The NSW auditor has called on Service NSW to take action after a ‘high risk’ finding that there are gaps in the way it manages and reports on grant programs.
Service NSW administered a range of economic stimulus and disaster recovery support programs and in the last financial year, and paid $814 million across 22 different programs to support NSW residents.
While the size of its administered grant programs has decreased, the number of programs this year was higher, a report by Auditor General Margaret Crawford shows.
The audit reported a repeat high-risk finding in relation to “gaps in policies, systems and processes for administering and financial reporting on grant programs” by Service NSW, including mechanisms to ensure grants are being used for the right purpose.
Service Australia was also slow to assess grant programs, and when it did, there were questions about the quality of the assessment, in what the report said was an ongoing issue from the previous audit.
“A repeat high-risk finding was reported in Service NSW in relation to its grant administration and financial reporting,” Ms Crawford said.
“Service NSW should remediate the gaps in the current policies, systems and processes in administering and financial reporting of grant programs.”
Monetary misstatements down
The audit considered financial statements across the customer service portfolio.
It found 15 monetary misstatements, or errors in the amount initially submitted for audit, which was down from 39 in 2021–22.
The department’s land titling database, which is managed by a private operator, was overstated by $42.5 million due to errors in the valuation model, the report said. Human error was a factor.
Meanwhile, Fin Co, a special purpose trust created as part of the government’s project to replace flammable cladding for its residential apartment buildings, did not prepare financial statements in breach of the Government Sector Finance Act.
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