there was minimal identification of the costs and benefits of the programs, and a lack of detailed design and delivery requirements. The proposals outlined that arrangements to finalise the risk management, controls, and auditing plan would be agreed by Service NSW and NSW Treasury before implementation.
In future circumstances where urgent advice on program design is required, NSW Treasury could set clearer expectations for the delivery agency, including fully considering costs, benefits and delivery requirements that could be carried through to project governance and implementation.
Service NSW implemented both grants in line with delivery expectations
Service NSW met urgent timeframes to stand-up both grants: 11 days for the $10,000 Support Grant and 26 days for the $3,000 Recovery Grant. Delivery expectations for each grant were established under a grant project agreement (grant agreement). Service NSW delivered the online application platform, assessment of applications, payments and reporting of the grants' uptake as per the grant agreements.
The urgent timeframes to deliver the grants contributed to gaps in Service NSW's project and risk management processes throughout the lifecycle of both grants. For example, the requirement to meet pressing timeframes for the $10,000 Support Grant launch meant agencies had reduced time to achieve sign-off on key documentation. As a result, important documents and processes – including the grant agreement, risk documentation and key business process and quality assurance processes – were not finalised ahead of launch.
Quality assurance and compliance processes for detecting fraud were not settled until after the conclusion of the applications for the $10,000 Support Grant, and were not completed until late 2020. Some project documents, including risk registers, communication plans and project briefs are still not finalised.
The longer timeframe to develop the $3,000 Recovery Grant meant that agencies were able to build on their understanding of the implementation requirements from the $10,000 Support Grant, and better document these expectations and understanding while ensuring that key documents and sign-offs were in place prior to launch.
Service NSW tightened its risk management and controls in response to evidence of fraudulent applications
In May 2020, Service NSW and the Department of Customer Service (DCS) were alerted to suspected fraudulent activity within grants administered by Service NSW. Initially, Service NSW anticipated that up to $8.8 million of the $10,000 Support Grant was at risk of exposure to fraudulent applications. However, Service NSW reported that, at April 2021, $1.9 million for the $10,000 Support Grant and $254,000 for the $3,000 Recovery Grant from paid applications were at risk of fraud exposure.
Following an internal review of the potential exposure to fraudulent or ineligible applications, Service NSW implemented additional automated security checks on applications, increased manual assessments of grant applications, established a dedicated taskforce for grants administration and engaged a unit within DCS to manage high-risk investigations.
Service NSW and DCS's increased governance and oversight has resulted in an established case management function, increased referrals to law enforcement, prioritised investigations of suspicious applications and the development of a 'Fraud Control Framework' aimed at addressing external fraud risks. Given Service NSW had limited experience in these processes in context of administering grant payments, such actions were an appropriate response.
Security checks and investigations of suspicious applications are ongoing. Service NSW will not know the full extent of fraud across the grants until these processes have been fully completed.
Service NSW and Department of Customer Service can improve how conflicts of interest are managed for future programs
Compliance with agency policies and processes to manage conflicts of interest and financial subdelegations demonstrates that investment decisions are being made by appropriately skilled and experienced staff, allowing agencies to operate efficiently, and reducing the risk of internal fraud.
DCS was unable to produce employee conflicts of interest declarations for the $10,000 Support Grant. Therefore, it is not known how many employees had completed conflicts of interest declarations for this round.
DCS provided information on conflicts of interest declarations for the $3,000 Recovery Grant. Twenty-nine per cent of declarations provided for employees undertaking grant assessments for the $3,000 Recovery Grant were incomplete at March 2021, and a further nine per cent were not finalised even though they indicated a real, potential or perceived conflict.
For future grants programs, ensuring compliance with conflicts of interest policies would help DCS and Service NSW to have greater confidence that conflicts of interest are appropriately identified and managed.
NSW Treasury has not yet measured all benefits or outcomes of the grants
In April 2021, NSW Treasury updated its evaluation plan for the $10,000 Support Grant and $3,000 Recovery Grant in support of an economic evaluation to commence from mid-2021. The updated evaluation plan outlines inputs, activities, and outputs as well as immediate, short term and medium term outcomes for both grants.
The evaluation will consider the extent to which both grants achieved their intended outcomes, and whether the economic benefits exceeded the costs to help inform decisions about the nature and design of any future small business support programs. This will complement, and feed into a broader review of all NSW Government COVID-19 stimulus measures.
Service NSW rapidly developed an approach to administer the grants
Over recent disasters, such as the 2019–20 bushfires and the COVID-19 pandemic, Service NSW has been responsible for administering grant programs on behalf of other government agencies.
Service NSW implemented both grants under its Project Management Framework and under each grant agreement with NSW Treasury as it does not have its own grants administration framework. To address the risks that emerged during delivery, Service NSW developed an approach to standardise and monitor the administration of the grants while they were being implemented.
Service NSW now has an opportunity to establish a grants administration framework, based on the processes, lessons and outcomes captured under the grants administration taskforce and in developing its fraud control framework. Embedding these processes into business as usual for grants administration will enable Service NSW to have a consistent set of expectations for controls, business processes and governance and probity requirements for future grants it implements.
2. Recommendations
By December 2021, NSW Treasury should:
1. finalise and implement an evaluation of the $10,000 Support Grant and $3,000 Recovery Grant, including obtaining direct feedback from businesses on how grant funds achieved the grant objectives.
By December 2021, Service NSW should:
2. develop a grants administration framework, which documents expected controls – including fraud controls – business processes and governance and probity requirements
3. publish information on all grants programs, including grants distribution and uptake.
By December 2021, the Department of Customer Service should:
4. ensure its process for managing conflicts of interest meets policy requirements by:
- ensuring employees promptly declare any real, potential or perceived conflicts of interest
- annually producing a list of conflicts of interest for records retention purposes
- requiring a separate register of conflicts of interest declarations where a grant program is deemed as high risk.
3. Lessons for grants administered within urgent timeframes
The two grants this audit examined were administered within a context of urgent timeframes, and increased complexity and uncertainty about the impact of the COVID-19 pandemic. The following lessons are shared to assist sponsor and delivery agencies in administering future grants where rapid implementation is required.
Sponsor agencies should consider the following lessons:
1. develop an approach to define and measure benefits for rapidly developed programs and projects where a full business case and cost-benefit analysis is not feasible
2. establish common processes and expectations for co-administered grants:
- periodically assure agencies' capability to deliver grants programs
- agree and establish risk appetite statements with administering agencies
- clearly establish expected performance levels and targets under any agreement
3. review the processes and outcomes of rapidly developed programs, capture lessons learned, and apply these in planning and delivering future programs.
Delivery agencies should consider the following lessons:
1. risk management and risk appetite:
- perform robust assessment procedures to ensure risks associated with delivery of the project are identified
- ensure the controls implemented adequately address identified risks
- agree and document the acceptable risk appetite at the outset
- review risk management processes after the grants are issued when unable to finalise risk management processes ahead of launch
2. grant agreements between NSW public sector agencies:
- ensure agreements are finalised in a timely manner
- ensure agreements clearly outline:
- roles and responsibilities of both parties,
- changes in scope of services provided
- fees and charges applicable
3. frameworks for grants administration:
- ensure that there is a common set of expectations in place to guide grants administration including standard controls and processes for managing risk, capturing lessons learned and reporting on outcomes.
Appendix one – Response from agencies
Appendix three – Public Health Orders
Appendix four – Highly impacted industries
Appendix five – About the audit
Appendix six – Performance auditing
© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.
Parliamentary reference - Report number #352 - released (24 June 2021).
Actions for Report on Local Government 2020
Report on Local Government 2020
What the report is about
Results of the local government sector council financial statement audits for the year ended 30 June 2020.
What we found
Unqualified audit opinions were issued for 127 councils, 9 county councils and 13 joint organisation audits in 2019–20. A qualified audit opinion was issued for Central Coast Council.
Councils were impacted by recent emergency events, including bushfires and the COVID-19 pandemic. The financial implications from these events varied across councils. Councils adapted systems, processes and controls to enable staff to work flexibly.
What the key issues were
There were 1,435 findings reported to councils in audit management letters.
One extreme risk finding was identified related to Central Coast Council’s use of restricted funds for general purposes.
Fifty-three high risk matters were identified across the sector:
- 21 high risk matters relating to asset management
- 14 high risk matters relating to information technology
- 7 high risk matters relating to financial reporting
- 4 high risk matters to council governance procedures
- 3 high risk matters relating to financial accounting
- 3 high risk matters relating to purchasing and payables
- 1 high risk matter relating to cash and banking.
More can be done to reduce the number of errors identified in financial reports. 61 councils required material adjustments to correct errors in previous audited financial statements.
Fast facts
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Rural fire fighting equipment
Sixty-eight councils did not record rural fire fighting equipment worth $119 million in their financial statements.
The NSW Government has confirmed these assets are not controlled by the NSW Rural Fire Service and are not recognised in the financial records of the NSW Government.
What we recommended
The Office of Local Government should communicate the State's view that rural firefighting equipment is controlled by councils in the local government sector, and therefore this equipment should be properly recorded in their financial statements.
Central Coast Council
A qualified opinion was issued for Central Coast Council (the Council) relating to two matters.
Council did not conduct the required revaluation to support the valuation of roads.
Council also disclosed a prior period error relating to restrictions of monies collected for their water, sewer, and drainage operations, which, based on the NSW Crown Solicitor’s advice, should be considered a change in accounting policy.
What we recommended
The Office of Local Government should clarify the legal framework relating to restrictions of water, sewerage and drainage funds (restricted reserves) by either seeking an amendment to the relevant legislation or by issuing a policy instrument to remove ambiguity from the current framework.
Key financial informationIn 2019-20, councils:
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Further information
Please contact Ian Goodwin, Deputy Auditor-General on 9275 7347 or by email.
Financial reporting is an important element of good governance. Confidence in and transparency of public sector decision making are enhanced when financial reporting is accurate and timely.
This chapter outlines audit observations related to the financial reporting of councils and joint organisations.
Highlights
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Recent emergency events, including drought, bushfires, floods and the COVID-19 pandemic have impacted councils.
This chapter will provide insights into how these events have impacted councils, including:
- financial implications of the emergency events
- changes to councils' operating models, processes and controls
- accessibility to technology and the maturity of councils' systems and controls to prevent unauthorised and fraudulent access to data
- receipt and delivery of stimulus packages or programs at short notice.
Highlights
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Recent emergency events significantly impacted councils
Recent emergencies, including drought, bushfires, floods and the COVID-19 pandemic have brought particular challenges for councils and their communities.
A strong system of internal controls enables councils to operate effectively and efficiently, produce reliable financial reports, comply with laws and regulations and support ethical government.
This chapter outlines the overall trends in governance and internal control findings across councils, county councils and joint organisations in 2019–20. It also includes the findings reported in the 2018–19 audits of Hilltops, MidCoast and Murrumbidgee councils as these audits were finalised after the Report on Local Government 2019 was published.
Financial audits focus on key governance matters and internal controls supporting the preparation of councils' financial statements. Audit findings are reported to management and those charged with governance through audit management letters.
Highlights
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Total number of findings reported in audit management letters decreased
In 2019–20, 1,435 findings were reported in audit management letters (2018–19: 1,985 findings). An extreme risk finding was also identified this year related to Central Coast Council's use of restricted funds. The total number of high-risk findings decreased to 53 (2018–19: 82 high-risk findings).
Findings are classified as new, repeat or ongoing findings, based on:
- new findings were first reported in 2019–20 audits
- repeat findings were first reported in prior year audits, but remain unresolved in 2019–20
- ongoing findings were first reported in prior year audits, but the action due dates to address the findings are after 2019–20.
Findings are categorised as governance, financial reporting, financial accounting, asset management, purchases and payables, payroll, cash and banking, revenue and receivables, or information technology. The high-risk and common findings across these areas are explored further in this chapter.
Audit Office’s work plan for 2020–21 onwards
Focus on local council's response and recovery from recent emergencies
Local councils and their communities will continue to experience the effects of recent emergency events, including the bushfires, floods and the COVID 19 pandemic for some time. The full extent of some of these events remain unclear and will continue to have an impact into the future. The recovery is likely to take many years.
The Office of Local Government (OLG) within the Department of Planning, Industry and Environment is working with other state agencies to assist local councils and their communities to recover from these unprecedented events.
These events have created additional risks and challenges, and changed the way that councils deliver their services.
We will take a phased approach to ensure our financial and performance audits address the following elements of the emergencies and the Local Government's responses:
- local councils' preparedness for emergencies
- its initial responses to support people and communities impacted by the 2019–20 bushfires and floods, and COVID-19
- the governance and oversight risks that arise from the need for quick decision making and responsiveness to emergencies
- the effectiveness and robustness of processes to direct resources toward recovery efforts and ensure good governance and transparency in doing so
- the mid to long-term impact of government responses to the natural disasters and COVID-19
- whether government investment has achieved desired outcomes.
Planned financial audit focus areas in Local Government
During 2020–21, the financial audits will focus on the following key areas:
- cybersecurity, including:
- cybersecurity framework, policies and procedures
- assessing the controls management has to address the risk of cybersecurity incidents
- whether cybersecurity risks represent a risk of material misstatement to council's financial statements
- budget management
- financial sustainability
- quality and timeliness of financial reporting
- infrastructure, property, plant and equipment
- information technology general controls.
Audit, risk and improvement committees
All councils are required to have an audit, risk and improvement committee by March 2022
The requirement for all councils to establish an audit, risk and improvement committee was deferred by 12 months to March 2022 due to the COVID 19 pandemic.
Audit, risk and improvement committees are an important contributor to good governance. They help councils to understand strategic risks and how they can mitigate them. An effective committee helps councils to build community confidence, meet legislative and other requirements and meet standards of probity, accountability and transparency.
Local Government elections
Local Government elections were postponed for one year due to the COVID 19 pandemic
The Local Government elections were deferred for one year due to the COVID 19 pandemic and will now be held on 4 September 2021. As the statutory deadline for the 2020–21 financial statements is 30 October 2021, some of the newly elected councillors will be required to endorse them.
Implementation of AASB 1059
Accounting standards implementation continue next year
AASB 1059 is effective for councils for the 2020–21 financial year.
A service concession arrangement typically involves a private sector operator that is involved with designing, constructing or upgrading assets used to provide public services. They then operate and maintain those assets for a specified period of time and is compensated by the public sector entity in return. Examples of potential service concession arrangements impacting councils include roads, community housing, childcare services and nursing homes.
AASB 1059 may result in councils recognising more service concession assets and liabilities in their financial statements.
Appendix one – Response from the Department of Planning, Industry and Environment
Appendix two – NSW Crown Solicitor’s advice
Appendix three – Status of 2019 recommendations
Appendix four – Status of audits
© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.
Actions for Addressing public inquiry recommendations - Emergency response agencies
Addressing public inquiry recommendations - Emergency response agencies
The Auditor-General for New South Wales, Margaret Crawford, released a report today examining how effectively NSW emergency response agencies address public inquiry recommendations.
The audit found that agencies’ governance arrangements to address public inquiry recommendations have important and consistent gaps.
The agencies did not sufficiently verify that they had implemented accepted recommendations as intended, and in line with the outcomes sought. This creates a risk that issues with disaster prevention or responses highlighted by public inquiries are not addressed in a complete or timely way and may persist or recur in the future.
The audit also found that agencies did not always nominate milestone dates or priority rankings for accepted recommendations, and so could not demonstrate they were managing or monitoring them effectively.
The audit examined how five emergency response agencies – Fire and Rescue NSW, National Parks and Wildlife Service, NSW Rural Fire Service, NSW State Emergency Service and Resilience NSW – have addressed accepted recommendations from public inquiries over the last ten years. The audit assessed the effectiveness of governance arrangements to track recommendation implementation.
The report makes six recommendations to improve disaster response agency arrangements to address public inquiry recommendations.
While the focus of this audit was agencies that responded to natural disasters, the findings and recommendations from this report have the potential to be applied across the NSW public sector in response to public inquiries related to other areas of government activity.
Major disasters and emergencies often trigger public post-event inquiries and reviews. The purpose of these reviews is to identify the causes of disaster or emergency events and areas for future improvement in prevention, preparedness, response and recovery. Areas identified for future improvement are then the subject of recommendations to government or government agencies and, when accepted, become public commitments to action.
Responses to the bushfires of 2019–20 followed this pattern, producing both NSW and Australian Government commissioned inquiries: the NSW Bushfire Inquiry and the Royal Commission into National Natural Disaster Arrangements. Both highlighted the significant volume of inquiries in recent years. Both asked whether agency responses to previous inquiries were improving Australia's capacity to prevent, prepare for, respond to and recover from natural disasters. The inquiries reflected on the difficulty of answering this question due to insufficient clarity and transparency on whether the improvements and risks that inquiries identified have been addressed in practice.
This audit stems from similar questions about how effectively government agencies in NSW are delivering on public inquiry recommendations. It assessed how five emergency response agencies have addressed accepted recommendations from 17 public inquiries over the last ten years. For this audit, we considered inquiries and reviews that affected agencies' operational capacity to respond to and recover from bushfire, floods and storms. The in scope public inquiries for this audit relate to:
- the 2013–14, the 2016–17 and the 2017–18 bushfire seasons
- severe storms and floods in 2015, 2016 and 2017
- workforce issues affecting the ability of agencies to respond to natural disasters.
The public inquiries we reviewed included coronial inquiries and inquests, parliamentary inquiries, independent reports and reviews, performance audits and recovery coordinator reports. In total, we looked at the processes that agencies used to implement 191 recommendations from these 17 public inquiries.
The objective of this audit was to determine how effective emergency response agencies are in addressing accepted recommendations from public inquiries. To answer our audit objective, we asked two questions:
- Do agencies have effective governance arrangements in place to respond to, monitor and implement accepted recommendations from public reviews and inquiries?
- Do agencies provide timely and accurate information on the implementation of accepted inquiry recommendations to senior decision makers and the public?
The agencies reviewed were:
- Fire and Rescue NSW
- NSW National Parks and Wildlife Service (now a division of the Department of Planning, Industry and Environment)
- NSW Rural Fire Service
- NSW State Emergency Service
- Resilience NSW (formerly the Ministry for Police and Emergency Services; and the Office of Emergency Management).
While the focus of this audit was agencies that respond to natural disasters (flood, bushfire and storms), the findings and recommendations from this report have the potential to be applied across the NSW public sector in response to public inquiries related to other areas of government activity.
Conclusion
The arrangements used by NSW emergency response agencies to address public inquiry recommendations have important and consistent gaps.
For two-thirds of the recommendations reviewed as part of this audit, the agencies did not sufficiently verify that they had been implemented as intended, and in line with the outcomes sought. This exposes risks that gaps in disaster responses are not addressed in a complete or timely way and persist or recur in the future.
Two-thirds of the recommendations reviewed as part of this audit had also not been allocated milestone dates or priority rankings, and as such the audited agencies are less accountable and could not demonstrate they were managing or monitoring them effectively.
None of the agencies publicly report the status of actions taken to address public inquiry recommendations, limiting accountability and transparency.
The agencies subject to this audit all address accepted recommendations from public inquiries with varying degrees of formality and transparency. No agency maintained a central and comprehensive approach – such as a register – to track recommendations for all public inquiries.
The agencies do not consistently review evidence that recommendations have been implemented effectively, and in line with the intention of the inquiry. The agencies also often failed to set milestone dates or test that recommendations had been actioned as committed. This increases the risk that recommendations are overlooked or not addressed in line with the intent, priority and risk of the recommendation. In turn, this raises the possibility that gaps and issues identified by public inquiries are not adequately resolved and could persist or recur in future disasters.
None of the audited agencies published a summary of progress made in implementing accepted recommendations to update the public. There are transparency and accountability benefits in doing so. This echoes the findings of the NSW Bushfire Inquiry and the Royal Commission into National Natural Disaster Arrangements. Both inquiries noted that it is difficult, and sometimes impossible, to determine the implementation status for many recommendations by publicly available information.
One factor hindering agencies from publishing this information is the lack of a consistent means of tracking public inquiry recommendation implementation. Adopting a consistent approach, within and across agencies, should help to overcome this barrier in the future.
This chapter reviews the way agencies have responded to, monitored and ensured they have implemented accepted recommendations from public inquiries.
This chapter reviews how agencies provided information to senior decision makers, agency Audit and Risk Committees and the public on the implementation of accepted recommendations from public inquiries.
Appendix one – Response from agencies
Appendix two – Identifying in scope inquiries
Appendix three – In scope inquiries
Appendix four – Recommendations reported by agencies as still in progress (detail)
Appendix five – Agency reported recommendation implementation status (unaudited)
Appendix six – About the audit
Appendix seven – Performance auditing
Copyright Notice
© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.
Parliamentary reference - Report number #348 - released (22 April 2021).
Actions for Premier and Cabinet 2016
Premier and Cabinet 2016
Actions for Family and Community Services 2016
Family and Community Services 2016
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.
Actions for Fraud Survey
Fraud Survey
In a report released today, the NSW Auditor-General, Margaret Crawford provides a snapshot of reported fraud in the NSW public sector and an analysis of NSW Government agencies’ fraud controls based on a survey of 102 agencies.
Actions for Implementation of the NSW Government’s program evaluation initiative
Implementation of the NSW Government’s program evaluation initiative
The NSW Government’s ‘program evaluation initiative’, introduced to assess whether service delivery programs achieve expected outcomes and value for money, is largely ineffective according to a report released today by NSW Auditor-General, Margaret Crawford.
Government services, in areas such as public order and safety, health and education, are delivered by agencies through a variety of programs. In 2016–17, the NSW Government estimates that it will spend over $73 billion on programs to deliver services.
Parliamentary reference - Report number #277 - released 3 November 2016