Audits in progress at July 2011
Major Projects Report 2010–11
The 2010–11 Major Projects Report will be the fourth annual report to Parliament on the DMO’s major projects acquisitions (In 2010–11, 28 projects have been selected and subsequently endorsed by the Joint Committee of Public Accounts and Audit). The ANAO will complete the assurance reviews and report to Parliament on the technical progress, schedule and cost of each major project that is subject to review. The report will be based on the agreed scope of the review, rather than on in-depth reviews, such as those conducted for performance audits. The quality of DMO’s management reporting systems and controls, and its ability to provide the ANAO with relevant and timely access to information relating to each major project will be critical to the success of this review process.
The report is expected to be tabled in the Spring 2011 Parliamentary Sittings.
Management of the Defence Community Organisation
The Defence Community Organisation (DCO) was established in 1996 to support the Australian Defence Force (ADF) personnel and their families to balance the demands of military service with personal and family commitments. DCO services are delivered by Area Teams located on or near major ADF establishments around Australia. DCO administers grants to support organisations and provides childcare services. Area Teams include social workers, military support officers, regional education liaison officers and family liaison officers. Area Team staff provide a range of support services, including to the relatives of serving personnel who are injured or killed.
DCO was subject to review by Defence in 1997–98 and, in May 2007, the Australian Government announced a DCO review to guide the development and provision of enhanced family support programs and services.
The objective of the audit is to asses the management and effectiveness of DCO’s delivery and coordination of support services to ADF families.
The audit report is expected to be tabled in the Spring 2011 Parliamentary session.
M113 Upgrade Project – LAND 106
Army’s fleet of M113 armoured vehicles has been in service since the mid 1960s, providing transport, fire support and logistical support. In light of the 2000 Defence White Paper, the Australian Government approved the M113 Upgrade Project to provide a major upgrade of 350 of the Army’s aging M113 fleet. The upgrade aims to improve the vehicles’ protection, lethality, mobility and habitability.
The M113 Upgrade Project began in July 2002 and since that time has encountered significant difficulties, in particular problems with engine overheating and the braking system. As a result of these difficulties the project was placed on the Projects of Concern list in 2006. DMO ceased making contract payments in May 2006 and did not resume payments until the reliability of the vehicles was considered to have been confirmed, and Defence concluded a contract settlement with the Prime Contractor in October 2007. Among other things, a new project schedule was agreed under the contract settlement. In May 2008 the M113 Upgrade Project was removed from the Projects of Concern list.
Army took delivery of the first batch of the upgraded vehicles in November 2007, with a total of 350 upgraded M113s due to be delivered to Defence by December 2010. In October 2008, as part of Army’s Enhanced Land Force initiative, the Australian Government approved funding for the upgrade of a further 81 M113s, bringing the total number to be upgraded to 431. In November 2009, Defence advised Parliament that the additional 81 vehicles would be delivered by April 2012.
This audit is the third in a series of ANAO audits over the life of this project with the first having been tabled in 2005–06 and a follow on audit in 2008–09. The objective of the audit is to assess the progress of the M113 Upgrade project, and the development of operational capability resulting from the introduction of the upgraded vehicles into service.
The audit report is expected to be tabled in the Spring 2011 Parliamentary session.
Defence ICT Portfolio and Program Management
Information and Communications Technology (ICT) is critical to the delivery of Defence’s military, intelligence and corporate services. Defence has recognised that its ICT capability is in a poor state and needs to be improved. Defence has also recognised the potential of ICT to transform the way it operates, and ICT reform is a key enabler of the SRP.
The objective of the audit is to examine the development of Defence’s ICT portfolio and program management. The focus of the audit is on Defence’s high-level arrangements for the portfolio and program management of ICT. The audit will provide a strategic overview of Defence’s ICT governance, planning and management processes, and its management of the risks arising from ICT reform in support of the SRP. The audit approach aligns with ICT reform’s key role in enabling the SRP, including through the SRP ICT Reform Stream.
The audit report is expected to be tabled in the Spring 2011 Parliamentary session.