Annual report for the year ended 30 June 2026
The Auditor-General’s annual report brings together the key findings from the 2025-26 audits across the South Australian public sector. It highlights major projects and government programs, emerging risks and areas where accountability, governance and financial management can be strengthened.
A clear theme this year is the need for stronger oversight as the SA Government delivers complex projects and programs, responds to emerging pressures and manages persistent risks in controls, procurement, workforce arrangements and legacy ICT.
The audits found that many agencies continued to deliver important services and projects effectively, but recurring weaknesses in governance, oversight and controls show that further improvement is needed.
Public sector workforce oversight
Our analysis identified about 140 employees working more than the equivalent of a full-time workload across multiple government roles. We found existing systems do not readily allow agencies to identify or monitor these arrangements.
Major projects under the spotlight
We reviewed governance, procurement and delivery arrangements across several significant projects, including the new Women’s and Children’s Hospital, North Adelaide Public Golf Course redevelopment, Northern Water Project, T2D project, housing initiatives and the Finance Reform Program. These reviews consider whether arrangements support transparent decision-making, effective oversight, delivery of intended outcomes and value for money from substantial public investment.
Procurement pressures challenge traditional safeguards
Several reviews identified situations where agencies relied on modified procurement approaches to accelerate delivery or respond to specific circumstances. While permitted under existing frameworks, these approaches can reduce some of the protections and assurance typically provided by competitive procurement processes, making strong governance and evidence of value for money even more important.
Government support programs
The report examines major assistance measures including the Whyalla Steelworks package, Nyrstar support initiatives, drought assistance, algal bloom response programs and Bedford transition funding. We considered the governance, oversight and accountability arrangements supporting these measures, which involve significant public resources and responses to complex or urgent circumstances.
Persistent control weaknesses
We raised 368 control findings during our audits this year, including 166 repeat findings, with asset management, contract management, workforce management and procurement continuing to present challenges across government.
Legacy ICT remains a risk
Legacy systems continue to present operational, security and governance challenges across the public sector and remain a significant area requiring ongoing attention.
Artificial intelligence and accountability
As AI use increases across government, the report highlights the importance of transparency, governance and public accountability in its adoption.
Report 7 of 2026 Annual report for the year ended 30 June 2026 – Part C Agency audit outcomes
Part C summarises the audit outcomes for 47 of South Australia’s major government agencies. It provides financial statistics, significant events and transactions, and identifies whether each agency’s financial report received an unmodified or modified (qualified) audit opinion.
Quotes from the Auditor-General
“This report highlights a broad range of issues affecting the management of public resources across the SA Government. While many agencies continue to deliver important services and projects effectively, our work also identifies areas where governance, oversight, controls and accountability arrangements can be strengthened.”
“Good public administration depends on transparency, effective governance and a willingness to address emerging risks before they become larger problems.”
Quotes from the Auditor-General
Financial statements published under section 36(4) of the Public Finance and Audit Act 1987
2025-26 financial statements for audited agencies that are not included in the annual report are published on this website as their audits are completed.