On 18 May 2023, the NSW Auditor-General, Margaret Crawford PSM, released a report entitled ‘Managing the affairs of people under financial management and/or guardianship orders’.
Unsurprisingly, she found the NSW Trustee and Guardian (NSWTAG) to be struggling to accommodate the growth in client numbers, particularly as it is considered to be a largely self-funded organisation - mainly funded by the fees it charges its clients.
The NSWTAG doesn’t have the information to know if its direct management services are consistent with the legislative principles which prioritise the welfare and interests of its clients. It doesn’t consistently obtain and record relevant client information, nor test if staff decision-making aligns with those principles.
Staff caseloads are such that they can only spend a very limited amount of time building a relationship with each client or working on their matter. This constrains their ability to get to know their client and understand their circumstances. Poor client information sharing in legacy IT systems, insufficient quality monitoring, and limited staff training and staff supports exacerbate the problems.
As government funding for direct financial management of low wealth clients has not kept pace with the growth in client numbers, there is a real risk that some fee-paying clients are unknowingly subsiding others.
Reform is long overdue, and I believe needs to go further than the changes recommended in this report.
My opinion piece ‘Personal injury lawyers and the audit of the NSWTAG’ regarding this important report has since been published by the Australian Lawyers Alliance.