At the time of our 2003 audit agencies were unable to measure the water quality in NSW rivers as they had not established a comprehensive and ongoing monitoring system for water quality. Agencies are now developing a monitoring system to measure the progress against the State Plan 2006 target to improve the condition of riverine ecosystems by 2015. It may not be possible to identify an overall trend in the condition of riverine ecosystems by the State Plan target date of 2015. This is because riverine ecosystems do not respond rapidly to change in the environment. A long period of time is required to collect sufficient data to establish a baseline for all indicators being used and to determine trends, particularly given the prolonged drought.

Parliamentary reference - Report number #180 - released 21 May 2008

The Authority has achieved staff reductions and salary related savings in line with targets. That said, the amalgamation was not project managed effectively. It has been slow to implement some of its key objectives against plans and the costs of the amalgamation have increased to the extent that it is unable to meet key objectives. Stakeholders are dissatisfied with the amalgamation outcomes. This dissatisfaction would have been mitigated with better communication.The Authority’s approach to implementing the amalgamation varied from that originally proposed by government. But it did not record the changed approach in an amalgamation plan.

Parliamentary reference - Report number #178 - released 3 April 2008

Both Commerce and DPI substantially achieved their stated amalgamation savings objectives as set by government. The departments are expected to achieve savings targets of about $150 million and $190 million respectively over their first four years. Our analysis indicates that there are two key factors in successful amalgamations. The first is effective early planning by departments based on clear objectives, supported by quick action. Second, significant synergies in service delivery can be achieved when departments with similar services and customers are amalgamated. The Department of Primary Industries is an example.

Parliamentary reference - Report number #175 - released 5 March 2008

Decisions to relocate government agencies to non-metropolitan areas are not made purely for cost reasons. They can also serve government policy objectives, such as promoting regional economic development.

Regardless of the policy objectives that may exist, I would expect that decisions on individual agency relocations would be based on sound business cases. Those business cases would show how the relocation achieves any relevant government objectives, what costs (or savings) would be involved, logistical considerations such as obtaining appropriate accommodation and staff, and any impacts on levels service to the public.

In my view, the existence of government policy objectives does not remove the need for individual decisions to be made in a transparent, rational and accountable manner. Responsible public servants should provide the appropriate information to government to allow it to judge how best to implement its policies.

Parliamentary reference - Report number #147 - released 14 December 2005

The audit found that the process for the lease and development of the Showground site commenced on the basis that no Government moneys would be provided and no theme park activities would be allowed. However despite this a State Government subsidy of between $84.8m and $106.8m (in net present value terms) is to be provided for the development and the area of the Showground to be leased to Fox was extended to comprise 24.3 hectares of the 28.8 hectare site to allow Fox also to develop a family entertainment park.

The audit also found that the process commenced under the former Government were intended to ensure that no one party was placed above another however, the actual processes employed up to the General Election in March 1995 were so flawed as not to be relied upon to select a preferred proponent or to justify dispensing with a tender process.

Parliamentary reference - Report number #44 - released 8 December 1997

The audit identified that overall the agencies had carried out the redundancy process satisfactorily and the process, with some exceptions, complied with Government and internal policies. Government policy states that performance problems should be dealt with by managing the performance of the employee rather than restructuring/redundancy processes. In a limited number of instances certain employees, whose performance had been questioned, had been offered and accepted voluntary redundancy.

The audit also indicates that the process of redundancies has resulted in lower salary costs, in real dollar terms, without undue increase in either overtime or consultancy costs nor any detrimental effect on service quality. However, it is noted that the decrease in staffing levels occurred exclusively in the non-budget sector. Budget sector staffing levels increased by 1.4 per cent during 1989-95. There are also signs that the need for and the benefits arising out of redundancies are not well planned or measured. The need for redundancies often arises from a desire to reduce staff related costs while there is no comparison of the costs of redundancy compared to benefits.

Parliamentary reference - Report number #37 - released 17 April 1997

Following a request from the NSW Legislative Council in September 1996, a performance audit into various matters affecting the operation of the New South Wales Department of Agriculture was undertaken by The Audit Office.

Among the recommendations from this report, the Audit Office found that:

• An economic appraisal should be undertaken before all major developments, including rationalisation plans, are implemented. It should include details of anticipated benefits from the changes planned, so that their achievement can be evaluated after implementation.

• Government policies should be made explicit or else established by directives in writing. Planning Infrastructure and human resources should be planned to maximise efficiency and effectiveness. If Government chooses alternatives that have higher costs or lower benefits for the Department, then these should be explicitly funded.

• The Department should strengthen its system of internal control by strengthening the role of the Board of Management as a means of management control, directing an overhaul of the Charter of the Internal Audit Committee and using it to drive the Department’s internal audit function and ensuring implementation of an effective financial management information system.

Parliamentary reference - Report number #36 - released 27 March 1997