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 The Legislative Council
Parliament House Parliament House
Sydney NSW 2000 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
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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 1 contains the names of agencies not reported elsewhere in this Volume. These agencies

received unqualified audit opinions and have no significant issues to report.

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i
Contents


Significant Items iii


SECTION ONE – Commentary on Government Agencies
Minister for Citizenship 3
Minister for Education and Training 5
Department of Education and Training 7
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 1 – Agencies not reported elsewhere in this Volume 91


INDEX 93
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iii
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.
8



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.
41



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iv
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.
76




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Section One

1











Commentary on Government Agencies



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3
Minister for Citizenship

Refer to Appendix 1 for:

Community Relations Commission for a Multicultural New South Wales


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5
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 1 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.

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