Clear report card for stimulus spending

The Auditor General has given the state government the all clear for its handling of over $1 billion in Commonwealth stimulus funding, but some government agencies have been criticised for their reporting practices.

The funding was provided under the Building the Education Revolution program.

Acting Auditor General Glen Clarke found that the money was spent for the approved purpose and was accurately reported.

He also gave a clear report card for spending under the Royalties for Regions scheme.

"We were also able to give a clear report card for over $250 million worth of Royalties for Regions funding that was spent by 18 agencies during 2009-10," he said.

However, the Audits Results Report was not all good news with an increasing number of significant financial control deficiencies reported in relation to the 163 agency opinions issued.

Mr Clarke said while there was a similar number of financial management control issues to the 2009 financial year the number of significant issues requiring urgent attention had doubled.

"All agencies need to address these deficiencies as a priority to ensure the continuing integrity of their finances," he said.

The Department of Agriculture and Food, the Department for Child Protection, the Local Health Authorities Analytical Committee and Racing and Wagering Western Australia received qualified opinions on their Key Performance Indicators.

The Metropolitan Public Hospitals received a qualified opinion on controls and financial statements.

Controls over medical practitioners' treatment charges within MPH were found to be inadequate and not all private and overseas patients were billed for their treatments.

WA Health has estimated that up to $20 million may not have been brought to account for the year ending 30 June 2010.

"WA Health has advised that they are in the process of actively recovering the outstanding charges and they are on track to introduce an improved billing system across metropolitan hospitals over the next 18 months," Mr Clarke said.

"We will revisit WA Health's remedial action during our next annual assurance audit in 2010-11."

The State Opposition said the report was damning.

"The Auditor General has left the Barnett Government's financial management reputation in tatters with his finding that the number of significant financial management deficiencies has doubled since Colin Barnett became Premier," said Opposition treasury spokesman Ben Wyatt said.

"A significant deficiency means that the Auditor General is of the view that there is a significant risk to the financial integrity of the agency if not addressed promptly.

"A massive 366 financial management deficiencies were identified in 2009-10. This is the same number as the entire previous two years."

Mr Wyatt said the Auditor General has also highlighted a dramatic failure by a large number of government agencies to comply with the legislative requirement to table their annual, Statements of Corporate Intent.

"It is the law that specific Government agencies prepare and table SCIs," Mr Wyatt said.

"SCIs are vital accountability documents and are important for strong and coherent governance," Mr Wyatt said.

"Of the 22 government agencies that are required to table SCIs each year, an incredible 15 have not complied for the 2010-11 financial year.

"A number of agencies, including Landcorp, the Forest Products Commission and the Bunbury, Dampier, Geraldton and Port Hedland Port Authorities have not tabled their SCI in three years.

"This represents not only a breach of the law, but is a fundamental breakdown in the corporate governance of these agencies.

"Responsibility for that breakdown rests with each Minister and, ultimately, the Premier," he said.