4 April 2007
AUDITOR GENERAL SOUNDS WARNING ON FUTURE PUBLIC SECTOR INFORMATION AND COMMUNICATION
(ICT) PROJECTS
With WA public sector agencies set to undertake major information and communication
technology projects worth around $1.5 billion over the next 10 years, and currently
deploying advanced computer technologies, Acting Auditor General Colin Murphy
has issued a word of caution to agency managers.
His warning is contained in his Second Public Sector Performance Report, tabled
in Parliament today, that details the results of two audits – one a performance
review of past major information and communication technology projects in the
public sector, the other a review of the security of wireless local area networks
in agencies.
Commenting today on the report Mr Murphy said: “Advances in information
technology offer significant opportunities for increasing efficiency, reducing
costs and improving services, but serious difficulties can eventuate if the
take-up of new information technologies is not well planned and implemented
effectively.”
“Whilst I encourage government to take up suitable new information technologies,
diligence in planning and implementation is also required so that these projects
deliver on their intentions, on time and on budget.”
In examining the track-record of significant past ICT projects the findings
are less than encouraging; the report revealing that they often over-promised
and under-delivered.
Whilst recognising that some agencies had successfully delivered major ITC
projects and that the problems experienced by WA agencies were mirrored internationally,
Mr Murphy said that agencies needed to improve their performance, learn from
each other’s experiences, and be more accountable for problems in project
delivery – clearly and openly reporting on project results, including
total cost, timeliness, and benefits realised.
In his review of the security of wireless local area networks Mr Murphy finds
that while such technology gives greater flexibility and responsiveness and
is also cheap and easy to install, it can create serious risks unless well
managed, including risks to the confidentiality of data and service denial.
The report shows that agencies are not yet managing these risks well:
- Serious
information security weaknesses were evident in seven of the eight agencies
reviewed, including one agency with wireless installed by a business unit
without the knowledge or authority of management.
- None of the agencies
was monitoring for unauthorised installation of wireless access points or
external interception of the agency’s
wireless signals.
Also tabled to day was the Auditor General’s “Audit Results
Report on Universities and TAFE Colleges and other audits completed since
16 October 2006”.
Key findings in this report included:
All four universities, four
of their subsidiaries and nine TAFE colleges received clear opinions, with
C Y O’Connor TAFE receiving a qualified
opinion on its financial statements and controls.
- Flaws in the Government
Employees Superannuation Board’s (GESB)
investment switching process allowed a number of members to gain a financial
advantage with the GESB having to use $3.8 million of reserves to offset
the disadvantage suffered by other members.
- Weaknesses in information
system security arrangements continue with many being contrary to the most
basic information system security practices; whilst agencies acknowledge
these weaknesses each year they invariably fail to take a holistic approach
that will prevent the emergence of related security weaknesses.
- The
Department of Education and Training (DET) has serious weaknesses in its
financial management and governance arrangements relating to asset management
procedures, financial management and controls in schools, and internal audits
of schools and the internal audit services provided to TAFE colleges.
- Certification
of payroll reports by cost centre managers is a fundamental control that
was not consistently followed at two universities and six TAFE colleges – this
control failure repeatedly occurs in universities and TAFE colleges.
- The
Professional Standards Council has not submitted certified financial statements
and performance indicators for audit since the period ending 31 December
2002 – this situation is unsatisfactory and requires resolution.
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
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