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Audit Office of New South Wales
Margaret Crawford, Auditor-General
29 June 2017
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…
3
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
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
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
Our transition approach
• Partnering
• Collaborative engagement
• Actively listening to ideas
• Strong relationships
• Adding value
Engagement with stakeholders
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2016-17 Financial Audit Approach
12 in-house audits
128 contracted out audits
2016-17 audit approach
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
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”.
Our tools and resources
Conversation with the Auditor-General:
Your Thoughts?