1. New Directions in Financial and Performance Oversight How can our audits add value to the sector?
Margaret Crawford, Auditor-General
29 November 2018

2. This session will cover…
Agenda
1. Two years in – how we approach our role
2. Our insights – strengths and challenges
3. The value add we bring

3. Local Government Audit mandate* – at a glance
Financial audit of all NSW Councils
Performance audit – sector wide or individual Councils
Sector report to Parliament – annual report on the results of all audits
* Under the Local Government Amendment (Governance and Planning) Act 2016

4. Immediate Impacts of new mandate
Sector Impact
Increased cost
Increased expectations
Audit Office Impact
30% increase in workload
Understand new sector
New partnerships
New business model

5. Insights from first two years
Strengths
unique and diverse
close to people they represent
commitment to community outcomes
Challenges
financial sustainability
capability – staff and elected officials
relationship with state and commonwealth governments
integrity/trust

6. Local Government Report to Parliament
First sector report tabled in Parliament on 20 April 2018
Insights around:
Financial reporting
Financial performance and sustainability
Asset management
Governance and internal controls
Information Technology
Data visualisation tool
Short video

7. Performance Audit Reports

8. Annual Work Program Financial Audit Focus
Procurement practices and contract management
Valuation of infrastructure
IT systems
Performance Audits to 30 June 2019
Waste management in local government
Development assessment
Workforce planning

9. Value Add? Consistency Benchmarking Improved standards
Audits focused on key risks and performance gaps
Recommendations to councils and to state government
Best practice guidance

10. Questions?