Report snapshot
Report snapshot: Regulation of the land titles registry
About this report
The land titles registry is a collection of registers established under the Real Property Act 1900 and related legislation. It is the source of truth for land and property ownership in NSW and underpins significant economic activity.
The registry is owned by the NSW government. From 1 July 2017, a private operator has operated and maintained the registry under a 35-year concession granted by the NSW government.
The Office of the Registrar General is the regulator of the private operator’s activity under the concession. It is a business unit in the Department of Customer Service.
This audit examined the effectiveness of the regulator in overseeing and monitoring the operation and maintenance of the registry to ensure its integrity and security.
Conclusion
The Office of the Registrar General has implemented an effective system and supporting processes to oversee and monitor the integrity and security of the land titles registry.
However, the audit found opportunities for the Office of the Registrar General to improve how it conducts its regulatory functions.
Recommendations
The audit recommended that the Office of the Registrar General should:
- develop and publish its approach to exercising its regulatory functions and powers
- publish a regulatory charter to ensure greater regulatory transparency
- review the skills and capabilities required to regulate the land titles registry
- ensure greater clarity on the rights to use data, and the application of privacy legislation
- ensure compliance with the NSW Cyber Security Policy, including the requirements relating to third parties
- perform an audit of the subscriber compliance process.
Fast facts
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Further information
Please contact Renee O'Kane, Chief of Staff, on 9275 7347 or by email.
Bus contracts in metropolitan Sydney
About this report
Bus services in metropolitan Sydney are provided by private operators under contract to the NSW government. Transport for NSW (TfNSW) determines bus timetables, routes, stops, and frequency, while the operators deliver the specified bus services.
This audit assessed the effectiveness of TfNSW’s design and management of metropolitan Sydney bus service contracts. The audit focused on the nine regions where services are provided under the Greater Sydney Bus Contract (GSBC).
Conclusion
TfNSW is not effectively managing bus contracts to ensure that operators are meeting contracted obligations and customer needs. It has not responded strategically to major changes in commuter, work and travel patterns on metropolitan bus services.
TfNSW identified significant gaps in its strategic contract management capacity since 2022 but has not sufficiently addressed these. As a result, it has not undertaken essential medium to long-term strategic activities required to effectively manage the GSBCs. It has not conducted a holistic, systematic review of service levels across all regions to fully address the impacts of the post-COVID-19 period, and other changes such as new infrastructure and travel options like the Sydney Metro M1 line.
First stop on time running has stabilised since January 2023. However, operators are not consistently meeting their performance obligations for on time running, cancelled trips and customer complaints.
There are gaps in TfNSW’s contract management specific procedures and delegations. These gaps mean that the risks of inappropriate exercise of delegations, non-compliance with contractual requirements and/or inappropriate use of public funds are not fully addressed.
Recommendations
The audit recommends that TfNSW improve the capacity of its bus contracts management team. It should also close the gaps in its contract management specific procedures and delegations, and start regularly auditing operator responses to customer complaints.
TfNSW should implement strategic planning, including enhanced data analytics, aimed at improving bus operator performance.
Fast facts
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Further information
Please contact Renee O'Kane, Chief of Staff, on 9275 7347 or by email.
Report snapshot: State finances 2024
What this report is about
This report focuses on the 2023–24 Consolidated State Financial Statements of the New South Wales General Government Sector (GGS) and Total State Sector (TSS), which comprise the Total State Sector Accounts.
It comments on the key matters and highlights significant factors that have contributed to the State’s financial outcomes for the year ended 30 June 2024.
Observations
The audit opinion on the Total State Sector Accounts for the year ended 30 June 2024 was unqualified.
The GGS's net operating balance for the 2023–24 financial year was a deficit of $10.7 billion. This was $2.9 billion more than the original budgeted deficit of $7.8 billion, and $1.1 billion more than the revised budget deficit of $9.6 billion estimated during the 2023–24 half yearly review.
Revenue growth exceeded expense growth in 2022–23 and 2023–24, after several years when expenses increased in excess of revenue as the government responded to COVID‑19 and natural disasters.
The State recorded $769 million in write‑offs of infrastructure and other assets in 2023–24, largely from transport projects including the Great Western Highway upgrade, the Beaches Link project and the Fast Rail program.
The State also wrote off $334 million of inventories including expired rapid antigen test kits and personal protective equipment.
The GGS's net debt to gross state product increased from -0.3% in 2019 to 11.4% in 2024. It is predicted to reach 14.2% of gross state product by 2028.
The State maintained its triple-A and AA+ credit ratings.
Recommendations
Seven of nine 2023 report recommendations have been addressed.
NSW Treasury is working to address the two open recommendations relating to reviewing the financial reporting exemption framework.
Fast facts
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Further information
Please contact Renee O'Kane, Chief of Staff, on 9275 7347 or by email.
Report snapshot: State agencies 2024
About this report
Results and key themes from our audits of the state agencies’ financial statements for the year ended 30 June 2024.
It also includes observations on the following areas of focus:
- risk management
- capital projects
- shared service arrangements.
Findings
The Treasurer did not table the audited Total State Sector Accounts (TSSA) in Parliament as required by the Government Sector Finance Act 2018, and Responsible Ministers did not table 16 annual reports in Parliament by the required date.
Audit results
Unqualified opinions were issued for all but one agency. The quality of financial statements submitted for audit improved, with reported misstatements down to a gross value of $3.9 billion in 2023–24, compared to $10.8 billion in 2022–23.
Key themes
Errors in accounting for assets led to financial statements adjustments of $1.4 billion.
Our audits identified deficiencies in key controls across financial management, payroll, contract management and procurement.
Risk management
Risk management maturity is low across most agencies. Some of the largest 40 agencies self-assess their risk maturity as requiring improvement.
Capital projects
There is a lack of transparency in the NSW budget papers relating to significant capital projects. The estimated total costs for some major projects are not published as the amounts are considered commercially sensitive. The budget papers do not provide a complete and accurate reflection of the actual costs of large infrastructure projects.
Shared service arrangements
Three of the five agencies that provide shared services to 108 customer agencies did not obtain independent assurance over the effectiveness of their control environment.
Recommendations
The report makes recommendations to agencies to improve controls and processes in relation to:
- financial reporting
- financial management
- risk management
- shared service arrangements
- capital projects.
Fast facts
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Further information
Please contact Renee O'Kane, Chief of Staff, on 9275 7347 or by email.
Report snapshot: Members' additional entitlements 2024
About this report
This report reviews compliance by members of the Parliament of New South Wales with certain requirements outlined in the Parliamentary Remuneration Tribunal’s (the Tribunal) 2024 Annual Determination (the Determination).
Claims made by members for additional entitlements totalling $12.7 million were within the scope of our review. The remaining payments of $12.1 million were not reviewed as there are certain salaries and allowances that the Determination excludes from our compliance review requirements.
Claims relating to annual basic and additional salaries, additional expense allowances, and electoral and committee allowances are excluded by the Determination from the scope of our compliance review.
Findings
From a sample of 56 claims, our compliance review procedures identified 27 departures from requirements of the Determination and/or the administrative guidelines of the Department of Parliamentary Services (the Department).
There were fewer departures this year than in previous years, however late submission of claims and declarations by members continued. The Department needs to provide clarity to members on expenditure claim requirements and processes.
Recommendations
The Department should:
- enhance its assessment as to whether members’ expenditure claims comply with requirements and advise members promptly about whether their claims are ineligible
- improve its quality review processes when reporting the total number and dollar value of members’ additional entitlements claims for each year
- ensure internal audits of members’ additional entitlements are adequately scoped and endorsed prior to their commencement and reflect the requirements of the Determination. These internal audits should be completed prior to the compliance review performed by the Audit Office
- continue to work with members to provide them additional training or education and better help them comply.
Fast facts
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Further information
Please contact Renee O'Kane, Chief of Staff, on 9275 7347 or by email.
Report snapshot: Road asset management in local government
About this report
Local councils in NSW manage a large proportion of roads across the state. Roads often represent a significant proportion of total council expenditure.
How councils manage roads is impacted by their revenue, local conditions, and the needs of residents, businesses and other road users.
This audit was undertaken within the wider context of natural disasters and weather events that have significantly impacted the road network in NSW in recent years.
It assessed whether three councils had effectively managed their road assets to meet the needs of their communities, makes detailed findings and recommendations to each audited council, and identifies key lessons for the wider local government sector.
Key findings
All councils can improve how they link community consultation with planned service levels. Formalising these processes could help better demonstrate how current service levels meet community needs.
Clarence Valley Council
- has established a strategic priority for road asset management but not formal governance arrangements or a long-term capital works program
- is delivering and reporting on its work to respond to natural disasters but does not report against targets for road asset quality and service
- has set benchmarks for road asset maintenance, replacement and renewal but needs clear service levels.
Gwydir Shire Council
- did not have aligned, up-to-date asset plans during the audit period
- did not have a long-term capital works program but adopted a prioritisation program for capital works in August 2024
- did not effectively implement formal governance, or coordinate management oversight, to manage its road assets.
Wollondilly Shire Council
- has a strategic framework for road asset management and has used long-term plans to guide its asset capital and maintenance works
- has reported asset management outcomes against a planned capital works program but could improve how it uses KPIs to demonstrate performance.
Key observations of good practiceThis report identifies that effective road asset management is best supported when councils have:
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Further information
Please contact Renee O'Kane, Chief of Staff, on 9275 7347 or by email.
Report snapshot: Internal controls and governance 2024
About this report
Internal controls are key to the accuracy and reliability of agencies’ financial reporting processes. This report analyses the internal controls and governance of 26 of the NSW public sector’s largest agencies for the 2023–24 financial year.
Findings
There are gaps in key business processes, which expose agencies to risks. These gaps are identified in 121 findings across the 26 agencies – including four high-risk, 73 moderate-risk and 44 low-risk findings. All four high-risk issues related to IT controls and 19% of control deficiencies were repeat issues. Thirty-five per cent of agencies had deficiencies in control over privileged access.
Shared IT services
Six agencies provide IT shared services to 120 other customer agencies. All six had control deficiencies – three of these were high risk. Four agencies provide no independent assurance to their customers about the effectiveness of their own IT controls.
Cyber security
Eighteen agencies assessed cyber risk as being above their risk appetite. Fourteen of these agencies had not set a timeframe to resolve these risks and two agencies have not funded plans to improve cyber security.
Fraud and corruption control
Agencies need to improve fraud and corruption control. Instances of non-compliance with TC18-02 NSW Fraud and Corruption Policy were identified, including gaps such as a lack of comprehensive employment screening policies and not reporting matters to the audit and risk committee.
Gifts and benefits
Management of gifts and benefits requires better governance and transparency. All agencies had policy and guidance but all had gaps in management and implementation – such as not publishing registers nor providing ongoing training.
Information technology
Nine agencies did not effectively restrict or monitor user access to privileged accounts.
Recommendations
The report makes recommendations to agencies to implement proper controls and improve processes in relation to:
- organisational processes
- information technology
- cyber security
- fraud and corruption
- gifts and benefits.
Fast factsThe 26 largest NSW government agencies in this report cover all eleven portfolios of agencies and represent over 95% of total expenditure for the NSW public sector.
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Further information
Please contact Renee O'Kane, Chief of Staff, on 9275 7347 or by email.
Report snapshot: Supporting students with disability
About this report
Australian and state legislation protects the right of students with disability to a quality education, free from discrimination. These require that students with disability be supported to access and participate in education on the same basis as their peers without disability.
This audit assessed whether the NSW Department of Education (the department) is effectively supporting students with disability in NSW public schools.
Findings
The department has effectively designed approaches and developed reforms under its 2019 Disability Strategy and related measures.
But it still hasn’t resolved longstanding issues with funding, access to targeted supports, monitoring school practice and tracking outcomes for students with disability.
This is despite the department being made aware of these performance gaps for almost two decades across multiple audits, parliamentary inquiries and the recent national Disability Royal Commission.
Recommendations
The report makes five recommendations to address these gaps, including that the department should:
- annually monitor the experiences and outcomes of students with disability to be able to identify and address emerging issues, and promote good practice
- reform funding to be better aligned to student needs
- enhance guidance and support to schools and families on making reasonable adjustments for students with disability.
Fast facts
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Further information
Please contact Renee O'Kane, Chief of Staff, on 9275 7347 or by email.
Report snapshot: Threatened species and ecological communities
About this report
Over 1,100 native animals, plants and ecological communities are listed as threatened in New South Wales. The Department of Climate Change, Energy, the Environment and Water (DCCEEW) delivers programs and activities aiming to reduce the risk of extinction for threatened species and ecological communities.
This audit assessed whether DCCEEW has effectively delivered outcomes to support threatened species and ecological communities across New South Wales including delivery of the statutory Biodiversity Conservation Program (Saving our Species).
Findings
DCCEEW uses a risk-based approach to guide and deliver a range of programs aiming to improve the outcomes for threatened species and ecological communities.
However, DCCEEW has not effectively determined departmental priorities, coordinated programs to align efforts, or reported on the overall outcomes it is delivering for threatened species and ecological communities.
Further, DCCEEW does not capture sufficient data to monitor species that it is not actively managing, creating a risk that it cannot readily identify or respond to further decline.
Under the Saving our Species program, DCCEEW is delivering conservation actions for less than one-third of all threatened species and ecological communities. This number has reduced over time, in line with reduced program funding.
Gaps in core program planning and risk management frameworks create program delivery risks.
Recommendations
The report made several recommendations to DCCEEW, focusing on:
- strengthening Saving our Species program compliance, governance, planning and risk management frameworks
- developing a long-term framework to coordinate and align efforts across DCCEEW for the delivery of threatened species outcomes
- expanding activities to improve coordination with other parts of government delivering activities that impact on outcomes for threatened species.
Fast facts
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Further information
Please contact Claudia Migotto, Acting Deputy Auditor-General on 9275 7347 or by email.
Report snapshot: Ambulance services in regional New South Wales
About this report
NSW Ambulance delivers emergency and non emergency medical services and transport to patients in New South Wales, and connects patients who do not need an emergency medical response with the most appropriate health provider.
NSW Ambulance operates as part of a network of public health services.
This audit assessed the efficiency and effectiveness of ambulance services in regional New South Wales
Findings
NSW Health is maintaining effective ambulance services in regional New South Wales, despite increasing demand.
NSW Ambulance and the Ministry of Health use effective governance arrangements to monitor regional ambulance performance. NSW Ambulance and Local Health Districts (LHDs) communicate effectively to manage day-to-day operational challenges. However, the audit identified opportunities to improve the Ministry’s oversight of regional performance, and to enhance information sharing between NSW Ambulance and LHDs.
NSW Health is working to identify opportunities to reduce demand on the NSW Ambulance fleet and hospital emergency departments in regional New South Wales.
NSW Ambulance undertakes holistic service planning to efficiently deliver ambulance services in regional New South Wales.
Recommendations
The audit recommends that:
- The Ministry of Health, eHealth and NSW Ambulance implement a new NSW Ambulance Electronic Medical Record system
- The Ministry of Health and NSW Ambulance improve system oversight, monitoring and reporting of ambulance performance at the regional and metropolitan level
- The Ministry of Health finalise its Transport for Health strategy and undertake a review of all non-emergency patient transport operators across the state
- NSW Ambulance and LHDs improve strategic engagement with other NSW Health entities.
Fast facts
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Further information
Please contact Claudia Migotto, Acting Deputy Auditor-General on 9275 7347 or by email.