The audit objective was to examine the effectiveness of the Commonwealth Home Support Program.

The objective of this audit was to assess the effectiveness of the Department of Education’s administration of National Collaborative Research Infrastructure Strategy in achieving the outcomes of the program.

Welcome to the first edition of Audit Matters for 2026. This edition covers findings from the 2024–25 performance statements audit program, and our series of performance audits on compliance with domestic and international travel requirements. It also outlines key messages from our performance audit examining three outcome areas of the Closing the Gap national agreement — specifically, areas in schooling and early childhood development. You’ll also find updates on our latest insights product and on the development of our upcoming annual audit work program, including the future of the major projects report and auditing in the Defence space.

Across this work, a consistent theme continues to emerge: the importance of getting the basics right. In a constrained environment, our audits continue to identify gaps in foundational practices such as record keeping, procurement and grants administration. These are not new issues, but they remain central to effective public administration and to maintaining trust in the use of public resources, particularly with the public sector’s focus on delivery. Getting the basics right, and knowing that you are, is a key issue to keep an eye on.

Related to this is the importance of lawfulness as a core governance principle. Our audit work continues to highlight that compliance with legislative and policy frameworks is not simply procedural — it underpins integrity, accountability and public confidence in government institutions.

This edition of Audit Matters will be my last as I prepare to retire from the APS on 1 May. I have been privileged to enjoy an expansive career across the public sector — in particular with many outstanding colleagues at the ANAO and beyond — and I wish the next Deputy Auditor-General all the best. Carla Jago will act as Deputy Auditor-General while the Auditor-General makes arrangements to fill the position.

Rona Mellor PSM, Deputy Auditor-General

The audit objective was to examine whether the Department of Industry, Science and Resources (DISR) implemented a selection of agreed Auditor-General recommendations.

The draft annual audit work program for 2026–27 containing potential performance audit coverage for the 2026–27 financial year was published on the ANAO website for public review and comment between 17 March 2026 and 10 April 2026.

Once all feedback has been reviewed and the Auditor-General has finalised the Annual Audit Work Program 2026–27, it will be published on the ANAO website.

Fraud and Corruption Control Arrangements is targeted at Australian Government officials responsible for fraud and corruption control arrangements, and those engaged in program and policy delivery, including in grants administration and regulatory contexts.

The objective of the audit was to assess whether the management of funding under the Settlement Engagement and Transition Support program was effective in achieving the program objectives and consistent with the Commonwealth Grant Rules and Principles.

The audit objective was to assess the design and implementation of the Safer Local Roads and Infrastructure Program (SLRIP).

The objective of the audit was to assess the effectiveness to date of Defence’s procurement of infantry fighting vehicles under Land 400 Phase 3.

The objective of the audit was to determine whether the Department of Foreign Affairs and Trade effectively conducted procurements for the Security Enhancement Program, achieving value for money and complying with the Commonwealth Procurement Rules.

The objective of the audit was to assess the effectiveness of the Department of Climate Change, Energy, the Environment and Water’s and the Australian Renewable Energy Agency’s delivery of the Community Batteries for Household Solar program.

The audit objective was to assess whether Department of Health and Aged Care effectively developed and monitored suicide prevention measures.

This report reflects on the outcome of implementation of the program of auditing entities’ performance statements.

The objective of the audit was to assess whether Services Australia has effective arrangements to comply with domestic and international travel requirements.

The audit objective was to assess the effectiveness of the Department of Social Services’ and Services Australia’s administration of the age pension.

The objective of the audit was to assess the effectiveness of partnership arrangements, funding design activities and measurement of progress for schooling and early childhood development commitments under the National Agreement on Closing the Gap.

The objective of the audit was to assess whether Australian Criminal Intelligence Commission has effective arrangements to comply with domestic and international travel legislative and entity requirements.

Welcome to the last edition of Audit Matters for 2025. I’ve provided some insights in this edition which may help you to focus on a few areas of audit interest in the new year.

Audit work, as you know, is ongoing. We’ll start tabling reports again in mid-late January 2026. Next year you’ll also see some shorter performance audit reports, as part of a trial we’re undertaking to bring reports to the Parliament more quickly. Thanks to those agencies who have worked with us as we trial this new approach. We’re also doing some important work on how we approach performance statements audits in the 21 entities subject to this process. Watch out for our summary report on performance statements early in 2026 — you can subscribe to be notified of release on our website.

I wish you and your teams a restful break over the holiday season after a big year in the public sector. I look forward to seeing you in 2026.

Rona Mellor PSM, Deputy Auditor-General

This report complements the Interim Report on Key Financial Controls of Major Entities published in May 2025. It provides a summary of the final results of the audits of the Consolidated Financial Statements for the Australian Government and the financial statements of Australian Government entities for the period ended 30 June 2025.

Increased transparency and accountability on progress with major Defence equipment acquisitions has been a focus of parliamentary interest for some time. Beginning in 2007–08, an annual program has been established in conjunction with the Department of Defence to enable the ANAO to review and report to the Parliament on the status of major Defence acquisition projects, as set out in the major projects report. The review includes information relating to the cost, schedule and progress towards delivery of required capability of individual projects at 30 June each year, and is undertaken at the request of JCPAA.

The audit objective was to examine whether the Office of Parliamentary Counsel’s procurement and contract management of the new Federal Register of Legislation project complied with the Commonwealth Procurement Rules and demonstrated the achievement of value for money.

The objective of the audit was to assess whether Civil Aviation Safety Authority has effective arrangements to comply with domestic and international travel legislative and entity requirements.

The objective of the audit was to assess whether the Department of Infrastructure, Transport, Regional Development, Communications and the Arts’ management of service delivery arrangements for the external territories was effective.

The objective of the audit was to assess the effectiveness of Services Australia’s management of the privacy of client information.

The objective of the audit was to examine the effectiveness of the procurement and contract management of onshore manufacturing capability to secure supply of antivenoms and vaccines.

The objective was to assess the effectiveness of Australian Securities and Investments Commission’s regulation of registered company auditors.

The Australian Public Service Employee Census is an annual survey administered by the Australian Public Service Commission. The survey is used to collect confidential attitude and opinion information from APS employees on issues in the workplace. The survey provides an opportunity for ANAO employees to share their experiences of working within our organisation and the public service. This census action plan outlines the key focus areas for the ANAO in responding to the feedback.

The objective of the audit was to assess the effectiveness of the Department of Social Services' administration of the National Redress Scheme.

The objective of the audit was to assess whether the Department of Agriculture, Fisheries and Forestry has effective arrangements to comply with domestic and international travel requirements.

The objective of the audit was to assess whether the Department of Industry, Science and Resources has effective arrangements to comply with domestic and international travel requirements.