Sydney Water Operational Audit 2011/2 - IPART - NSW Government

Executive summary
Introduction
GHD conducted a detailed audit of Sydney Water’s compliance against nominated clauses of its
Operating Licence for the 2011/12 year (ending 30 June 2012) on behalf of the Independent
Pricing and Regulatory Tribunal of NSW (IPART).
IPART provided instructions on the nominated sections of Sydney Water’s licence for audit
(complete listing of the audit scope is at Appendix H – Audit Scope). IPART selected the clauses
to be audited using its risk-based audit scope methodology (details of the risk-based methodology
are in Audit Scope section of Chapter 1 – Introduction). The Mandatory Requirements of the
previous Audit (R2.1 and R2.2 of 2010/11) were examined to determine if satisfactory progress
had been made to address them. Secondary recommendations of the previous audit were also
considered in focussing the audit scope for 2011/12.
A glossary and dictionary of terms used in this report is provided at Appendix A.
Overall Performance
Sydney Water has managed its resources in 2011/12 to achieve Full Compliance with the
Operating Licence, as shown below in Table ES - 1.
Table ES - 1 Summary of Compliance
Part
Compliance - Overall
2. Water Quality Full compliance
3. Infrastructure Performance Full compliance
7. Water Conservation Full compliance
Key Findings and Recommendations by Licence Part
There were no Key Recommendations identified against each Licence part audited. A number of
Opportunities for Improvement have been developed. Sydney Water is encouraged to give due
consideration to those recommendations and facilitate improved performance for subsequent
audit periods.
Water Quality – Part 2
Under the risk-based audit scope, all clauses in this part of the Operating Licence were subject to
audit. Sydney Water achieved Full Compliance in meeting its licence requirements for the quality
of water supplied during the audit period.
The drinking water supplied is of an excellent standard and complies with the requirements of
NSW Health and the Australian Drinking Water Guidelines (ADWG) (2004) with work progressing
to implement any changes required to meet the 2011 version of the ADWG. This has occurred
across Sydney Water’s area of operations including Build Own Operate (BOO) schemes. It is also
being conducted in consultation with relevant stakeholders such as NSW Health and the Sydney
Catchment Authority.
The recycled water supplied is of an excellent standard and complies with the requirements of the
Australian Guidelines for Water Recycling (AGWR) (2006). Although not all Recycled Water
Quality Management Plans have been fully signed off by NSW Health within the audit period, all
Plans have been sufficiently developed and submitted for signing, which is likely to occur
according to correspondence with NSW Health.
GHD | Report for Independent Pricing and Regulatory Tribunal - Operational Audit of Sydney Water Corporation, 23/14602 | i