Attorney-General’s

Audit strategy overview

The Attorney-General’s portfolio comprises the Attorney-General’s Department, the Australian Federal Police (AFP), the Australian Customs and Border Protection Service (Customs), and a number of other agencies, including those covering national security, administration of justice, law enforcement, and administration of Australia’s territories. The structure of the agencies within the portfolio is intended to align to the Government’s commitment to a fairer and safer Australian society.

The ANAO has focused its recent audit efforts on risks in the national security and border security environment. Recent audit coverage has included the enforcement of Australia’s border security arrangements at airports and in the maritime domain, identity security arrangements, and arrangements to share national security information from members of the public between intelligence and law enforcement agencies.

Planned audit work for 2010–11 places particular emphasis on how well law enforcement and intelligence agencies in the portfolio have managed changes in resources and responsibilities, while maintaining core capabilities and delivering key functions.

Audits in progress at 1 July 2010

National Security Hotline

The National Security Hotline is a 24-hour, 365 days per year, call centre located within the Attorney-General’s Department. It was established in 2002 principally to allow members of the public to report matters which may be of significance to national security, especially in relation to terrorism. Since its inception, it has received more than 140 000 calls.

The objective of this audit is to examine the effectiveness of the management and implementation of the hotline, including whether call reports from the hotline meet the needs of stakeholders both in terms of timeliness and quality.

The audit report is expected to be tabled in the Spring 2010 Parliamentary Sittings.

Night Patrols

Northern Territory Night Patrols (Night Patrols) are community-based intervention initiatives to assist ‘at risk’ Indigenous Australians avoid adverse contact with the criminal justice system either by causing or becoming victims of crime. The Australian Government is providing $67.9 million over three years from 2009–10 for the operation of Night Patrol services in 81 communities or areas in the Northern Territory, 73 of which are prescribed communities under the Northern Territory Emergency Response. Twelve service providers have been engaged to deliver night patrol services for the 81 locations.

The audit objective is to assess the administrative effectiveness of the management of the Night Patrols program in the Northern Territory by the Attorney-General’s Department.

The audit report is expected to be tabled in the Spring 2010 Parliamentary Sittings.

Australian Federal Police Management of Implementation of New Policy Initiatives

The nature of the AFP, and what is required of it, has changed significantly in recent years. A rapidly changing security environment has required a closer focus on national and international operational activities. These new challenges include counter-terrorism, people smuggling, drug trafficking, peace operations, protective security, cyber crime and other transnational crimes. Expenditure in 2009–10 is projected to approach $1.4 billion, nearly four times the $370 million spent in 2000–01 (the last full year before the September 11 2001 attacks on the United States).

Growth has been achieved through more than 130 new policy initiatives announced since the 2001–02 Budget, representing more than $5 billion of new expenditure. As a consequence, much of the funding has been tied to specific activities and outcomes, with funding lapsing after four years if not renewed. By 2009, nearly 75 per cent of the AFP budget was comprised of finely divided allocations of temporary funds for specific purposes—so-called lapsing and terminating programs. The development and implementation of such a significant body of new policy carries significant risks, both to the delivery of ongoing services as well as the realisation of the benefits intended to be secured by specific initiatives.

The objective of the audit is to assess the effectiveness of the AFP's management of the implementation of new policy initiatives. The audit is seeking to establish whether the administrative and governance arrangements in place in the AFP over this period effectively supported the delivery of Government priorities, as well as to identify opportunities for the AFP to strengthen organisational performance, institutional transparency and accountability.

The audit report is expected to be tabled in the Autumn 2011 Parliamentary Sittings.

Management of the Aviation and Maritime Security Identity Cards Regime

Aviation and Maritime Security Identification Cards (ASIC and MSIC) for airport and seaport workers form part of Australia’s effort to secure the transport sector against terrorism. All individuals who require unescorted access to a secure area of an airport, seaport or offshore facility are required to undertake a background check and display an ASIC or MSIC indicating that they have passed this check. Responsibility for the ASIC and MSIC regime is shared between the Department of Infrastructure, Transport, Regional Development and Local Government (DITRDLG) and the Attorney-General’s Department (AGD), although the actual issuing of cards is performed by over 200 separate issuing authorities, including both private and public sector bodies. There are around 125 000 ASICs and 137 000 MSICs in current circulation.

The objective of this audit is to assess the effectiveness of DITRDLG’s and AGD’s management of the ASIC and MSIC regime. The audit focus includes governance, reporting and funding arrangements, administration of the issuing of the cards, information systems and compliance activity.

The audit report is expected to be tabled in the Autumn 2011 Parliamentary Sittings.

Australian Federal Police Protection Services

The former Australian Protective Service was the Australian Government’s specialist protective security provider. The Australian Protective Service had responsibility for protective security and guarding of government establishments, diplomatic and consular missions, and for providing the counter-terrorist first response function at major airports. Guarding services to government establishments were provided on a user-pays basis and were open to market competition.

The Australian Protective Service became a part of the AFP in 2002, with the objective of ensuring greater coordination between the AFP’s close personal protection function and the Australian Protective Service’s guarding function, and strengthening both organisations’ ability to fulfil their counter-terrorism responsibilities. The Australian Protective Service—its functions and its 1327 employees—was fully integrated into the AFP in 2004.

The objective of this audit is to examine the management of the services provided by the Australian Federal Police Protection Services. In particular, the audit is examining: whether the Protection function has been effectively integrated into the AFP and sound arrangements are in place to strategically plan protection services and manage strategic risks; whether Protection Services staff have appropriate skills and guidance; and whether uniform protection services and close personal protection services are well-managed.

The audit report is expected to be tabled in the Winter 2011 Parliamentary Sittings.

Potential audits

Australian Federal Police Management of Project Spectrum

It is important that the Australian Federal Police has systems that effectively support the full range of its law enforcement operations. The existing system, PROMIS, was developed to provide support to criminal investigations. PROMIS was not designed to support the AFP’s newer functions and the expansion of AFP business. In the 2007–08 Budget, the Government announced the provision of $69.0 million over five years to acquire and develop the next generation of the AFP’s operations and intelligence IT system. Since inception, this significant IT project (known as Project Spectrum) has been broadened to encompass business process management renewal and there has been a significant redefinition of core project objectives. The new system represents a significant capital investment by the AFP and will be a key resource underpinning AFP operations into the future.

An audit would examine the AFP’s management of Project Spectrum, including the delivery of anticipated benefits in line with time, cost and quality expectations.

Australian Federal Police Management and Implementation of the Fighting Terrorism at its Source Initiative

Counter-terrorism measures have been a major element of the AFP’s recently expanded role. In addition to increased domestic resourcing, there has been a significant expansion of regional activities. Since 2004–05, the AFP has pursued a range of regional cooperation, consultation and capability enhancement projects under the broad umbrella of the ‘Fighting Terrorism at its Source’ initiative. Funding for the initiative was renewed in the 2009–10 Budget, with total expenditure through to 2013–14 approaching $180 million.

An audit would examine the AFP’s implementation and administration of the projects funded through the Fighting Terrorism at its Source initiative, to provide assurance regarding the effectiveness of the expenditure (including the identification of priorities in cooperation with partner countries). The audit may include work in other agencies in the Attorney-General’s and Foreign Affairs and Trade portfolios.

Customs and Border Protection’s Detection of Illicit Drugs and Precursors

Customs and Border Protection is responsible for the detection and deterrence of the movement of illicit drugs and their chemical precursors across the border.  Detection of illicit drugs and precursors has been rising. Most illicit drugs and precursors are detected in cargo and mail rather than on persons. In 2008–09, total drug detection by weight in cargo and mail was 5 358.87 kg. By comparison, detections for air passengers and crew amounted to 94.65 kg, and shipping and aircraft, 8.08 kg.

An audit would examine Customs risk assessment and target selection practices, performance measurement and reporting framework in its detection of illegal drugs and precursors.  The audit would take into account previous ANAO activity, in particular ANAO Audit Report No.54 2001–02, Drug Detection in Air and Containerised Sea Cargo and Small Craft, and may include work in other law enforcement and intelligence agencies.

Customs and Border Protection’s Management Arrangements for the Processing of Imports

Customs plays a key role in managing the movement of goods across Australia’s border. In undertaking this role the agency seeks to maintain an appropriate balance between facilitating trade and protecting the community from the entry of illegal and harmful goods into the country. Over recent years consignments for both imports (by air and sea) and exports have experienced steady growth. Consignments are forecast to continue to increase, by more than 35 per cent, by 2015. In anticipation of the increased complexity and volume in the cargo management environment, Customs has significantly changed its cargo management processes and systems. In 2006–07 the ANAO examined the agency’s $205 million Cargo Management Re-engineering Project (Audit Report No.24 2006–07). The audit concluded that the project was a major challenge for the agency. The project encountered considerable delays and cost overruns and the implementation of the new system caused substantial disruptions to the movement of cargo at Australia's major ports and airports.

An audit would assess the effectiveness of Customs key management arrangements that support its processing of imports. The audit would also examine the agency's implementation of the recommendations made in ANAO Report No.24 2006–07 and related reviews, having regard to the issues underlying the recommendations and any changed circumstances or new administrative issues affecting their implementation.

Customs and Border Protection’s Processing of Incoming International Air Passengers (secondary examination phase)

Customs is responsible for passenger and crew processing that supports legitimate travel and the interventions needed to prevent illegal movement of people and the goods they bring across the Australian border. International passenger numbers have been increasing; the Customs and Border Protection Service processed 12.32 million incoming international air and sea passengers in 2008–09.

An audit would examine Customs processing of inbound international air passengers, specifically the secondary examination of travellers who may be carrying prohibited goods or items. The audit would examine the risk assessment applied to these passengers. Arrangements with other Australian Government agencies in processing these international passengers would also be an audit focus. The audit would complement the ANAO’s audit of Customs processing of inbound international air passengers that examined the pre-arrival and primary line process. The audit would be likely to include work in the Foreign Affairs and Trade, and Immigration and Citizenship portfolios.

Attorney-General’s Department Management of Territories

The Attorney-General’s Department (AGD) is responsible for administering the Commonwealth’s interests in the Australian territories. This includes the self-governing territories—the Australian Capital Territory, the Northern Territory and Norfolk Island; the non-self-governing—Christmas Island, Cocos (Keeling) Islands and Jervis Bay; and the uninhabited territories—Ashmore and Cartier Islands and the Coral Sea Islands. The AGD’s role includes developing policy advice and legislation to maintain effective systems of governance; administering intergovernmental agreements; delivering state and local government-type services, including grant funding; and managing a capital works program to maintain, replace and modernise territory infrastructure for which the Australian Government is responsible. 

An audit would examine the AGD’s administration of the Commonwealth’s interests in the Australian territories.

ASIO’s Security Assessments of Individuals

ASIO conducts three types of security assessments of individuals.  In 2008–09, ASIO issued 21 699 personnel security assessments of employees and contractors of government agencies who require access to classified information, 65 119 counter-terrorism security assessments (principally of applicants for Aviation and Maritime Security Identity Cards) and 59 844 visa security assessments. Each of these types of security assessments plays an important role in meeting government security requirements and assisting agencies responsible for border security. Requests for assessments come from a variety of sources and ASIO has set performance indicators for each type of assessment.  ASIO’s assessments are recommendatory and not binding on the agency which requests them.

An audit would examine the processes involved in each type of assessment and the effectiveness of a number of recent initiatives, such as direct connectivity between ASIO and the Department of Immigration and Citizenship (DIAC). The audit would complement the ANAO’s current audit of the management of Aviation and Maritime Security Identity Cards and previous audit of the DIAC Movement Alert List system.

Cyber-safety Plan

The Government announced the Cyber-safety Plan as part of the 2008–09 Federal Budget. The Cyber-safety Plan aims to combat online threats and to protect children from inappropriate material on the Internet, through activities such as:

• expanded education and consultative measures;
• Internet Service Provider-level filtering of an expanded Australian Communications and Media Authority (ACMA) blacklist;
• funding to the Commonwealth Director of Public Prosecutions to manage increased activity resulting from AFP work to ensure that prosecutions are handled quickly; and
• funding to ACMA to implement a comprehensive range of activities and an online helpline for children to report online incidents that cause them concern.

An audit would examine the implementation and administration of the Cyber-safety Plan and the extent to which the program is achieving its objectives. The audit would include work in the Attorney-General’s and the Broadband, Communications and the Digital Economy portfolios.

AUSTRAC’s Implementation of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006

AUSTRAC was established in 1989 and is Australia’s anti-money laundering and counter-terrorism financing regulator. The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 was intended to bring Australia into line with international standards set by the Financial Action Task Force.  The principal purpose of the Act was to impose obligations on businesses or individuals offering specific services that could be exploited to launder money or to finance terrorism.  The Act also conferred significant regulatory and enforcement powers on AUSTRAC. The legislation was introduced in two tranches: the first covering larger institutions in the financial and gambling sectors, and the second covering a range of businesses and professions, including dealers in precious metals and stones, lawyers, accountants, real estate agents and trust and company service providers.  The implementation of the first tranche was completed in 2008.  The implementation of the second tranche has been delayed and the Government announced that it proposed to reconsider the implementation process for the second tranche in December 2009.

An audit would examine the implementation of the Act.  It would also examine the extent to which AUSTRAC’s use of its regulatory and enforcement powers has contributed to meeting the original intention of the legislation.

 

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