A report has been tabled on the findings and recommendations from the annual review of the additional entitlements claimed by the Members of the New South Wales Parliament (Members) under the Parliamentary Remuneration Tribunal’s Determination (the Determination).

Members claimed $21.5 million of additional entitlements in 2018–19, 2.7 per cent less than the previous year. The decrease is largely attributable to the period in the lead up to the New South Wales State Election, from 26 January to 23 March 2019, during which Members are not permitted to use their Communications Allowance.  In addition, Parliament did not sit from 23 November 2018 until 6 May 2019.

The review found one instance of material non‑compliance with the Determination relating to a Member who claimed the General Travel Allowance but did not provide evidence that the travel related to their parliamentary duties.

14 other departures from the administrative requirements of the Determination, mostly relating to the timing of Members’ claims were identified. The review also found two instances where it was unclear whether reimbursement of Members’ claims had been made strictly in accordance with the Determination.

The report makes three recommendations to the Department of Parliamentary Services to work with the Tribunal to clarify specific wording and requirements in the Determination.  

The Auditor-General has reviewed the compliance of the Members of the NSW Parliament (Members) with certain requirements outlined in the Parliamentary Remuneration Tribunal's Determination (the Determination) for the year ended 30 June 2019.

The Auditor-General's review is designed to provide parliament with limited assurance about Members' compliance with the Determination. We analysed all claims made by Members during the 2018–19 financial year and tested a sample of transactions that we identified as having a greater risk of non-compliance in more detail. Our sample included claims submitted by 59 of the 159 Members.

Results

Our review identified one instance of material non-compliance with the Determination for the year ended 30 June 2019 relating to a Member who claimed the General Travel Allowance but did not provide evidence that the travel related to their parliamentary duties.

Our audit procedures identified 14 other departures from the administrative requirements of the Determination:

• 8 Members submitted their reconciliations for the Sydney Allowance after the due date
• 1 Member who elected to receive their Sydney Allowance as an annual payment, returned their unspent Sydney Allowance to the Department after the 30 September 2019 due date
• 5 Members' claims were not submitted to the Department for payment within 60 days of receipt or occurrence of the expense.

Our audit procedures identified two instances where it was unclear whether Members had been reimbursed for their costs in accordance with the Determination:

• The Determination specifies the Electorate to Sydney Travel Allowance is for travel between Members’ electorates and Sydney. In administering the allowance, the Department permitted Members’ claims for travel to and from their residence, which may be outside of their electorate. The Tribunal confirmed that this accords with the intent of the Determination.
• The Determination specifies the Communications Allowance reimburses Members for the cost of producing communications. One Member chartered flights to film materials used to produce communications and to perform parliamentary duties. The Member claimed the cost of flights under the General Travel Allowance, without apportioning any part to the Communications Allowance. The flights and the communication of the filmed material to constituents occurred during the blackout period, during which Members are not permitted to use their Communications Allowance. The Department determined that all travel costs can be claimed under the General Travel Allowance, even if the travel related to the production of communications during the blackout period.

Our audit procedures identified 25 other departures from the Department's administrative guidelines, which support the Determination. Twenty-five Members submitted their annual loyalty scheme declarations after the 31 July 2019 due date specified in the Department's administrative requirements. Their declarations stated that loyalty scheme benefits accrued using their parliamentary allowance and entitlements were not used for private purposes.

Background

The Parliamentary Remuneration Tribunal (the Tribunal) determines the salary and additional entitlements of Members of NSW Parliament (Members), which are set out in the Tribunal's annual Determination.

The Auditor-General, Margaret Crawford, today released a report on the annual review of additional entitlements claimed by Members of the New South Wales Parliament under the Parliamentary Remuneration Tribunal’s Determination. The review analysed all claims made by Members and tested a sample of claims paid for the year ended 30 June 2018 in more detail.

The review found one Member of Parliament did not materially comply with the Determination. The Member made two unsupported claims for the Electorate to Sydney Travel allowance during the year ended 30 June 2018. The Department of Parliamentary Services has asked the Member to repay these amounts. 

A further 20 departures from the administrative requirements of the Determination were identified, all relating to the timing of Members’ claims. 

The Auditor-General recommended the Department work with the Tribunal to provide more detailed guidance on the activities that meet the definition of 'parliamentary duties' and the documents Members should retain to comply with the Determination.

The Auditor General has reviewed the compliance of the Members of the NSW Parliament (Members) with certain requirements outlined in the Parliamentary Remuneration Tribunal's Determination (the Determination) for the year ended 30 June 2018.

The Auditor General's review is designed to provide Parliament with limited assurance about Members' compliance with the Determination. We analysed all claims made by Members during the 2017-18 financial year and tested a sample of transactions that we identified as having a greater risk of non compliance in more detail. Our sample included claims submitted by 60 of the 140 Members.

Appendix one - Response from Department of Parliamentary Services

NSW Government agencies engage consultants to provide professional advice to inform their decision‑making. The spend on consultants is measured and reported in different ways for different purposes and the absence of a consistently applied definition makes quantification difficult.

The NSW Government’s procurement principles aim to help agencies obtain value for money and be fair, ethical and transparent in their procurement activities. All NSW Government agencies, with the exception of State Owned Corporations, must comply with the NSW Procurement Board’s Direction when engaging suppliers of business advisory services. Business advisory services include consultancy services. NSW Government agencies must disclose certain information about their use of consultants in their annual reports. The table below illustrates the detailed procurement and reporting requirements.

We examined how 12 agencies complied with their procurement and reporting obligations for consultancy services between 1 July 2016 and 31 March 2018. Participating agencies are listed in Appendix two. We also examined how NSW Procurement supports the functions of the NSW Procurement Board within the Department of Finance, Services and Innovation.

This audit assessed:

• agency compliance with relevant procurement requirements for their use of consultants
• agency compliance with disclosure requirements about consultancy expenditure in their annual reports 
• the effectiveness of the NSW Procurement Board (the Board) in fulfilling its functions to oversee and support agency procurement of consultancy services. 

Appendix one - Response from agencies

Appendix two - List of selected agencies

Appendix three - Performance auditing

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.