Under appropriate conditions, shared service arrangements are a proven method for obtaining significant cost savings from productivity improvements and economies of scale. Benefits realised in NSW from shared services are significantly below what was expected. At June 2003 general government agencies had achieved savings of $13.6 million, or 5 per cent, of projected accumulated savings of $297 million to be achieved by 2006. Implementation costs are estimated to be $79.4 million. Most agencies had yet to fully implement the Government’s shared services strategy supporting productivity and salary increases.

Parliamentary reference - Report number #128 - released 3 November 2004

We recognise that Home and Community Care Services (HCS) operates in an increasingly difficult and changing environment. However, HCS does not have the capacity to meet these needs. Currently at least 50 per cent of those eligible to receive a service will miss out. Under the current system, there are inequities in service delivery. The ability to receive a service depends on when the applicant calls, where they live and if this coincides with service hours becoming available at the local HCS branch. In addition, applicants who miss out on a service may not automatically be referred to another provider. HCS needs to better manage both demand and expectations regarding access to the services it provides.

Parliamentary reference - Report number #127 - released 13 October 2004

We believe that school reports are an excellent concept. However, in their present form they are not an effective means of holding a school accountable. Successive performance audits by our Office have identified significant shortcomings in the reports. This is not so much the fault of the schools. The reporting content is largely optional. There is limited opportunity to compare performance. And the highly restrictive reporting protocols lead to reports which are not able to release important and relevant information.

Parliamentary reference - Report number #126 - released 15 September 2004

This audit follows our earlier studies on ambulance response times, on waiting times for elective (i.e. non-urgent) surgery and on the ‘Code Red’ status of hospital emergency departments. Those audits indicated that matching resources to the ever-increasing numbers of people seeking emergency treatment was certainly an issue, but not the only issue. We found that problems were also occurring at the ‘interface’ between different parts of the health system – when patients arrive in ambulances at emergency departments or when they need to be admitted from emergency departments to hospital wards.

Parliamentary reference - Report number #125 - released 28 July 2004

Overall, compliance with government policy was not high. In the agencies examined, the audit found problems similar to those identified in 2001 when we last examined fleet management practices. Business need was not always the determining factor in deciding the size and composition of fleets. In most cases the fleet profile reflected past practices or individual choice rather than business need.

Parliamentary reference - Report number #124 - released 30 June 2004

Managing reserves requires that judgements be made about the condition of natural and cultural heritage and decisions taken as to what is, at least, an acceptable standard. Reliable information is fundamental to these tasks and for monitoring success, continuous improvement and accountability. In our opinion the Service has yet to clarify what constitutes success in reserve management and develop an adequate information base to measure its success. Consequently the Service cannot reliably determine how well it conserves and protects our natural and cultural heritage. This is a common situation for like agencies.

Parliamentary reference - Report number #123 - released 16 June 2004

The Environment Protection Authority (EPA) accepted all the recommendations in our 2001 audit report on Controlling and Reducing Pollution from Industry and has demonstrated leadership in addressing the issues raised. Most of the recommendations have now been fully or largely implemented. Major achievements include new measures to facilitate a more consistent approach to licensing, new risk assessment tools to assist in dealing with noncompliances and to identify priorities for its compliance audit activities and a new licensing information management system. In our view the EPA has a suitable framework with which to control the amount of pollutants discharged to the environment by industry.

Parliamentary reference - Report number #122 - released 12 May 2004

The Audit Office is of the opinion that:

• the sale was delivered with reasonable efficiency and effectiveness

• the sale yielded a satisfactory return to the NSW Government. The possibility for a higher return was limited to about 2% to 4% on gross proceeds of $936m. It would have required setting a higher share price for all investors and adopting a more flexible approach to share allocation

• the Government’s objective to promote community and investor support was achieved. The scale of the demand for script added to costs and was not fully translated into higher proceeds  

• generally satisfactory accountability frameworks were put in place for the sale and no probity concerns were identified

• the frameworks to achieve the Government’s wider reforms of the racing and wagering industries have substantially been implemented.

Parliamentary reference - Report number #61 - released 23 December 1998

Guidelines for staff are available for each of the three schemes, but they do not yet provide staff with sufficient information on how to attract proposals, undertake assessments, negotiate agreements and monitor assistance. Some training of staff responsible for assessing proposals, negotiating agreements and monitoring outcomes has been provided, but needs to be enhanced. In particular, The Audit Office believes that there is insufficient guidance for staff in undertaking economic assessment of proposals. 

There is a prevailing view amongst Department of State and Regional Development staff that guidelines are just that, and need not be followed. It was apparent, however, that assumptions made in assessments were not always appropriate and may lead to poor decisions. Flexibility need not be impaired by requiring greater adherence to guidelines. This would help ensure minimum standards of process and rigour in all cases.

Parliamentary reference - Report number #60 - released 21 December 1998

The Audit Office is of the opinion that there are several features of the current Senior Executive Service (SES) model, or its application, which hinder the capacity of the SES to operate effectively in line with the Government’s stated objectives. The ultimate effect of these features is to reduce the capacity or perceived capacity of the SES to meet the Government’s objectives for the operation of the SES.

Taken overall, difficulties in the SES identified by the audit included: uncertainty caused by the way some contracts have been applied in practice, removal for reasons other than poor performance, informal strategies such as using restructuring to “terminate contracts and to move people in and out of positions regardless of their formal reported performance” (Section 5.4), inconsistently applied rules about selection/recruitment, appointment and removal of the SES, an imbalance between CES responsibility to the Minister as the employer/reviewer with their responsibility not to act in a political or partial manner, apparent lack of rigour in, value of and Ministerial accountability for CES performance review processes and failure to implement an adequate system of rewards and sanctions related to performance.

Parliamentary reference - Report number #59.1 - released 17 December 1998