Professional people with purpose Making the people of New South Wales proud of the work we do. Level 15, 1 Margaret Street Sydney NSW 2000 Australia t +61 2 9275 7100 f +61 2 9275 7200 e mail@audit.nsw.gov.au ofce hours 8.30 am–5.00 pm audit.nsw.gov.au New South Wales Auditor-General’s Report Financial Audit Volume Seven 2011 Focusing on Law, Order and Emergency Services New South Wales Auditor-General’s Report | Financial Audit | Volume Seven 2011 | Focusing on Law, Order and Emergency Services This is trial version www.adultpdf.com The role of the Auditor-General The roles and responsibilities of the Auditor- General, and hence the Audit Ofce, are set out in the Public Finance and Audit Act 1983. Our major responsibility is to conduct nancial or ‘attest’ audits of State public sector agencies’ nancial statements. We also audit the Total State Sector Accounts, a consolidation of all agencies’ accounts. Financial audits are designed to add credibility to nancial statements, enhancing their value to end-users. Also, the existence of such audits provides a constant stimulus to agencies to ensure sound nancial management. Following a nancial audit the Ofce issues a variety of reports to agencies and reports periodically to parliament. In combination these reports give opinions on the truth and fairness of nancial statements, and comment on agency compliance with certain laws, regulations and Government directives. They may comment on nancial prudence, probity and waste, and recommend operational improvements. We also conduct performance audits. These examine whether an agency is carrying out its activities effectively and doing so economically and efciently and in compliance with relevant laws. Audits may cover all or parts of an agency’s operations, or consider particular issues across a number of agencies. Performance audits are reported separately, with all other audits included in one of the regular volumes of the Auditor-General’s Reports to Parliament – Financial Audits. audit.nsw.gov.au GPO Box 12 Sydney NSW 2001 The Legislative Assembly Parliament House Sydney NSW 2000 Pursuant to the Public Finance and Audit Act 1983, I present Volume Seven of my 2011 report. Peter Achterstraat Auditor-General 23 November 2011 © Copyright reserved by the Audit Ofce of New South Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Ofce of New South Wales. The Audit Ofce does not accept responsibility for loss or damage suffered by any person acting on or refraining from action as a result of any of this material. Professional people with purpose audit.nsw.gov.au Our vision To make the people of New South Wales proud of the work we do. Our mission To perform high quality independent audits of government in New South Wales. Our values Purpose – we have an impact, are accountable, and work as a team. People – we trust and respect others and have a balanced approach to work. Professionalism – we are recognised for our independence and integrity and the value we deliver. The Legislative Council Parliament House Sydney NSW 2000 This is trial version www.adultpdf.com 1 NSW Auditor-General's Report Volume Seven 2011 CONTENTS Significant Items 2 Recommendations 4 Section One - Overview Emergency Services Overview 8 Law and Order Overview 13 Section Two - Agencies with Individual Comment Attorney General Department of Justice and Attorney General 26 Legal Aid Commission of New South Wales 39 NSW Trustee and Guardian 43 Office of the Director of Public Prosecutions 51 Minister for Police and Emergency Services NSW Police Force 55 Fire and Rescue New South Wales 61 NSW Rural Fire Service 69 State Emergency Service 74 Treasurer Crown Entity 77 NSW Self Insurance Corporation 80 The Treasury 84 Appendix 1 – Agencies not reported elsewhere in the volume, by Minister 86 Index 87 Contents This is trial version www.adultpdf.com 3 NSW Auditor-General's Report Volume Seven 2011 SIGNIFICANT ITEMS NSW Rural Fire Service Bushfire incidents significantly decreased in 2010–11 due to a quieter than normal bushfire season 69 Wet weather, reduced the number of opportunities to conduct hazard reduction burning 69 State Emergency Service On two occasions ‘Flood and Storm’ disasters were declared affecting 45 LGAs in NSW 75 Crown Entity I issued a qualified opinion due to the Crown’s inappropriate application of equity accounting 77 I am unable to obtain evidence required to determine whether adjustments are required to amounts reported in respect of the investment in Snowy Hydro Limited 77 The Crown Entity’s net deficiency has exceeded $50.0 billion in 2010-11 79 NSW Self Insurance Corporation My opinion on the Corporation’s financial statements was qualified due to its choice of accounting policies 80 The Treasurer confirmed the terms of the Corporation’s enabling legislation as appropriate 80 Performance indicators show improved efficiencies over the past five years 80 This is trial version www.adultpdf.com 5 NSW Auditor-General's Report Volume Seven 2011 RECOMMENDATIONS Fire and Rescue New South Wales I again recommend the Department implement its planned workplace reforms to continue addressing the challenges of managing its workforce. 61 New South Wales Crime Commission The Commission should consider how it can improve reporting its performance to its stakeholders. When compared to performance reporting by other jurisdictions, I believe the Commission’s reporting against Key Performance Indicators (KPIs) may be improved. 66 The Commission’s internal audit section should consider increasing the proportion of time it spends on operational and performance audits as part of its annual internal audit program. 66 This is trial version www.adultpdf.com . pm audit. nsw.gov.au New South Wales Auditor-General’s Report Financial Audit Volume Seven 2011 Focusing on Law, Order and Emergency Services New South Wales Auditor-General’s Report | Financial. Financial Audit | Volume Seven 2011 | Focusing on Law, Order and Emergency Services This is trial version www.adultpdf.com The role of the Auditor-General The roles and responsibilities of the Auditor-. NSW Auditor-General's Report Volume Seven 2011 CONTENTS Significant Items 2 Recommendations 4 Section One - Overview Emergency Services Overview 8 Law and Order Overview 13 Section