The NSW Audit Office has released its assessment of the Office of Local Government’s (OLG) administration of the Local Government Recovery Grants program, finding that its funds were handled in line with official guidelines.
The Grants program provided grant funding to the state’s local councils following flood events in August and September 2022.
Auditor-General, Bola Oyetunji said that while the $46 million in total grants funding awarded was administered in line with the mandatory requirements of the Grants Administration Guide and the Program Guideline, the OLG failed to document:
- the reasons for all eligibility decisions as part of the assessment process;
- fraud controls;
- processes to manage conflicts of interest.
“The OLG has not implemented Program Guideline requirements relating to the establishment of performance measures and monitoring of project outcomes by local councils,” said Mr Oyetunji.
The Auditor-General also found there is no clear plan to finalise the funding program.
“The OLG has approved a detailed program of works for 37 councils. This is yet to occur for nine councils.”
He said the OLG had not yet confirmed final reporting and acquittal processes for the program. The Audit Office also found that roles and responsibilities for the program had not been adequately defined.
“The OLG and the NSW Reconstruction Authority have not documented their respective roles for the Program. This has limited the accountability for some aspects of Program administration and has impacted timely delivery.”
The Auditor-General made three recommendations for the OLG to improve practices in line with the Grants Administration Guide.
One recommendation was made for the OLG and the NSW Reconstruction Authority to improve clarity of roles and responsibilities.
Read the full report on the NSW Audit Office website here.
