TASTAFE’S BIG NIGHT OUT

Taxpayer cash wasted on ’significant’ alcohol purchases

TASTAFE’S Great Chefs Series has been singled out by a damning audit report because of the taxpayer cash spent entertaining the visiting chefs.

The audit, tabled in State Parliament yesterday, revealed transactions totalling more than $30,000 were made by TasTAFE officials for the program — including one dinner for a visiting chef that the audit slammed as having included “significant alcohol” and others that had not specified “the alcohol versus food breakdown”.

Education Minister Jeremy Rockliff said all recommendations for change had been accepted and TasTAFE would “move forward”.

AN audit of TasTAFE has revealed the misuse of Tasmanian Government credit cards within the organisation, with thousands of dollars spent on “well-regarded” restaurants, gift vouchers and unauthorised flights and entertainment.

The long-awaited audit was tabled in State Parliament yesterday — a year after an Integrity Commission report revealed nepotism allegations and Tasmanian Government credit card misuse in the organisation, and eight months since Education Minister Jeremy Rockliff received the first part of the audit.

The State Government had promised to release each part of the audit report as it was received, but backflipped on that commitment last September.

The report stated TasTAFE staff used Tasmanian Government Cards (credit cards) in breach of the treasurer’s instructions — the rules governing their use — to purchase fuel 43 times plus coffees and meals (often including third parties). Cards were used nine times to purchase gift cards and once to purchase a flight not related to approved travel.

There were 143 entertainment transactions, including 36 transactions at “well-regarded” restaurants totalling $12,775. A total of 79 entertainment transactions should not have been approved.

“The interview process ... highlighted anecdotally a culture whereby purchasing coffees and having business meetings off-site at restaurants and eateries was considered appropriate and was normalised over time by the attitude and behaviour of authorising managers,” the audit says.

“We emphasise that these breaches have occurred through failures of the approval processes at multiple levels.”

In one entertainment transaction, 40 per cent of the bill was for alcohol, and one cardholder was found to have made part-payments to overcome card transaction limits.

The Great Chefs Series was singled out after auditors noticed a “significant number” of entertainment and travel expenses associated with the program totalling $30,459.

Auditors said significant costs were incurred without advance approval. One dinner for a visiting chef included “significant alcohol”.

Additional details of the forensic investigation have been requested by the Mercury.

The series was criticised by auditors for a lack of strong project management and oversight. It had been billed as being cost-neutral, but as the Mercury reported in December it cost taxpayers $200,000.

The star attraction of the series, a dinner by French three Michelin-star chef Alain Passard, was panned by food writer Graeme Phillips as “bland”.

Between July 2015 and July 2017, TasTAFE staff spent $4 million in transactions across 210 credit cards. Auditors recommended a full review of the internal control environment for credit cards.

Travel was also an area of focus for the audit, which identified instances where poor business cases were put forward to justify travel, including for international trips, which were approved regardless.

Based on a sample of 27 trips, auditors found one staff member travelled business class twice, once when it had not been approved.

For one interstate trip auditors found no evidence of work-related purposes.

The audit found it was common practice for staff to derive personal gain from the use of TasTAFE equipment both on and off campus.

Of eight contracts worth more than $50,000 that were audited, three were found to have been awarded where there should have been a quo- tation or tender process.

And the audit says an allegation of falsifying student assessment documents and forging signatures was forwarded to Tasmania Police, who recommended an internal investigation, but an investigation did not occur.

There was also one undisclosed conflict of interest where a TasTAFE staff member directed purchases for TasTAFE to their family business. Auditors have recommended further investigation.

Mr Rockliff said all recommendations in the report had been accepted by TasTAFE, and were slated to be fully implemented by December.

“I take responsibility for ensuring we are looking forward, we learn from the Integrity Commission findings, and indeed the audit findings, and to ensure that every single one of those recommendations are implemented,” he said.

Labor employment and training spokeswoman Anita Dow said Mr Rockliff should take full responsibility for TasTAFE’s issues, which happened under his watch.

“Mr Rockliff kept staff, students and everyone in the TasTAFE community in the dark after he broke his promise to release the quarterly audit reports,” she said.

“It’s time now to repair the reputation of TasTAFE.”

The Australian Education Union welcomed the release of the report.

TasTAFE pays an internal auditor $90,000 annually, but the WLF audit sparked by the Integrity Commission report cost the organisation an additional $160,000.