Reports
Planning and Environment 2022
What the report is about
Result of the Planning and Environment cluster agencies' financial statements audits for the year ended 30 June 2022.
What we found
Unmodified audit opinions were issued for all completed 30 June 2022 financial statements audits of cluster agencies. Seven audits are ongoing.
Disclaimed audit opinions were issued for the 2010–11 to 2015–16 financial statements of the Water Administration Ministerial Corporation (WAMC), as management was unable to certify that the financial statements exhibit a true and fair view of WAMC's financial position and financial performance.
Qualified audit opinions were issued for WAMC's 2016–17 and 2017–18 financial statements due to insufficient evidence to support the completeness and valuation of water meters infrastructure assets, the impairment of water meters, and the completeness of buildings at Nimmie Caira.
Unqualified audit opinions were issued for WAMC's 2018–19 and 2019–20 financial statements.
The Department of Planning and Environment (the department) assessed 45 Category 2 Statutory Land Managers (SLM) did not meet the reporting exemption criteria and therefore were required to prepare 2021–22 financial statements. None of these 45 Category 2 SLMs prepared and submitted their 30 June 2022 financial statements by the statutory reporting deadline.
All 119 Commons Trusts have never submitted their financial statements for audit as required by the Government Sector Finance Act 2018 (GSF Act).
NSW Treasury has confirmed that the Catholic Metropolitan Cemeteries Trust (CMCT) is a controlled entity of the State. To date, CMCT has not met its obligations to prepare financial statements under the GSF Act and it has not submitted financial statements to the Auditor-General for audit.
What the key issues were
Since 2017, the Audit Office has recommended the department address the different practices across the local government sector in accounting for rural firefighting equipment. Despite repeated recommendations, the department did little to resolve this issue. At the time of writing, 32 of 118 completed council audits received qualified audit opinions on their 30 June 2022 financial statements.
There continues to be significant deficiencies in Crown land records. The department uses the Crown Land Information Database (CLID) to record key information relating to Crown land in New South Wales that is managed and controlled by the department and land managers. The CLID system was not designed to facilitate financial reporting, and the department is required to conduct extensive adjustments and reconciliations to produce accurate information for the financial statements.
The department implemented the CrownTracker system as a replacement for CLID. The project was finalised in June 2022, but it has not achieved the intended outcomes.
Nine high-risk issues were identified across the cluster related to the findings outlined above and weaknesses in IT general controls, financial reporting, governance processes and internal controls.
Recommendations were made to address these deficiencies.
This report provides Parliament and other users of the Planning and Environment cluster’s financial statements with the results of our audits, analysis, conclusions and recommendations in the following areas:
- financial reporting
- audit observations.
Financial reporting is an important element of good governance. Confidence and transparency in public sector decision-making are enhanced when financial reporting is accurate and timely.
This chapter outlines our audit observations related to the financial reporting of agencies in the Planning and Environment cluster (the cluster) for 2022.
Section highlights
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Appropriate financial controls help ensure the efficient and effective use of resources and administration of agency policies. They are essential for quality and timely decision-making.
This chapter outlines our observations and insights from our financial statement audits of agencies in the Planning and Environment cluster.
Section highlights
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Appendix one – Misstatements in financial statements submitted for audit
Appendix two – Early close procedures
Appendix three – Timeliness of financial reporting
Appendix four – Financial data
Appendix five – Councils received qualified audit opinions
Copyright notice
© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.
Stronger Communities 2022
What the report is about
Results of the Stronger Communities cluster agencies' financial statement audits for the year ended 30 June 2022.
What we found
Unqualified audit opinions were issued on all completed 30 June 2022 financial statement audits. One audit is ongoing.
All 13 cluster agencies that have accommodation arrangements with Property NSW derecognised right-of-use assets and lease liabilities of $917 million and $1 billion respectively. The agencies also collectively recorded a gain on derecognition of $136 million.
The Department of Communities and Justice (the department) assumed the responsibility for delivery of the Process and Technology Harmonisation program from the Department of Customer Service. In 2021–22, the department incurred costs of $42.8 million in relation to the project, which remains ongoing.
The number of monetary misstatements identified during the audits decreased from 50 in 2020–21 to 48 in 2021–22.
What the key issues were
Six of the 15 cluster agencies required to submit 2021–22 mandatory early close procedures did not meet the statutory deadlines. One agency did not complete all mandatory procedures.
Five high-risk findings were identified in 2021–22. They related to deficiencies in:
- user access administration at the department, NSW Rural Fire Service and New South Wales Aboriginal Land Council (NSWALC)
- segregation of duties at the NSW Trustee and Guardian and NSWALC.
Recommendations were made to those agencies to address these control deficiencies.
This report provides Parliament and other users of the Stronger Communities cluster’s financial statements with the results of our audits, analysis, conclusions and recommendations in the following areas:
- financial reporting
- audit observations.
Financial reporting is an important element of good governance. Confidence and transparency in public sector decision making are enhanced when financial reporting is accurate and timely.
This chapter outlines our audit observations related to the financial reporting of agencies in the Stronger Communities cluster (the cluster) for 2022.
Section highlights
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Appropriate financial controls help ensure the efficient and effective use of resources and administration of agency policies. They are essential for quality and timely decision making.
This chapter outlines our observations and insights from our financial statement audits of agencies in the Stronger Communities cluster.
Section highlights
|
Appendix one – Misstatements in financial statements submitted for audit
Appendix two – Early close procedures
Appendix three – Timeliness of financial reporting
Appendix four – Financial data
Copyright notice
© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.
Development applications: assessment and determination stages
What the report is about
Local councils in New South Wales are responsible for assessing local and regional development applications.
Most development applications are assessed and determined by council staff under delegated authority. However, some development applications must be referred to independent local planning panels or Sydney and regional planning panels for determination.
Councils provide support to local planning panels. The Department of Planning and Environment provides support to Sydney and regional planning panels.
This audit assessed whether Byron Shire Council, Northern Beaches Council and The Hills Shire Council had effectively assessed and determined development applications in compliance with legislative and other requirements.
It also assessed whether The Hills Shire Council, Northern Beaches Council and the Department of Planning and Environment had provided effective support to relevant independent planning panels.
What we found
All councils had established clear roles, responsibilities and delegations for assessment and determination of development applications and had also established processes to ensure quality of assessment reports.
Northern Beaches Council and The Hills Shire Council have established comprehensive approaches to considering and managing risks related to development assessment.
Northern Beaches Council's approach to publishing its assessment reports promotes transparency.
Across a sample of development applications assessed and determined between 2020–22:
- Northern Beaches Council and The Hills Shire Council had assessed and determined applications in compliance with legislative and other requirements. However, The Hills Shire Council could do more to transparently document any conflicts of interest within assessment reports.
- Byron Shire Council had assessed most applications in compliance with legislative and other requirements. However, we found opportunities for the Council to:
- ensure determinations were made in line with delegations
- strengthen its approach to transparent management of conflicts of interest and quality review of assessments.
The Hills Shire Council and Northern Beaches Council had effectively supported their respective local planning panels.
The Department of Planning and Environment had processes that meet requirements for supporting regional planning panels but could do more to promote consistency in approach, share information across panels and measure the effectiveness of its support.
What we recommended
We made recommendations to Byron Shire Council, The Hills Shire Council and the Department of Planning and Environment to address the gaps identified and improve the transparency of processes.
Local councils in New South Wales are responsible for assessing local and regional development applications under the Environmental Planning and Assessment Act 1979 (EP&A Act).
In assessing development applications, councils consider:
- whether the proposed development application is compliant with legislation and environmental planning instruments
- whether the proposed development meets local planning controls and objectives
- any environmental, social and economic impacts
- any submissions from impacted properties, neighbours and interested parties
- the public interest.
Once assessed, a development application will be determined by council staff under delegated authority, the elected council, or an independent planning panel.1
The involvement of a particular independent planning panel is established under legislative and policy instruments, and depends on the type and value of the proposed development. Most development applications are assessed and determined by council staff under delegated authority.
In determining development applications, independent planning panels must manage any potential, real or perceived conflicts of interest of panel members for a given development application, meet and vote on development applications, and publish their decisions and reasons.
Under the EP&A Act, and as required by statutory instruments and procedures, councils and the Department of Planning and Environment (DPE) must provide secretariat and other support functions to independent planning panels.
Previous reviews and inquiries have identified several significant risks that are present within the processes involved in the assessment and determination of development applications. These risks include possible non-compliance with complex legal and policy requirements, potential improper influence from developers and other stakeholders, and a perceived lack of transparency within the planning system and planning outcomes.
There are several planning pathways for development in New South Wales. This audit focuses on local and regional development that requires assessment and determination by a local council and/or an independent local planning panel or Sydney or regional planning panel in three Local Government Areas (LGAs): Byron Shire Council, Northern Beaches Council, The Hills Shire Council.
Audited councils were selected from a range of criteria, including:
- the number, value and types of development applications determined in 2018–19
- average determination timeframes
- appeals against determinations and Land and Environment Court outcomes
- LGA demographics.
The audit also avoided councils that had previously been subject to a performance audit.
The objective of this audit was to assess whether:
- selected councils have effectively assessed and determined development applications in compliance with relevant legislation, regulations and government guidance
- selected councils and DPE effectively support independent planning panels to determine development applications in compliance with relevant legislation, regulations and government guidance.
Conclusion – Byron Shire Council
Byron Shire Council has established clear roles, responsibilities and delegations for assessment and determination of development applications. However, the effectiveness of the Council's approach is limited by gaps in governance, risk management and internal controls.
Byron Shire Council has established clear roles, responsibilities and delegations for assessment and determination of development applications. However, the Council does not have a consolidated policy and procedure for development assessment, has not adequately followed up on the outcomes of internal reviews that identified opportunities to strengthen its assessment and determination procedures and approach, and has not demonstrated that it has managed relevant risks effectively.
The Council has not ensured that delegations have been consistently followed in the assessment of development applications.
Byron Shire Council's approach to managing conflicts of interest in development assessments does not provide transparency over potential conflicts of interest.
Byron Shire Council manages the risk of conflicts of interest for development assessment under its Code of Conduct. The Council has also implemented a separate policy that details additional requirements for managing conflicts of interest relevant to the development assessment process, but has not regularly updated this policy and requirements between it and the Code of Conduct have not been aligned. This creates a risk that planning staff may be following inconsistent or outdated advice in managing conflicts of interest.
Across the period of review, the Council did not require staff to provide a disclosure of interest for individual development applications to be contained within assessment reports. Including these disclosures would increase transparency and ensure that staff are sufficiently considering any conflicts of interest relevant to each separate assessment process.
Byron Shire Council has processes that promote compliance with legislation, regulation and government policy, but can improve how it undertakes some aspects of these that would ensure transparency, quality and consistency.
Our review of a sample of completed development applications from the Council indicated that most assessments were completed in compliance with relevant legislation, regulations and government guidance, but that there were some opportunities to improve elements of the assessment process, including: transparency of any conflicts of interest involved in the assessment process, ensuring compliance with delegated authority limits, and consideration of modification application provisions.
The Council has established templates to guide planners through relevant assessment considerations required by legislation, regulations and other guidance. However, it could do more to strengthen its approach to peer or manager review, monitoring legislative changes, and how it monitors the completion of relevant training by planning staff.
Conclusion – Northern Beaches Council
Northern Beaches Council has established processes to support compliant and effective assessment and determination of development applications.
The Council has a clear governance and risk management framework for development assessment that sets out roles, responsibilities and delegations.
Northern Beaches Council has established clear roles, responsibilities and delegations for development application assessment and determination. The Council has identified development assessment related risks, and has put in place controls and mitigating actions to manage the risks to within risk tolerances.
Northern Beaches Council's approach to managing conflicts of interest promotes transparency.
Northern Beaches Council manages the risk of conflicts of interest for development assessment under its Code of Conduct. The Council has implemented an additional framework for planning staff to respond to the risk of conflicts of interest in development assessment processes. This framework requires its staff to disclose any conflicts of interest as a formal step in assessing development applications and includes declarations of any interests within assessment reports or planning panel minutes.
Our review of a sample of completed development applications indicated that the assessment reports had been compliant with the Council's approach to transparently documenting conflicts of interest.
Northern Beaches Council has established processes to deliver consistent, quality assessment of development applications.
Northern Beaches Council staff use an electronic development assessment tool that provides guidance, links to legislative and policy instruments and other applications that support assessment and drive consistency in approach. The Council applies a peer review process in which a manager or team member in a more senior position reviews an assessment report prior to determination to ensure that expected standards of quality and consistency have been met.
Our review of a sample of completed development applications indicated that assessments were undertaken in compliance with relevant legislation, regulations and government guidance.
Northern Beaches Council transparently documents assessment reports, supporting information and determination outcomes.
Northern Beaches Council has implemented a transparent approach to how it assesses and determines development applications. The Council publishes assessment reports, supporting technical reports, plans and submissions for all development applications. Notices of determination and final plans are also published alongside the assessment reports, allowing for greater transparency to the public.
Northern Beaches Council has established processes to effectively support the Northern Beaches Local Planning Panel.
Northern Beaches Council has established processes to support the Northern Beaches Local Planning Panel as required under legislative and policy instruments. The Council has processes to ensure that development applications required to be referred to a planning panel are identified and monitored, supports identification and documentation of any conflicts of interest, and transparently documents decisions of the panel.
Our review of a sample of meeting records held across the audit period of review indicated that these requirements were met and were transparently documented.
Conclusion – The Hills Shire Council
The Hills Shire Council has established processes to support compliant and effective assessment and determination of development applications.
The Council has established a comprehensive governance and risk management framework for development assessment that sets out clear roles, responsibilities and delegations.
The Hills Shire Council has established a comprehensive framework for managing risks related to development assessment. Such risks are clearly identified and associated controls are in place to reduce or mitigate the risks. The Council has undertaken regular internal audits of development assessments, including reviewing completed applications to ensure compliance with relevant legislative and policy requirements.
The Council has established clear roles, responsibilities and delegations, and its staff assessing and determining development applications are supported by a standard set of policies and procedures for undertaking assessment and determination of applications.
The Hills Shire Council is managing conflicts of interest in line with Code of Conduct requirements but could more transparently document these.
The Hills Shire Council manages conflicts of interest for those involved in development application processes through provisions under its Code of Conduct. Under this Code of Conduct, staff must declare any conflicts of interest to their manager. However, the Council does not require staff to disclose any conflicts of interest in development application assessment reports which limits transparency to reviewing managers or any other determination bodies.
The Hills Shire Council has established processes to deliver consistent, quality assessment of development applications.
The Hills Shire Council has established templates to guide planners through relevant development assessment and determination considerations required by legislation, regulations and other guidance. The Council requires a peer review to occur prior to any determination which ensures a check on the compliance and quality of the assessment report prepared.
Our review of a sample of completed development applications from the Council indicated that assessments were performed in compliance with relevant legislation, regulations and government guidance.
The Hills Shire Council has established processes to effectively support The Hills Shire Local Planning Panel.
The Hills Shire Council has met requirements to provide secretariat and other support to The Hills Shire Local Planning Panel as required under legislative and policy instruments. It has processes to ensure that development applications required to be referred to a planning panel are identified and monitored, supports identification and documentation of any conflicts of interest, and transparently documents decisions of the panel.
Our review of a sample of meeting records held across the audit period of review indicated that these requirements were met and were transparently documented.
Conclusion – Department of Planning and Environment
The Department of Planning and Environment (DPE) has established processes that meet its statutory and policy requirements to support Sydney and regional planning panels.
DPE has established processes to provide secretariat and other support to planning panels. It has met requirements to provide administrative support to the panels through its planning panels secretariat including undertaking administrative functions, supporting recruitment of panel members, and addressing complaints about the panel processes.
DPE has not ensured collection of annual pecuniary interest declarations for all panel members for the three Sydney and regional planning panels in scope for this audit. DPE could not provide annual pecuniary interest declarations for part of the audit period for three of the 47 members of these panels, as is required by DPE's Code of Conduct for Regional Planning Panels.
DPE does not formally measure its effectiveness in providing support to panels, but panel chairs consulted as part of this audit advised that they had no concerns with the level of secretariat support provided by DPE.
DPE could do more to facilitate information sharing between panels and could formalise how it provides comparative information to panels to improve consistency and standardisation in approach and share good practice. DPE has identified these gaps in reviews of its services and functions and has a plan in place to address them.
DPE has effectively documented planning panel decisions and made them available to all stakeholders. It also effectively documented interests declared as part of consideration of development applications for in-scope panels.
This audit continues a series of audits examining the development assessment process in NSW local councils and is focused on the assessment and determination stages.
The Audit Office of New South Wales previously considered local government development assessments in our 2019 performance audit: 'Development assessment: pre-lodgement and lodgement in Camden Council and Randwick City Council'.
Appendix one – Response from agencies
Appendix two – Council profile: Byron Shire Council
Appendix three – Council profile: Northern Beaches Council
Appendix four – Council profile: The Hills Shire Council
Appendix five – About the audit
Appendix six – Performance auditing
Copyright notice
© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.
Parliamentary reference - Report number #370 - released 12 December 2022
Regional NSW 2022
What the report is about
Result of the Regional NSW cluster agencies' financial statement audits for the year ended 30 June 2022.
What we found
Unmodified audit opinions were issued for Regional NSW cluster agencies. Two audits are ongoing.
What the key issues were
The Department of Regional NSW (the department) and Local Land Services (LLS) accepted changes to their office leasing arrangements managed by Property NSW.
These changes resulted in the collective derecognition of $100.6 million of rights-of-use-assets and $110.4 million of lease liabilities.
In 2021–22, the cluster agencies continued to assist communities in their recovery from recent weather emergencies, including significant flooding in New South Wales.
The Northern Rivers Reconstruction Corporation was established in May 2022 to rebuild communities in the Lismore and Northern Rivers region impacted by floods.
The number of matters reported to management decreased from 36 in 2020–21 to 14 in 2021–22.
Five moderate risk issues were identified and 14% of reported issues were repeat issues.
One moderate risk issue was a repeat issue related to Local Land Services' annual fair value assessment of the asset improvements on land reserves used for moving stock.
This report provides Parliament and other users of the Regional NSW cluster financial statements with the results of our audits, analysis, conclusions and recommendations in the following areas:
- financial reporting
- audit observations.
Financial reporting is an important element of good governance. Confidence and transparency in public sector decision-making are enhanced when financial reporting is accurate and timely.
This chapter outlines our audit observations related to the financial reporting of agencies in the Regional NSW cluster (the cluster) for 2022.
Section highlights
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Appropriate financial controls help ensure the efficient and effective use of resources and administration of agency policies. They are essential for quality and timely decision-making.
This chapter outlines our observations and insights from our financial statement audits of agencies in the Regional NSW cluster.
Section highlights
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Health 2022
What the report is about
Result of Health cluster (the cluster) agencies' financial statement audits for the year ended 30 June 2022.
What we found
Unmodified audit opinions were issued for the financial statements for all Health cluster agencies.
The COVID-19 pandemic continued to increase the complexity and number of accounting matters faced by the cluster. The total gross value of corrected misstatements in 2021–22 was $353.3 million, of which $186.7 million related to an increase in the impairment provision for Rapid Antigen Tests (RATs).
A qualified audit opinion was issued on the Annual Prudential Compliance Statement related to five residential aged care facilities. There were 20 instances (19 in 2020–21) of non-compliance with the prudential responsibilities within the Aged Care Act 1997.
What the key issues were
The total number of matters we reported to management across the cluster decreased from 116 in 2020–21 to 67 in 2021–22. Of the 67 issues raised, four were high risk (three in 2020-21) and 37 were moderate risk (57 in 2020–21). Nearly half of all control deficiencies reported in 2021–22 were repeat issues.
Three unresolved high-risk issues were:
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COVID-19 inventories impairment – we continued to identify issues relating to management’s impairment model which relies on anticipated future consumption patterns. RATs had not been assessed for impairment.
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Asset capitalisation threshold – management has not reviewed the appropriateness of the asset capitalisation threshold since 2006.
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Forced-finalisation of HealthRoster time records – we continued to observe unapproved rosters being finalised by system administrators so payroll can be processed on time. 2.6 million time records were processed in this way in 2021–22.
What we recommended
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COVID-19 inventories impairment – ensure consumption patterns are supported by relevant data and plans.
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Assets capitalisation threshold – undertake further review of the appropriateness of applying a $10,000 threshold before capitalising expenditure on property, plant and equipment.
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Forced-finalisation of HealthRoster time records – develop a methodology to quantify the potential monetary value of unapproved rosters being finalised.
This report provides Parliament and other users of Health cluster (the cluster) agencies' financial statements with the results of our audits, analysis, conclusions and recommendations in the following areas:
-
financial reporting
-
audit observations.
Financial reporting is an important element of good governance. Confidence and transparency in public sector decision-making are enhanced when financial reporting is accurate and timely.
This chapter outlines our audit observations related to the financial reporting of agencies in the Health cluster (the cluster) for 2022.
Section highlights
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Appropriate financial controls help ensure the efficient and effective use of resources and administration of agency policies. They are essential for quality and timely decision-making.
This chapter outlines our observations and insights from our financial statement audits of agencies in the cluster.
Section highlights
|
Appendix one – Misstatements in financial statements submitted for audit
Appendix two – Early close procedures
Appendix three – Timeliness of financial reporting
Appendix four – Financial data
Copyright notice
© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.
New South Wales COVID-19 vaccine rollout
What the report is about
The Australian Government led and implemented the Australian COVID-19 vaccine rollout, with the support of state and territory governments. As part of the Australian Government's vaccine rollout, NSW Health launched its vaccination program on 22 February 2021, with responsibility for distributing and administering COVID-19 vaccine stock provided by the Australian Government.
This audit examined the period 1 January 2021 to 31 December 2021 and focused on NSW Health's contribution to the Australian Government led vaccine roll out in four Local Health Districts (LHDs), in particular the administration of two doses of vaccine to people aged 16 and over.
What we found
On 16 October 2021, NSW Health, in partnership with the Australian Government's vaccination program, achieved its first objective to fully vaccinate 80% of people in NSW aged 16 and over. Demand for the vaccine reduced in December 2021, and NSW Health did not reach its target of 95% fully vaccinated for people aged 16 and over until June 2022.
Despite challenges such as uncertain supply and changes to clinical advice affecting vaccine eligibility, NSW Health's overall delivery of vaccination services was effective and efficient.
During the audit period, NSW Health implemented effective strategies to allocate vaccines and reduce wastage to optimise the number of vaccines available.
NSW Health implemented its own booking system after it identified that the Australian Government's system would not manage bookings. There were problems with NSW Health's interim vaccine booking system, and NSW Health fully resolved these issues by September 2021.
As at 19 October 2022, vaccination rates for Aboriginal peoples and culturally and linguistically diverse people remained below the 95% target.
What we recommended
By June 2023, NSW Health should conduct a comprehensive review of the COVID-19 vaccine rollout and incorporate lessons learned into pandemic response plans.
The first three cases of COVID-19 in New South Wales were diagnosed in January 2020. By 30 June 2021, 128 people were being treated in hospital and one person was in intensive care. By the end of December 2021, 187,504 total cases and 663 deaths were reported in New South Wales. As at 27 October 2022, NSW Health reported more than three million total cases and 5,430 deaths.
The COVID-19 pandemic continues to have a significant impact on the people and the health sector of New South Wales. The Australian, state, territory, and local governments have directed significant resources towards health responses and economic recovery.
On 13 November 2020, National Cabinet (comprised of the Australian, state, and territory governments) endorsed the Australian COVID-19 Vaccination Policy. Australia's vaccination program was launched on 21 February 2021 with the goal of providing safe and effective vaccines to the people who most needed them as quickly as possible, to support the physical, mental and economic wellbeing of the nation.
The Australian Government led and implemented the Australian vaccine rollout, with the support of state and territory governments. As part of the Australian Government's vaccine rollout, NSW Health launched its vaccination program on 22 February 2021, with responsibility for distributing and administering COVID-19 vaccine stock provided by the Australian Government.
The overall objective of this audit was to assess the effectiveness and efficiency of NSW Health’s contribution to the Australian COVID-19 vaccine rollout. It is important to note that in New South Wales, primary care providers (GPs and pharmacies) and aged care providers administered the majority of vaccines. Primary care providers and aged care providers are the responsibility of the Australian Government.
The audit had a particular focus on whether NSW Health:
- set clear vaccination targets underpinned and/or guided by evidence
- managed the rollout of the vaccination program effectively and efficiently
- managed demand of vaccines effectively and efficiently.
The audit examined the period 1 January 2021 to 31 December 2021 and focused on NSW Health's contribution to the Australian Government led vaccine rollout in four Local Health Districts (LHDs), in particular the administration of two doses of vaccine to people aged 16 and over. We did not audit the subsequent rollout for ages five to 15, or the booster rollout (third and fourth doses) as these activities mostly occurred outside the date of our review.
This audit also did not assess the Australian Government’s allocation of vaccine supplies to New South Wales because we do not audit the Australian Government's activities. On 17 August 2022, the Australian National Audit Office completed a performance audit which assessed the Australian Department of Health and Aged Care's effectiveness in the planning and implementation of Australia's COVID-19 vaccine rollout.
This audit is one of a series of audits that have been completed or are in progress regarding the New South Wales COVID-19 emergency response. This includes the planned performance audit ‘Coordination of the response to COVID-19 (June to November 2021)’, and financial audit assurance activities focusing on Local Health District processes and controls to manage the receipt, distribution and inventory management of vaccine stock. The Audit Office New South Wales '2022–25 Annual Work Program' details the ongoing focus our audits will have on providing assurance on the effectiveness of emergency responses.
Conclusion
By 12 December 2021, NSW Health had administered two doses of vaccines to one third of eligible people in New South Wales aged 16 and over – contributing significantly to the achievement of the NSW Government vaccination target of 80% fully vaccinated before 31 December 2021. Despite challenges such as uncertain supply and changes to clinical advice affecting vaccine eligibility, NSW Health's overall delivery of vaccination services was effective and efficient.
NSW Health implemented its own booking system after it identified that the Australian Government's system would not manage bookings. There were problems with NSW Health's interim vaccine booking system, and NSW Health fully resolved these issues by September 2021.
Vaccination levels in some vulnerable populations remain below the 95% double dose target currently in place. Access to quality data to regularly measure vaccination rates in some vulnerable populations remains an ongoing challenge for the NSW and Australian Governments. As a result, NSW Health is unable to fully ensure it has delivered on its shared responsibility with the Australian Government to vaccinate vulnerable people.
NSW Health managed challenges regarding the uncertain supply of vaccines from the Australian Government and filled gaps beyond its agreed responsibilities in the National Partnership on COVID-19 Response. During the Delta outbreak of the pandemic, NSW Health sought to achieve the best possible public health outcome from limited vaccine supply by opening up additional vaccination clinics in highly affected areas and redistributing vaccine supplies from areas with fewer cases to highly affected local government areas in south west Sydney.
During the audit period, NSW Health implemented effective strategies to allocate vaccines and reduce wastage to optimise the number of vaccines available. Our financial audit report, 'Health 2022', includes additional information on vaccine supply stock held by NSW Health.
NSW Health demonstrated agility by using a range of strategies to promote vaccination, including direct engagement with communities to develop culturally appropriate services such as pop-up clinics. NSW Heath recruited prominent community members, such as faith leaders, elders and sportspeople, to promote vaccination within their communities. However, at the date of this report, there are still vulnerable populations with vaccination rates lower than the current 95% double dose vaccination target. There is also a lack of regularly updated data for some cohorts which prevents NSW Health from accurately monitoring vaccination rates in some populations it has identified as vulnerable.
In March 2021, NSW Health identified that the booking system provided by the Australian Government was an online directory of vaccine clinics and would not manage bookings. To overcome this, NSW Health amended an internal-use system to be publicly facing. This solution was not user-friendly for staff or those seeking to make an appointment. Between June to September 2021, NSW Health progressively resolved booking system related issues, by developing and rolling out a new purpose-built booking solution for NSW Health vaccination clinics.
Appendix one – Response from agency
Appendix two – Australian audits on the vaccine rollouts
Appendix three – Committee members
Appendix four – About the audit
Appendix five – Performance auditing
Copyright notice
© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.
Parliamentary reference - Report number #369 - released 7 December 2022
Education 2022
What the report is about
Result of the Education cluster financial statement audits for the year ended 30 June 2022.
What we found
Unmodified audit opinions were issued for Education cluster agencies.
An 'other matter' paragraph was included in the TAFE Commission's independent auditor's report as it did not have a delegation or sub-delegation from the Minister for Education and Early Learning to incur expenditure from cluster grants.
What the key issues were
Annual fair value assessments of land and buildings showed material differences in their carrying values. As a result, the Department of Education and the TAFE Commission completed desktop revaluations of land and buildings, collectively increasing the value of these assets by $1.2 billion and $4.7 billion respectively.
The Department of Education and the NSW Education Standards Authority accepted changes to their office leasing arrangements managed by Property NSW. These changes resulted in the collective derecognition of $270.6 million of right-of-use assets and $382.9 million in lease liabilities.
What we recommended
A high-risk matter was reported in the management letter for the TAFE Commission highlighting non-compliance with policies and procedures guiding appropriate use of purchasing cards.
We recommended cluster agencies prioritise and address internal control deficiencies.
This report provides Parliament and other users of the Education cluster’s financial statements with the results of our audits, analysis, conclusions and recommendations in the following areas:
- financial reporting
- audit observations.
Financial reporting is an important element of good governance. Confidence and transparency in public sector decision-making are enhanced when financial reporting is accurate and timely.
This chapter outlines our audit observations related to the financial reporting of agencies in the Education cluster (the cluster) for 2022.
Section highlights
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Appropriate financial controls help ensure the efficient and effective use of resources and administration of agency policies. They are essential for quality and timely decision-making.
This chapter outlines our observations and insights from our financial statement audits of agencies in the Education cluster.
Section highlights
|
The number of findings reported to management has increased, and 31% were repeat issues
Breakdowns and weaknesses in internal controls increase the risk of fraud and error. Deficiencies in internal controls, matters of governance interest and unresolved issues were reported to management and those charged with governance of agencies. The Audit Office does this through management letters, which include observations, related implications, recommendations and risk ratings.
In 2021–22, there were 29 findings raised across the cluster (28 in 2020–21). Thirty-one per cent of all issues were repeat issues (50% in 2020–21).
The most common new and repeat issues related to internal control deficiencies in agencies’ information technology general controls, application controls, and procurement and payroll practices.
A delay in implementing audit recommendations increases the risk of intentional and accidental errors in processing information, producing management reports and generating financial statements. This can impair decision-making, affect service delivery and expose agencies to fraud, financial loss and reputational damage. Poor controls may also mean agency staff are less likely to follow internal policies, inadvertently causing the agency not to comply with legislation, regulation and central agency policies.
A high-risk matter was reported at the TAFE Commission highlighting instances of non-compliance with policies and procedures guiding appropriate purchasing card use
As part of our audit of the TAFE Commission, we integrated the use of data analytics into the audit approach. We performed data analytics over aspects of payroll, procurement and accounts payable activities. This helped us to highlight anomalies or risks in those data sets that are relevant to the audit of the TAFE Commission and plan testing procedures to address those risks. Data analytics also assisted us in providing an insight into the internal control environment of the TAFE Commission, highlighting areas where key controls are not in place or are not operating as management intended.
Our analysis over purchasing card data supplied by the TAFE Commission for the period July 2021 to March 2022 found deficiencies in the provisioning, use and cancellation of purchasing cards. This included identified instances of:
- controls effectively bypassed when a purchasing card surrendered by a former employee had been used by another employee
- split payments, circumventing delegation / cardholder limits
- delays in the submission and approval of purchasing card transactions.
The table below describes the common issues identified across the cluster by category and risk rating:
| Risk rating | Issue |
| Information technology | |
|
High: 0 new, 0 repeat 1 Moderate: 5 new, 3 repeat 2 Low: 2 new, 1 repeat 3 |
The financial audits identified areas for agencies to improve information technology processes and controls that support the integrity of financial data used to prepare agencies' financial statements. Of note were deficiencies identified in:
|
| Internal control deficiencies or improvements | |
|
High: 1 new, 0 repeat 1 Moderate: 5 new, 3 repeat 2 Low: 4 new, 1 repeat 3 |
The financial audits identified internal control weaknesses across key business processes relevant to financial reporting. Of note were deficiencies identified in:
|
| Financial reporting | |
|
High: 0 new, 0 repeat 1 Moderate: 1 new, 1 repeat 2 Low: 2 new, 0 repeat 3 |
The financial audits identified:
|
2 Moderate risk from the consequence and/or likelihood of an event that has had, or may have a negative impact on the entity.
3 Low risk from the consequence and/or likelihood of an event that has had, or may have a negative impact on the entity.
Recommendation
We recommend cluster agencies prioritise and action recommendations to address the internal control deficiencies outlined above.
Customer Service 2022
What the report is about
Result of the Customer Service cluster agencies' financial statement audits for the year ended 30 June 2022.
What we found
Unmodified audit opinions were issued for Customer Service cluster agencies.
What the key issues were
The number and size of Service NSW's administered grant programs have increased significantly in response to emergency events. Improvements are required to address gaps in Service NSW's policies, systems and processes in administering and financial reporting of grant programs.
The Department of Customer Service (the department) reported a retrospective correction of a prior period error of $33.3 million understatement of the land titling database, which is a service concession asset managed by a private operator.
The 2021–22 audits identified five high-risk issues across the cluster:
- the department:
- control weaknesses in user access to GovConnect systems
- significant control deficiencies in information technology change management controls
- Rental Bond Board:
- legislation amendment required to better support the accounting treatment of rental bonds
- no delegation instrument to government officers authorising them to approve expenditures
- Service NSW:
- improvements required in the timeliness and quality of grant administration revenue assessment and controls over the recovery of grant administration costs.
Recommendations were made to address these deficiencies.
This report provides Parliament and other users of the Customer Service cluster's financial statements with the results of our audits, analysis, conclusions and recommendations in the following areas:
- financial reporting
- audit observations.
Financial reporting is an important element of good governance. Confidence and transparency in public sector decision-making are enhanced when financial reporting is accurate and timely.
This chapter outlines our audit observations related to the financial reporting of agencies in the Customer Service cluster (the cluster) for 2022.
Section highlights
|
Appropriate financial controls help ensure the efficient and effective use of resources and administration of agency policies. They are essential for quality and timely decision-making.
This chapter outlines our observations and insights from our financial statement audits of agencies in the Customer Service cluster.
Section highlights
|
Appendix one – Misstatements in financial statements submitted for audit
Appendix two – Early close procedures
Appendix three – Timeliness of financial reporting
Appendix four – Financial data
Copyright notice
© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.
Premier and Cabinet 2022
What the report is about
Result of the Premier and Cabinet cluster financial statement audits for the year ended 30 June 2022.
What we found
Unmodified audit opinions were issued for all Premier and Cabinet cluster agencies.
The machinery of government changes within the Premier and Cabinet cluster resulted in the transfer of net assets of $1 billion from the Department of Premier and Cabinet.
The Department of Premier and Cabinet, Public Service Commission and Parliamentary Counsel's Office accepted changes to their office leasing arrangements managed by Property NSW. These changes resulted in the collective de-recognition of $167.3 million of right-of-use assets, $225.1 million in lease liabilities and recognition of $47.8 million of other gains/losses.
What the key issues were
The number of issues we reported to management decreased.
Forty per cent of issues were repeated from the prior year.
Four moderate risk issues were reported in the management letters for Department of Premier and Cabinet and New South Wales Electoral Commission. Three out of the four moderate risk issues were repeat issues.
The repeat issues related to internal control deficiencies in agencies' including lack of updated procurement policies and procedures and information technology general controls.
Fast facts
The Premier and Cabinet cluster comprises seven agencies, delivering the government's objectives and facilitating stewardship of the public service.
- $0.2b property, plant and equipment as at 30 June 2022
- $3b total expenditure incurred in 2021–22
- 100% unqualified audit opinions issued on agencies’ 30 June 2022 financial statements
- 4 moderate risk findings identified
- 15 monetary misstatements reported in 2021–22
- 40% of reported issues were repeat issues
This report provides Parliament and other users of the Premier and Cabinet’s financial statements with the results of our audits, analysis, conclusions and recommendations in the following areas:
- financial reporting
- audit observations.
Financial reporting is an important element of good governance. Confidence and transparency in public sector decision-making are enhanced when financial reporting is accurate and timely.
This chapter outlines our audit observations related to the financial reporting of agencies in the Premier and Cabinet cluster for 2022.
Section highlights
|
Appropriate financial controls help ensure the efficient and effective use of resources and administration of agency policies. They are essential for quality and timely decision making.
This chapter outlines our observations and insights from our financial statement audits of agencies in the Premier and Cabinet cluster.
Section highlights
|
Appendix one – Early close procedures
Copyright notice
© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.
Student attendance
What the report is about
Poor attendance at school is related to poor student outcomes, particularly once patterns of non-attendance have been established.
This report examined how the NSW Department of Education (the department) is managing student attendance in NSW government schools.
What we found
Around a third of students in Years 1–10 attended school less than 90% of the time in semester one, 2021. Missing more than 10% of school may put a student's educational outcomes at risk.
Since 2018, the department has improved the quality of student attendance data, analysis and reporting. However, there are still gaps in understanding the reasons for absence at a system level.
The department set state-wide and school-level targets to increase the proportion of students attending school at least 90% of the time. This emphasis risks diverting attention away from students with very low attendance rates.
There are gaps in central programs to support schools in lifting student attendance. Schools are taking a variety of approaches to this work.
There is a large gap in attendance between Aboriginal and non-Aboriginal students, which has increased since 2018.
What we recommended
The Department of Education should:
- set new state-wide and school level attendance targets
- evaluate its attendance support programs
- update its attendance strategies and programs
- publish the attendance level for each school in their annual reports
- improve internal analysis and reporting of attendance data
- finalise the review of the attendance policy, procedure and codes
- review programs supporting Aboriginal student attendance and address any gaps
- review the approach to enforcing compulsory school attendance.
Fast facts
- 90% - attending school less than 90% of the time can put a student's educational outcomes at risk
- 67.9% of Year 1–10 students in NSW government schools attended at least 90% of the time in semester one, 2021
- 42.7% of Aboriginal Year 1–10 students in NSW government schools attended school at least 90% of the time in semester one, 2021.
Regular attendance at school is important for academic and other long-term outcomes. Students who do not attend regularly are less likely to complete school and more likely to experience poorer long-term health and social outcomes. A range of factors influence student attendance including student engagement and wellbeing, family and community factors and the school environment.
The NSW Department of Education's (the department's) Strategic Plan for 2018–2022 identifies improving student attendance as a priority. It has identified 95% as its expected level of attendance. It set targets to increase the proportion of students attending school at least 90% of the time, from 79.4% to 82% in primary schools and 64.5% to 70% for secondary schools.
This report focuses on attendance data for semester one of 2018, 2019 and 2021. Unless otherwise noted, attendance data refers to Years 1–10 in alignment with national reporting conventions. Changes in recording systems and definitions mean attendance data prior to 2018 is not comparable. Attendance data for semester one of 2020 and 2022 was significantly affected by COVID-related disruptions, which prevented many students across the State from attending school. Data for semester one of 2021 is considered relatively less affected by COVID-related disruptions.
The Education Act 1990 (the Act) sets out the responsibilities of students, parents and the department for ensuring students receive compulsory schooling. The department has developed policies, procedures and guidance to assist schools in managing their responsibilities to promote regular attendance. In this report, we define 'regular' attendance as at least 90% of the time. This is equivalent to missing one day of school each fortnight or four weeks of school across a school year.
The objective of this audit was to assess whether student attendance is effectively managed in NSW government schools for students from kindergarten to Year 10. In making this assessment, the audit examined whether:
- there are effective systems and policies for managing student attendance
- the department effectively supports schools to manage student attendance
- schools are effectively managing student attendance.
Conclusion
There are too many students in NSW Government schools who regularly miss school. In semester one of 2021, around a third of students in Years 1–10 attended school less than 90% of the time — a level that puts their educational outcomes at risk. Attendance problems are widespread. 775 of 2,200 schools in NSW had an average attendance rate below 90% in 2021. Aboriginal student attendance is significantly below non-Aboriginal students and there is no specific strategy to address this gap. The department needs to place greater attention on supporting schools to lift student attendance.
Good quality data on attendance patterns is critical to developing strategies to address the underlying reasons for absence. The quality of the department's data on student attendance has improved from 2018. This has allowed it to monitor attendance more closely throughout the year, rather than relying on a yearly collection. However, there are still gaps in capturing and analysing the reasons for absence.
The improved data collection allowed the department to begin reporting on the 'attendance level' for the first time in 2018. This measures the proportion of students attending more than 90% of the time. The department has set state-wide and school-level targets to improve the attendance level. The new targets have influenced the focus of strategies to lift attendance. There is now a greater focus on lifting students above the reportable benchmark of 90% rather than addressing more serious attendance concerns.
The School Success Model formalises the focus on achieving school-level targets. When introduced, the department stated that schools would receive targeted support as part of the rollout of the model. Targeted support for attendance was initially planned to be delivered in late 2021 but was delayed due to the impact of COVID. The two main attendance support programs do not cater to schools with fewer than 100 students and there are gaps in support due to two different methodologies being used to select schools.
The Home School Liaison Program is a longstanding program to support students with low attendance. Requests for support are rationed pending availability of case officers, which leads to younger students being prioritised. Older students are not supported because there is a lower chance of prosecution in the legal system if attendance is not restored by the program. There is insufficient monitoring of the adequacy of resources, activities and long-term outcomes of this program.
The department's Aboriginal Education Policy aims to have Aboriginal students matching or exceeding outcomes of non-Aboriginal students. In semester one, 2021 42.7% of Aboriginal students attended school regularly (at least 90% of the time) compared with 70.3% of non-Aboriginal students. The gap in attendance between Aboriginal and non-Aboriginal students has grown since 2018. There are relatively new programs supporting Aboriginal students in secondary school to attain their Higher School Certificate, but greater attention should be placed on supporting attendance for Aboriginal students in primary schools.
Schools are using a wide range of strategies to improve student attendance depending on their local contexts. Schools we spoke with told us of allocating responsibility to key staff members, closer monitoring of data, community engagement, rewards and incentives, before school sporting and breakfast programs, and partnerships with external agencies. The school planning and annual reporting process prompts schools to evaluate the impact of their strategies on progress towards their targets. The department could do more to promote evidence-based programs, showcase better practice examples from schools in NSW and identify the circumstances where these approaches are most effective.
This chapter considers the effectiveness of systems to accurately collect, analyse and report student attendance data. It also considers the effectiveness of policies and procedures to support attendance and central oversight of attendance issues.
This chapter considers the effectiveness of the department's strategies to improve student attendance and the support it provides to schools to achieve this. It also considers the effectiveness of school-level strategies and actions for students with low attendance.
Appendix one – Response from agency
Appendix two – About the audit
Appendix three – Performance auditing
Copyright notice
© Copyright reserved by the Audit Office of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material.
Parliamentary reference - Report number #368 - released 27 September 2022
