NSW Audit Office - Awareness - Issue 2003 01 - February 2003

The Audit Office Of New South Wales

Informations

• Publié par: Nopod
• Nombre de lectures: 13
• Langue: English

Extrait

AWARENESSccounting and Auditing Developments Issue 1 February 2003
AUDIT OFFICE 1AUDIT OFFICE UPDATE
UPDATE
AUDITOR-GENERAL’S REPORT TO PARLIAMENT 2002, VOLUME SIX
ACCOUNTING 5
The report was released on the 12 December 2002. Significant issues in UPDATE
this volume include:
AUDITING UPDATE 6
Compliance with aspects of State Records Act 1998 URGENT ISSUES 7
GROUP UPDATEOf the 167 agencies reviewed, 40 were totally or almost totally not
complying with the principles of the Act. Of the few agencies that fully
MISCELLANEOUS 8complied, none did so within the deadlines set by the State Records
PUBLICATIONS
Authority.
LEGISLATIVE 10
CHANGES UPDATE
Compliance with A New Tax System (Goods and Services) Act 1999
All of the 15 agencies reviewed were managing GST risk adequately, TREASURY UPDATE 12
except some need additional procedures to ensure they can deal with
PREMIER’S 15uncommon events and transactions.
DEPARTMENT
UPDATE
Office of the Protective Commissioner and Public Guardian
AUDIT OFFICE 17
Funding of the operations of the Office is not equitably borne by all BETTER PRACTICE
clients. GUIDES
There is no adequate system to identify, record, manage and report on
clients’ non-cash assets not held in the investment funds.
The Department of Aboriginal Affairs
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Communities Development Program has been spent.
Australian Museum Trust
The Museum has not reported a value for its collection assets due to
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01. This value is likely to fall by about $3.5 billion following a more
reliable valuation process that should be completed in 2002-03.
Awareness iiss ppuubblliisshheedd bbyy TThhee AAuuddiitt OOffffiiccee ooff NNeeww SSoouutthh WWaalleess,, 223344 SSuusssseexx SSttrreeeett,,
Sydney NSW 2000, GPO Box 12, Sydney NSW 2001 Telephone [phone] Facsimilie 9285 0001
Email [e-mail] Website http:www.audit.nsw.gov.au
CONTENTSSale of Powercoal
Powercoal Pty Limited was sold to Centennial Coal Company Limited on 6 August 2002 for
$306 million.
TransGrid
TransGrid has identified a potential $43 million overstatement in its deferred tax liability.
Centennial Park and Moore Park Trust
An alleged fraud at Moore Park Golf Club over several years is being investigated. It is expected
to be significant.
Building and Construction Industry Long Service Payments Corporation
Net assets declined by 85 per cent following an increase in liabilities and poor investment
returns. An increase in the Corporation’s levy on building and construction work may be
necessary to maintain a positive net asset position.
State Transit Authority
STA’s liquidity continues to deteriorate and it is relying more heavily on borrowings.
Only 36 per cent of Sydney and 4 per cent of Newcastle bus routes are profitable.
Workers’ Compensation (Dust Diseases) Board
Liabilities and assets were understated because the Board did not include an estimate for
claims incurred but not yet reported.
Further information
Barry Underwood, Acting Director Governance and Communications on 9285 0020 or
[e-mail].
2 The Audit Office of New South Wales 3PERFORMANCE AUDIT REPORT-MANAGING GRANTS
Grants are a large part of government spending. In 2001-02, the NSW Government provided
grants and subsidies worth $4.86 billion to organisations from a wide variety of industry sectorrss
including community services, health, education and the environment.
This audit examined the administration of grants by three NSW Government agencies for whichhh
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$180 million.
We considered two simple, but key issues. We wanted to find out whether agencies had
processes in place to ensure that:
grants align with their corporate objectives
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Audit Opinion and Key Findings
In our view, the agencies we studied cannot be sure that the grants they allocate align with
their corporate objectives, and that program outcomes are achieved. This is mainly due to
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Most of the grants programs had funding objectives that were fairly clear, however, we found
problems across most programs that could affect the fair and equitable selection of grants, suucchh
as:
often no procedures for assessing applications
no assessment guidelines for advisory committees
often no clear rationale for assessments
poor documentation of the reasons for decisions.
There was not enough evaluation by agencies of the results achieved from individual grants.
Likewise, not enough formal reviews were undertaken of grants programs to assess the benefits
they deliver and determine whether they continue to be relevant.
This report illustrates the problems and difficulties faced by each agency, some of which have
yet to be mastered. They were conscious of their challenges, and efforts to improve their
programs were obvious.
Recommendations
The report contains a number of recommendations to improve the selection and management of
grants and help agencies ensure that the money is spent as intended.
Further information
Tom Jambrich, Assistant Auditor-General Phone on 02 9285 0051 or [e-mail].
The report was issued on the 4 December 2002 and can be accessed at www.audit.nsw.gov.au.
2 The Audit Office of New South Wales 3PERFORMANCE AUDIT - MANAGING HOSPITAL WASTE
While this audit examined how waste is managed in four public hospitals, the report’s
comments and recommendations could well apply to other agencies. In particular:
agencies need to understand how their activities generate waste
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aarree ssaaffee,, aapppprroopprriiaattee aanndd ccoosstt--eeffffeeccttiivvee
the effective management of waste can protect public and occupational health and reduce
both expenditure and environmental damage.
Audit Opinion and Key Findings
In 1998 NSW Health developed Waste Management Guidelines to promote continuous
improvement in waste management across the public health sector.
Systematic implementation of the Guidelines was impeded in 1999-2000 by resistance from the
waste industry and transport workers. Since then, NSW Health has not actively promoted waste
management in public hospitals.
As a consequence Area Health Services (AHSs) and hospitals have developed separate and
individual responses to waste management. This has resulted in:
inconsistent management of waste
inappropriate segregation of waste
additional costs of waste disposal.
Nevertheless, the four hospitals examined have reduced their output of waste and increased
the amount of material that is recycled.
The Mid Western AHS hospitals, Orange and Cowra, have implemented the Guidelines. Amongst
other improvements this has reduced their expenditure on waste.
In contrast, Central Sydney AHS hospitals have not implemented the Guidelines. Royal Prince
Alfred and Concord are spending more on waste. These hospitals are disposing of general waste
(as defined by the Guidelines and environmental regulation) into the more expensive clinical
waste stream.
Key Recommendations
It is recommended that NSW Health review its strategy and approach to improve waste
management across public sector hospitals.
NSW Health has accepted the audit’s recommendations that it:
clarify the status of the Guidelines, and in particular the definitions of clinical and general
waste
work with key players to improve understanding of how to manage risks associated with
different hospital wastes.
For further information call Mr Denis Streater, Director Performance Audit on 02 9285 0075 or
[e-mail]. The report was issued on 10 December, 2002 and is available at
www.audit.nsw.gov.au.
24 The Audit Office of New South Wales 5ACCOUNTING UPDATE
EXPOSURE DRAFT (ED) 109 REQUEST FOR COMMENT ON INTERNATIONAL ACCOUNTING
STANDARDS BOARD (IASB) ED 3 “BUSINESS COMBINATIONS”; IASB ED OF PROPOSED
AMENDMENTS TO IAS 36 “IMPAIRMENT OF ASSETS” AND IAS 38 “INTANGIBLE ASSETS”;
AND AUSTRALIAN ACCOUNTING STANDARDS BOARD (AASB) ADDED MATERIAL
The key proposals within ED 109 that will have an effect on Australian financial reporting
include:
a non-amortisation/impairment-only approach for goodwill, and identifiable intangible
assets with indefinite useful lives
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amount of