NSW Audit Office Performance Audit Report on the Educational Testing Centre at the University of New South Wales: statement by Vice-Chancellor Professor John Niland.

"The NSW Audit Office has identified shortcomings in the operation of the Educational Testing Centre (ETC) at UNSW and made a number of recommendations to improve its financial management and accountability. These findings and recommendations are consistent with those which emerged from the University's own reviews of the Centre, which were initiated immediately problems became apparent, and in advance of the Audit Office inquiry. This is acknowledged in the Audit Office Report, as is the fact that its major findings in relation to the ETC have already been addressed by the University.

"The management and business of the ETC, formerly an independent centre under the auspices of the University, have been transferred to NewSouth Global Pty Ltd (NSG), a controlled entity of UNSW. This process was begun immediately on receipt of the findings of our internal reviews, as the most effective way to ensure proper management and governance. The ETC was formally incorporated into NSG on 1 July 2001.

"The following points should be made:

· The ETC has largely achieved its objective to be the leading educational measurement institution in Australia, New Zealand and the Asia Pacific region. There is no question as to its professional capacity to remain at the leading edge of educational measurement. Under NSG management it will continue to be an important component of the commercial educational services provided by UNSW.

· The ETC has been a self-funding centre - there are no public funds, or University funds from public sources, invested in the ETC. While the Performance Audit Report is critical of the ETC for performing below its budget in recent years, it has not operated at a loss and has been a net financial contributor to UNSW.

"The deficiencies in the previous financial and operational management of the ETC are unacceptable to the University. With the transfer of the ETC to NSG a new management group has been put in place. I am confident that group will ensure an efficient and effective operation, one not only fully compliant with the University's requirements and with relevant legislation but with international best practice.

"In response to the ETC matter and the issue of corporate governance highlighted in the internal and external reviews, I have initiated a progressive review of all Centres of the University by our Internal Audit Office.

The University anticipates that changes to be made early in 2002 to its enabling legislation and those of all other NSW universities will put in place a statutory governance scheme that will include the controlled entities of the universities. UNSW welcomes the proposed legislation and will take careful account of the broader recommendations of the Performance Audit Report in order to ensure continuous improvements in the efficiency and effectiveness of all of its operations."

Media Contact: Judy Brookman, UNSW Media Manager, tel. 9385 3249, mob 0421 061 251.