Report highlights: Enterprise, Investment and Trade 2022

What the report is about

Result of the Enterprise, Investment and Trade cluster agencies' financial statement audits for the year ended 30 June 2022.

What we found

The Machinery of Government changes within the Enterprise, Investment and Trade cluster resulted in the creation of the Department of Enterprise, Investment and Trade and the transfer of $1.0 billion of net assets into the new department.

Unmodified audit opinions were issued for all completed cluster agencies' 2021–22 financial statements audits. Two audits are ongoing.

An 'Other Matter' paragraph was included in the audit opinion for the Jobs for NSW Fund's 30 June 2021 financial report to reflect the non-compliance with the Jobs for NSW Act 2015 (the Act) and Government Sector Finance Act 2018. The Act requires the board to consist of seven members that include the Secretary of the Treasury, the Secretary of the Department of Premier and Cabinet, and five ministerial appointments. The board has consisted of two secretaries since 24 May 2019 when the independent members resigned. The remaining five members have not been appointed by the ministers as required by section 5(2) of the Act.

Three cluster agencies accepted changes to their office leasing arrangements managed by Property NSW. This has resulted in the collective derecognition of $24.8 million of right-of-use assets and $26.7 million in lease liabilities, and recognition of $1.9 million of other gains.

What the key issues were

The number of issues we reported to management decreased from 108 in 2020–21 to 103 in 2021–22. Thirty per cent of issues were repeated from the prior year.

Six high-risk issues were identified across the cluster related to the quality and timeliness of financial reporting, governance processes and internal controls.

Recommendations were made to address these deficiencies.

Fast facts

The Enterprise, Investment and Trade cluster aims to support New South Wales businesses to find new markets, help drive partnerships across sectors and borders, and promote New South Wales as an attractive place to do business.

  • $14.2b property, plant and equipment as at 30 June 2022
  • 100% unqualified audit opinions issued on completed agencies’ 30 June 2022 financial statements
  • 40 monetary misstatements reported in 2021–22
  • $2.7b total expenditure incurred in 2021–22
  • 6 high-risk findings identified
  • 30% of reported issues were repeat issues

Further information

Please contact Ian Goodwin, Deputy Auditor-General on 9275 7347 or by email.