The NSW auditor-general’s report to Parliament has flagged ‘control deficiencies’ at organisations providing IT and transactional services to the Finance, Services and Innovation cluster.

The quality of financial reporting remains high despite significant control deficiencies at two organisations that provided information technology and transactional services to the Finance, Services and Innovation cluster.

These are the key findings of a report by the New South Wales auditor-general, Margaret Crawford.

The Finance, Services and Innovation cluster is responsible for customer and government service delivery, property and asset management, regulation and insurance services, revenue administration, and ICT, digital government and innovation.

The auditor’s report said that unqualified audit opinions were issued on all cluster agencies’ reports. “Cluster agencies substantially completed early close procedures but some agencies using the services of GovConnect were unable to provide all working papers by due dates.”

The report noted the Department of Finance, Services and Innovation did not maintain an effective system of internal control at the previous ServiceFirst.  Nor did it effectively manage the transition from ServiceFirst to GovConnect that occurred during 2015-16.

GovConnect, and previously ServiceFirst, provided information technology and transactional services to agencies within the NSW public sector.

Auditor-general Crawford noted the Department of Finance will need to closely monitor GovConnect’s remedial actions and resolve any remaining transition issues between ServiceFirst and GovConnect.

“They should also re-examine the significant transition breakdowns from ServiceFirst to GovConnect and apply learnings to projects currently being transitioned to the private sector.”

Details about this report can be by clicking here.