The NSW Auditor-General has presented her report on State finances for 2019 revealing once again that she issued an unmodified audit opinion on the State’s consolidated financial statements.
The Auditor-General, Margaret Crawford said strong financial management and transparent reporting were key elements of the State’s system of government.
“The number of errors in agencies’ 2018–19 financial statements fell to six compared to the 23 recorded in 2017–18,” Ms Crawford said.
“This reflects Treasury’s focus on early close and the resolution of complex accounting matters before submission.”
She said that in order to further increase transparency, a ‘Key Audit Matters’ section was included in her Independent Auditor Report on the Total State Sector Accounts this year.
“This explains those matters considered most significant to the conduct of the audit and requiring significant management judgement.”
Ms Crawford said that looking forward, certain factors had the potential to impact on the accuracy and completeness of the Total State Sector Accounts in coming years.”
“First,” she said, “three new accounting standards are effective from 1 July 2019 and a fourth from 1 July 2020.”
“Transitioning to new standards requires significant planning and resources to ensure the impacts are appropriately assessed and accounted for.”
She said the second was the Government Sector Finance Act 2018 which will be implemented in stages over three years to 2020–21.
“This Act is intended to focus on performance, transparency, accountability, and efficiency of financial management in the government sector,” she said.
“I encourage Agencies to build their awareness of this important reform and ensure their alignment with the principles of the Act.”
The Auditor-General’s 24-page report can be accessed at this PS News link.
