Audit Office of NSW - Internal Controls and Governance 2019

In November 2019, the Audit Office of New South Wales (AONSW) released a report summarising sector-wide findings and recommendations relating to internal controls and governance from their 2018-19 financial audits of the 40 of the largest public-sector agencies in NSW.

The report classifies 349 control deficiencies identified in 2018-19 to categories like finance operational, IT operational, compliance and reporting deficiencies.  Further, frequent high risk and common findings are identified across these categories to reiterate the priority to address them.  Common themes have been identified across these 349 deficiencies and these include:

  • policies & procedures;
  • maintenance of masterfile;
  • use of purchase order;
  • IT-related;
  • contract registers;
  • document retention;
  • reporting, quality assurance and improvement program for internal audit function; and,
  • absence of central registers to manage conflicts, gifts and benefits and reconciliations.  

A robust internal control system is more likely to provide reasonable assurance of achieving operational, reporting and compliance objectives. Agencies are required to prioritise addressing these findings and/or take measures to mitigate the heightened risks identified on an ongoing basis to build a robust internal control system and an independent and dynamic Internal Audit Function.

Click here for AONSW's full report >>

This report was published on  5th November 2019 by the Audit Office of New South Wales.

 

For more information about internal controls and governance

For more information about good governance as well as any questions regarding the report, please get in touch with Tim Pittaway
Tim is a Director of the Risk Advisory division in Sydney and has over 15 years' specialist experience in the provision of internal audit, risk management, compliance audit, market audit, climate change, and alliance audit services, working with both the public and private sectors. 

Authors

Tim Pittaway
Partner - Sydney
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