No qualified opinions were issued on the universities’ financial statements and the quality and timeliness of financial reporting continued to improve. The report found that all NSW universities recorded a surplus in 2016 with combined revenue growth exceeding expense growth by 1.1 per cent. Universities have diversified revenue sources and are now less reliant on government grants. Combined overseas student income exceeded domestic student income for the first time in 2016.

This report focuses on key observations and common issues identified from our financial audits of the ten NSW universities and their controlled entities in 2016. The universities are listed in Appendix Three.

In this report, parliament and other users of universities’ financial statements are provided with an analysis of universities’ results and key observations in the following areas:

• Financial Performance and Reporting
• Financial Controls
• Governance
• Teaching and Research.

Snapshot of NSW universities

A snapshot of NSW universities for the year ended 31 December 2016 is shown below.

Financial performance and reporting are important elements of good governance. Confidence in public sector decision making and transparency is enhanced when financial reporting is accurate and timely.

This chapter outlines audit findings on financial performance and reporting of NSW universities for 2016. 

Appropriate financial controls help ensure the efficient and effective use of resources and the implementation and administration of university policies. They are essential for quality and timely decision making.

In 2016, our audit teams made the following key observations on the financial controls of NSW universities.

Teaching and research are core activities of universities. The quality of teaching is a key driver for growth and attracting students. Through research, universities contribute to economic growth, lead innovation and improve their global rankings.  

This chapter reports on teaching and research in NSW universities for 2016.

Appendix One - Financial Audit Reporting

Appendix Two - Financial Sustainability 

Appendix Three - List of NSW universities 

Appendix Four - Entities not commented on in this volume, by Minister

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.