APPENDICES - Department of Education and Communities - NSW ...

APPENDIX 9Performance and Management ReviewsInternal AuditsNSW Public SchoolsDuring 2001, the Department undertook 1,210 school audits.These audits found that 95 per cent of the schools managedtheir finances satisfactorily, 4 per cent had qualified reports,and 1 per cent had unsatisfactory findings. Common findingsand summary reports were provided to district offices. Auditsof district offices had satisfactory results. Audits were alsoundertaken in areas such as school enrolments, equity programs,payroll and leave systems.TAFE NSWAudits of major high-risk TAFE NSW institute functions suchas payroll and student records were conducted at numerouslocations in all institutes. The payroll audits concentrated onestablishment and recruitment issues and the results weresatisfactory at all locations. The audit of student records showedsimilar results as in the previous year. A comprehensive reviewof all aspects of the enrolment and record keeping processes isunderway.Statewide AuditsStatewide audits covering bank accounts, residential facilities,child minding centres, domestic travel and non-resident studentshad satisfactory results. Departmental staff undertook 32 auditsin State office directorates. Significant system improvementsresulted from these audits. Some examples are listed below.Departmental Procedures and Practices! The Department reviewed procedures and practicesfollowed to collect and report data for Fringe Benefits Tax(FBT) purposes. The audit identified the need to providefurther training and support for staff preparing individualFBT returns including clarification of benefit types.! For the financial year ending 30 June 2001, the Departmentpaid GST totalling $138 million and collected GST of $4million resulting in a net refund of $134 million. A review ofGST compliance within State office responsibility centresconcluded that the Department has systems and proceduresin place to transact correctly and comply with the GSTlegislative requirements.! An audit of corporate credit cards highlighted a number ofconcerns which involved suspected fraud, non compliancewith the guidelines and a need to strengthen usage reviewswithin cost centres. Action has been taken to strengthencontrol in this area.! A probity audit service was provided on the tenders for theISP Provider and the Special Student Transport Scheme.This service provided advice and recommendations to thecontract management committees to ensure transparencyin the tender evaluation process.252 NSW Department of Education and Training Annual Report 2001! The Department developed computer assisted audittechniques (CAATs) to interrogate data on the permanentand casual payrolls. The CAATs are designed to identifyunusual transactions which are outside set parameters. Thesetransactions may result in overpayments or unearth theexistence of fraud. In relation to the permanent payroll, theaudit made recommendations to improve preventativecontrols. For the casual payroll, only minor procedural issueswere identified and these were addressed during the courseof the audit.! The Department’s Audit Directorate participated in an e-Purchasing Project Working Group which consideredproposed changes to business procedures to improve theefficiency of the purchase and payment cycle in accountspayable, and the feasibility of using electronic market placeplatforms to pilot direct electronic purchasing of paper andstationery items.! A review of IT security across the Department coincidedwith, and complemented NSW Cabinet’s directive toimplement a government-wide IT security approach. Thereview identified several key areas needing improvementand action is being taken by the Department’s InformationTechnology Directorate to enhance security systems.! A follow-up review on the implementation of previous auditrecommendations concerning demountable classrooms wassatisfactory. The review also examined the hire ofdemountables to the Olympics Co-ordination Authority andwhether they were returned in the agreed condition. Theresult was satisfactory. A risk profile was also preparedthrough consultation with key stakeholders from which twoissues were identified and addressed.Directorates! A review of the Department’s International Business Unitresulted in a complete restructure of this area includingchanging its base of operations from the Bridge Street Officeto Sydney Institute.! Departmental staff conducted a review of the adequacy ofcorporate services provided to Directorates located at theRyde site. The review recommended the establishment of aposition for a dedicated officer responsible for the overallmanagement of the site. The audit also suggestedimprovements to information technology support, parkingat the site, storage and the management of shared conferencefacilities and equipment.! A review of distance education addressed inequities betweenthe staffing formulae for the Department’s autonomousand integrated distance education centres. Departmentalstaff provided preferred options to form the basis forequitable teacher and executive staff formulae for secondarycentres.! An audit of data management in the Department’s StrategicInformation and Planning Directorate identified the need toestablish Directorate-based performance indicators andsystems to measure and report on outcomes, and theneed to ensure that the streamlining of electronic datacollection processes is considered in relation to the systemthat will replace OASIS, the Department’s current schoolinformation system.