This inquiry was self-referred on 26 September 2007.
Public Finance and Audit Act 1983 The Committee has noted that the Government is moving to a performance management budgeting system whereby budget allocations are determined according to performance in delivering State Plan objectives. Under this system, accountability for expenditure of state finances is dependent on measures for delivering State Plan objectives. The Committee has noted the Auditor-General’s recommendations in Volume 3 of his 2006 Financial Audit regarding the need for comprehensive performance indicators for the State Plan and benchmarking the State’s performance with other States. The Committee has also noted that Victoria, Tasmania and South Australia are a number of years into the implementation of their state plans. The Committee wishes to identify the lessons learnt from their experience in reporting on and reviewing their state plans with a view to ensuring NSW has an effective reporting and review system. The Committee will therefore examine the mechanisms for reporting results from expenditure under the NSW State Plan, including: 1. The adequacy and appropriateness of performance measures for progress in achieving the Plan objectives; 2. The adequacy and appropriateness of audit requirements for performance measures; 3. Mechanisms for review and updating of the Plan; 4. Experience in other jurisdictions, particularly Victoria, Tasmania and South Australia regarding effective reporting and review mechanisms; and 5. Any other related matters.

The Committee has noted that the Government is moving to a performance management budgeting system whereby budget allocations are determined according to performance in delivering State Plan objectives. Under this system, accountability for expenditure of state finances is dependent on measures for delivering State Plan objectives. The Committee has noted the Auditor-General’s recommendations in Volume 3 of his 2006 Financial Audit regarding the need for comprehensive performance indicators for the State Plan and benchmarking the State’s performance with other States. The Committee has also noted that Victoria, Tasmania and South Australia are a number of years into the implementation of their state plans. The Committee wishes to identify the lessons learnt from their experience in reporting on and reviewing their state plans with a view to ensuring NSW has an effective reporting and review system. The Committee will therefore examine the mechanisms for reporting results from expenditure under the NSW State Plan, including: 1. The adequacy and appropriateness of performance measures for progress in achieving the Plan objectives; 2. The adequacy and appropriateness of audit requirements for performance measures; 3. Mechanisms for review and updating of the Plan; 4. Experience in other jurisdictions, particularly Victoria, Tasmania and South Australia regarding effective reporting and review mechanisms; and 5. Any other related matters.