For the third consecutive year, the General Government and Total State Sector Accounts received an unqualified auditor’s opinion following more than a decade of qualifications.
 
Errors in agencies’ financial statements and the Total State Sector Accounts were corrected as necessary to ensure compliance with Australian Accounting Standards and the requirements of the Public Finance and Audit Act 1983.
 
Improvements to year-end financial reporting processes have enabled the Audit Office to issue 229 audit opinions by 2 October 2015, compared to only 67 by the same time in 2011.

All agencies in transport cluster received unqualified audit opinions for the year ended 30 June 2014. The quality of financial reporting continues to improve with the number of misstatements identified during audits falling for the fifth year in a row.

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.

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.

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.

The report includes comments on his financial audits of NSW Government transport, planning and industry agencies for 2009-10. A key recommendation from the report is that the New South Wales Government identify lessons learnt from the metro experience and ensure that future decision processes are developed to ensure the State never again expends such a large amount of scarce transport funding dollars and valuable time on a project that does not proceed.

The final Budget result for 2009-10 was a surplus of $994 million, originally budgeted to be a $990 million deficit. If the Commonwealth Government’s capital stimulus funding had been excluded, the result would have been a deficit of $861 million. Employee costs (excluding superannuation costs) increased by approximately 3.5 per cent compared to 7.5 per cent in the prior year.
 
“I have issued a qualified Independent Auditor’s Report as the State has not recognised the value of Crown Reserves and the infrastructure on those reserves that should be recorded as an asset,” Mr Achterstraat said.