NSW Government: Out of luck and out of funds
Reports from the NSW Auditor-General has revealed the mismanagement of public funds across several State departments and agencies.
According to the Auditor-General, Mr Peter Achterstraat, excessive overtime in a large agency and funding concerns about a compensation scheme, and a death and disability scheme are key challenges for the NSW Government. Overtime payments to staff at the Department of Corrective Services cost the Government over $40 million, with one employee paid $77,000 in overtime payments in the year.
The Attorney General’s Department has not processed over $150 million worth of victims’ compensation claims. This represents more than two and a half years of claims and is largely due to the Department restricting the amount of claims processed to the money available. The Auditor-General wants the Government to increase the budget allocation for the compensation scheme so the outstanding amount can be paid.
Victims of violent crime are entitled to compensation for injuries even if the offender is unknown or not convicted. Where offenders are convicted, restitution orders can be raised to recover the compensation paid to the victim and levies can be applied. At June 2009, $290 million was recorded as restitution debt but with just $18.4 million likely to be received.
At the same time, the NSW Police Force also needs to ensure it has sufficient money to meet the increasing cost of its Death and Disability Scheme. The scheme’s liability has gone up nearly five times from $29 million in 2006 to $147 million in 2009.
Moreover, large NSW Government computer projects continue to cost more than the budget allocation and run behind schedule. For example, the computer used by Members of Parliament are due to be replaced but the replacements are seven years behind schedule.
A Sydney Water customer management system is now expected to cost $55 million, more than double its original budget of $21 million and one and half years behind schedule. Another is now expected to cost $31 million, substantially more than its original budget of $18 million and is a year behind schedule.
The estimated cost for the proposed Tillegra Dam project has increased from $342 million to $406 million. Hunter Water has advised the Auditor General that any decision on the dam is unlikely to be made until April 2010 at the earliest.
There were 97 prosecutions for environmental offences with fines and penalties of $1.6 million. In the previous year there were 125 prosecutions totalling $455,000. For the NSW Government, 14 agencies have not complied with their obligations to report to the Department of Environment and Climate Change on how they recycle and reuse waste.
Finally, salary overpayments for workers at Ageing Disability and Home Care now total $1.6 million, a rise of $500,000 on last year. $1.3 million of this is unlikely to be recovered. The same department also issued $48 million of grants to non-government organisations without proper agreements, increasing the risk of agreed services not being provided and unspent money not being returned.
Today on the last day of Parliament sitting for 2009, the premiership battle has been lost and won. The NSW Government has run out of luck and out of funds.