Report highlights: Premier and Cabinet 2021
What the report is about
The results of the Premier and Cabinet cluster (the cluster) agencies' financial statement audits for the year ended 30 June 2021.
What we found.
Unmodified audit opinions were issued for all Premier and Cabinet cluster agencies.
The number of monetary misstatements decreased from 49 in 2019–20 to 38 in 2020–21.
The Library Council of New South Wales corrected a prior period error of $325 million. In 2017, the council split its collection assets into six asset classes, but not the related asset revaluation reserves. To correct this error, some revaluation decrements previously recognised in asset revaluation reserves were reclassified to accumulated funds.
Eight agencies did not complete all of the mandatory early close procedures.
What the key issues were
The Premier and Cabinet cluster was impacted by three Machinery of Government (MoG) changes during 2020–21.
The changes resulted in the transfer of activities and functions in and out of the cluster and the creation of a new entity - Investment NSW.
The transferor entities continued to provide services to Investment NSW subsequent to 30 June 2021. There were no formal service level agreements in place for the provision of these services.
The New South Wales Electoral Commission (the Commission) and Sydney Opera House Trust obtained letters of financial support from their relevant Minister and/or NSW Treasury in 2020–21. The postponement of local government elections impacted the Commission's operations due to increased planned expenditure to support a COVID-safe election. Sydney Opera House Trust's ability to generate revenue was impacted due to the closure of the Concert Hall partly due to COVID-19 and planned renovations.
The number of repeated audit issues raised with management and those charged with governance increased from 22 in 2019–20 to 24 in 2020–21.
There were 47 moderate risk and 28 low risk findings identified. Of the total findings there were 24 repeat issues.
What we recommended
Investment NSW should ensure services received from other agencies are governed by service level agreements.
The Department of Premier and Cabinet supports the Premier and Cabinet to deliver the government's objectives, infrastructure, preparedness for disaster, incident recovery, arts and culture.
- 100% unqualified audit opinions were issued on agencies' 30 June 2021 financial statements
- 47 moderate risk findings were reported to management
- 32% of all reported issues were repeat issues
- 38 monetary misstatements were reported in 2020-21
- $4.4b total expenditure incurred in 2020-21
- $11.9b of property, plant and equipment as at 30 June 2021.