Unqualified audit opinions were issued on the above corporations’ 30 June 2013 financial statements. During the year, Treasury issued TC 13/01 ‘Mandatory early close procedures for 2013’. This Circular aimed to improve the quality and timeliness of agencies’ annual financial statements. In 2012-13, application of the circular was made mandatory for State owned corporations. As a result, the port corporations were required to perform the early close procedures. All the port corporations were successful in performing the procedures, which helped them submit financial statements by an earlier due date. The early close procedures also resulted in general improvements to the quality of most financial statements.

The report recommends all transport entities should do more to reduce excessive annual leave balances to ensure they will comply with new targets set by the Premier, RailCorp, Sydney Trains and NSW Trains should minimise the amount of overtime bonuses paid to train drivers and that Transport for NSW should set targets to measure the overall satisfaction of train users.

During the year, Treasury issued TC 13/01 ‘Mandatory early close procedures for 2013’. This circular aimed to improve the quality and timeliness of agencies’ annual financial statements. In 2012-13, application of the circular was made mandatory for State owned corporations. As a result, the NSW Generators, Distributors and Transgrid were required to perform the early close procedures. All the electricity entities were broadly successful in performing the procedures, which helped them submit financial statements by an earlier due date.

This in turn enabled the financial statement audits to be finalised within an earlier timeframe of eight weeks (nine weeks in 2011-12), with the exception of Eraring Energy’s audit, which is yet to be finalised. The early close procedures also resulted in improvements to the quality of the financial statements, as evidenced by fewer reported misstatements in 2012-13 compared to 2011-12.

The ClubGRANTS scheme gives tax rebates to clubs for supporting their local community. Since 2002, $417 million of ClubGRANTS tax rebates have been given to clubs. The scheme recognises the valuable role played by registered clubs in their local communities. However, the public must have confidence that the scheme is delivering genuine services to the community.

Parliamentary reference - Report number #229 - released 2 May 2013

Overall, the audited entities are managing some aspects of gifts and benefits effectively but other aspects require improvement. We found that all five entities had gifts and benefits policies that addressed some but not all of the attributes of a sound policy. All five have communicated their gifts and benefits policies to staff and external stakeholders, although in each case we identified opportunities to better communicate their policies.

Parliamentary reference - Report number #228 - released 27 March 2013

The Audit Office is of the opinion that the basis for environmental impact assessment of major projects in NSW is sound. The key concept of 'environmental significance' is well defined. The system is closely specified. The Department of Urban Affairs and Planning (DUAP) leads a whole-of-government approach to environmental impact assessment and its assessments are comprehensive. However, the Audit Office considers that there are opportunities for improvement by more actively managing the participants and the performance of the environmental impact assessment system. DUAP needs to strengthen its internal documentation and must ensure the public have greater involvement.

Parliamentary reference - Report number #92 - released 28 November 2001

The regulatory framework introduced under the Protection of the Environment Operations Act 1997, along with other initiatives progressively being implemented by the Environment Protection Authority (EPA), should enhance the overall effectiveness of environment protection in NSW. The Audit Office is of the opinion that the framework is consistent with best practice and once fully implemented, should contribute to the achievement of further improvements in the environmental performance of industry.

However while the legislative framework supports best practice in regulation and enforcement, there are a number of issues which limit the effectiveness of the reforms. Some of the problems, such as the quality of licences and the effectiveness of compliance activities, have been identified by the EPA and may be addressed through recent initiatives.

Parliamentary reference - Report number #82 - released 18 April 2001