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The objective of the current audit was to assess Army's progress in implementing the ANAO recommendations and to examine and assess any developments in relation to AIRN since the 1999?2000 audit report and the 2001 JCPAA report. Army updated AIRN policy in 2001 and 2004, and the ANAO has assessed, where appropriate, the implementation of the 1999?2000 audit recommendations for these two policy reissues.
The objective of the audit was to provide assurance to Parliament concerning the adequacy of Defence preparedness management systems and to identify possible areas for improvement. The audit focused on the systems and processes that Defence uses to manage preparedness. We did not review the preparedness levels of specific capabilities, nor did we cover capital acquisition processes. The audit included coverage of: - preparedness systems architecture; - control and direction of preparedness; - coordination among contributors to preparedness; and - performance management and preparedness.
The objective of the audit was to examine DVA's implementation of the Repatriation health card system, which aims to ensure that veterans can obtain health care through community-based providers and facilities.
The audit reviewed the Defence Materiel Organisation's management of the $3.43 billion Wedgetail Airborne Early Warning and Control (AEW&C) project. The Wedgetail project is to provide the Australian Defence Force with an AEW&C capability based on four Boeing 737 AEW&C aircraft and associated supplies and logistic support. At the time of the audit the AEW&C systems were still in their early development phase, and by November 2003, Defence had spent $1.107 billion on the project.
The audit examined agency approaches to the management of intellectual property under its control, and identified themes common to the management of all types of intellectual property. The audit objective was to:
(i) form an opinion on whether Commonwealth agencies have systems in place to efficiently, effectively and ethically manage their intellectual property assets; and
(ii) identify areas for better practice in intellectual property management by those agencies.
As part of its 2001 inquiry into the recruitment and retention of Australian Defence Force (ADF) personnel, the Senate Foreign Affairs, Defence and Trade References Committee reviewed Defence's contract with Manpower Services (Australia) Pty Ltd for trialling the outsourcing of recruiting services to the ADF. In its subsequent report, the Committee commented that the original contractual arrangements deserved further scrutiny by the ANAO. The objective of the audit was to examine Defence's management of the contractual arrangements for the provision of recruiting services to the ADF. In examining the management of the contract, the ANAO looked at the evaluations conducted at the end of each contractual phase, roles and responsibilities associated with ADF recruiting, and Defence's monitoring of contractual performance and management of risks associated with ADF recruiting.
This report relates to the fourth audit of Financial Management and Accountability Act 1997 (FMA Act) agencies' compliance with the Order of the Senate for Departmental and Agency Contracts, (the Senate Order) to list, on the Internet, contract details for the reporting period 4 February 2002 to 3 February 2003. The audit was conducted in accordance with the Senate Order request for the Auditor-General to undertake twice-yearly examinations of agency contracts listed on the Internet, and to report whether there had been any inappropriate use of confidentiality provisions. The objectives of the audit were to assess agency performance in relation to compiling the Internet listings required by the Senate Order and the appropriateness of the use of confidentiality provisions in Commonwealth contracts.
Australian Federal Police (AFP);; Australian Greenhouse Office (AGO);; Department of Defence (Defence);; Department of Employment and Workplace Relations (DEWR);; Department of Family and Community Services (FaCS);1 and; National Capital Authority (NCA)
This was a follow-up of Audit Report No. 29 2000-01, Review of Veterans' Appeals Against Disability Compensation Entitlement Decisions. That audit examined the Department of Veterans' Affairs (DVA's) and the Veterans' Review Board's (VRB's) management of the review of decisions for disability compensation. The objective of this audit was to assess the extent to which DVA and the VRB had implemented the four recommendations of Report No.29 2000-01, taking into account any changed circumstances, or new administrative issues, affecting implementation of these recommendations.
The objective of the audit was to report to Parliament on the progress Defence has made since June 2001 in implementing appropriate strategies for recruiting, developing and retaining skilled IT personnel. The audit focused on management of specialist information system skills and did not examine skills needed by users of information systems, although the latter is of obvious importance for overall performance. In June 2001, the Joint Committee of Public Accounts and Audit (JCPAA), after reviewing the ANAO's Audit Report No. 11 Knowledge System Equipment Acquisition Projects in Defence, commented that its major concern about Defence's ability to develop a knowledge edge with adequate coherence, centred on Defence's ability to recruit, develop and retain skilled individuals needed in all parts of the DIE. The JCPAA recommended that the ANAO conduct an audit of Defence's strategies for recruiting, developing and retaining skilled IT personnel.
Defence has long provided housing assistance for members of the Australian Defence Force (ADF) and their families. In 1988, this function passed to the Defence Housing Authority (DHA), which was established to provide suitable housing to meet Defence's operational needs. In 2000, Defence and DHA signed a Services Agreement valued at $3.5 billion over 10 years. The objective of the audit was to assess whether Defence's management of its housing and relocation services provided for ADF members meets specified requirements; and to make practical recommendations for more efficient, effective and economical use of public resources provided for this purpose.
Australian Industry Involvement Program. Department of Defence The audit examined the management by Defence of its Australian Industry Involvement (AII) Program. AII is the major program through which Defence gives effect to government policy on Australian industry. The objective of the audit was to assess the extent to which the AII Program has achieved its two policy objectives, which are to :
develop and sustain strategically important capabilities in Australian industry to support Australian Defence Force operations and Defence capability development; and
maximise Australian industry involvement in Defence's procurement of goods and services, consistent with the government procurement policy objective of achieving best value for money to the Commonwealth.
The Navy Operational Readiness audit examined the systems that Navy uses to manage readiness and concludes coverage of Navy: readiness organisation and management structures (as well as the interface between these systems and Defence enabling operations); management and maintenance of operational readiness (covering personnel, collective training and other components of operational readiness); and readiness performance information processes. The objective of the audit was to provide assurance to Parliament concerning the progress that Navy has made in the development of operational readiness management and evaluation systems and to identify areas for improvement in these systems.
This audit followed up the ANAO's 2000 performance audit report on retention of military personnel (Audit Report No.35 1999-2000 Retention of Military Personnel), which focused on examining whether ADF personnel management practices to retain personnel were commensurate with the cost of recruiting and training new personnel, or whether more cost- effective steps could be taken to reduce the separation rates of desirable personnel. The objective of the follow-up audit was to assess Defence's implementation of recommendations made in the original audit report and their effectiveness in helping Defence control the flow of trained personnel from the Services.
The Service Chiefs of Navy, Army and Air Force are accountable to the Chief of the Defence Force for the way that equipment is used by their Service. They are also accountable for the safety, fitness for service and environmental compliance of the equipment. The audit report deals with the way that the Service Chiefs are assured of the safety and suitability for service of the Australian Defence Force's (ADF's) ordnance systems. Ordnance systems include munitions such as missiles, shells and mines, and the auxiliary material necessary to aim, launch and guide munitions.
The ANAO reviewed arrangements for the development of the department's fraud policy, fraud risk assessment and fraud control plan within the core functional areas of the department that are responsible for these activities. The audit also examined the operational procedures and guidelines that were in place to implement the departments' fraud policy. The objective of the audit was to assess whether DVA has implemented appropriate fraud control arrangements in line with the Fraud Control Policy of the Commonwealth and whether these arrangements operate effectively in practice.
HMAS Cerberus is a Navy base situated south-east of Melbourne, Victoria. As a major Navy training establishment, it conducts initial recruit training, and specialist category training in areas such as communications and engineering. The Australian Defence Force (ADF) Schools of Catering and Physical Training are situated there, as is a major health centre for operational and training needs. The health centre and other facilities at HMAS Cerberus were re-developed several years ago. In August 2001, the then Minister for Defence announced that, in response to continuing concern over facilities management at HMAS Cerberus, he had asked the Australian National Audit Office (ANAO) to conduct an independent investigation. The ANAO agreed to review these matters. The objective of the audit was to examine facilities management issues at HMAS Cerberus with a view to clarifying those of concern and ensuring that lessons would be learned from them to assist Defence facilities management generally.
The audit sought to assess the efficiency of Defence property management; provide assurance that probity and compliance requirements are being met; and make practical recommendations for enhancing property operations. It focused on Infrastructure Division's property management, with recognition that other areas manage certain property service contracts, such as those for electricity supply and cleaning.
The Department of Veterans' Affairs (DVA) uses information technology (IT) extensively in providing services to Australia's veteran and defence force communities. The audit reviewed DVA's management of its IT outsourcing contract. The audit considered DVA's planning to meet its strategic IT needs through the IT outsourcing contract, the provisions of the contract, contract administration, management of the impacts of the outsourced services on DVA's business and the outcomes of DVA's approach to the contract.
The audit sought to assess the efficiency and effectiveness of the ADF's management of fuel and lubricants and to identify possible areas for improvement. The audit focused on major aspects of the fuel supply chain, in particular the strategic management of fuel (eg. the coordination of fuel requirements and stockholding policy). The audit also reviewed fuel procurement practices, storage and handling issues. The audit coverage addressed the fuel supply aspects of these matters rather than transport, distribution and equipment issues. Although directed principally towards operational fuels, the audit took into consideration issues associated with ADF's requirement for oils and lubricants.
The audit reviewed the planning and management of the Australian Defence Force deployments to East Timor, including the support of those deployments. The audit focused on planning for the deployments and the role of Australia as the lead nation in the International Force in East Timor (INTERFET); and financial, personnel, logistic and other systems used to deploy and sustain Australia's military presence in East Timor.
This was a follow-up of Audit Report No. 40 of 1997-98, Purchase of Hospital Services from State Governments. That audit examined the administration by the Department of Veterans' Affairs of the Purchase of Hospital Services from State Governments. The objective of this audit was to assess the extent to which the Department had implemented the nine recommendations of Report No. 40, taking account of any changed circumstances or administrative issues that the Department identified as affecting their implementation; and to offer continued assurance to the Parliament on the management of the purchase of hospital services.
The audit reviewed Defence's management of the Test and Evaluation (T&E) aspects of its capital equipment acquisition program. The audit sought to identify, from Defence T&E practice, any barriers that might limit the efficiency and effectiveness of its T&E activities.
Major capital equipment contributes importantly to the capabilities of the Australian Defence Force (ADF) to achieve the Defence mission, that is, the defence of Australia and its national interests. The Defence Materiel Organisation (DMO) is the relatively new Defence organisation responsible for the acquisition and through-life support of Defence equipment and systems. DMO's stated purpose is to equip and sustain the ADF. In 2001-02, it will spend $2.9 billion on progressing some 270 major capital equipment acquisition projects. This preliminary study for the audit focused on DMO reporting on the status of major equipment acquisition projects.
The Government introduced the Defence Reform Program (DRP) in 1997 to enable Defence's resources to be focused more efficiently and effectively on its core functions. The objective of the audit was to assess Defence's management and implementation of DRP and the extent to which it achieved savings for reinvestment in the operational capabilities of the ADF.
This audit followed up the ANAO's 1997 performance audit report on ADF health services (Audit Report No.34 1996-97 Australian Defence Force Health Services), which focused on the delivery of non-operational health services to entitled members. The objective of the follow-up audit was to assess Defence's implementation of recommendations made in the original audit report and their effectiveness in improving ADF health services.
The audit was conducted as a joint financial statement and performance audit of DVA's Information Technology (IT) systems. The objective of the financial statement component of the audit was to express an opinion on whether DVA could rely on its IT systems to support production of a reliable set of financial information for the financial statements. The objective of the performance audit component was to determine whether DVA's IT systems outputs adequately met quality and service delivery targets.
Causes and Consequences of Personnel Postings in the Australian Defence Force The audit arose from a Defence Efficiency Review (1997) recommendation that Defence could make savings on the large volume of postings it made every year. The audit examined the posting process and sought to provide assurance that Defence had identified and examined salient postings issues and was addressing them effectively.
The objective of the ANAO audit was to identify possible areas for improvement in the Australian Defence Force's management of its Reserve forces. The audit focused on major aspects of the Reserves including roles and tasks, force structure, capability, training, individual readiness, equipment, facilities, recruitment, retention, conditions of service and administration. The audit covered the Australian Naval Reserve, the Australian Army Reserve and the Royal Australian Air Force Reserve. However, due to its size and cost, the Army Reserve was a major focus of the audit activity.
The audit reviewed the Defence Department's management of the Defence Cooperation (DC) Program, through which Australia interacts with and provides assistance to security forces in South East Asia and the South Pacific. The primary aim of the program is to support Australia's defence relationships. Activities conducted through the program include training, study visits, personnel exchanges and combined exercises with elements of the various regional armed forces. The Pacific Patrol Boat Project is part of the program. The objectives of the audit were to:
1) consider how Defence assesses performance in meeting DC objectives;
2) review Defence's development of DC objectives; and
3) identify areas for improvement in managing DC resources.
The audit examined the review of decisions on veterans' disability compensation. The audit objective was to examine the management of internal review by the Department of Veterans' Affairs (DVA) and external review by the Veterans' Review Board (VRB) of decisions by the Repatriation Commission on veterans' claims for disability compensation.
The Defence Estate comprises the land, buildings and other facilities that Defence uses across Australia. These facilities are vital to achieving the Defence mission - to prevent or defeat the use of armed force against Australia and its interests. The Estate has a gross replacement value of $14.8 billion. Defence Estate Organisation's (DEO's) Facilities Operations (FACOPS) Program delivers general maintenance and minor new works to Defence facilities on a regional basis across the country. DEO's Estate Operations and Planning Branch and its nine Regional Estate Centres are responsible for the FACOPS Program. Resources available for the Program have been reduced in recent years. The total DEO budget for 2000-01, which includes funds for capital works, facilities operations and property management, is $2.6 billion. Of this total, the FACOPS Program has a cash allocation of $213 million and an additional $15.6 million for employee expenses associated with the Program's 283 staff. The objective of the audit was to assess the efficiency and effectiveness of selected Defence facilities operations, including tendering and contracting, with a view to adding value with practical recommendations for enhancing operations.
The objective of this audit was to establish whether Defence has developed sound fraud control arrangements that are consistent with better practice and fulfil its responsibilities for the protection of public property, revenue, expenditure, and rights and privileges from fraudulent exploitation.
The audit reviewed Defence's higher-level management of its knowledge system equipment acquisition projects. These amount to $8.5b. The focus of the audit was on the opportunities for Defence to adopt a much more coherent and integrated approach to knowledge systems management prospectively rather than on emphasising current system compatibility issues.
The audit reviewed the Amphibious Transport Ship Project, involving the acquisition and modification of two second-hand US Navy ships . The objective of the audit was to assess the efficiency and effectiveness of Defence's management of the project, focusing on the capability development process, costs and schedule issues, contract issues, the management of project risks and project review processes.
This audit is a follow-up to ANAO Audit Report No.31 1995-96 Environmental Management of Commonwealth Land: Site Contamination and Pollution Prevention (‘the original audit'). The objectives of the follow-up audit were to determine: the extent to which Defence has implemented the agreed recommendations contained in the original audit (relating to its environmental management and the management of unexploded ordnance (UXO) on non-Commonwealth land) and; the effectiveness of the implemented recommendations in improving the environmental management of Commonwealth land.
The objective of this follow-up audit was to assess whether Defence had taken appropriate action on recommendations made in the ANAO's 1995 audit report on Management Audit Branch (MAB), which is responsible for internal audit in Defence, and to assess whether the internal audit function in Defence could be improved.
The Commonwealth has significant foreign exchange risk exposures including $A8.4 billion of foreign currency transactions with the Reserve Bank of Australia in 1998-99. Under the Financial Management and Accountability Act and its associated Regulations, all agencies are required to assess and, where possible, manage, foreign exchange risk. The audit reviewed four agencies that have substantial foreign currency payment exposures namely:
the Department of Defence;
the Australian Agency for International Development;
the Department of Foreign Affairs and Trade; and
the Department of Finance and Administration.
The objective of the audit was to identify and assess the efficiency and cost effectiveness of the management of foreign exchange risk across the selected agencies, also to identify opportunities to improve the management of foreign exchange risk, including any associated potential financial savings that could accrue to the Commonwealth.
Tactical fighter operations (TFOs) form the basis of Australia's current military capability to ensure air superiority. Air superiority over the Australian territory and maritime approaches is an essential element in Australia's defence strategy. The audit objectives were to:
assess whether the resources used to provide the F/A-18 tactical fighter force operational capability are managed cost-effectively; and
identify areas for improvement in the coordination, planning and practices employed in administration of tactical fighter operations.
The audit reviewed the construction of facilities for the Australian Defence Force and the Department of Defence by the Defence Estate Organisation. The objective of the audit was to assess the efficiency and administrative effectiveness of the Organisation's project delivery function, highlighting effective practice and, where appropriate, making practical recommendations to enhance facilities project management. The main projects examined were the facilities required for the Army Presence in the North and the Russell Hill Redevelopment.
The audit reviewed the retention of military personnel that are managed by the Australian Defence Force which comprises the three Services. The objective of the audit was to review the management of personnel retention within the ADF with a view to evaluating the measures Defence has in place to monitor and control the flow of trained personnel from the Services
The audit objective was to form an opinion on the Department of Veterans' Affairs administration of its activities to maintain and enhance the health and independence of veterans and war widows in their homes and in the community.
In a military context, individual readiness refers to the ability of an individual member to be deployed, within a specified notice period, on operations, potentially in a combat environment, to perform the specific skills in which he or she has been trained. Individual readiness is the foundation on which military preparedness is built. Maintenance of a specified level of individual readiness in peacetime (along with other factors such as equipment readiness and collective training) influences the speed with which personnel can deploy on operations. The objective of this audit is to ensure that members can be deployed on operations, potentially in a combat environment, to perform their specific skills within a notice period of 30 days.
The objective of this audit was to form an opinion on the adequacy of, and to identify best practice in, Commonwealth agencies' electricity procurement systems and procedures. In doing so, the ANAO also formed an opinion on the level and results of participation by Commonwealth agencies in the National Electricity Market. The audit concentrated on adherence by agencies to the principles of the Commonwealth Procurement Guidelines: Core Policies and Principles (March 1998), emphasising the importance of Commonwealth agencies achieving value-for-money (VFM) in their purchasing. VFM is one of the six principles on which the Guidelines are based.
The Department of Defence spends some $2.4 billion a year on major equipment acquisition projects. The audit objective was to assess Defence's arrangements for higher-level management of major equipment acquisition projects. The principal aim was to formulate practical recommendations that would both enhance Defence's management of major acquisition projects and provide a degree of assurance about its ongoing apparent capacity to do so efficiently and effectively.
Members of the Australian Defence Force (ADF) have informal and formal complaint mechanisms available to them to address grievances. Initially, members are advised to seek resolution of their complaint at the lowest possible level, through the normal command channels and administrative arrangements. A member who is not satisfied that a complaint has been resolved in this manner may use the Redress of Grievance (ROG) system to submit a formal complaint to the commanding officer of the member's unit. The objective of this audit was to ascertain whether the ROG system could be refined to improve the efficiency and timeliness of processing of complaints while preserving the equity and transparency the current system provides.The Redress of Grievance system is clearly time-consuming and resource intensive. Some grievances have taken as long as four years to resolve. Some could be resolved by administrative means rather than through recourse to grievance processes. The system contains various inefficiencies that detract from its cost-effectiveness from the viewpoint of the ADF and individual members. In addition many members are unaware of the system or do not have a high level of confidence in its effectiveness.
The audit reviewed the efficiency and effectiveness of Defence's management of Naval Aviation Force (NAF) in achieving its required capability within budgeted resources. The objectives of the audit were to assess whether planning, management and resource allocation mechanisms and practices for NAF were conducive to achieving the latter's objectives in a cost-effective manner.
The audit objective was to determine the DVA's performance in the economy, efficiency and administrative effectiveness of the delivery of income support payments to veterans and war widows. It was found that overall, DVA is paying the correct pension to the correct people in a timely fashion within the required accuracy levels.
The purpose of the audit was to assess whether management of parliamentary workflow by the agencies reviewed was efficient and effective and to identify elements of good practice. In assessing agency effectiveness and efficiency, the audit focussed on issues of client service such as timeliness, quality and cost. It considered also the governance framework and accountability arrangements relevant to parliamentary workflow, as well as more operational considerations including the use of information technology, development of relevant management information and suitable benchmarking processes.
The audit reviewed six budget-funded agencies (Australian Customs Service, Australian Taxation Office, Centrelink, Department of Defence, Department of Education, Training and Youth Affairs, and Department of Immigration and Multicultural Affairs) and two off-budget entities (Airservices Australia and Reserve Bank of Australia). The ANAO also examined the Office for Government Online's (OGO, formerly the Office of Government Information Technology, or OGIT) whole-of-government coordination of the Commonwealth's Year 2000 efforts.
Simulators are devices that provide personnel with training and practice by reproducing the behaviour of operational equipment. Defence records indicate that since 1960 the Defence Organisation has spent about $1 billion on acquiring simulators for training purposes. Over the next five years Defence proposes to spend a further $1.1 billion on simulation. The objective of the audit was to assess whether Defence had developed appropriate policies to provide guidance to personnel in the acquisition and use of aerospace simulators and the effectiveness of its procedures in achieving best value for the Commonwealth in relation to aerospace simulators.
The audit reviewed collection management practices and management information systems of the National Library of Australia, National Gallery of Australia, National Museum of Australia and the Australian War Memorial. The objective of the audit was to assess the efficiency and effectiveness of the management processes employed in safeguarding national collections.
The Audit reviewed the Commercial Support Program (CSP) within the Department of Defence. The CSP was introduced in 1991 following a review of the report, The Defence Force and the Community. Its objective is to achieve best value for money in the acquisition of support services for the Department of Defence and to give the private sector an opportunity to participate in the provision of those support services. The objective of this audit was to assess whether CSP was meeting its objectives and to identify any areas where it may be possible to improve the timeliness, and therefore cost-effectiveness, with which CSP is implemented and the quality of the process itself to produce better outcomes.
The objective of the audit was to report on whether Defence applies Life-cycle Costing appropriately in support of decisions throughout the acquisition and management of its capital assets, and to make recommendations for any improvement. Criteria were established against each of the issues considered by the audit, namely LCC policy and coordination, use of LCC in investment decisions, use of LCC to support budgeting, data to support LCC and LCC training and education.
The objective of this audit was to ascertain whether Defence performance management strategies and practices contribute to the effective and efficient management of the supply chain. In particular, it focussed on examining the extent to which the latter demonstrate identified world-class practices.
The objective of the audit was to assess the efficiency and effectiveness of the provision of health services to the Australian Defence Force Regular forces. Audit criteria were developed which examined health services policy and strategic planning, resource management, the tri-Service provision of medical, dental and other health care, the operation of and planning for major medical facilities, health care management information systems, occupational health and safety and the supply of health materiel.
This follow-up audit examined the actions taken by the Department of Veterans' Affairs to address the ANAO's recommendations made in Audit Report No.28 1993-94 regarding the use of private hospitals on behalf of the Repatriation Commission. The recommendations from that audit were aimed at improving the basis and consistency of contracts with the private sector for the use of private hospitals and providing added assurance that quality care was available to the veteran community.
The objective of the audit was to assess the effectiveness and efficiency of Army's management of the move of 1st Brigade to Darwin. The audit criteria directly related to implementation of the project. These criteria addressed planning as well as identification and management of longer-term risks to the success of the project.
The objective of the audit was to review the Department of Veterans' Affairs' management of the outsourcing of its data centre in Sydney from February 1992, specifically with respect to the management of its contractual arrangements. The audit sought to identify the extent to which DVA achieved its objectives of outsourcing and the effectiveness of its management of the arrangement with the supplier.
The focus of the audit was to examine recent selected property sales within the portfolios owning the majority of Commonwealth property, ie. those of Defence, Administrative Services and Veterans' Affairs. The approach taken in the audit was to select property sales from each of the three agencies and review the files and transactions related to those sales. The sales were evaluated against criteria which included establishment of sales timetables, sales methods, and completion processes such as the criteria for the selection of tenders and accountability. The objectives of the audit were to assess departments' management of the sale process associated with selected property sales with regard to:
the extent to which the individual property sale objectives were achieved;
how departments managed the sales to ensure that the Commonwealth received fair value;
whether the departments' sale arrangements adequately protected the Commonwealth's interests, including minimising ongoing Commonwealth risk; and
identifying principles of better practice employed by agencies in connection with these sales.
The objective of the audit was to assess the workforce planning systems used by the Australian Defence Force with a view to identifying better practice and making recommendations where appropriate to promote overall effectiveness of planning systems. The main issues were the management of the workforce planning function and determination of workforce requirements. The audit concentrated on the full-time military workforce, but also included the issue of the flexibility for military units to employ reserves or civilians where appropriate.
The objective of the audit was to assess the efficiency and effectiveness of administrative arrangements for the provision of food to the Australian Defence Force and identify possible areas for improvement. The audit criteria addressed the adequacy of policy guidance, planning, performance information and risk management in all areas of ADF food provisioning.
This is a follow-up audit to Audit Report No.8 1992-93, Compensation Pensions to Veterans and War Widows and Audit Report No. 15 1994-95, Follow-up of an Efficiency Audit on Compensation Pensions to Veterans and War Widows. This audit examined the performance of the Compensation sub-program operations in order to ascertain the impact of previous audit reports and to recommend areas that could be further improved.
The purpose of the audit was to examine the environmental management mechanisms in place across some of the major Commonwealth land management and oversighting entities. In particular, the audit examined Commonwealth environmental management practices to identify current strengths and weaknesses, and provide a framework and direction for the adoption of better practice and continuous improvement. The audit has not been designed to judge past Commonwealth performance using current environmental standards and practices. Rather, the audit focused on encouraging the development of better practice by illustrating the implications and lessons learned from past and present practices.
Department of Communications, Information Technology and the Arts; Department of Defence; Department of Transport and Regional Development; Department of Administrative Services; Department of Environment, Sport and Territories
The objective of the audit was to assess the performance of the Department's management of the project in the light of accepted project management techniques, including risk management. An important part of the audit was to derive lessons to be learnt and recommendations that could be applied to the remainder of the project and to other large Defence projects.
The Department of Defence is responsible for administering the Defence export facilitation program which is aimed at promoting Australian defence-relevant exports. The Department administers the program in cooperation with AUSTRADE. Defence is also responsible for administering export controls on defence and related goods and dual-use goods. The Department of Foreign Affairs and Trade is responsible for controls on chemical and biological weapons precursors. The Department of Primary Industries and Energy is responsible for controls on nuclear-specific technology and source/fissionable material. The Australian Customs Service implements barrier controls at ports and airports. In September 1993 the then Minister for Trade referred to the Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT) an inquiry into the implications of Australian defence exports. The JSCFADT's Report on the Implications of Australian Defence Exports (September 1994) recommended, inter alia, that the Auditor-General conduct a performance audit of the operations of the guidelines concerning the controls on the export of defence and related goods, the export control process, and all export facilitation activities. The Auditor-General agreed to undertake an audit, which commenced in May 1995 as a preliminary study and was designated as a performance audit on 30 August 1995.
The primary objectives of the ANAO preliminary study were to gain an understanding of the concepts and associated processes used in the management of preparedness. This included the methodology for translating the Government's strategic guidance into military capability; the processes by which the Services translate preparedness directives into operational requirements; and how Headquarters ADF (HQADF) and the three Service Offices assure themselves that units can satisfy the requirements of preparedness directives.
Within the scope of this preliminary study the ANAO did not attempt to form a conclusion regarding the current ability of the ADF to satisfy the roles set by Government in strategic guidance; that is, its actual state of preparedness. It was important first to obtain a good understanding of the concepts and associated methodology used by Defence in managing preparedness.
The objectives of this audit were to assess planning, management, conduct and staffing of internal audit in the Department of Defence, with a view to providing assurance as to the standard of its work. Opportunities were taken to identify specific policies and practices that would improve the efficiency and effectiveness of MAB audit. Fieldwork for the ANAO audit was performed between May and August 1995.
Audit Report No.5 1993-94, Explosive Ordnance, Department of Defence, was tabled in the Parliament in September 1993. The report was structured in three parts. The first part covered explosive ordnance (EO) issues common to all three Services; the second part focused on the management of explosive ordnance by the Navy; and the third part was a follow-up of the 1987 audit report on Air Force explosive ordnance. The report made 39 recommendations. Defence agreed to implement most of them.
It was considered timely to undertake a follow-up audit into key issues of the recommendations contained in the audit report, given the elapsed time since the report was tabled and the issues associated with public safety.
The purpose of the audit was to ascertain the extent to which financial management arrangements helped the department to achieve its objectives and the way that these could be improved in the light of the department's management reforms generally.
Elements of the Financial Management Improvement Program, and the accrual reporting framework, were at an evolutionary stage in the department. The audit therefore focused on quite fundamental financial management issues, including:
the ability of financial management systems to provide information that was timely, accurate and relevant to the needs of management and other users; and
the extent of coordination and control of financial management across departmental programs and between National and State Offices.