We issued unqualified audit opinions on the above agencies’ 30 June 2013 financial statements. During the year, The Treasury issued TC 13/01 ‘Mandatory early close procedures for 2013’. As a result, the law and order services agencies were required to perform early close procedures. All law and order service agencies 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).

As previously recommended, the Department of Attorney General and Justice should continue integrating policies, operations and systems between its divisions and, once complete, analyse the costs and benefits. The Department of Attorney-General and Justice should also ensure it has the necessary processes in place to enable it to regularly monitor and measure the performance and success of the Victims Support Scheme in providing a more accessible, streamlined and targeted service to victims of violent crime in New South Wales.

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.

The following report assessed the activities of the two agencies in relation to their government advertising campaigns in 2012-13 and tested compliance by tracking a campaign through from development to dissemination.

Parliamentary reference - Report number #236 - released 23 September 2013

Some drug exhibits and other high profile goods, such as firearms, ammunition, vehicles and vessels, are held longer than necessary by NSW Police, increasing health and safety risks and storage costs.

Parliamentary reference - Report number #227 - released 28 February 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.

A NSW Auditor General’s Report has found that the NSW Government and its agencies grossly underestimated the cost and number of people that would install systems under the Solar Bonus Scheme.

By October 2010, the estimated cost of the Scheme, if it continued the way it was going, would have reached $3.988 billion. More than ten times the original estimate of $362 million. In response to the increased cost, the gross tariff for new applicants was reduced from 60 to 20 cents reducing the estimated cost to $1.954 billion.

It was a statutory requirement that when 50 mega watts of installed capacity was reached, the Government would review the Scheme. By the time the review was completed the installed capacity had reached 101 mega watts.

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.

There have been tangible improvements in the time it takes NSW Government agencies to engage consultants through the Government’s Prequalification Scheme. The Scheme was introduced in February 2008 to improve agencies’ procurement of consultants. More than 300 service providers have been prequalified and over $300 million worth of consultancy services have been provided. Ideally agencies should know what assignments each consultant has won, for what services, what their rates are and how well they have performed. Agencies should then be free to contact other agencies before engaging a consultant.

Parliamentary reference - Report number #216 - released 28 September 2011