The Auditor-General has released a report on the results of the financial audits of the Treasury, Department of Premier and Cabinet, Customer Service cluster Agencies (central Agencies), and the Legislature for last financial year (2019-2020)
In her report, Central Agencies 2020, Auditor-General Margaret Crawford said unqualified audit opinions were issued on the 2019-2020 financial statements of central Agencies and the Legislature.
“The implementation of new accounting standards was challenging for many Agencies,” Ms Crawford said.
“NSW Treasury did not adequately implement the new revenue standard AASB 1058 ‘Income of Not-for-Profit Entities’ for the Crown Entity,” she said.
“This resulted in understatements of $274 million in opening equity and $254 million to current year revenue, which have been corrected in the final financial statements.”
Ms Crawford said emergency events, such as bushfires, floods and the COVID-19 pandemic significantly impacted Agencies in the last financial year.
The Auditor-General said her Office’s audits identified nine high risk and 122 moderate risk issues across central Agencies and the Legislature.
She said the high-risk issues were in the audits of ICare NSW; the NSW Government Telecommunications Authority; the Rental Bond Board; the Independent Commission Against Corruption; NSW Treasury; Crown Entity; and the Department of Premier and Cabinet.
“Of the 122 moderate risk issues, 36 per cent were repeat issues,” Ms Crawford said.
“The most common repeat issue related to weaknesses in controls over information technology user access administration, which increases the risk of inappropriate access to systems and records.”
She made three recommendations aimed at improving the NSW Public Sector’s cyber security resilience; increasing transparency around the allocation of services fees to the Workers Compensation Nominal Insurer; and resolving identified internal control issues at the Department of Community Service.
The Auditor-General’s 58-page report can be accessed at this PS News link.
