AUDITOR-GENERAL’S REPORT FINANCIAL AUDITS Volume Nine 2009_part1 pptx

AUDITOR-GENERAL’S REPORT FINANCIAL AUDITS Volume Nine 2009 focusing on Education and Communities The Legislative Assembly Parliament House Sydney NSW 2000 The Legislative Council Parliament House Sydney NSW 2000 Pursuant to the Public Finance and Audit Act 1983, I present Volume Nine of my 2009 Report Peter Achterstraat Auditor-General Sydney December 2009 This is trial version www.adultpdf.com GUIDE TO USING THIS VOLUME This Volume summarises the results of a number of our financial audits We have attempted to adopt a ‘plain English’ style of writing This is not always easy when describing technical issues, but we recognise the diversity of our readership and their needs This Volume has one section which provides comments on financial audits of government agencies It is divided into ministerial portfolios, each containing one or more government agencies Each agency’s comment begins with a summary of our Audit Opinion This is a key result of each audit An ‘unqualified Independent Auditor’s Report’ means we are satisfied that the agency has prepared its financial report in accordance with Australian Accounting Standards (and other mandatory requirements) It also means we believe the report has no material misstatements and the scope of our audit has not been limited If any of these aspects are not met we issue a ‘qualified Independent Auditor’s Report’ and explain why we did this The next part of the comment outlines any Key Issues we identified during the audit These are matters such as:     recommendations to Parliament significant findings or outcomes of the audit any major developments impacting on the agency’s role or activities key repeat findings The Audit Opinion and the Key Issues represent the more important findings By targeting these, readers can quickly understand the major issues facing a particular agency, or glance through a number of reports to assess the financial health of a portfolio Performance Information covers key financial and operational statistics we have identified that help understand how well the agency is performing Wherever possible we include comparisons with similar agencies interstate The next two parts of the comment contain analysis of issues we identified during our audit While many of these will include suggestions for improvement, these are not as significant as the issues outlined in the first two parts of the agency comment Other Information summarises any other matters noted during the audit of the agency that warrant inclusion in this Report Financial Information summarises the essential information from each agency’s financial report While this is sufficient for a broad understanding of the agency’s financial position, readers can access more detailed financial statements in the agency's annual report or website Agency Activities summarises the agency’s purpose, services, structure, relevant legislation, and its web address While some ‘agency comments’ in this Volume will have all of the headings outlined here, this will vary depending on the size of the organisation and the findings of our audit The Agency Response appears where the head of an agency does not believe that the commentary in our Report adequately reflects the agency's position or actions taken As we discuss our proposed comments with agency staff during the drafting process, few agencies ask for a formal response to be included Appendix contains the names of agencies not reported elsewhere in this Volume These agencies received unqualified audit opinions and have no significant issues to report This is trial version www.adultpdf.com Contents Significant Items iii SECTION ONE – Commentary on Government Agencies Minister for Citizenship Minister for Education and Training Department of Education and Training New South Wales Technical and Further Education Commission 28 Office of the Board of Studies 34 Minister for Gaming and Racing 37 Minister for Lands 39 Wentworth Park Sporting Complex Trust 41 Minister for Planning 43 Sydney Olympic Park Authority 45 Minister for Sport and Recreation 49 Centennial Park and Moore Park Trust 51 Centennial Parklands Foundation 54 Sydney Cricket and Sports Ground Trust 55 Wollongong Sportsground Trust 57 Minister for the Arts 59 Art Gallery of New South Wales Trust 61 Australian Museum Trust 64 Department of the Arts, Sport and Recreation 67 Historic Houses Trust of New South Wales 70 Library Council of New South Wales 73 Sydney Opera House Trust 76 Trustees of the Museum of Applied Arts and Sciences 79 Minister for Western Sydney 83 Western Sydney Parklands Trust 85 Minister for Youth 87 APPENDIX Appendix – Agencies not reported elsewhere in this Volume 91 INDEX 93 This is trial version www.adultpdf.com i This is trial version www.adultpdf.com Significant Items Page Department of Education and Training The results of the National Assessment Program – Literacy and Numeracy indicated New South Wales students performed consistently better than the national average and had fewer performing at or below the national minimum standard Although retention rates in New South Wales remained stable in 2008, they fell below the national average 10 The results of the 2008 national tests for New South Wales Aboriginal students indicated that they performed consistently better than the national average for Aboriginal students 11 The number of workers’ compensation claims incurring cost reported by the Department reduced by 5.8 per cent and the number of days lost due to workplace injury decreased by 20.6 per cent in 2008-09 13 The Building Education Revolution is a $3.5 billion funding boost for New South Wales The number of projects and tight timeframes creates risks in ensuring value for money is achieved 15 The Department estimates the backlog of school maintenance has fallen from $50.8 million last year to $21.3 million 17 There has been little improvement in the number of staff with annual leave balances in excess of 40 days 19 The Department is still faced with the issue of large numbers of retiring teachers and the loss of their associated skills, 44.1 per cent of school teachers are aged 50 years and over 19 The number of international students enrolled increased by 23.3 per cent in 2008 resulting in an increase in fees of $8.2 million or 31.7 per cent 24 New South Wales Technical and Further Education Commission Government expenditure per student hour has decreased by 18.1 per cent since 2004 29 The Commission estimates that backlog maintenance has risen from $27.7 million in 2007-08 to $37.6 million in 2008-09 29 The number and cost of workers’ compensation claims has decreased by 10.3 per cent and 25.3 per cent respectively 30 157 non-teaching TAFE NSW employees earned 20 per cent or more of their gross salary in overtime 31 Wentworth Park Sporting Complex Trust The Trust does not have the capacity to pay $6.5 million owed to Greyhound Racing NSW This is trial version www.adultpdf.com 41 iii Centennial Park and Moore Park Trust The Trust has completed its seven year, $50.0 million Park Improvement Plan 51 The Trust has generated sufficient revenues to meet increasing costs and reduce its reliance on government funding 52 Wollongong Sportsground Trust On 16 October 2009, the New South Wales Government announced it would provide $28.9 million to replace the Western Grandstand 57 The Entertainment Centre hosted fewer events and earned lower returns during 2008-09 57 Art Gallery of New South Wales Trust The newly constructed, $27.6 million off-site collection storage facility at Lilyfield is expected to be operational in November 2009 62 The Art Gallery purchased the 1888 Paul Cezanne painting ‘Bords de la Marne’ for $16.2 million 62 Australian Museum Trust The absence of an appropriate collections database impedes the Museum’s ability to discharge its stewardship responsibilities over its collections 64 A New Collections and Research Building was completed during the year at a cost of $34.0 million This was the first major new building to be constructed by the Museum in 20 years 65 Sydney Opera House Trust Stage Machinery is approaching the end of its useful life and operational problems are now critical iv This is trial version www.adultpdf.com 76 Section One Commentary on Government Agencies This is trial version www.adultpdf.com This is trial version www.adultpdf.com Minister for Citizenship Refer to Appendix for: Community Relations Commission for a Multicultural New South Wales This is trial version www.adultpdf.com This is trial version www.adultpdf.com Minister for Education and Training Department of Education and Training New South Wales Technical and Further Education Commission Office of the Board of Studies Refer to Appendix for: Arts Education Foundation Trust Coffs Harbour Technology Park Limited *NSW Board of Vocational Education and Training NSW Institute of Teachers *NSW Vocational Education and Training Accreditation Board The Board of Studies *Uniprojects Pty Limited *Universities Admissions Centre (NSW & ACT) Pty Limited * The audit was incomplete at the time of compiling this Volume The comment will be included in a later 2009 Volume This is trial version www.adultpdf.com ... inclusion in this Report Financial Information summarises the essential information from each agency’s financial report While this is sufficient for a broad understanding of the agency’s financial position,...GUIDE TO USING THIS VOLUME This Volume summarises the results of a number of our financial audits We have attempted to adopt a ‘plain English’ style of... result of each audit An ‘unqualified Independent Auditor’s Report? ?? means we are satisfied that the agency has prepared its financial report in accordance with Australian Accounting Standards (and