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Transport 2020 Report 10: 2020–21

Report on a page

This report summarises the audit results of seven entities in Queensland’s transport sector: Department of Transport and Main Roads, Queensland Rail, Cross River Rail Delivery Authority, Gladstone Ports, North Queensland Bulk Ports, Port of Townsville, and Ports North.

Financial statements are reliable, but some internal controls can be improved

All financial reports in the transport sector are reliable and comply with relevant laws and standards.

The systems and processes (internal controls) used by transport entities to prepare financial systems are generally effective. However, the entities need to strengthen their controls over procurement (documenting conflict of interest declarations) and expenditure, payroll processes, the security of their information systems, and supplier and employee information.

The most common internal control weakness we continue to identify across the public sector relates to security of information systems and controls over supplier and employee information. Transport entities must put strong controls in place to protect their information and assets.

Maintaining services during the pandemic

The transport sector was able to maintain services through the COVID-19 pandemic without significant additional costs or interruption. Transport entities implemented new technology, such as remote access and electronic signature approvals, so they could continue to operate effectively.

There were financial impacts on the entities—mostly due to decreased patronage of public transport, lower rent from tenants facing financial hardship, and lower revenue from vessel services relating to the tourism industry (like cruise ships). The ongoing impacts of the pandemic will continue to be a challenge to the transport sector.

Cross River Rail is underway

Cross River Rail is one of Queensland’s largest public transport projects under construction. The project is still in the early phases, with several contracts for major works packages recently finalised.

No significant issues have been identified in our financial statement audit. Our future audits will continue to assess compliance with policies, the tendering process and evaluation of prospective bids, and contract signing and ongoing contractor and design management, including material variations.

For more information

For more information on the issues and opportunities highlighted in this summary, please see the full report.