Change of focus Andrew Richardson, Auditor-General

1. Change of focus Andrew Richardson, Auditor-General

2. Topics Update from the Auditor-General What do the changes mean for you? Workplace and environment Next steps to be ready

3. Update from the Auditor-General We introduced performance audit in November 2016: • to improve and add to our audit reporting to Parliament and SA public • for independent assurance to contribute to public services being valued and trusted by our community • to add to accountability.

4. What is performance auditing and where does it fit? Performance audit • on specific activities • a deep dive approach • evaluate against specific criteria Financial statement audit Financial statements reflect the financial position at year end and the results for that year Controls opinion audit The controls exercised provide reasonable assurance the financial transactions were conducted properly and in accordance with law

5. What performance audits does the A-G do? To June 2017 key examples were: • New RAH • IT systems - EPAS, EDMIS, EPLIS, Revenue SA • Government marketing communications • Concessions – using data analytics • Torrens Road to River Torrens South Road Upgrade.

6. What performance audits does the A-G do? Since June 2017 We have settled a practice. Some reports include: • Land services commercialisation project • New Royal Adelaide Hospital report:2 • Adelaide Riverbank (Festival Plaza) Development • Digital licensing • New RAH operating term arrangements • Battery storage procurement • Health budget performance • Grant to One Community

7. What performance audits does the A-G do? Since June 2017 We also produced smaller audits we reported in last year’s annual report including: • the Job Accelerator Grant scheme • contract extensions and single offer market approaches • information and cyber security • end user computing (ICT desktop outsourcing) • the Shield Business Transformation program.

8. What performance audits does the A-G do? We have mostly focussed on significant projects. We assessed how well they were managed – ie compliance aspects.

9. What performance audits could the A-G do? Performance audit is known for its focus on the 3 Es

10. What performance audits can the A-G do? On 31 July 2018 House of Assembly passed amendments to the Public Finance and Audit Act 1987 – commencing 13 September 2018 31 — Audit of public accounts etc 2) When conducting an audit under subsection (1)(b) the Auditor-General may examine the efficiency, economy and effectivenesswith which a public authority uses its resources.

11. What do the changes mean for you? Our audit programs may include efficiency, economy and effectiveness We intend to do an outcome based effectiveness audit: • Were the intended results achieved? We will continue to audit infrastructure and other topics as relevance demands.

12. What do the changes mean for you? We are planning for our first effectiveness audit now.

13. What do the changes mean for you? We are considering a range of topics. Criteria

14. What do the changes mean for you? Budget 2019-20 targets are a source of information. Some agency examples: • Improve online application process to make it user friendly and maximise relevant information. • Improve care options for children and young people in out of home care by continuing to increase the number of family based care placements.

15. What do the changes mean for you? Other Budget 2019-20 examples: • Complete the implementation of the new electronic monitoring systems contract • Develop and implement climate change policy and action, including: • a cross-agency climate change strategy and a blue carbon strategy for South Australia • supporting carbon farming projects.

16. What do the changes mean for you? Will we need to consider the role of Budget indicators for an effectiveness audit? The two indicators used are: • performance indicators • activity indicators.

17. What do the changes mean for you? Performance indicators: • % of applications finalised without the need for … • % of children in out of home care placed in family based care at 30 June as a proportion of all children in out of home care. Activity indicators: • No. of applications received • No. of children under guardianship of the Chief Executive for a period up to 12 months indicators.

18. What do the changes mean for you? Our audit process: • defined objectives • Early and regular meetings and information requests throughout audit • no surprises!!!

19. Procedural fairness We will discuss all draft findings during audit. Looking for balance and context Opportunity to give feedback on factual accuracy. No surprises – seeking to avoid this!!!

20. What do the changes mean for you? We aim to build a recurring practice.

21. Workplaces and environment Our work so far has highlighted fundamental areas where things should have been better in public sector workplaces. The indicators include failures to achieve: • budgets • time frames • deliverables expected. Our findings typically highlight that better workplace governance would likely improve results.

22. Workplaces and environment We believe the environment is also right for these audits. Trust in institutions remains low – Edelman 2019.

23. Next steps to be ready Be aware of our developing an additional layer of scrutiny by scoping effectiveness into our performance audits. Don’t worry about us until we call.

24. Next steps to be ready If you or your agency get a call from us about an effectiveness audit please be ready to assist.

25. Thank you Questions??