The New South Wales (NSW) and Commonwealth governments announced the Special Disaster Assistance (SDA) grant program to support primary production businesses affected by significant flood events in areas of NSW in August and September 2022. 

This audit assessed whether the NSW Rural Assistance Authority (RAA) and the NSW Reconstruction Authority (Reconstruction Authority) implemented the SDA program in line with the program guidelines. The report is accompanied by a one-page snapshot.

The audit recommends the RAA improve its risk management of the grant programs through a range of changes and the NSW Reconstruction Authority complete the cost-benefit analysis and outcome evaluation for the program.

Findings

• The RAA and the Reconstruction Authority followed the program guidelines and met most of the requirements of the Grants Administration Guide.
• The RAA did not implement appropriate controls to mitigate the risk of fraud for applicants who received only the upfront payment of $25,000.
• The RAA conducted an effective process to determine each applicant’s eligibility for the program and implemented appropriate fraud controls for higher-value grants.
• Neither agency conducted a cost-benefit analysis to assess value for money or planned an evaluation of the program and there were gaps in the way the RAA managed program risks.