audit office of new south wales - local …...• adding value engagement with stakeholders 8...
TRANSCRIPT
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Audit Office of New South Wales
Margaret Crawford, Auditor-General
29 June 2017
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Key Proposition
Independent audit is a key element of good
governance
Good governance promotes community
confidence and drives performance
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This session will cover…
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Agenda
1. Background and overview of the audit mandate
2. How the Audit Office has managed the transition
3. Update on where we are at:
- Financial Audits
- Performance Audits
- Auditor-General’s Report to Parliament
4. Tools and resources
5. Conversation with the Auditor-General - your
thoughts
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The Audit Office and its new Local
Government audit mandate
Audit Office of NSW established in 1824
Proud history of independent pubic
sector financial and performance audits
Reports to Parliament – not the
Executive
Local Government Amendment
(Governance and Planning) Act 2016
made the Auditor-General the auditor of
local councils from 1 July 2016
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Why change the audit arrangements –
what’s the ‘value add’?
Part of NSW Government’s broader local
government reform agenda
2013 Independent Panel Review
recommendation
Deep public sector knowledge
Greater consistency of approach
Whole of sector insights/benchmarking
Community trust and confidence
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How we consider governance in our
Financial Audits
Risk
management
Procurement
practices
Gifts and benefits
Fraud and
Corruption
Project governance
Effectiveness of:
- Audit, Risk and
Improvement Committee
- Internal audit
Conflicts of
interest
Legislative
compliance
Related parties Code of
conduct
Policies and
procedures
IT Governance
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Our transition approach
• Partnering
• Collaborative engagement
• Actively listening to ideas
• Strong relationships
• Adding value
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Engagement with stakeholders
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2016-17 Financial Audit Approach
12 in-house audits
128 contracted out audits
2016-17 audit approach
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Some Early Observations
Variations in Councils’ services Challenging system integration Old chestnuts:
Rural Fire Service assets Crown Land assets Valuation of assets Depreciation
New challenges: Related parties Council entities IT general controls and cyber security
Review of the Local Government code
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Performance Audit
Effectiveness, Efficiency, Economy
Initial topics:
Reporting on service delivery
Fraud controls
Shared services
Sector-wide – showcase best practice
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Auditor-General’s Report to
Parliament
Under section 421C of the LG Act
the “Auditor-General is to report
annually on any local government
sector-wide matters arising from
the examination of financial
statements of councils and the
exercise by the Auditor-General of
audit or other functions under this
Act”.
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Our tools and resources
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Conversation with the Auditor-General:
Your Thoughts?