Browse our range of publications including performance and financial statement audit reports, better practice guides, Opinions newsletters and annual reports.
We removed a number of better practice guides from our website on 1 July 2017. More information about the ANAO’s review of better practice guides and revised arrangements.
Type of content:
Better practice guide
Published: Monday 26 June 2017
Published
The independent Review of Whole-of-Government Internal Regulation, known as the ‘Belcher Red Tape Review’, made a recommendation in relation to the ANAO’s better practice guides that ‘the ANAO take the opportunity, where regulators and policy owners have developed or are developing policy guidance material, to review whether there is a continuing need for it to develop, release and maintain its own separate guidance’. The ANAO has considered the Belcher review and the potential for duplication where the regulator has provided guidance on particular subject areas and consulted widely with key stakeholders over the past year about the future of our better practice guides. We consulted with the Australian Parliament and public sector entities, including audit committees within these entities, and then considered the feedback received.
The broadly consistent feedback was that where another entity has, or will be, producing a similar resource and has committed to continue to do so, the ANAO could add more value by monitoring the effectiveness of this resource (and potentially partnering with the entity in its production), whilst ceasing to produce its own resource. On this basis, the ANAO has decided to discontinue and cease distributing a range of better practice guides, and continue to produce only a small number of guides in partnership with policy owners, where possible.
The following better practice guides will be removed from the ANAO website by 1 July 2017:
- Implementing Better Practice Grants Administration
- Fraud Control in Australian Government Entities
- Public Sector Internal Audit
- Human Resource Management Information Systems
- Public Sector Environmental Management
- Planning and Approving Projects—an Executive Perspective
- Strategic and Operational Management of Assets by Public Sector Entities
- Innovation in the Public Sector
- Business Continuity Management
- Developing and Managing Internal Budgets
- SAP ECC 6.0: Security and Control
If you require access to the withdrawn better practice guides listed above, you can find them through the National Library of Australia's Australian Government Web Archive.
Contact:
Please direct enquiries relating to reports through our contact page.
Type of content:
Better practice guide
Published: Tuesday 3 March 2015
Published
Effective financial management is critical to public sector entities being able to meet their policy and service delivery responsibilities. An important aspect of financial management and stewardship, and the primary mechanism by which entities meet their financial accountability obligations, is the preparation and publication of annual audited financial statements in entities’ annual reports.
It is generally acknowledged that the timely finalisation of an entity’s financial statements, accompanied by an unmodified auditor’s report, is an important indicator of the effectiveness of an entity’s financial management performance. Sound financial management fosters confidence in the entity on the part of Ministers, the Parliament and other stakeholders. As such, entities should give appropriate priority to the preparation of their financial statements and the necessary systems, procedures, and practices that underpin them.
The environment in which entities are required to prepare their annual financial statements continues to be a challenging one. Ongoing enhancements to accounting standards, changes to the Government’s financial framework and resource pressures are some of the issues faced by entities in preparing accurate and timely audited financial statements.
This Guide updates and replaces the Guide issued in June 2013. The Guide reflects the requirements of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and includes: a discussion and associated examples that are designed to assist entities to achieve more informative financial reporting; and includes a discussion on some of the implications of a shared services environment on the preparation of an entity’s financial statements.
While much of this Guide provides practical guidance material relating to the preparation of financial statements, it is recognised that the underpinning management and internal control regimes need to be functioning effectively if an entity’s financial statements are to comply with legislative and policy requirements, and are to be produced in a timely manner.
As no two entities are the same and their financial statement preparation processes involve different levels of complexity and risk, the material in the Guide should be interpreted, customised and used in the context of each entity’s own particular circumstances. Entities also need to be alert to ongoing legislative and policy changes.
The following checklists and other material from the Guide, which can be customised and used to suit individual entity circumstances, are available to download at Related documents on this page.
- Item 1: Checklist for the Chief Financial Officer (Excel file)
- Item 2: Checklist of changes in the business environment
- Item 3: Example work plan
- Item 4: Example instructions on the preparation of the financial statements
- Item 5: Example financial statements risk analysis
- Item 6: Example audit assistance package
- Item 7: Example documentation requirements
- Item 8: Proforma working papers and supporting lead schedule and checklist
- Item 9: Examples of improving the presentation of financial statements
- Item 10: Proforma accounting adjustments register
- Item 11: Example management sign-off
- Item 12: Proforma Chief Financial Officer report
- Item 13: Checklist for the Audit Committee (Excel file)
- Item 14: Checklist for restructures
Type of content:
Better practice guide
Published: Tuesday 3 March 2015
Published
Audit Committees play an important role in the governance framework of organisations in both the public and private sectors. A distinguishing feature of an Audit Committee within an organisation’s governance framework is its independence from management.
In the context of the public sector, Audit Committees provide an independent source of assurance and advice to entities’ Accountable Authorities on key aspects of the entity’s operations.
Better practice entities recognise the benefits of an Audit Committee with members who have a broad range of skills and experience. Such members can independently review and advise the Accountable Authority on key aspects of an entity’s operations, including in the areas financial reporting, performance reporting, risk oversight and management and internal controls. However, Audit Committees are not a substitute for an entity’s management controls and accountabilities.
This Guide updates and replaces the Australian National Audit Office’s (ANAO) 2011 Public Sector Audit Committees Better Practice Guide. The Guide reflects the requirements of the Public Governance, Performance and Accountability Act (PGPA Act) and PGPA Rule section 17 - Audit committee for Commonwealth entities. The Guide includes a discussion on: a range of functions and responsibilities that may be undertaken by the Audit Committee of a Commonwealth entity; shared committee arrangements; and sharing resources between entities. Part 3 of the Guide also includes a number of checklists and other material for use by committees and entity management.
The aim of the Guide is to provide guidance on the operation of the Audit Committees of public sector entities operating under the PGPA Act. It is recognised that the large majority of Commonwealth entities have well-established audit committees. Nevertheless, the environment in which entities and their audit committees are operating continues to evolve. There is a tightening budgetary position, an increase in the use of shared services, a rationalisation of the number of Commonwealth entities, and an ongoing transition to the resource management framework introduced by the PGPA Act. All entities and committees are required to meet the requirements of the PGPA Act and Rules, including revised functions and membership arrangements It is also apparent that the expectations of Accountable Authorities about the extent of assurance they seek from the Audit Committee are increasing. These factors reinforce the need for Accountable Authorities to periodically review, in consultation with the Audit Committee, the committee’s functions and responsibilities and the committee’s capacity to be able to undertake the full range of responsibilities.
The Guide complements the ANAO’s Better Practice Guide Public Sector Internal Audit published in September 2012 and each entity is encouraged to use the Guide to identify, and apply, better practice principles and practices that are customised to its particular circumstances.
Type of content:
Better practice guide
Published: Wednesday 15 October 2014
Published
All Governments expect their policies to be implemented on time, on budget and to expectations. For that to occur, implementation considerations must be a fundamental part of all stages of policy development.
This Better Practice Guide was first released in 2006. It has now been reviewed and updated, in collaboration with the Department of the Prime Minister and Cabinet, to incorporate key developments since that time. We believe that there is real value in drawing together lessons from experience about how to successfully implement government policies, and in using those insights to strengthen performance in the future.
There are always lessons to be learnt from the implementation of most policies, not least the importance of good planning. This guide offers advice to public sector senior leaders on the successful implementation of policies so that unintended consequences, which deny the community the full benefits of a new policy or waste public resources, can be avoided.
The messages contained in the guide apply not only to new initiatives but also to adjustments or changes to existing measures or areas of regulation. The advice is equally relevant to senior leaders advising on policy proposals and those responsible for implementing policy initiatives. All have to collaborate to ensure success.
Our current environment involves government actively considering the extent and limitations of its service delivery and regulatory roles, at a time of significant pressures on public finances. Stakeholder and community engagement and interaction with government is becoming broader and more intense, enabled by the advent of the internet, social media and other transactional and communication methods. These developments all have implications for the successful implementation of policies.
While some policies can be developed and implemented with long lead-times, others must be developed and implemented quickly, even rapidly, on occasion. The advice presented in this guide has been developed in recognition of the pressures on the modern public sector, and taking into account experience gained in recent years.
The checklists included in this guide are a tool to be used by senior leaders. They reflect the collective experience and wisdom of senior executives and managers across the Australian public sector. The guide quotes from interviews with many public sector chief executives, and we acknowledge that the apparent simplicity of those quotes sometimes belies the often challenging way in which the experience behind them was gained. We sincerely thank all those who contributed their ideas and advice.
We encourage the use of this guide to assist public sector leaders in their stewardship of public resources invested in policies and programs that significantly affect the interests and wellbeing of the Australian community.
Type of content:
Better practice guide
Published: Thursday 26 June 2014
Published
Effective governance can make a real difference to the performance of public sector entities and to the outcomes sought by government. This is a compelling reason for all public sector entities to periodically review and refine their approaches to governance. Reflecting the public sector environment, governance arrangements need to position entities to achieve the best results for the government and Australian community, consistent with legislative and policy requirements. At the same time, they must focus each public sector entity on its performance to encompass the efficient and effective delivery of its responsibilities in a sustainable manner.
Achieving effective governance depends on developing and maintaining appropriate and accepted governance structures and frameworks; it also depends heavily on the application of appropriate governance choices and a commitment to making them work. It is the positive interaction between the ‘hard’ and ‘soft’ elements of governance—the structural and people elements—that leads to improved performance. In this respect, strong leadership is a critical driver for success; it can ensure appropriate governance arrangements are in place and foster ownership of the entity’s goals and strategies by its staff.
This guide replaces the Australian National Audit Office’s (ANAO’s) 2003 Public Sector Governance Better Practice Guide. Public sector governance has matured since the ANAO’s earlier guide; this guide’s substantially revised content reinforces the fundamental elements required for good governance and builds on them to address contemporary governance issues and challenges. In particular, greater attention is given in this guide to the importance of leadership, engaging in beneficial stakeholder relationships, and working collaboratively across entity, jurisdictional and sector boundaries to enhance policy outcomes. The guide emphasises the importance of a highly performing public sector, particularly in the light of fiscal constraints and public expectations for continuous improvements to public sector services, more transparent processes and increasing levels of engagement with citizens and other stakeholders. The release of the revised guide has been timed to align with the implementation of the substantive provisions of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) in 2014–15.
Type of content:
Better practice guide
Published: Tuesday 10 June 2014
Published
An appropriate level of effective regulation is an essential part of well-functioning economies and supports the achievement of economic, social or environmental policy objectives. In designing regulatory approaches governments need to strike a balance between the obligation to protect the community or public interest, while at the same time not imposing unnecessary costs on those they regulate or indirectly the broader community.
This Better Practice Guide (the guide) is being published in a period of change in regulatory approach. During 2013, the Australian Government made a commitment to regulatory reform with the aims of reducing the burden of regulation, boosting productivity, increasing competitiveness, reducing unnecessary regulation and lifting regulatory performance.
This guide aims to provide guidance to regulators on how to efficiently and effectively administer regulation. The content of the guide has been revised to reflect the changing focus of regulatory administration. In particular, greater attention is given in this guide to the importance of risk management, effective stakeholder engagement, the value of data analysis as a source of regulatory intelligence, regulator behaviour, and regulator and regulatory performance. Better practice principles are outlined in the guide to assist Australian Government regulators in assessing the quality of their administrative practices and in identifying where improvements can be made.
Type of content:
Better practice guide
Published: Wednesday 29 February 2012
Published
Contracting is an integral part of the way the Australian Government conducts business. The Australian Government is a significant purchaser of goods and services, and each year the public sector enters into a large variety of contracts worth billions of dollars.
The Guide updates and replaces the 2007 version and reflects continued interest in and the need for guidance in this area. The revised Guide updates references to legislation and policy and includes an expanded section on panel procurement arrangements.
The Guide seeks to support effective development and management of contracts for public sector entities operating under the Financial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997. As with all of the ANAO’s Better Practice Guides, each entity is encouraged to use the Guide to identify, and apply, better practice principles and practices that are relevant to its particular circumstances and the complexity of its contracting activities.
The Guide is intended to be a general reference document for senior managers, contract managers and stakeholders who are involved in the development and management of contracts. It identifies the key issues and considerations that entities should be aware of when developing and managing contracts. A number of contract management checklists and similar aids are also included throughout the Guide, which can be tailored to the particular circumstances of each entity.
The Financial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997 were replaced by the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and supporting rules on 1 July 2014. The PGPA Act provides a common legislative framework for the governance, performance and accountability of all Commonwealth entities.
Substantially the content of this Guide, in particular the underlying concepts and principles of better practice, remain relevant.
Further information on the PGPA Act is available at www.pmra.finance.gov.au.