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

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New South Wales Auditor-General's Report Financial Audit Volume Six New South Wales Auditor-General’s Report | Financial | Focusing Audit Six | Volume on Focusing 2012 on Environment, and Water Regional Infrastructure New South Wales Auditor-General’s Report Financial Audit Volume Six 2012 Focusing on Environment, Water and Regional 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 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 Six of my 2012 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. Peter Achterstraat Auditor-General Following a financial audit the Office issues 14 November 2012 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 Contents Significant Items ___________________________________________________________ 3 Recommendations _________________________________________________________ 6 Section One - Overview Environment Overview ___________________________________________________ 10 Water Overview ________________________________________________________ 26 Section Two - The Legislature The Legislature _________________________________________________________ 38 Section Three - Agencies with Individual Comment Minister for the Environment ________________________________________________ 44 Centennial Park and Moore Park Trust ______________________________________ 44 Environment Protection Authority ___________________________________________ 47 Taronga Conservation Society Australia _____________________________________ 50 Western Sydney Parklands Trust ___________________________________________ 56 Minister for Finance and Services____________________________________________ 58 Hunter Water Corporation ________________________________________________ 58 State Property Authority __________________________________________________ 66 Sydney Water Corporation ________________________________________________ 70 Waste Assets Management Corporation _____________________________________ 80 Minister for Planning and Infrastructure ______________________________________ 83 Barangaroo Delivery Authority _____________________________________________ 83 Corporation Sole ‘Minister Administering the Environmental Planning and Assessment Act 1979’ ________________________________________________ 86 Department of Planning and Infrastructure ___________________________________ 90 Landcom ______________________________________________________________ 93 Luna Park Reserve Trust _________________________________________________ 96 Sydney Harbour Foreshore Authority ________________________________________ 98 Sydney Metropolitan Development Authority _________________________________ 102 Minister for Primary Industries _____________________________________________ 106 Forestry Commission of New South Wales (trading as Forests NSW) _____________ 106 Sydney Catchment Authority _____________________________________________ 110 State Water Corporation _________________________________________________ 116 Wyong Water Supply Authority____________________________________________ 122 State Council of Rural Land Protection Boards of NSW ________________________ 126 1 NSW Auditor-General's Report to Parliament | Volume Six 2012 | Contents Minister for Regional Infrastructure and Services _____________________________ 128 Department of Trade and Investment, Regional Infrastructure and Services ________ 128 NSW Food Authority ____________________________________________________ 134 New South Wales Rural Assistance Authority ________________________________ 138 New South Wales Film and Television Office ________________________________ 143 Minister for Tourism, Major Events, Hospitality and Racing _____________________ 145 Destination NSW ______________________________________________________ 145 Premier _________________________________________________________________ 149 Department of Premier and Cabinet ________________________________________ 149 Election Funding Authority of New South Wales ______________________________ 154 New South Wales Electoral Commission ____________________________________ 156 Appendix 1 – Agencies not commeted on in this volume, by minister _____________ 159 Index ___________________________________________________________________ 161 2 NSW Auditor-General's Report to Parliament | Volume Six 2012 | Contents Significant Items This summary shows those matters I identified during my audits that I believe are the most significant issues agencies need to address. Page Environment Overview No measure or baseline has been determined for the target to increase renewable energy to 20 per cent by 2020 10 The EPA found 62 issues in its audit of 40 high risk premises 11 Two $200,000 penalties issued by the courts under OEH legislation in 2011-12 12 The 56 prosecutions completed by the EPA in 2011-12 resulted in 52 convictions 13 The EPA is aware of over 1,000 potentially contaminated sites across the State 14 Companies may choose not to provide remediation cost data to the EPA 15 The petroleum industry is responsible for 68 per cent of known contaminated sites 15 Derelict mines may represent the State's largest category of contamination liability 16 In 2011-12 the Crown provided a repayable advance to meet Solar Bonus Scheme costs 18 The latest projection of tariffs for the Solar Bonus Scheme is $1.3 billion 19 The Coal Innovation Fund is funding research into carbon capture and storage 21 There remains a lack of demand for Biobanking Species Credits 22 There was less hazard reduction burning in 2011-12 due to wet weather 24 Government agencies may not be complying with sustainability, waste reduction and purchasing policies 24 Water Overview Proceeds from the sale of the desalination assets and company were $2.3 billion, resulting in a profit of $261 million 27 Sydney Water's prices include the cost of the desalination plant 28 Water storage levels are the highest for some time 29 NSW dams are not designed to mitigate floods 30 Sydney Water is seeking to lower a barrier to competition for retail water businesses 30 Water entities appear to respond well to IPART's Operational Audits 33 The carbon price scheme has a small impact on water prices 34 The Legislature The number of sitting days in parliament increased significantly 39 Centennial Park and Moore Park Trust Centennial Parklands Foundation is no longer controlled 44 The number of visitors to the parklands is increasing 44 3 NSW Auditor-General's Report to Parliament | Volume Six 2012 | Significant Items Environment Protection Authority The EPA became an independent statutory authority on 29 February 2012 47 The EPA has actioned all the O'Reilly Report recommendations 47 Orica was ordered to spend $20.0 million to upgrade facilities 48 Taronga Conservation Society Australia Attendance at Taronga Western Plains Zoo continues to improve 51 The Endanger Ranger Program helped disadvantaged school children 53 Zoo Friends membership is at record levels 53 496 active volunteers in Taronga Zoo averaged 272 volunteer hours per day 53 Western Sydney Parklands Trust Visitors to the parklands increased by 20 per cent 56 Business
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