A new report has highlighted serious governance concerns in Western Australia’s greyhound racing sector, serving as a warning that even small government entities must not overlook strong internal controls.
The Auditor General’s report, Fraud Risks in the WA Greyhound Racing Association, was tabled in Parliament last week Friday. It examined the operations of the Western Australian Greyhound Racing Association (WAGRA), which runs races at Cannington, Mandurah and Northam and employs around 190 people; most of them casual staff.
WAGRA receives major funding from Racing and Wagering Western Australia (RWWA), which contributed $31.8 million in the 2023–2024 financial year.
This included $8.3 million to support daily racing and $23.5 million in payments to participants.
Although the audit did not find evidence of fraud, Auditor General Caroline Spencer said serious weaknesses in internal controls leave WAGRA and taxpayers vulnerable.
“In some respects, WAGRA operates like a small family business, where familiarity and trust allow an informal approach to internal controls,” Ms Spencer said.
“That’s not appropriate for a government entity.”
The report found poor management of conflicts of interest, weak record-keeping for employee hours, and questionable procurement practices.
Among the issues raised: One employee received nearly 73 percent of the $200,000 paid in staff reimbursements, over $50,000 was spent on alcohol from a single supplier, without following state procurement rules and more than a third of staff had annual leave balances above policy limits, and there was no clear plans to manage this.
Conflicts of interest were also known but not formally recorded or addressed with risk management plans.
Ms Spencer warned that such informal practices create unnecessary financial and reputational risks. “Clear guidelines and accountability measures are needed to ensure this risk is managed,” she said.
She added that the report carries important lessons for the 30 percent of WA government entities considered “small,” where close staff relationships must not compromise proper safeguards.
