29 October 2003

AUDITOR GENERAL'S REPORT CALLS FOR IMPROVEMENTS TO HOMESWEST MAINTENANCE PROCEDURES

An audit by WA Auditor General Des Pearson of the way Homeswest manages the maintenance of the State's some 35,000 public housing properties has identified ample scope for improvement.

Whist recognising that Homeswest is doing a reasonable job in a "challenging environment", Mr Pearson's report, tabled in Parliament today, contains a raft of recommendations to improve processes that currently cost WA taxpayers $33.2 million a year.

The audit focused on three areas - maintenance planning and budgeting; maintenance management; and tenant liability.

Key findings from the audit include:

• 11% of properties (around 3850) accounted for 50% of maintenance expenditure ($16.6 million) - the main cost being repairs to properties after they have been vacated.
• 82% of maintenance expenditure is breakdown maintenance.
• Homeswest spent an average of $948 per property in maintenance last year.
• One-third of maintenance jobs were either not completed on time (missing response targets of 3 hours for emergency maintenance, 48 hours for priority maintenance or ten calendar days for routine maintenance) or could not be assessed due to missing or incorrect information.
• Homeswest calculates job response times from only when a job order is issued and not from when a tenant requests maintenance.
• Poorly performing maintenance contractors do not always get formal warnings or contract sanctions despite ongoing concerns regarding poor performance.
• The process for determining tenant liability for damage beyond 'fair wear and tear' needs improvement to ensure consistent and fair assessment.
• Homeswest does not have a formal definition of what constitutes 'fair wear and tear' and in the absence of a working definition there is little to guide Accommodation Managers in the consistent application of liability charges when assessing the condition of a property.
• In cases where tenants appeal liability charges there is scope for improving the appeals process in terms of consistency, transparency and due process - with the audit observing some instances of costs being added to the total tenant liability charge after a review; minimal documentation of the reasons for decisions; failure to retain original tenant liability assessments; and different information being provided to decision-makers and appellants.

Commenting on the audit today, Mr Pearson said: "This is a government activity that draws considerably on the public purse and affects the lives of many West Australians.

"Public housing maintenance is prominent among tenant complaints to Homeswest, the Ombudsman, and the Equal Opportunity Commissioner.

"Homeswest has previously been criticised for the standard of its properties, the timeliness of urgent maintenance and repairs, the quality of work conducted by contractors, discrimination in the allocation of maintenance funding, and the adequacy of its overall maintenance budget.

"Equally, Homeswest tenants have come under public criticism for failing to properly maintain and respect their rental properties.

"In this audit I have endeavoured to provide an independent and balanced review of the process, in the hope that it will act as a catalyst in generating greater efficiency and effectiveness in its administration and thus create a 'win-win' situation for both tenants and Homeswest."

Ends/.

Media Contact: Peter Villiers, Manager Reporting and Communications
Tel: (08) 9222 7558. Mobile: 0417 936 171 Fax: (08) 9322 5664
4th Floor Dumas House 2 Havelock Street West Perth

Home Page | About the Office | Reports To Parliament | Performance Indicators | Other Publications
Media Statements | Work in Progress | Contact OAG | Resource Links | Annual Report | Job Vacancies

Information Copyright © 1996-2008 Office of the Auditor General
Disclaimer/Copyright | Privacy Declaration