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New South Wales Auditor-General's Report Financial Audit Volume Nine

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New South Wales Auditor-General's Report Financial Audit Volume Nine New South Wales Auditor-General’s Report | Financial | Focusing Audit on Nine | Volume Environment, 2013 and Water Infrastructure New South Wales Auditor-General’s Report Financial Audit Volume Nine 2013 Focusing on Environment, Water and Infrastructure 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 [email protected] office hours 8.30 am–5.00 pm audit.nsw.gov.au 39528 Audit Office Volume 9 FAB Red.indd 1 28/11/13 3:02 PM The role of the Auditor-General GPO Box 12 The roles and responsibilities of the Auditor- Sydney NSW 2001 General, and hence the Audit Office, are set out in the Public Finance and Audit Act 1983. Our major responsibility is to conduct financial or ‘attest’ audits of State public The Legislative Assembly The Legislative Council sector agencies’ financial statements. Parliament House Parliament House Sydney NSW 2000 Sydney NSW 2000 We also audit the Total State Sector Accounts, a consolidation of all agencies’ accounts. Pursuant to the Public Finance and Audit Act 1983, Financial audits are designed to add credibility I present Volume Nine of my 2013 report. to financial statements, enhancing their value to end-users. Also, the existence of such audits provides a constant stimulus to agencies to ensure sound financial management. Grant Hehir Auditor-General Following a financial audit the Audit Office December 2013 issues a variety of reports to agencies and reports periodically to parliament. In combination these reports give opinions on the truth and fairness of financial statements, and comment on agency compliance with certain laws, regulations and government directives. They may comment on financial 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 efficiently and in compliance with relevant laws. Audits may cover all or parts of an agency’s operations, or consider particular Our vision issues across a number of agencies. To make the people of New South Wales proud of the work we do. Performance audits are reported separately, with all other audits included in one of the Our mission regular volumes of the Auditor-General’s To perform high quality independent audits Reports to Parliament – Financial Audits. of government in New South Wales. audit.nsw.gov.au 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 © Copyright reserved by the Audit Office of New South and the value we deliver. Wales. All rights reserved. No part of this publication may be reproduced without prior consent of the Audit Office of New South Wales. The Audit Office 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 39528 Audit Office Volume 9 FAB Red.indd 2 28/11/13 3:02 PM Contents Significant Items ___________________________________________________________ 3 Recommendations _________________________________________________________ 6 Section One – Overview 7 Environment Overview ______________________________________________________ 8 Water Overview ___________________________________________________________ 27 Section Two – Agencies with Individual Comment 49 Minister for the Environment ________________________________________________ 50 Centennial Park and Moore Park Trust ______________________________________ 50 Royal Botanic Gardens and Domain Trust ____________________________________ 54 Western Sydney Parklands Trust ___________________________________________ 57 Minister for Family and Community Services __________________________________ 60 Department of Family and Community Services _______________________________ 60 Home Care Service of New South Wales ____________________________________ 72 NSW Businesslink Pty Ltd ________________________________________________ 75 Minister for Finance and Services____________________________________________ 77 Government Property NSW _______________________________________________ 77 Waste Assets Management Corporation _____________________________________ 82 Minister for Planning and Infrastructure ______________________________________ 86 Barangaroo Delivery Authority _____________________________________________ 86 Corporation Sole ‘Minister Administering the Environmental Planning and Assessment Act, 1979’ _____________________________________________________________ 91 Department of Planning and Infrastructure ___________________________________ 94 Landcom ______________________________________________________________ 98 Luna Park Reserve Trust ________________________________________________ 102 Sydney Harbour Foreshore Authority _______________________________________ 104 UrbanGrowth NSW Development Corporation________________________________ 109 Premier _________________________________________________________________ 113 Department of Premier and Cabinet ________________________________________ 113 Election Funding Authority of New South Wales ______________________________ 120 New South Wales Electoral Commission ____________________________________ 121 Public Service Commission ______________________________________________ 123 The Legislature ________________________________________________________ 125 Minister for Primary Industries _____________________________________________ 129 Forestry Corporation of NSW (trading as Forestry Corporation) __________________ 129 Minister for Regional Infrastructure and Services _____________________________ 135 NSW Food Authority ____________________________________________________ 135 1 NSW Auditor-General's Report to Parliament | Volume Nine 2013 | Contents Minister for Tourism, Major Events, Hospitality and Racing _____________________ 139 Destination NSW ______________________________________________________ 139 Appendix 1 ______________________________________________________________ 145 Index ___________________________________________________________________ 149 2 NSW Auditor-General's Report to Parliament | Volume Nine 2013 | Contents Significant Items This summary shows the most significant issues identified during my audits. Page Environment Overview The NSW Government committed over $1.3 billion for the environment and heritage portfolios in 2012-13 8 No measure or baseline has been developed for the target to increase renewable energy to 20 per cent by 2020 9 A penalty of $80,040 was imposed under native vegetation legislation in 2012-13 13 Of the 72 prosecutions completed by the EPA in 2012-13, 69 resulted in convictions 14 The average fine imposed under EPA legislation is around $4,500. The number of larger fines imposed by the EPA fell significantly in 2012-13 14 The petroleum industry is responsible for 67 per cent of known contaminated sites 16 The NSW Treasurer provided $116 million in 2012-13 to cover shortfalls in the Solar Bonus Scheme 19 The latest projection of costs for the Solar Bonus Scheme remains at $1.3 billion 20 Visitor numbers to NSW national parks increased and satisfaction levels remain high 21 The National Parks and Wildlife Service completed the largest ever hazard reduction effort in 2012-13 22 Lightning strike was the most common cause of bushfire in NSW national parks in 2012-13 24 Environmental rating energy targets will be proposed for government new builds and government office fit-outs 25 Water Overview The cost of having the Sydney Desalination Plant available is about $100 per customer per year 28 Tillegra land market values declined by $28.5 million at 30 June 2013 29 A challenge for the Sydney Catchment Authority is monitoring the impact of mining on the water supply 30 Sydney Water has plans to replace its existing customer service system for an estimated cost of $187 million 30 State Water is rolling out a State-wide water metering project 30 The four major water agencies had total borrowings of $7.4 billion at 30 June 2013 34 Sydney Water’s actual sales exceeded forecast in 2012-13, for the first time in five years 37 Water agencies’ unfunded liabilities for defined benefit superannuation increased by 82 per cent in the last five years 39 The water agencies completed most planned maintenance of water supply facilities 42 The four major water agencies achieved high levels of compliance with licence conditions 43 Two out of the four major water agencies received minor infringement penalty notices from the EPA 44 3 NSW Auditor-General's Report to Parliament | Volume Nine 2013 | Significant Items Sydney Water and Hunter Water have maintained infrastructure leakage indexes below two for the past three years 45 Sydney Water implemented all recommendations of the ICAC 45 Centennial Park and Moore Park Trust Centennial Park and Moore Park Trust continues to grow its commercial revenue to fund operations 51 Royal Botanic Gardens and Domain Trust The Trust granted funds out of the NSW public sector without a competitive grant process 54 Western Sydney Parklands Trust Visitor numbers to Western Sydney Parklands Trust increased by 15 per cent in 2012-13 57 Western Sydney Parklands Trust will have a new revenue stream when ‘Wet ‘n’ Wild Sydney’ opens in December 2013 58 Department of
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