An overview of our work in 2006–07

This was another demanding year for the ANAO with an increased workload but one in which the ANAO has delivered on our goals and met our mandatory responsibilities. During 2006–07 the ANAO issued:

  • 242 financial statement audit opinions;
  • 2 financial statement related reports;
  • 51 performance audits;
  • 4 Better Practice Guides; and
  • 3 AUDITFocus newsletters
  • 3 Opinions newsletters

Financial statement audits — the results of our recent report on the key financial systems and controls in Australian Public Service (APS) agencies for 2006–072 indicated that, in general, agencies have in place appropriate governance, financial management and control regimes in relation to their financial statement responsibilities. These regimes include regular executive management monitoring and review of agencies’ budgetary and financial performance, an Audit Committee with well-defined responsibilities, and up-to-date fraud and risk management plans.

Improvements were evident in agencies’ business continuity arrangements, although more work needed to be done in a number of cases to ensure these arrangements are comprehensive and are subject to periodic testing. Although all agencies had in place a fraud control plan, our audits also found that some agencies did need to give additional attention to meeting their fraud control responsibilities.

Our review of agencies’ financial control regimes found that they were generally sound although, in some cases, increased attention was warranted in the areas of the management of information system user access, accounting for assets and the reconciliation of key financial accounts. These findings are broadly consistent with the results of our financial statement audit coverage over the last several years.

Performance audits — the ANAO continues to undertake its performance audit work in a consultative manner, including working co-operatively with those having key governance responsibilities in entities, including Audit Committees. It was pleasing to note that in 2006–07 agencies agreed with 92 per cent of our audit recommendations, with a further seven per cent of recommendations agreed with qualification.

In developing our 2006–07 performance audit programme the ANAO took account of the priorities of the Parliament (as advised by the Joint Committee of Public Accounts and Audit) as well as the views of entities and other stakeholders. The programme provided a broad coverage of areas of public administration and was underpinned by a risk-based methodology.

During 2006–07 the ANAO provided performance audit coverage across the following five key themes:

  • governance (including financial management, information system integrity, administration of management systems, whole of government initiatives and compliance);
  • administration of border security;
  • project management
  • service delivery; and
  • grants administration

The results of this audit coverage highlighted the need for continued improvement in public sector administration in areas such as: reporting against performance indicators; record-keeping; managing intellectual property; managing large Information Technology (IT) projects; managing large equipment and acquisition projects; and the administration of grants. The results of audits conducted in 2006–07 are summarised by theme in Appendix 4 of this report.

  • 2 ANAO Audit Report No 51, 2006–07, Interim Phase of the Audit of Financial Statements of Government Sector Agencies for the Year Ending 30 June 2007, 27 June 2007.