The quality of financial statements in the health cluster continues to improve with significantly fewer misstatements. The financial statements of all cluster agencies received unqualified audit opinions. Health has maintained or bettered its emergency triage performance and the percentage of patients admitted for elective surgery within clinically appropriate timeframes has improved.

The quality of financial reporting in the planning and environment cluster continues to improve with fewer reported misstatements over the last two years. The financial statements of all agencies within this cluster received unqualified audit opinions, except for one small agency where the audit is incomplete. Many cluster agencies’ actual revenues, expenses, assets and liabilities varied from budget by more than five per cent, suggesting financial management and budgetary controls could be improved.

In 2013-14, the NSW Government electricity businesses generated $9 billion in revenue ($9.6 billion during 2012-13) and achieved a combined net profit after tax of $1.5 billion ($1.6 billion). The combined profit after tax for NSW Distributors was $1.2 billion in 2013-14 down from $1.3 billion in 2012-13. The Distributors’ revenues decreased by $205 million to $6.8 billion in 2013-14, largely due to lower consumption by customers associated with milder weather conditions, economic impacts, energy efficiency measures and an increase in the number of customers using solar energy.

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.

NSW Government agencies with large landholdings need to better manage their contaminated sites.

When contaminated sites are reported to the Environmental Protection Authority (EPA) there are long delays in assessing the extent of contamination. The EPA also lacks the management controls to ensure that all significantly contaminated sites are actively monitored and key milestones for remediation are met.

Parliamentary reference - Report number #245 - released 10 July 2014

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.

Periodically we review the extent to which agencies have changed their practices as a result of our audits. This gives Parliament and the public an update on the extent of progress made.

In this follow-up audit, we examine changes following our September 2002 report, to assess whether NSW Health has improved its buying of hospital supplies using electronic systems.

NSW Health spends over $1.3 billion on hospital supplies. It is the largest expenditure area after employee costs. Reform of this area has the potential to make significant savings that could be redirected to frontline services.

As part of our series of audits in the area of e-government, our previous audit looked closely at the extent to which technology was being used to deliver potentially major savings in purchasing hospital supplies. This is a key area of so-called “process re-engineering” in the “e” field, and NSW Health provided an ideal case study.

Whilst implementing large-scale e-procurement has many technical aspects, it is not chiefly a technical issue. The key requirements for success reside in effective change management, in particular being clear as to who has the authority to make change decisions and be held accountable.

This audit looks at NSW Health’s successes to date, and its frustrations and challenges in making further progress in this field. Many of the issues raised in this report may provide lessons for any agency that is seeking to drive a significant change program.

Parliamentary reference - Report number #145 - released 23 November 2005

It is estimated that one in five people will be affected at some stage by a mental health problem or illness. The increasing prevalence of mental illness means that at some point in time most of us will either be affected or we will know of someone who is.

Although most people with mental illness can be treated in the community, at times some may require emergency treatment or admission to hospital for shortterm intensive therapy.

Not only are more mental health patients presenting to an emergency department for treatment than ever before, they are reportedly sicker and a greater number require admission to a hospital bed for further treatment. And, because of its very nature, those suffering from acute mental illness may not understand what is wrong or be able to communicate their problems clearly.

This makes access to emergency mental health services a significant issue for government that requires continuing attention.

The focus of this report is on the provision of 24-hour crisis services to adults. Emergency mental health services play a vital role in providing timely and appropriate care. Without proper treatment the severity of the illness may escalate, increasing the risk of self-harm or harm to others.

There have been many changes to mental health services over the last decade to deal with increasing demand. Much has been done to improve access to, and the quality of emergency services through significant increases in funding, the opening of new beds and the employment of more mental health staff.

Yet recent reviews have highlighted problems with accessing mental health beds and inadequate levels of psychiatric support in rural areas.

I believe that our report will provide valuable assistance to area health services on alternative models of emergency mental health care that better manage patient risk and further improve service quality.

Parliamentary reference - Report number #136 - released 26 May 2005

Reliably supplying water to our State’s principal city, Sydney, is a major responsibility for the Government.

The community has been made keenly aware in recent years that inflows have been decreasing, and that Sydney has been using more water than is available. In April 2005 the water in Sydney’s storages dropped to 41.5 per cent of their capacity – the lowest level since the construction of Warragamba dam in 1960.

As Sydney continues to develop, it is expected that the demand for water will increase. The way that we use it will need to be sustainable, as it has a direct impact on our economy, our lifestyle and our environment.

In planning for the future the State’s water agencies face a range of uncertainties. But the task is vital.

This report informs Parliament and the community on the progress made - and what remains to be done - to ensure a reliable water supply for Sydney.

Parliamentary reference - Report number #135 - released 4 May 2005

Periodically we review the extent to which agencies have implemented the recommendations they accepted from our earlier audits. This gives Parliament and the public an update on the extent of progress made.

Major development and infrastructure projects may have significant environmental, social and quality-of-life impacts. The purpose of environmental impact assessment is to ensure that major projects are environmentally and socially sustainable and integrated with State, regional and local planning.

The Department of Infrastructure, Planning and Natural Resources (DIPNR) manages the assessment of major infrastructure proposals and coordinates whole of Government involvement. In November 2001 we audited this process, then undertaken by the Department of Urban and Regional Planning. (In July 2003 the new Department of Infrastructure, Planning and Natural Resources assumed responsibility.)

In this follow-up audit, we examine DIPNR’s implementation of the recommendations of the 2001 audit.

Parliamentary reference - Report number #129 - released 1 February 2005