❓ Dr. Honey questions the Treasurer about increased audit qualifications and financial miscalculations in government agencies. The Treasurer defends the government's actions, citing machinery-of-government changes, uncovering fraud, increased funding for the Auditor General, and recruitment challenges.
AnsweredQoN 44Legislative Assembly
QuestionView source ↗
McGOWAN GOVERNMENT —
AUDIT FINDINGS
44. Dr D.J. HONEY to the Treasurer:
The report Financial audit
results: State government 2021–22 , published in late December last
year, revealed that since the Premier has taken on the role of Treasurer, the
number of qualifications on audit findings has increased by over 300 per cent, and the number of qualified
government entities has more than doubled. Further, the report also revealed that government agencies have miscalculated financial estimates by
over $300 million.
(1) Almost six years after the government's
machinery-of-government changes, why are so many government entities
apparently incapable of complying with basic audit requirements and time lines?
(2) Given the massive miscalculation in financial
estimates, does the Treasurer have any confidence that these entities
have the capacity to identify any financial impropriety that might be occurring?
AUDIT FINDINGS
44. Dr D.J. HONEY to the Treasurer:
The report Financial audit
results: State government 2021–22 , published in late December last
year, revealed that since the Premier has taken on the role of Treasurer, the
number of qualifications on audit findings has increased by over 300 per cent, and the number of qualified
government entities has more than doubled. Further, the report also revealed that government agencies have miscalculated financial estimates by
over $300 million.
(1) Almost six years after the government's
machinery-of-government changes, why are so many government entities
apparently incapable of complying with basic audit requirements and time lines?
(2) Given the massive miscalculation in financial
estimates, does the Treasurer have any confidence that these entities
have the capacity to identify any financial impropriety that might be occurring?
AnswerView source ↗
(1)–(2) I
will answer all those points. First of all, the machinery-of-government
changes, which I think were made in 2017,
were designed to ensure that we had a more robust and more sensible arrangement
of government . We had 41 government
agencies, and we reduced that to 25. Victoria has eight. We had 41 for a population one-third that of Victoria, and they have eight. The arrangement of government
was too cumbersome and not sensible. Perhaps we could have gone further, but it
was a sensible, rational and realistic thing to do in a state with a population
the size of Western Australia's.
Secondly, the biggest financial
impropriety that we found was by Mr Paul Whyte, which was discovered by this
government and the arrangements this government put in place. Most of his
frauds were committed during the last government. They were not uncovered by
the last government, but the arrangements we put in place meant they were
uncovered and discovered. He is now spending a considerable amount of time in
Hakea Prison or Casuarina Prison.
The third point about the findings is
that we funded the Auditor General better. We are giving the Auditor General more resources. We have actually
changed the law to give the Auditor General more access to government
documents than she had before. That is what has occurred.
As the Auditor General advised me
recently, all agencies of government have difficulty recruiting in the current
environment, particularly chief financial officers and people with those skill
sets. We all have difficulty recruiting them
because the demand is so high because the economy is so strong. That is the
issue that every government across Australia faces. The member can shake
his head and be unaware of the real economy—that is clear—but
that is the reality of what we face. When we give more resources to the Auditor
General, of course, the Auditor General will find more things, and that is what
has occurred under this government. The Auditor General is getting significant
funding increases and increased support. That is a major transparency
initiative, as were the legislative changes we made last year. They were major
transparency initiatives to improve the accountability of government that were
not done before. That is what we did. It does not get reported, but that is
what we did during our time in office.
will answer all those points. First of all, the machinery-of-government
changes, which I think were made in 2017,
were designed to ensure that we had a more robust and more sensible arrangement
of government . We had 41 government
agencies, and we reduced that to 25. Victoria has eight. We had 41 for a population one-third that of Victoria, and they have eight. The arrangement of government
was too cumbersome and not sensible. Perhaps we could have gone further, but it
was a sensible, rational and realistic thing to do in a state with a population
the size of Western Australia's.
Secondly, the biggest financial
impropriety that we found was by Mr Paul Whyte, which was discovered by this
government and the arrangements this government put in place. Most of his
frauds were committed during the last government. They were not uncovered by
the last government, but the arrangements we put in place meant they were
uncovered and discovered. He is now spending a considerable amount of time in
Hakea Prison or Casuarina Prison.
The third point about the findings is
that we funded the Auditor General better. We are giving the Auditor General more resources. We have actually
changed the law to give the Auditor General more access to government
documents than she had before. That is what has occurred.
As the Auditor General advised me
recently, all agencies of government have difficulty recruiting in the current
environment, particularly chief financial officers and people with those skill
sets. We all have difficulty recruiting them
because the demand is so high because the economy is so strong. That is the
issue that every government across Australia faces. The member can shake
his head and be unaware of the real economy—that is clear—but
that is the reality of what we face. When we give more resources to the Auditor
General, of course, the Auditor General will find more things, and that is what
has occurred under this government. The Auditor General is getting significant
funding increases and increased support. That is a major transparency
initiative, as were the legislative changes we made last year. They were major
transparency initiatives to improve the accountability of government that were
not done before. That is what we did. It does not get reported, but that is
what we did during our time in office.
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