The NSW Audit Office has unveiled its Audit Work Program through to 2028, with a number of performance audits related to IT systems, cyber security and AI on the agenda.
Performance audits provide an independent assessment of whether government programs and services are being delivered effectively, efficiently, economically, and in compliance with relevant laws.
These audits focus on the implementation and administration of activities to achieve government policy objectives but do not question the merits of policy objectives.
Of the audits either underway or planned for the 2025–26 financial year, one will look at the governance of NSW Government agencies’ use of artificial intelligence and automation to deliver services in NSW across a selection of agencies.
The NSW Artificial Intelligence Ethics Policy and NSW Artificial Intelligence Assurance Framework currently describe the role of AI to help the NSW Government free up the workforce for critical and frontline tasks, cut costs and enable delivery of better, more targeted services.
Health has also been outlined as a focus area, with the Audit Office set to assess the efficiency and effectiveness of the procurement, governance and project management of the Single Digital Patient Record (SDPR) project.
The SDPR project aims to provide a secure, holistic and integrated view of the care a patient receives across the NSW Health system. It is designed to enable clinicians to access a patient’s medical information in real time from a single source.
In March this year, the Single Digital Patient Record Implementation Authority (SDPRIA), in partnership with eHealth NSW, flagged plans to go to market for document management, integration and pharmacy systems work.
Core police technology upgrades in crosshairs
Another audit planned for the 2025-26 financial year is assessing the efficiency and effectiveness of the NSW Police Force in planning and sourcing key components to upgrade core policing technology.
NSW Police Force IT systems and processes are built around the Computerised Operational Policing System (COPS), which has been in place since 1994. The Police Technology Program aims to replace legacy COPS infrastructure, introduce new capabilities and approaches to enhance the operational efficacy of the NSW Police Force.
In 2013 the NSW Police Force was allocated $45m to replace COPS. It developed a proof of concept in 2017 for a replacement system (NewCOPS), but did not deliver on this system.
NSW Police Force began the system development process again, under the title of the Integrated Policing Operations System (IPOS) program. An initial business case for the IPOS program was developed in 2018 and finalised in 2019.
In 2020, the NSW Police Force selected a single vendor to provide an integrated solution for core policing functions. In 2022, the NSW Police Force terminated the contract with the selected vendor and is currently pursuing a multi-vendor approach.
Cyber Security NSW to be audited
Among the audits planned for the 2026–27 and 2027–28 financial years, one is set to examine the effectiveness of Cyber Security NSW in improving cyber security resilience in government agencies.
The agency, which is responsible for leading, implementing and supporting cyber security initiatives, received $87.7 million in the NSW Government’s 2025-26 Budget to work with government entities to prevent, detect and recover from cyber incidents.
The audit will also look at government agency compliance with NSW government policy and mandatory requirements.
Another focus area for 2026-28 is the use of the Digital Restart Fund (DRF), with the audit looking specifically at the central agencies of the Premier’s Department, the Cabinet Office and Treasury.
The central agencies have accessed the whole-of-government DRF, introduced in 2019, to accelerate digital transformation projects and to enable cyber security uplift for key ICT assets. In 2021, the budget for the DRF was increased by $500 million.
The audit will assess benefits realisation from the funding that has been allocated for a sample of projects under the DRF.
An audit examining how Service NSW’s purpose of being the ‘single front door’ to NSW government services has integrated into wider NSW government IT architecture, and the efficiency and effectiveness of the delivery of digital services by Service NSW, was also announced.
