Draft 2023–24 Annual Audit Work Program

Corporate

Published

Wednesday 22 March 2023

You are invited to contribute to the annual audit work program of the Australian National Audit Office (ANAO). Please review the draft potential performance audit topic list and tell us what you think.

The Auditor-General is an independent officer of the Parliament whose role is to support accountability and transparency in the Australian Government sector by providing independent reporting to the Parliament. The Auditor-General’s reports assist the Parliament to hold government entities accountable and to drive improvements in public administration.

The Auditor-General is assisted by the Australian National Audit Office (ANAO) to conduct a range of audits in Australian Government entities, such as:

mandated annual financial statements audits, including the audit of the Australian Government’s consolidated financial statements;
performance audits;
assurance reviews (including the Defence Major Projects Report and audits by arrangement); and
audits of the annual performance statements and measures of Commonwealth entities and Commonwealth companies and their subsidiaries.

Contributions must relate to the performance or expenditure of Commonwealth public sector entities. The ANAO does not investigate complaints or disputes, review or provide legal decisions, and does not comment on the merits of government policy and legislation.

You can find information about the ANAO’s approach to the development of the performance audit program and planning criteria in an audit insights on the Auditor-General's annual audit work program.

While your contribution will be considered and handled with care, we will not provide you with feedback on your submission. The confidentiality of your contribution may be protected by law (see section 36 of the Auditor-General Act 1997). In addition, any personal information gathered by the ANAO will be treated in accordance with the ANAO Privacy Policy.

Please send feedback about this draft program to communication@anao.gov.au. Submissions close on 20 April 2023 at 11:59pm (Australian Eastern Standard Time).

Potential performance audit topics

These are the potential performance audit topics proposed for inclusion in the ANAO’s Annual Audit Work Program 2023–24. Topics are presented under their respective portfolio. Portfolios are arranged in alphabetical order.

Agriculture, Fisheries and Forestry

Collection of levies

This audit would assess the effectiveness of the Department of Agriculture, Fisheries and Forestry’s management of the collection of levies.

In 2020–21, the department disbursed $802.3 million to 18 levy recipient bodies, of which $494.5 million was levies and charges, and $307.8 million was Commonwealth matching payments to research and development corporations. Revenue that is collected from a levy or charge can be directed to biosecurity preparedness and emergency plant pest and animal disease responses, marketing, research and development and residue testing.

Delivery of biosecurity workforce capability

This audit would assess the effectiveness of the Department of Agriculture, Fisheries and Forestry’s delivery of the Biosecurity 2030 strategy, with a focus on workforce capability.

In 2021, the Australian Government published Biosecurity 2030, which outlines a series of biosecurity actions and priorities through to 2030. The 2022 action plan contains nine strategic actions that serve as the priority for 2022.

Digital reform of the agricultural export systems

This audit would assess whether the Department of Agriculture, Fisheries and Forestry has effectively administered Australian Government initiatives to reform digital agricultural export systems.

In 2020–21, the department received $328.4 million over four years. Its goal was to reduce red tape to get products to export markets faster and support jobs in rural, regional and remote Australia. This included a measure ‘Digital services to take farmers to Markets’ of $222.2 million.

Implementation of the National Soil Strategy

This audit would examine the effectiveness of the design and implementation of the National Soil Strategy, including the supporting National Soil Strategy Action Plan.

The National Soil Strategy is Australia’s first national soil policy. Developed in conjunction with state and territory governments and other stakeholders, it sets out how to value, manage, and improve soil over a 20-year period. The development and implementation of the strategy and action plan form part of the National Soil Package, which received $214.9 million in funding over four years from 2021–22.

Improving employment opportunities in the Agriculture sector

This audit would assess the effectiveness of the Department of Agriculture, Fisheries and Forestry’s implementation of the National Agricultural Workforce Strategy and Roadmap.

In response to the December 2020 National Agricultural Workforce Strategy, which made 37 recommendations, the department released the March 2021 Australian Government roadmap to attract, retain, upskill, and modernise the agricultural workforce. The 2021–22 Budget included $30 million for a range of programs to respond to the National Agricultural Workforce Strategy recommendations.

Through Ag2030, the Australian Government aims for the agriculture sector to grow to $100 billion by 2030. Ag2030 identifies seven themes that support this goal. Human capital is a key theme that focuses on promoting agricultural careers and attracting skilled labour to support growth in the sector.

Protective Security Policy Framework implementation — Department of Agriculture, Fisheries and Forestry and the Department of Climate Change, Energy, the Environment and Water

This audit would assess the effectiveness of Department of Agriculture, Fisheries and Forestry and the Department of Climate Change, Energy, the Environment and Water in meeting the requirements of the revised Protective Security Policy Framework (PSPF).

Accountable Authorities are responsible for protective security arrangements within their own organisations. The PSPF assists entities to protect their people, information and assets at home and overseas by providing policy, guidance and better practice advice for governance, personnel, physical and information security.

Regional Forestry Hubs

This audit would examine the effectiveness of the Department of Agriculture, Fisheries and Forestry’s administration of Regional Forestry Hubs.

Regional Forestry Hubs are a key mechanism through which the Australian Government aims to achieve forestry targets articulated in strategies such as ‘Growing a Better Australia — A Billion Trees for Jobs and Growth’ and ‘Farm Forestry: Growing Together’. There are 11 Regional Forestry Hubs.

Attorney-General’s

Administration of the Expensive Commonwealth Criminal Cases Fund

This audit would assess the effectiveness of the Attorney-General’s Department’s administration of the Expensive Commonwealth Criminal Cases Fund (ECCCF).

The Attorney-General’s Department administers and implements programs and services to improve access to justice for vulnerable people, including legal assistance programs.

The ECCCF is to ensure that legal aid commissions have sufficient resources to represent people who cannot afford private legal representation and have been charged with serious Commonwealth criminal offences (such as drug importation, people smuggling, terrorism, fraud and slavery) or are subject to an application for a post-sentence order (such as continuing detention orders).

Administration of the Freedom of Information Act 1982 — Follow-on

This audit would assess the effectiveness and efficiency of entities‘ administration of the Freedom of Information Act 1982 (FOI Act).

The FOI Act and the Australian Information Commissioner Act 2010 form the legislative framework that provides the public with a right of access to government documents. The ANAO previously undertook an audit of the administration of the FOI Act in 2017.

The Australian Information Commissioner‘s Freedom of Information functions include conducting merits review of decisions of agencies made under the FOI Act and the handling of complaints. The Information Commissioner is supported in these functions by the Freedom of Information Commissioner, appointed in March 2022. A new whole-of-government information management policy was adopted on 1 January 2021.

Delivery of community-led justice reinvestment initiatives

This audit would examine governance of the justice reinvestment program; the use of criminal justice and social data to design the program; the development and implementation of options for reducing offending and generating savings; the quantification of savings; and the monitoring and evaluation of the success of the program.

In the October 2022 Budget, the Australian Government announced $81.5 million in funding to establish an independent national justice reinvestment unit as recommended by the Australian Law Reform Commission, and up to 30 community-led justice reinvestment initiatives to be delivered in partnership with Aboriginal and Torres Strait Islander communities. The Attorney-General’s Department announced that it and the National Indigenous Australians Agency would work with Aboriginal and Torres Strait Islander communities and state and territory counterparts to implement the initiative. This audit would assess the effectiveness of this program during early implementation.

Justice reinvestment involves the redirection of resources from the criminal justice system into local communities that have a high concentration of incarceration and contact with the criminal justice system. In Australia, justice reinvestment has been seen as particularly suitable for addressing the disproportionate incarceration rate of Aboriginal and Torres Strait Islander peoples, provided that reinvestment initiatives are community-led.

Implementation of the Consumer Data Right (CDR)

This audit would assess whether the design and implementation of CDR is fit for purpose.

Treasury leads CDR policy and program delivery, including development of rules and advice to government on next steps in the CDR. The Australian Competition and Consumer Commission is responsible for the accreditation process, including managing the Consumer Data Right Register; ensuring provider compliance with the rules; and taking enforcement action where necessary. The Office of the Australian Information Commissioner regulates privacy and confidentiality under the CDR. It handles complaints and notifications of eligible CDR data breaches.

Management of complaints by the Australian Human Rights Commission

This audit would examine the effectiveness of the Australian Human Rights Commission’s management of complaints.

The Australian Human Rights Commission is Australia’s national human rights institution. Its purpose is to ensure that Australians have access to effective, independent complaints handling and public inquiry processes on human rights and discrimination matters; and benefit from human rights education, advocacy, monitoring and compliance activities. In 2021–22, the Human Rights Commission received 23,200 inquiries and 3,736 complaints, 1,960 of which were complaints under the Disability Discrimination Act 1992.

Managing the privacy of client information

This audit would assess the effectiveness of the Australian Tax Office’s (ATO’s) and Services Australia’s management of the privacy of clients’ personal information and the Office of the Australian Information Commissioner’s (OAIC’s) management of privacy complaints and investigations.

The Privacy Act 1988 (Privacy Act) was introduced to promote and protect the privacy of individuals. It regulates how Australian Government agencies handle personal information and includes 13 Australian Privacy Principles that cover the processing of personal information. The Privacy Act is supported by the Privacy Regulation 2013.

The Attorney-General’s Department has overall policy responsibility for privacy and the OAIC has responsibility for administering privacy laws, providing guidance and assistance to entities and monitoring entities’ compliance with the Privacy Act. In December 2022, the Privacy Act was amended to increase maximum penalties and enhance OAIC’s enforcement powers.

Services Australia and the ATO hold and manage client (customer and taxpayer) information in the course of their delivery of services and payments and oversight of the tax and superannuation systems. Services Australia and the ATO share data for the purposes of comparing income data. Risks to the integrity and privacy of client information comprise data breaches through human error or system faults. Thirty-seven per cent of all notifiable data breaches in agencies covered by the Privacy Act in January to June 2022 were from human error and system faults and 63 per cent were from malicious and criminal attack, with 41 per cent of all data breaches resulting from cyber security incidents.

Use of the Whole of Government Legal Services Panel

This audit would assess the extent to which entities’ use of the Whole of Government Legal Services Panel supported the achievement of value for money.

The Legal Services Panel was established as a coordinated procurement and is managed by the Attorney-General’s Department. The panel commenced on 15 August 2019 and is due to expire on 30 June 2024.

It was designed to better leverage the Commonwealth’s purchasing power and improve the efficiency in the Commonwealth’s engagement with external legal services providers.

The panel covers a wide range of legal practice areas, including workplace, industrial relations and compensation, property and environment, corporate and commercial, public law, and litigation specialisation. As of January 2023, there were 61 suppliers on the panel.

There were 1,414 contract notices published on AusTender in 2021–22 under this Panel totalling $282.9 million.

Australian Taxation Office

Developing and delivering digital identity reforms — Digital Identity system

This audit would review the progress of the Digital Identity system‘s implementation, design and functionality, including the roles and responsibilities of stakeholders and the allocation and expenditure of funding, including contract management.

The Digital Identity program is delivered by Services Australia, the Australian Taxation Office (ATO), the Department of Home Affairs, and the Digital Transformation Agency. Components of the program include the Trusted Digital Identity Framework, identity exchanges (including Exchange run by Services Australia), digital identity providers (including myGovID managed by the ATO) and Digital Identity services connected to the system.

Implementation of ethical frameworks by the Australian Taxation Office

This audit would examine the implementation of the Australian Public Service (APS) ethical framework by the Australian Taxation Office. The APS ethical framework comprises the legal framework (the basis of which is the Public Service Act 1999 and the Public Governance, Performance and Accountability Act 2013); activity-specific frameworks (such as the Commonwealth Procurement Rules and Commonwealth Grants Rules and Guidelines); government policies; and entity-specific frameworks (including the requirements of enabling legislation, Accountable Authority Instructions, and other internal policies).

This is part of a series of audits around the implementation of ethical frameworks in APS Agencies.

Management of Compliance in the Small Business Market

This audit would assess the effectiveness of the Australian Taxation Office’s (ATO’s) management of compliance in the small business market.

The ATO reported that there are five million small businesses in Australia as of October 2022, and that the net income tax gap for the small business market was $11.9 billion (or 11.6 per cent of the theoretical liability for small businesses) in 2019–20. This is the ATO’s largest tax gap in terms of value (the ATO’s overall net tax gap is $33.4 billion). During COVID-19 pandemic, the ATO shifted resources to focus on supporting small businesses through the pandemic. In its 2022–23 corporate plan, the ATO has identified ‘improving small business tax performance’ as a key focus area.

Management of taxpayers’ use of transfer pricing and related party debt

This audit would assess the Australian Taxation Office’s (ATO’s) effectiveness in managing large international taxpayers who have the opportunity to adjust their tax obligations in Australia through transactions with related parties overseas.

The ATO’s website states that ‘some multinational businesses attempt to shift their profits to low-tax jurisdictions by setting unrealistic prices during international transactions with related parties overseas’.¹ Businesses with related party international dealings may have their transfer pricing reviewed or audited by the ATO, potentially resulting in pricing adjustments and penalties. The ATO considers this is the most common area in which it has disputes with large multinational businesses.

Managing the privacy of client information

Services Australia and the ATO hold and manage client (customer and taxpayer) information in the course of their delivery of services and payments and oversight of the tax and superannuation systems. Services Australia and the ATO share data for the purposes of comparing income data. Risks to the integrity and privacy of client information comprise data breaches through human error or system faults. Thirty-seven per cent of all notifiable data breaches in agencies covered by the Privacy Act in January to June 2022 were from human error and system faults and 63 per cent from malicious and criminal attack, with 41 per cent of all data breaches resulting from cyber security incidents.

Procurement of IT Managed Services

This audit would assess the effectiveness of the Australian Taxation Office’s (ATO’s) procurement of IT managed services.

In recent years, the ATO has been changing the way it procures its largest technology services. Initially, the focus is on procuring three managed services: centralised computing; end user technology; and enterprise service management centre. These three services are currently provided under three contracts, with the contract related to centralised computing being worth $2.171 billion over 13.5 years. In May 2021, the ATO issued a Request for Information to the market. Following this process, the ATO decided to split the three contracts into nine contracts. The ATO’s Procurement Plan stated that procurement would be conducted in tranches between 2021–22 and 2022–23.

The Australian Taxation Office’s administration of the Goods and Services Tax

This audit would assess the effectiveness of the Australian Taxation Office’s (ATO’s) administration of the Goods and Services Tax (GST).

Businesses are required to report and pay GST to the ATO (and claim GST credits) by lodging a business activity statement or an annual GST return. The ATO’s 2021–22 Annual Report shows that GST collections increased by $13.354 billion between 2019–20 and 2021–22, to a total of $73.65 billion in 2021–22.

The ATO reported that, through its correct reporting and lodgement activities, it raised an additional $6.4 billion in liabilities for GST in 2021–22.

Climate Change, Energy, the Environment and Water

Australian Antarctic program

This audit would examine the effectiveness of the Department of Climate Change, Energy, the Environment and Water’s management of Australia’s Antarctic presence, including arrangements to support Australia fulfilling its environmental responsibilities.

The Madrid Protocol, adopted in 1991, establishes Australia’s environmental responsibilities in Antarctica. Recent developments in the Australian Antarctic Program include the Australian Antarctic Strategy and 20–year Action Plan, and the launch of the new icebreaking ship in October 2021. The latest update to the Action Plan was released in 2022, and approximately $800 million was invested in Australia’s Antarctic presence in the March 2022–23 Budget.

Bureau of Meteorology’s management of assets

This audit would examine the effectiveness of the Bureau of Meteorology’s management of assets. The Bureau’s provision of weather, water, climate and ocean services is dependent on the observational data collected through its network of assets. At 30 June 2022, the Bureau’s non-financial assets were valued at $942.8 million, including $753.9 million in plant, equipment and computer software.

Contracting and effectiveness in the Emissions Reduction Fund

This audit would assess the effectiveness of the Clean Energy Regulator’s contracting, compliance and assurance activities for the Emissions Reduction Fund (ERF).

The ERF is a voluntary scheme that provides incentives for organisations to adopt new practices to reduce or store greenhouse gas emissions. Eligible activities under the scheme generate carbon credits that can then be sold either to the government through the ERF’s auction and contracting processes or on a secondary market. The ERF includes a safeguard mechanism designed to send a signal to businesses to avoid increases in emissions beyond business-as-usual levels.

At the end of the ERF’s 14th auction in April 2022, $2.7 billion was committed to abatement contracts, with $963.2 million paid.

Corporate Planning in the Department of Climate Change, Energy, the Environment and Water

This audit would assess the Department of Climate Change, Energy, the Environment and Water’s progress in implementing the corporate planning requirements under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and related Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).

The PGPA Act underpins the implementation of the Australian Government’s performance framework. The PGPA Act is supported by the PGPA Rule. The performance framework requires Accountable Authorities to publish on their entity’s website a corporate plan for the entity at least once each reporting period and to give that corporate plan to the responsible Minister and the Finance Minister. Corporate plans are intended to be the primary planning documents of Commonwealth entities and companies and represent the beginning of a performance cycle. The publication of a performance statement in the entity’s annual report represents the end of the performance cycle.

Governance of climate change commitments

This audit would assess the effectiveness of the Department of Climate Change, Energy, the Environment and Water’s governance arrangements supporting the implementation of the Australian Government’s climate change commitments.

The Australian Government has made climate change commitments under the 2016 Paris Agreement. These commitments include the emissions reductions targets set out in the Climate Change Act 2022.

Integrated River Modelling Uplift Project — Procurement and delivery

This audit would examine the effectiveness of the Murray–Darling Basin Authority’s procurement of a delivery partner for the Integrated River Modelling Uplift Project and the ongoing delivery of the project.

The Australian Government committed $66 million to upgrade the Murray–Darling Basin’s 24 river models through the four-year Integrated River Modelling Uplift Project. Existing river models are expected to be integrated by July 2024. The Murray–Darling Basin Authority engaged a delivery partner for the project in July 2022 with the contract valued at $27 million.

Management of biodiversity offset obligations by government business enterprises

This audit would examine whether the Department of Infrastructure, Transport, Regional Development, Communications and the Arts; Snowy Hydro Limited; WSA Co Limited; National Intermodal Corporation Limited; and the Australian Rail Track Corporation Limited are effectively, efficiently, economically and ethically meeting relevant biodiversity offset obligations for the major infrastructure projects they are delivering.

Biodiversity obligations exist under relevant Commonwealth and state legislation to compensate for the impacts on native vegetation, communities and habitats for threatened flora and fauna species through biodiversity offset schemes. Schemes may permit calculated offset obligations to be met in various ways, including market-based tools. Those obligations exist in relation to the Snowy Hydro 2.0 project, Western Sydney Airport construction project, construction of the Moorebank Intermodal facility and the Inland Rail project.

Management of climate risks to remote Indigenous communities

This audit would assess the effectiveness of the National Indigenous Australians Agency and the Department of Climate Change, Energy, the Environment and Water in identifying and managing climate change-related risks to remote Aboriginal and Torres Strait Islander communities, including risks to food and water security.

A June 2022 study by the University of Sydney and the New South Wales Government found that Aboriginal populations in New South Wales were disproportionately exposed to climate extremes, experience higher rates of climate-sensitive health conditions, and experience higher rates of socioeconomic disadvantage, which impacts their capacity to adapt to climate change. In December 2020, the Standing Committee on Indigenous Affairs released the report of its inquiry into food pricing and food security in remote Indigenous communities (House of Representatives Standing Committee on Indigenous Affairs, Commonwealth of Australia, Report on food pricing and food security in remote Indigenous communities (2020)). The inquiry concluded that despite three previous examinations of food security, concerns remained. The Australian Government responded to the inquiry in December 2021, supporting or providing in-principle support to 10 of the 16 recommendations.

In the October 2022–23 Budget the Australian Government allocated $15.9 million over four years from 2022–23 to establish the Torres Strait Climate Change Centre of Excellence,

and to build the capability and capacity of Torres Strait Islander peoples to respond and adapt to the impacts of climate change. As part of the 2023 Closing the Gap Implementation Plan, the government provided additional funding of $150 million over four years to support water infrastructure in remote and regional Indigenous communities; and $11.8 million over two years for the National Strategy for Food Security in remote communities.

Management of the Contract for the New Antarctic Icebreaker Vessel

This audit would assess whether the contract to design, build, operate and maintain a replacement Antarctic icebreaking vessel is being managed effectively. This would include examination of the entity‘s management of related risks, final acceptance of the build phase and decision-making around commencement of the operate and maintain phase.

The new icebreaker vessel, the RSV Nuyina, was delivered to Hobart in October 2021.

Protective Security Policy Framework implementation — Department of Agriculture, Fisheries and Forestry and the Department of Climate Change, Energy, the Environment and Water

Rewiring the Nation early implementation

This audit would assess the effectiveness of the early implementation of the Rewiring the Nation program.

The government allocated $20 billion to establish the Rewiring the Nation program in the October 2022 Budget. The Rewiring the Nation Office in the Department of Climate Change, Energy, the Environment and Water is responsible for managing the program, the Australian Energy Market Operator will act as a technical advisor, and the Clean Energy Finance Corporation will act as the financing arm.

As at December 2022, the program has supported several transmission projects including VNI West (KerangLink) between Victoria and NSW; the Marinus Link between Tasmania and Victoria; Sydney Ring — Hunter Transmission Project; Central-West Orana Renewable Energy Zones; and HumeLink.

Defence

2022–23 Major Projects Report

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 as at 30 June each year, and is undertaken at the request of the Joint Committee of Public Accounts and Audit.

Collins class life of type extension — planning and implementation

This audit series would assess the effectiveness of the Department of Defence’s (Defence’s) planning and implementation of activities to extend the life of the Collins class submarine fleet.

The government announced the approval of a life-of-type extension (LOTE) for the Royal Australian Navy’s Collins class submarines. All six submarines are expected to undergo LOTE, extending the life of each submarine by 10 years. The audit series would first examine Defence’s identification of requirements, assessment of options, advice to the government, and implementation of LOTE planning activities to date. Subsequent audits in the series would examine the upgrade process for the submarine fleet.

Contract administration in Defence — Australian industry capability

This audit would continue the ANAO’s examination of the effectiveness of the Department of Defence’s (Defence’s) administration of its contracts, with a particular focus on the management of contractual obligations for involving Australian industry in supply chains. In particular, the audit would examine Defence’s progress to date in implementing a whole-of-Defence framework to support the management of Australian industry capability obligations.

In 2020–21, Defence published on AusTender 32,360 contracts and contract amendments totalling $37.4 billion. These contracts were for a range of goods and services, including platforms and sustainment services, estate, information technology systems and support, inventory, and management consultancies. Recent audit work identified that Australian Industry Capability Program verification activities for two major procurements (Offshore Patrol Vessels and Combat Reconnaissance Vehicles — Land 400) had not yet been established.

COVID-19 (Phase 3): Australian Government Crisis Management Framework

This audit would assess the effectiveness of the Australian Government Crisis Management Framework (the Framework) in facilitating the Australian Government’s response to the COVID-19 pandemic.

The Framework outlines arrangements across seven phases (prevention, preparedness, response, relief, recovery, reconstruction and risk reduction) under which crises of national significance are to be managed. National plans and arrangements developed by Australian Government agencies must reflect the roles and responsibilities set out in the Framework. The Framework states its main focus is ‘near-term crisis preparedness, immediate crisis response and early crisis recovery arrangements’.

Defence’s management of contracts for the supply of munitions

This audit would examine the effectiveness of the Department of Defence’s (Defence’s) management of contracts for the supply of munitions.

In June 2020, the Australian Government announced that Defence had signed a $1.1 billion agreement for the continued management and operation of Australia’s munitions factories in Benalla (Victoria) and Mulwala (New South Wales). The agreement is intended to provide surety of supply of key munitions and components for the Australian Defence Force and maintain a domestic munitions manufacturing capability.

Defence’s management of intellectual property

This audit would assess the effectiveness of the Department of Defence’s (Defence’s) management of its intellectual property.

Intellectual property plays an important role in the development and sustainment of national defence capability. The Australian Government Intellectual Policy Rules provide guidance on how Australian Government entities should manage their IP, and how different types of IP should be used. The audit would assess Defence’s intellectual property management framework for managing its IP against the Australian Government IP Rules and whether Defence’s implementation of its IP management framework is effective.

Effectiveness of public sector boards — Defence Portfolio

This audit would examine the effectiveness of the boards’ role in the management and organisational performance of the entities for which they are responsible.

There are 10 corporate Commonwealth entities and companies in the Defence portfolio which are governed by a board. This audit would be the seventh in a series of audits which have examined the role of public sector boards in a number of different portfolios. These audits have examined the interplay of the ‘hard’ attributes of governance (such as board composition, appointment processes and independence) and the ‘soft’ attributes of governance (such as the chair or CEO relationship, board behaviours and board culture). The audits have provided lessons for all Commonwealth accountable authorities, including governance boards.

Establishment of the Joint Transition Authority

This audit would examine the effectiveness of the Department of Defence’s (Defence’s) establishment of the Joint Transition Authority.

Defence established the Joint Transition Authority (JTA) in partnership with the Department of Veteran’s Affairs and the Commonwealth Superannuation Corporation as a response to Recommendation 7.1 from the Productivity Commission’s Report, A Better Way to Support Veterans. The Australian Government announced the establishment of the JTA on 29 October 2020 with an establishment cost of $17.7 million. The objective of the JTA is to better support Australian Defence Force members and their families as they transition from military to civilian life by identifying opportunities, addressing gaps, integrating existing services and influencing new services as they are developed.

Implementation of the Defence Environmental Strategy

This audit would assess the effectiveness of the Department of Defence’s (Defence’s) implementation of the Defence Environmental Strategy 2016–2036.

The inaugural Defence Environmental Strategy was released in 2002 as a strategic roadmap for the achievement of the ‘Defence Environmental Vision’ and its four pillars outlined in the Defence Environmental Policy.

The Defence Environmental Strategy is intended to deliver a sustainable Defence estate; understand and manage Defence environmental impacts; manage existing and future pollution risks; improve efficiency and security of resources; and manage Defence estate heritage values. The strategy is to be delivered over a 20–year implementation period, from 2016 to 2036.

Implementation of the myClearance system

This audit would assess the effectiveness of the Australian Government Security Vetting Agency’s (AGSVA’s) implementation of the myClearance system.

In 2016, the Australian Government agreed a suite of reforms to improve government agencies’ management of the threat posed by malicious insiders. The Vetting Transformation Project supported a number of these reforms through the delivery of a transformed vetting capability with modernised business processes enabled by a secure, flexible and scalable ICT. The Australian Government’s new security vetting system, myClearance, was launched on 28 November 2022. The implementation of myClearance was to enhance AGSVA’s data security, drive efficiencies and bring AGSVA in line with Australia’s key security partners.

Management of projects of concern

This audit would assess the effectiveness of Department of Defence’s management of Projects of Concern.

The Projects of Concern regime is a process for managing the remediation of underperforming projects. In October 2022, the Government announced that it would ‘strengthen and revitalise’ the Projects of Concern process. The audit would examine the arrangements in place to add, remove and manage projects under the Projects of Concern process.

Management of the approval of Australian Defence Force mission critical ICT systems

This audit would examine the effectiveness of the Department of Defence’s (Defence’s) management of cyber security risks associated with Australian Defence Force mission critical ICT systems.

The 2020 Defence Strategic Update outlined the role of cyber capabilities in the deteriorating nature of Australia’s strategic environment. The 2022 Defence Cyber Security Strategy noted that ‘cyber has emerged as a recognised warfighting domain and cyber warfare will be a critical component of future conflict’. Under the Protective Security Policy Framework (PSPF), all entities are required to develop their own protective security policies and procedures. The Defence Security Principles Framework (DSPF) was designed to give effect to the PSPF and provides for regular assessments, performed against emerging cyber threats through a certification and accreditation process, to ensure associated ICT risks are considered, mitigated, and/or accepted as necessary. If the application is in operational use, it must have either a full ICT accreditation (known as an ICTA) or a provisional ICT accreditation (PICTA).

Management of the Defence Industrial Capability Plan

This audit would assess the effectiveness of Defence’s implementation of the Defence Industrial Capability Plan (DICP), which was announced in 2018.

Under the DICP, Defence planned to release an implementation plan for each of the Sovereign Industrial Capability Priorities (SICPs) from mid-2019; develop industrial strategies for each of the integrated investment program capability streams; undertake assurance work for each SICP; and put in place indicators to measure progress/success. SICPs are industrial capabilities considered critical to Defence and for which Australia must have access to, or control over, the skills, technology, intellectual property, financial resources and infrastructure that underpin those capabilities. There were 10 initial SICPs identified in the 2018 DICP. Four new priorities were announced in late 2021.

Management of the OneSKY Contract

This audit would assess whether the contract to deliver the OneSKY Australia program is being managed effectively by Airservices Australia, including whether any decisions taken to amend the milestones or scope demonstrably achieved value for money. Consideration may also be given to Airservices Australia’s management of the on-supply arrangement with Defence.

The OneSKY Australia Program involves replacing existing civil and defence air traffic management systems with an advanced integrated system known as the Civil Military Air Traffic Management System.

Procurement by National Intelligence Community agencies

This audit would examine whether entities’ procurement activities have been conducted in accordance with the relevant Commonwealth Procurement Rules.

The National Intelligence Community (NIC) was officially formed in 2017 and comprises agencies from the Home Affairs, Defence and Prime Minister and Cabinet portfolios. This audit would examine whether selected NIC entities have appropriately managed the procurement of major capabilities. It would include procurements used to develop capabilities of individual NIC agencies, as well as those that are for a shared capability across the sector.

Procurement of self-propelled artillery for the Australian Army

This audit would assess the extent to which the Department of Defence’s (Defence’s) procurement of self-propelled artillery for the Australian Army supported the achievement of value for money.

In December 2021, the Australian Government announced the signing of a $1 billion contract with Hanwha Defence Australia to provide 30 self-propelled howitzers, 15 armoured ammunition resupply vehicles, and weapon locating radars to the Australian Army.

Defence selected Hanwha Defence Australia through a sole-source request for tender announced in September 2020 by the Ministers for Defence.

The 2020 Force Structure Plan identifies that Defence plans to acquire additional vehicles with a total estimated acquisition cost out to 2039–40 of between $4.5 billion and $6.8 billion.

Sustainment of Amphibious Assault Ships (Landing Helicopter Dock) and Air Warfare Destroyers

This audit would examine whether the Department of Defence (Defence) has effective and efficient sustainment arrangements for the Royal Australian Navy’s fleet of Canberra Class Amphibious Assault Ships (also referred to as ‘Landing Helicopter Docks’ (LHD)) and Hobart Class Guided Missile Destroyers (DDG) (also referred to as ‘Air Warfare Destroyers’ (AWD)).

The Royal Australian Navy operates two Canberra Class LHDs and three Hobart Class AWDs. These ships were commissioned between 2014 and 2020. The Canberra Class provides a forward operating capability for the deployment of troops and support assets. The Hobart Class provides air defence for accompanying vessels and land assets, in addition to undersea warfare capabilities and naval gunfire support. The acquisition cost of these warships was publicly reported to be over $12 billion.

Sustainment of the Defence estate

This audit would examine the effectiveness of the Department of Defence’s (Defence’s) sustainment of the Defence estate.

Defence is the largest Commonwealth landholder. Defence manages $33.8 billion in land, buildings, infrastructure, plant and equipment, and intangibles including heritage and cultural assets, with a gross replacement value of approximately $68 billion.

The Defence estate consists of around 700 owned and leased properties, comprising 25,000 buildings and 6,000 other structural assets, including critical infrastructure and facilities such as military bases, wharves, ports, airbases, training ranges, fuel and explosive ordnance infrastructure. Defence estate and infrastructure are enabling capabilities for the Australian Defence Force to conduct and sustain military operations.

The Defence estate requires a significant program of infrastructure works and investment to sustain it. Under the Defence Estate Strategy 2016–36, Defence was to have established a Capability Life Cycle Estate and Asset Management Framework that integrates, prioritises, and programs all estate investment (sustainment, capability-related investment, and maintenance/upkeep) within the Facilities and Infrastructure Program of the Integrated Investment Program by 2020–21.

The Department of Defence’s management of probity in the procurement of ICT products and services

This audit would assess the effectiveness of the Department of Defence’s (Defence’s) management of probity in the procurement of ICT products and services.

Probity is the set of principles and processes that promote the transparency, fairness, defensibility and legality of a competitive process. Probity provides a level of assurance that a procurement was conducted in a manner that is fair and ethical.

Auditor-General Report No. 1 2021–22 Defence’s Administration of Enabling Services — Enterprise Resource Planning Program: Tranche 1 identified shortcomings in, and made one recommendation to improve, Defence’s management of probity for that program.

This audit would examine the effectiveness of Defence’s framework for managing probity risks in the procurement of ICT products and services, including any Chief Information Officer Group-specific arrangements.

Education

COVID-19 (Phase 3): Implementation of COVID-19 schools initiatives

This audit would examine the effectiveness of the administration of two grant programs that aim to improve the resilience of schools and students to COVID-19.

In October 2022, the Australian Government allocated $270.8 million over two years to support capital works projects in Australian schools. The grants were intended to support upgrades to school equipment and to improve ventilation in classrooms to keep students and school staff safe following disruptions caused by COVID-19. The grants were to comprise open and targeted grant opportunities.

The Australian Government also allocated $203.7 million in funding to provide a funding boost to every Australian school to help address the adverse impacts of COVID-19 on student wellbeing and mental health. The funding was intended to support additional mental health and wellbeing support for students such as mental health professionals, sporting and social activities, and proven student wellbeing and mental health initiatives.

The audit would consider compliance of the grants programs with the Commonwealth Grants Rules and Guidelines.

The Australian Institute for Teaching and School Leadership’s administration of national standards and frameworks

This audit would assess the effectiveness of the Australian Institute for Teaching and School Leadership’s administration of national standards and frameworks.

The Australian Institute for Teaching and School Leadership is a Commonwealth company. It is responsible for developing and administering nine national standards and frameworks for teaching and school leadership that are the ‘foundational pillars for the national education landscape’.

The effectiveness of the Australian Curriculum, Assessment and Reporting Authority’s implementation of NAPLAN’s transition to online testing

This audit would examine the effectiveness of the Australian Curriculum, Assessment and Reporting Authority’s (ACARA) implementation of National Assessment Program — Literacy and Numeracy’s (NAPLAN) transition to online testing.

Administering the NAPLAN is the responsibility of the ACARA, which is a Corporate Commonwealth Entity. In 2022, NAPLAN moved from paper-based testing to online testing. This transition was reported by ACARA to be underpinned by a research and development program that informed the transition from paper-based testing to online testing, and the building of a new assessment model for online tests.

The management and oversight of fraud and non-compliance programs within the Child Care Subsidy program

This audit would examine the effectiveness of the Department of Education and Services Australia’s management and oversight of fraud and non-compliance within the Child Care Subsidy program.

The October 2022–23 Budget committed to a significant increase in the Child Care Subsidy (by $4.7 billion) and savings of $173.0 million over four years from 2022–23 by strengthening payment integrity and accuracy of the Child Care Subsidy program as part of budget initiatives within the Education portfolio.

Employment and Workplace Relations

Assisting the long-term unemployed

This audit would examine the approach to assisting long-term unemployed people under Workforce Australia employment services (the new employment services model). The enhanced services component of Workforce Australia is aimed at assisting those people who require more intensive supports to seek employment. The audit would review the effectiveness of the enhanced services program stream and whether it is meeting its intended objectives in terms of assisting some of the most disadvantaged job seekers.

Effectiveness of the Fair Work Ombudsman’s regulatory functions

This audit would examine the effectiveness of the Fair Work Ombudsman’s exercise of its regulatory functions. Funding was provided to the Fair Work Ombudsman (FWO) to regulate the Fair Work Act 2009 across the building and construction industry. The audit would examine the FWO’s overall regulatory operations as well as reviewing at the early design of the approach to regulation of the building and construction industry.

Effectiveness of the new Australian Apprenticeships Incentive System

This audit would examine the effectiveness of the implementation of the new Australian Apprenticeships Incentive Scheme which commenced on 1 July 2022 (due to end 30 June 2024) and the transition arrangements from transition from the Australian Apprenticeships Incentives Program which will continue to be in place concurrently with the new system. Areas to be examined would be procurement and contracting of the providers (the Australian Apprenticeships Support Network), changes to the program such as eligibility, and how the department is monitoring and supporting implementation, and compliance arrangements.

Management of Workforce Australia contracts and compliance

This audit would examine the effectiveness of the management of Workforce Australia contracts and compliance activities over employment service providers. This would include whether the Department of Employment and Workplace Relations has effective oversight and management of the contracts through an appropriate contract management framework, any application of lessons learned from the former jobactive program where relevant, whether there is a targeted compliance program based on risk, and if compliance breaches are addressed appropriately.

The House Select Committee on Workforce Australia Employment Services is inquiring into the implementation of Workforce Australia and the delivery of its services and is due to present its report to Parliament in September 2023.

Finance

Administration of Debt Waivers

The audit would assess the effectiveness of the Department of Finance’s administration of the waiver of debts owed to the Commonwealth.

Section 64 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), allows for the Finance Minister to set-off amounts owed to the Commonwealth. The Authorisation for a debt waiver must be in accordance with the rules contained in the PGPA Act.

Administration of the Government Business Enterprise (GBE) governance and accountability framework

This audit would assess the effectiveness of the Department of Finance’s administration of the governance and accountability framework for government business enterprises (GBE), including its support and advice to the Minister for Finance, who is a GBE shareholder minister. The audit may also review entities’ implementation of framework requirements and expectations set out in the GBE guidelines.

A GBE is a Commonwealth entity or Commonwealth company that is prescribed pursuant to the Public Governance, Performance and Accountability Act 2013 and related Public Governance, Performance and Accountability Rule 2014. Nine GBEs have been prescribed. Two GBEs are corporate Commonwealth entities: Australian Postal Corporation; and Defence Housing Australia. Seven GBEs are Commonwealth companies: ASC Pty Limited; Australian Naval Infrastructure Pty Ltd; Australian Rail Track Corporation Limited; National Intermodal Corporation Limited; NBN Co Limited; Snowy Hydro Limited; and WSA Co Limited. The Department of Finance provides advice to the Australian Government relating to its GBEs and other commercial entities.

Administration of the Parliamentary Expense Management System

This audit would assess the effectiveness of the Department of Finance‘s administration of the Parliamentary Expense Management System (PEMS) project. The audit would assess whether the PEMS project had effective procurement and whether project management and governance achieved agreed outcomes.

The PEMS is a secure online portal for parliamentarians and Members of Parliament (Staff) Act 1984 (MOP(S) Act) employees to manage their office and travel expenses and perform HR, payroll and mandatory reporting tasks. The system is also used by the Independent Parliamentary Expenses Authority. The audit would not duplicate what was assessed in Auditor-General Report No. 33 of 2020–21 Administration of Parliamentary Expenses by the Independent Parliamentary Expenses Authority.

COVID-19 (Phase 3): Design, implementation and preparedness of the Centres for National Resilience

This audit would examine the effectiveness of the design, implementation and preparedness of the Centres for National Resilience (Centres).

The Centres are purpose-built quarantine facilities in Melbourne, Brisbane and Perth that were intended to ensure the safety of the Australian community. The Australian Government funded construction of the Centres and state governments are responsible for the operation and management of the facilities for the duration of the COVID-19 pandemic.

Data security and governance at accredited data service providers

This audit would assess the effectiveness of data security and governance arrangements at Australian Government accredited data service providers (currently the Australian Bureau of Statistics (ABS), Australian Institute of Family Studies (AIFS), Australian Institute of Health and Welfare (AIHW) and Department of Social Services (DSS)) and the National Data Commissioner’s regulation of data sharing.

The Data Availability and Transparency Act 2022 (DAT Act), which commenced on 1 April 2022, established new requirements for sharing Australian Government data. The DAT Act was a key recommendation from a 2017 Productivity Commission Inquiry Report on Data Availability and Use, which highlighted the value of Australia‘s national data set. Under the DAT Act, accredited data service providers are responsible for providing complex data integration, de-identification and secure data access services to support data sharing. As at January 2023, six data service providers had been accredited, including four Australian Government entities (ABS, AIFS, AIHW and DSS). The National Data Commissioner within the Department of Finance is responsible for regulating data sharing under the DAT Act, including accrediting data services providers, and providing advice, guidance and education on data handling and sharing.

Developing and delivering digital identity reforms — Digital Identity system

This audit would review the progress of the Digital Identity system’s implementation, design and functionality, including the roles and responsibilities of stakeholders and the allocation and expenditure of funding, including contract management.

The Digital Identity program is delivered by Services Australia, the Australian Taxation Office (ATO), the Department of Home Affairs, and the Digital Transformation Agency. Components of the program include the Trusted Digital Identity Framework, identity exchanges (including Exchange run by Services Australia), digital identity providers (including myGovID managed by the ATO), and Digital Identity services connected to the system.

Public Sector Budgeting

This information report would provide insights into the extent to which actual public sector expenditure, as reported in the Consolidated Financial Statements, is aligned with the forecasts and priorities set by government in the Portfolio Budget Statements. This information report would be neither an audit nor an assurance review and would present no conclusions or opinions. The report would present the information in a variety of ways, including tables and figures, using publicly available data.

Use of the Management Advisory Services Panel

This audit would assess the extent to which entities’ use of the Management Advisory Services Panel supported the achievement of value for money.

The Management Advisory Services Panel is a cooperative procurement arrangement managed by the Department of Finance. Such arrangements are intended to achieve efficiency and reduce risk, while supporting entities to achieve value for money outcomes. The Panel supersedes the Business Advisory Services Panel which ceased operation on 25 October 2022. As of 20 February 2023, there were 413 suppliers on the Panel, and all Australian Government agencies are authorised to access it.

Foreign Affairs and Trade

COVID-19 (Phase 3): Australian Government Crisis Management Framework

This audit would assess the effectiveness of the Australian Government Crisis Management Framework (the Framework) in facilitating the Australian Government’s response to the COVID-19 pandemic.

DFAT’s establishment of the Australian Infrastructure Financing Facility for the Pacific

This audit would assess the effectiveness of the Department of Foreign Affairs and Trade’s (DFAT’s) design and inception planning of the Australian Infrastructure Financing Facility for the Pacific (AIFFP). This audit would include an examination of frameworks under which the AIFFP Board has been established and will operate, and the efficacy of DFAT’s management of arrangements with Export Finance Australia.

The AIFFP was established in July 2019. The facility uses aid grant funding of up to $500 million, combined with long-term loans of up to $1.5 billion, to support infrastructure development in Pacific countries and Timor-Leste (over seven years). In 2020–21, Australia finalised financing for approximately $110 million in AIFFP investments in energy, information communication technology, and transport projects across three Pacific Island countries. Additional funding was included in the October 2022 Budget to support additional investment.

Effectiveness of DFAT’s protection of overseas missions — Follow-on

This audit would examine the effectiveness of measures taken to strengthen the protection of Australia’s diplomatic posts and staff overseas.

Auditor-General Report No. 5 2017–18 Protecting Australia’s Missions and Staff Overseas and the Joint Committee of Public Accounts and Audit Report 471: Security of Overseas Missions reviewed the security of the Department of Foreign Affairs and Trade’s (DFAT’s) network of overseas missions. The ANAO made seven recommendations in its report and the Joint Committee of Public Accounts and Audit made eight recommendations. In 2018–19, DFAT received $339 million over five years to strengthen management of its security assets and infrastructure, modernise processes and the use of security personnel (‘Security Enhancements Program’). A follow-on audit is proposed to review DFAT’s implementation of recommendations, including in relation to 10 new missions established in recent years, and to review progress in implementing new measures. Areas to be covered would include: security guidelines and training arrangements; security risk assessments; and the monitoring and assessment of physical security arrangements.

Efficiency of the Australian Passport Office

This audit would assess the efficiency of the Department of Foreign Affairs and Trade’s (DFAT’s) delivery of passport services through the Australian Passport Office (APO) as well as its planning to meet future demand.

In 2017, DFAT implemented a new passport system to support increases in online passport applications and the production of up to 3.5 million passports per year. Use of advanced technologies are aimed at reducing the need for manual processing, increasing data security, and improving the ability to detect fraud and other threats to Australian interests. In 2020–21, the APO issued 603,464 passports, a 65 per cent drop on the previous year. For most of the year, application rates averaged around 20 per cent of pre-pandemic expectations. DFAT is experiencing a surge in passport processing as international travel resumes.

Procurement and contract management by Tourism Australia

The proposed audit would examine whether Tourism Australia is obtaining value for money in its procurement and contract management activities, including the extent of compliance with the Commonwealth Procurement Rules.

Payments to suppliers by Tourism Australia typically comprise more than 60 per cent of the entity’s annual expenses (75 per cent in 2020–21). According to AusTender data, significant contracts have been let in recent years in areas such as advertising, public relations and events management, with some of these contracts extended and increased in value after the initial contract award. Tourism Australia is one of the 24 Corporate Commonwealth Entities — out of 71 Corporate Commonwealth Entities in total — required to comply with the Commonwealth Procurement Rules (CPRs) and its corporate plan outlines that it will align its strategic procurement approach to its overall organisation strategy. The majority of the organisation’s budget expected to be spent on growing demand (the other program component is industry development).

Health and Aged Care

Administration of the Commonwealth Home Support Programme

This audit would assess the effectiveness of the Department of Health and Aged Care’s administration of grants under the Commonwealth Home Support Programme (CHSP).

The CHSP is an Australian Government program that helps older people to live independently in their homes and communities. It also provides respite services to give carers a break. Under the CHSP, non-government service providers receive Australian Government funding through grant agreements to deliver in-home care and services to older people. There are around 1400 CHSP providers in Australia, mainly (68 per cent) not-for-profit providers. The Australian Government also funds non-government organisations (Regional Assessment Services) to assess what support each older person needs. During 2022–23, funding arrangements for CHSP providers have been altered as part of reforms to in-home aged care that aim to set efficient prices for service delivery and provide guidance on reasonable client contribution rates.

The audit would consider compliance against the Commonwealth Grants Rules and Guidelines across the life cycle of CHSP grants administration.

Administration of the Pharmaceutical Benefits Scheme

This audit would examine the effectiveness of the administration of the Pharmaceutical Benefits Scheme (PBS).

The PBS provides Australians requiring access to certain prescribed medicines with subsidies on the total price. The PBS lists 925 medications under 5178 brands. In 2021–22, the PBS cost the Australian Government $14.7 billion (excluding recovery revenue).

The Department of Health and Aged Care manages the listing of medicines and compliance arrangements for the PBS and Services Australia processes claims against the PBS. The Pharmaceutical Benefits Advisory Committee, an independent statutory body, makes recommendations about and advises the Minister on which drugs and medicinal preparations should be made available through the PBS.

Coordination and targeting of mental health funding

This audit would examine the effectiveness of the Department of Health and Aged Care’s administration of mental health funding for aged-based multidisciplinary mental health treatment centres under the National Mental Health and Suicide Prevention Plan.

The 2021–22 Budget allocated $2.0 billion in funding over four years for mental health programs and initiatives, including $487.2 million to establish a network of eight Head to Health adult mental health centres and 24 satellite centres, $278.6 million to expand and enhance headspace youth mental health services, $54.2 million to help establish child mental health and wellbeing hubs, and $117.2 million to establish a national database on service delivery, performance and outcomes across the mental health system. The centres are intended to serve people who are too unwell to have their needs met in primary care, but are not unwell enough to access intensive services.

In March 2022 Australian governments made the National Mental Health and Suicide Prevention Agreement (the Agreement), which identified gaps in the current system of mental health care including a need for better integration between primary, secondary and tertiary care services in a geographical region. Under the Agreement, the Australian Government acknowledged its joint responsibility for supporting better integrated mental health service planning and care coordination at a regional level.

COVID-19 (Phase 3): Australian Government Crisis Management Framework

This audit would assess the effectiveness of the Australian Government Crisis Management Framework (the Framework) in facilitating the Australian Government’s response to the COVID-19 pandemic.

COVID-19 (Phase 3): Management of sovereign health capability procurements

This audit would examine the effectiveness of the Department of Health and Aged Care’s procurement activities to secure supply of critical medical goods and services.

Following the privatisation of the Commonwealth Serum Laboratories (CSL) in 1994, the Australian Government relied on commercial contracts with the private sector to ensure that Australians have access to medical products of national significance. In a December 2020 report, the Joint Standing Committee on Foreign Affairs, Defence and Trade observed that the COVID-19 pandemic held lessons about supply chains for critical national systems such as health care, and recommended that the Australian Government use procurement in a deliberate manner to build and sustain sovereign capability in critical sectors such as medical manufacturing (Joint Standing Committee on Foreign Affairs, Defence and Trade, Commonwealth of Australia, Inquiry into the implications of the COVID-19 pandemic for Australia’s foreign affairs, defence and trade, (2020). In late 2020, the Prime Minister announced that the Australian Government had concluded a $1 billion manufacturing agreement with Seqirus, a wholly-owned subsidiary of CSL Ltd. The agreement committed Seqirus to the continued supply of products of national significance until 2036 and the development of a new manufacturing facility.

The audit would examine the Department of Health and Aged Care’s procurement planning, procurement of Seqirus and potentially other medical manufacturing suppliers, and contract management.

Data security and governance at accredited data service providers

This audit would assess the effectiveness of data security and governance arrangements at Australian Government accredited data service providers (currently the Australian Bureau of Statistics (ABS), Australian Institute of Family Studies (AIFS), Australian Institute of Health and Welfare (AIHW) and Department of Social Services (DSS)), and the National Data Commissioner’s regulation of data sharing.

The Data Availability and Transparency Act 2022 (DAT Act), which commenced on 1 April 2022, established new requirements for sharing Australian Government data. The DAT Act was a key recommendation from a 2017 Productivity Commission Inquiry Report on Data Availability and Use, which highlighted the value of Australia’s national data set. Under the DAT Act, accredited data service providers are responsible for providing complex data integration, de-identification and secure data access services to support data sharing. As at January 2023, six data service providers had been accredited, including four Australian Government entities (ABS, AIFS, AIHW, and DSS). The National Data Commissioner within the Department of Finance is responsible for regulating data sharing under the DAT Act, including accrediting data services providers, and providing advice, guidance and education on data handling and sharing.

Department of Health and Aged Care’s performance management of Primary Health Networks

This audit would assess the effectiveness of the Department of Health and Aged Care’s performance management of Primary Health Networks (PHNs).

On 1 July 2015, the Australian Government established 31 PHNs to improve the efficiency and effectiveness of primary health care services across Australia. PHNs are independent, not-for-profit, regionally based planning and commissioning organisations. The role of the PHNs is to make decisions about which services or healthcare interventions should be provided and who should provide them, based on the PHNs’ strategic planning activities. PHNs enter into and manage contracts with service providers and are responsible for monitoring and evaluating the quality of commissioned services.

Early implementation of residential aged care reforms

From October 2022, the Australian Government introduced mandatory requirements for the minimum time spent by staff with aged care residents (‘minimum care minutes’) in line with recommendations from the Royal Commission into Aged Care Quality and Safety. The Australian Government also will require approximately 2,700 residential aged care facilities to have a registered nurse onsite 24 hours a day, seven days a week (‘24/7 RN’) from July 2023. The government has identified that the aged care sector faces challenges to implementing these requirements including from the COVID-19 pandemic and aged care workforce shortages. It has projected significant shortfalls in the nursing workforce by 2030 and is concurrently developing a National Nursing Workforce Strategy, which is expected to look at workforce sustainability.

The audit may examine the policy advice to government; the design of reforms and implementation plans; risk management; training; IT systems assurance; industry and stakeholder consultation; activities to support voluntary compliance; the granting of exemptions; and compliance strategies.

Effectiveness of Sport Integrity Australia

This audit would assess whether Sport Integrity Australia has delivered a coordinated national response to sports integrity issues.

Sport Integrity Australia was created in July 2020 in response to the Review of Australia’s Sports Integrity Arrangements (Wood Review), amalgamating the Australian Sports Anti-Doping Authority, National Integrity of Sport Unit (from the Department of Health), and integrity functions from Sport Australia. Its key activities include: acquitting the responsibilities of a National Anti-Doping Organisation, including administering athlete testing and conducting investigations of potential doping violations; promoting the adoption of the National Integrity Framework; assessing integrity complaints from complainants associated with National Sporting Organisations that have adopted the National Integrity Framework; and working to ratify the Convention on the Manipulation of Sports Competitions (Macolin Convention), including establishing a National Platform for information-sharing of intelligence on sporting integrity.

The audit would examine anti-doping operations, the administration of the National Integrity Framework, and intelligence sharing on sports integrity matters.

Effectiveness of the Professional Services Review Scheme

This audit would assess the effectiveness of the Professional Services Review (PSR) Scheme.

The PSR Scheme was established in July 1994 to protect the integrity of Medicare and the Pharmaceutical Benefits Scheme. The Director of the PSR, supported by around 30 staff in the PSR Agency, administers the PSR Scheme. The Department of Health and Aged Care monitors the conduct of practitioners who make claims under Medicare, the Child Dental Benefit Scheme, and the Pharmaceutical Benefits Scheme. Where the Department identifies potentially inappropriate practice by a provider, it may refer the practitioner to the Director of the PSR for review. Practitioners who are found to have engaged in conduct that is unacceptable to the general body of the practitioner’s peers may be subject to sanctions such as disqualification from billing Medicare or Pharmaceutical Benefits. The Director of the PSR is independent of the Department of Health and Aged Care and reports directly to the Minister for Health and Aged Care.

Food Standards Australia New Zealand

Food Standards Australia New Zealand (FSANZ) is a statutory authority that contributes to the protection of public health and safety through its core function of developing evidence-based food standards which are legislated in the Food Standards Code.

Authorities in all states and territories as well as the Australian and New Zealand Governments rely on the Food Standards Code when enforcing food safety. The Food Standards Code can be changed in response to an application from the Australian or New Zealand community, or following a proposal initiated by FSANZ.

This audit may examine FSANZ’s risk-based administration of applications and proposals. The audit may also examine food surveillance activities and international engagement by FSANZ.

Procurement and contract management of My Health Record

This audit would examine the effectiveness of procurement and contract management undertaken by the Australian Digital Health Agency (ADHA) in relation to My Health Record.

The National Infrastructure Operator (NIO) provides the technology platform for the My Health Record system and associated operation, maintenance, support and integration services. Accenture Australia Holdings Pty Ltd has been contracted as the NIO since 2012. The 2012 contract included several extension options which were all exercised, and the ADHA negotiated a further extension to 30 June 2022. On 1 July 2022 the ADHA entered into a three-year contract with an estimated maximum value of $100.2 million following a procurement process conducted pursuant to paragraph 10(3)(e) of the Commonwealth Procurement Rules, which permits a limited tender in circumstances where a change of supplier would result in the procurement of goods and services that do not meet requirements for compatibility with existing equipment or services. ADHA has procured other key services and products in relation to My Health Record from commercial providers, including a new Health API Gateway (with an initial estimated maximum contract value of $25.8 million in 2021) and a mobile application to connect to the My Health Record system (with an initial estimated maximum value of $2.1 million in 2021).

Star ratings for residential aged care facilities

The audit would assess the effectiveness of the introduction of star ratings for residential aged care facilities.

In response to the Royal Commission into Aged Care Quality and Safety, the Australian Government allocated $100 million in the 2021–22 Budget to introduce a star rating for all residential aged care services. The first star ratings were announced by the Minister for Aged Care in December 2022, who stated that the ratings would deliver on the Australian Government’s intent to make aged care more transparent and accountable.

Home Affairs

Administration of goods revenue and clearance at the border

This audit would assess the effectiveness and efficiency of the Department of Home Affairs’ and Australian Border Force’s (ABF’s) customs duty and cargo clearance administration.

Border and customs operations generate the Commonwealth’s second largest source of revenue. In 2021–22 there was $17.58 billion in revenue collected from customs duty, passenger movement charges and import processing charges, and there were 85 million air cargo consignments cleared and 6.3 million sea cargo consignments cleared. Trafficking and illegal movement of goods and people across the border compromises Australia’s trade and travel system, economy, public safety, and national security.

Administration of the Adult Migrant English Program contracts

This audit would examine whether the Department of Home Affairs’ has effectively and ethically designed and administered the Adult Migrant English Program (AMEP) contracts including whether there was appropriate planning for the end of the contracts.

The AMEP is a free service to help eligible migrants and humanitarian entrants with low English levels to improve their English language skills and settle into Australia. It is delivered at around 300 locations across Australia in major cities as well as regional and remote areas. Providers have been contracted in each state and territory as well as for distance learning. According to data published by the department on AusTender, there are 14 contracts in place valued at $1.2 billion, each of which was due to end on 30 June 2023 (AusTender indicates that new contracts are now expected to commence operation on 1 January 2025). The proposed audit may use the follow the money powers provided by the Auditor-General Act 1997 to examine the performance of the contracted providers, as well as the department’s preparation for delivery of the program post 30 June 2023 (including the conduct of any further procurement process). The October 2022 Budget included $20 million to provide more flexible delivery options for the program and to increase case management support for students (so as to deliver on an election commitment).

COVID-19 (Phase 3): Australian Government Crisis Management Framework

This audit would assess the effectiveness of the Australian Government Crisis Management Framework (the Framework) in facilitating the Australian Government’s response to the COVID-19 pandemic.

The Framework outlines arrangements across seven phases (prevention, preparedness, response, relief, recovery, reconstruction, and risk reduction) under which crises of national significance are to be managed. National plans and arrangements developed by Australian Government agencies must reflect the roles and responsibilities set out in the Framework. The Framework states its main focus is ‘near-term crisis preparedness, immediate crisis response and early crisis recovery arrangements’.

Disaster Ready Fund

The audit objective would be to examine the assess whether the award of funding under the Disaster Ready Fund (DRF) was effective.

Established by the Disaster Ready Fund Act 2019, up to $1 billion has been announced as available over five years from 1 July 2023 to 30 June 2028 to fund projects in partnership with Australian state, territory and local governments to manage the impacts of disasters caused by climate change and other natural hazards. The DRF is the Australian Government’s flagship disaster resilience and risk reduction initiative with applications under the first $200 million round closing in March 2023.

Efficiency of the processing of applications for citizenship by conferral — follow-on

This audit would assess the effectiveness of the Department of Home Affairs in improving its performance in the processing of applications for citizenship by conferral, including the implementation of previously agreed recommendations.

Auditor-General Report No. 25 of 2018–19 Efficiency of the Processing of Applications for Citizenship by Conferral found that applications for citizenship by conferral had not been processed efficiently, including time-efficiently. The Joint Committee of Public Accounts and Audit made a recommendation in its Report directed at ensuring timely advice is provided to applicants on the status of their application for citizenship by conferral, which was agreed by the Department of Home Affairs (Joint Committee of Public Accounts and Audit, Commonwealth of Australia, Efficiency and Effectiveness: Inquiry into Auditor-General’s Reports 25, 29, 38, 42, 44, 45 and 51 (2018–19), (2020)). In its 2021–22 annual performance statement, the Department of Home Affairs reported it had ‘actively pursued a range of policy, process and systems enhancements to improve the citizenship application process throughout 2021–22, which enabled increased efficiency of application processing and simplified processes to improve client experience’.

OMARA’s regulation of migration agents

This audit would examine the effectiveness of the Office of Migration Agents Registration Authority’s (OMARA) registration and management of migration agents.

Established in July 2009, OMARA is the Australian Government authority that registers and regulates migration agents providing immigration assistance. OMARA’s role is to register only those people who meet qualification and character standards, monitor the conduct of registered migration agents, and investigate complaints. As at 30 June 2022, 4,868 people were registered in Australia as migration agents.

Procurement by National Intelligence Community agencies

This audit would examine whether entities’ procurement activities have been conducted in accordance with relevant Commonwealth Procurement Rules.

Procurement of Garrison Services in Nauru

The audit would assess whether the Department of Home Affairs’ procurement of garrison and welfare services for Nauru complied with the Commonwealth Procurement Rules, including whether value for money was achieved and the procurement was conducted ethically.

Australia and Nauru have agreed to the establishment of an enduring regional processing capability in Nauru. The Department of Home Affairs, since 2012, has been responsible for the procurement of garrison support and welfare services functions for the regional processing centres and the establishment and ongoing management of associated contractual arrangements.

Arrangements with the previous contractor for the provision of welfare and garrison services expired in September 2022. In August 2022, the department signed a contract with International Health and Medical Services to provide health services. Separately, in October 2022, Management and Training Corporation Pty Ltd commenced delivery of facilities, transferee arrivals and reception services in Nauru under a letter of intent.

Industry, Science and Resources

Award of funding under the Modern Manufacturing Initiative

This audit would assess whether the award of funding under the Modern Manufacturing Initiative was effective and consistent with the Commonwealth Grants Rules and Guidelines.

Established in the 2020–21 Budget, the $1.3 billion Modern Manufacturing Initiative aims to stimulate business investment in the manufacturing sector by addressing barriers to scale and competitiveness for Australian manufacturers. Funding is awarded via an open, competitive process under three streams: the Manufacturing Translation Stream; Manufacturing Integration Stream; and Manufacturing Collaboration Stream. Funding is targeted at supporting projects within the six National Manufacturing Priorities: resources technology and critical minerals processing; food and beverage; medical products; recycling and clean energy; defence; and space. The Modern Manufacturing Initiative is the centrepiece of the Modern Manufacturing Strategy, which is the Australian Government‘s action plan to develop manufacturing to deliver positive economic outcomes and create jobs. The focus of the audit would be on the award of the additional funding provided in the October 2022–23 Budget.

Cost Recovery activities conducted by IP Australia

This audit would examine the effectiveness and efficiency of cost recovery activities conducted by IP Australia. Areas to be examined would be cost recovery implementation models used by IP Australia, business processes used in cost recovery, and calculation of fee structures. The current cost recovery model was revised following a Productivity Commission recommendation (No. 78, 23 September 2016) that suggested patent fees should be set to promote IP policy objectives rather than cost recovery.

Effectiveness of CSIRO grants allocation and administration

This audit would examine whether the award and administration of funding by CSIRO is effective as well as being consistent (where appropriate) with the Commonwealth Grant Rules and Guidelines. Areas to be examined would include the CSIRO Kick-Start, SIEF Ross Metcalf Fellowship, SME Connect team, STEM+ Business and Innovation Connections programs.

Effectiveness of NOPSEMA’s administration of regulatory frameworks for offshore energy operations and greenhouse gas storage in Commonwealth waters

This audit would examine whether the National Offshore Petroleum Safety and Environmental Management Authority’s (NOPSEMA) administration of its regulatory functions is being effectively managed in accordance with its legislative and regulatory frameworks. NOPSEMA is responsible for the regulation of frameworks and environmental management of all offshore energy operations and greenhouse gas storage activities in Commonwealth waters and in coastal waters where regulatory powers have been conferred.

Effectiveness of the Australian Space Agency regulatory framework

This audit would examine the effectiveness of the regulatory framework used by the Australian Space Agency. This would include compliance with international space treaties, enforcement activities, and interaction with regulatory frameworks in place in other Australian agencies such as the Civil Aviation Safety Authority and the Royal Australian Air Force. The audit would also look at the Australian Space Agency’s administration of its regulatory functions.

The Australian Space Agency regulates Australian space and high-power rocket activities and overseas international arrangements affecting space regulation under the Space (Launches and Returns) Act 2018.

Procurement activities to deliver the Southern Positioning Augmentation Network project

This audit would examine whether Geoscience Australia’s procurement activities for the Southern Positioning Augmentation Network (SouthPAN) project employed open and effective competition and achieved value for money, consistent with the Commonwealth Procurement Rules.

The SouthPAN project procurement activities are being undertaken by Geoscience Australia to provide accurate and reliable positioning of 10cm accuracy to Australia, New Zealand and their maritime zones. The project includes engaging a prime contractor to implement and sustain the system (the approach to the market closed in July 2020), a call for expressions of interest from landowners to host new Satellite-Based Augmentation Systems ground station sites and procuring various satellite payload/navigation services.

Infrastructure, Transport, Regional Development, Communications and the Arts

Community Broadcasting Program

This audit would assess whether the Department of Infrastructure, Transport, Regional Development, Communications and the Arts’ administration of the Community Broadcasting Program was effective in achieving the program objectives and was consistent with the Commonwealth Grants Rules and Guidelines.

The purpose of the Community Broadcasting Program is to support a diverse, innovative and resilient community broadcasting sector. The program has been delivered for the Australian Government by a third party — the Community Broadcasting Foundation Ltd — since 1984.

Early design of the Growing Regions Program and the regional Precincts and Partnerships Program

This audit would assess the effectiveness of the Department of Infrastructure, Transport, Regional Development, Communications and the Arts’ early design of the Growing Regions Program and the regional Precincts and Partnerships Program, for which the government announced $1 billion over three years in funding during the October 2022 Budget.

The government announced that the Growing Regions Program will deliver on its strategic priorities for regional Australia through an open, competitive grants process. It also announced that the regional Precincts and Partnerships Program will provide a strategic, nationally consistent mechanism for funding and coordinating projects that support the transformation of important locations across communities in regions, regional cities and rural Australia.

A proposed audit into its design provides an opportunity to see lessons learned from previous grant programs and associated audits.

Enforcement of online safety regulatory framework

This audit would assess the effectiveness of the Australia Media and Communications Authority’s (ACMA) regulation of non-compliance with consumer safeguards and protections for the digital environment to support Australians to interact safely online.

The government established the Office of the eSafety Commissioner in ACMA in 2015, with a mandate to coordinate and lead online safety efforts across government, industry and the not-for-profit sector. A statutory review of the Enhancing Online Safety Act 2015 and Schedules 5 and 7 to the Broadcasting Services Act 1992 (the Briggs Review) in 2018 concluded that changes to legislative, regulatory, and governance arrangements are required to strengthen the regulatory regime.

The audit would focus on implementation of ACMA’s (including the Office of the eSafety Commissioner) compliance enforcement activities, including management of investigations, under the new legislative framework.

Management of biodiversity offset obligations by government business enterprises

This audit would examine whether the Department of Infrastructure, Transport, Regional Development, Communications and the Arts, Snowy Hydro Limited, WSA Co Limited, National Intermodal Corporation Limited and the Australian Rail Track Corporation Limited are effectively, efficiently, economically and ethically meeting relevant biodiversity offset obligations for the major infrastructure projects they are delivering.

Management of funding of projects by the Northern Australia Infrastructure facility — follow-on audit

This audit would examine the effectiveness of measures the Northern Australian Infrastructure facility (NAIF) has taken to strengthen the integrity and transparency in decision making in regarding funding decisions for projects.

Auditor-General Report No. 33 of 2018–19 Governance and Integrity of the Northern Australia Infrastructure Facility made six recommendations.

Management of the OneSKY Contract

The OneSKY Australia Program involves replacing existing civil and defence air traffic management systems with an advanced integrated system known as the Civil Military Air Traffic Management System.

Management of the Regional Broadband Scheme Contract with NBN Co Limited

This audit would examine the Department of Infrastructure, Transport, Regional Development, Communications and the Arts’ establishment and management of its contractual arrangement with NBN Co Limited (NBN Co) for the purposes of the Regional Broadband Scheme.

The Australian Government enacted the Regional Broadband Scheme to fund the loss-making components of the national broadband network (NBN) through a levy on fixed line infrastructure providers.

National broadband network — transition from construction to operation

This audit would assess the effectiveness of NBN Co Limited’s (NBN Co’s) strategies to manage its transition from building to operating the national broadband network (NBN).

While NBN Co will continue to have a build commitment for new developments and complex connections, construction of the NBN ‘volume rollout’ was scheduled for completion by June 2020, followed by a further 18 months for completing the migration from previous infrastructure to the NBN. The transition of NBN Co’s operating model from network construction to one focusing on ongoing network operations was identified as a key risk in the NBN Co’s Corporate Plan 2020–2023.

Procurement processes and management of probity by Australian Rail Track Corporation

This audit would assess to what extent the Australian Rail Track Corporation (ARTC) has effectively managed its procurement contracts for Inland Rail.

Inland Rail is a key government infrastructure project. It involves building and operating a freight train line from Brisbane to Melbourne. Construction started in 2017 and is expected to finish in 2026.

In August 2021, the Senate Rural and Regional Affairs and Transport References Committee published a report which highlighted concerns with Inland Rail’s 2015 business case (Rural and Regional Affairs and Transport References Committee, Commonwealth of Australia, Inland Rail: derailed from the start (2021)). In October 2022, the government announced an independent review into Inland Rail which will be completed by early 2023 and encompass ARTC’s governance and program delivery approaches for Inland Rail.

National Disability Insurance Agency

Design and implementation of the Participants, Platforms and Processes Program

This audit would examine the effectiveness of the National Disability Insurance Agency’s (NDIA) implementation of, and transition to, the new Customer Relationship Management (CRM) system named ‘PACE’.

The PACE system will replace the current business, portal and payments systems, with a new embedded CRM system addressing validations around payments for the NDIA-provided services with the introduction of some automated payments controls. PACE was piloted in Tasmania in November 2022 and will be implemented across all NDIA locations by mid-2023.

Effectiveness of the National Disability Insurance Agency’s Independent Expert Review program for alternative dispute resolution.

This audit would examine the design and implementation of the National Disability Insurance Agency’s (NDIA) Independent Expert Review program designed to resolve mattes without proceeding to a hearing before the Administrative Appeals Tribunal (AAT).

A participant of the National Disability Insurance Scheme (NDIS) can seek review of a decision made by the NDIA in the AAT. The October 2022 Budget committed to $12.4 million to trial an Independent Expert Review to help resolve the backlog of NDIS appeals before the AAT, including $6.6 million for advocacy and legal supports for participants. A pilot phase of the program commenced in October 2022.

Managing the National Disability Insurance Scheme Payment Claims Compliance

The audit would assess the effectiveness of the National Disability Insurance Agency’s (NDIA) processes for detecting and correcting provider and participant non-compliant and fraudulent claims.

Service providers under the National Disability Insurance Scheme (NDIS) work with plan managers, support coordinators and local area coordinators to deliver services to NDIS participants. Providers delivering NDIS services must comply with: the National Disability Insurance Scheme Act 2013; other relevant Australian laws, rules and regulations; the NDIS Code of Conduct; NDIS Practice Standards; and NDIS Pricing Arrangements and Pricing Limits. Provider and participant non-compliance claims can be accidental or deliberate and range from a simple mistake to criminal activity such as fraud.

The NDIA undertakes a range of education and compliance activities to prevent and detect non-compliant claims for payment from providers or participants.

Measuring participant outcomes: effectiveness of National Disability Insurance Scheme supports for people with autism

This audit would examine how the National Disability Insurance Agency (NDIA) monitors and assesses outcomes for National Disability Insurance Scheme (NDIS) participants with autism and the effectiveness of NDIS funded supports and the Department of Social Services’ (DSS’s) autism programs to support improved outcomes, continuous improvement and NDIS sustainability.

Autism is the most common disability for NDIS participants and is the primary disability for 34 per cent of NDIS participants, of which 64 per cent are aged under 15 years. NDIS payments for participants with autism grew 23 per cent between September 2021 and September 2022.

The October 2022 Budget provided $5.3 million to DSS to support development of a National Autism Strategy.

National Disability Insurance Agency’s management of complaints.

This audit would assess the effectiveness of the National Disability Insurance Agency’s (NDIA) management of complaints.

NDIA receives around 36,000 complaints each year from participants of the National Disability Insurance Scheme (NDIS) and over 1,000 from NDIS providers and other parties. In 2021–2022, NDIA referred 208 complaints to the Commonwealth Ombudsman, 678 complaints to the NDIS Quality and Safeguards Commission and made referrals to other state and territory government organisations.

This audit would examine NDIA’s processes for receiving, investigating and resolving complaints as well as the monitoring, reporting and referring of complaints.

Parliamentary Departments

Business continuity management at Parliament House

This audit would assess the effectiveness of the Department of Parliamentary Services (DPS) in planning to maintain and support the operation of Parliament in the face of disruptions, including consideration of the disruptions caused as a result of COVID-19.

DPS works with the Department of the House of Representatives, the Department of the Senate and the Parliamentary Budget Office to support the work of the Parliament. Services provided by DPS include information and communication technology, security, building maintenance, Hansard, visitor and childcare services. In March 2020, the Presiding Officers announced a range of temporary and precautionary measures directed at reducing the risk of transmission of COVID-19 while enabling the essential work of Parliament to continue. Key aspects of this audit would include DPS’ engagement with other parliamentary departments in responding to the pandemic and the mitigation of cyber threats.

Prime Minister and Cabinet

Administration of remote Indigenous employment programs

The audit would assess the effectiveness of National Indigenous Australians Agency’s (NIAA’s) administration of remote Indigenous employment programs.

The Australian Government introduced the Community Development Program (CDP) in July 2015 to assist jobseekers in remote Australia. In a 2017, a Senate Inquiry by the Finance and Public Administration References Committee into the Appropriateness and Effectiveness of the Objectives, Design, Implementation and Evaluation of the Community Development Program concluded that the CDP should not continue in its current form and recommended that the government engage in ‘genuine and comprehensive consultation with remote communities, Indigenous organisations, employment providers and other stakeholders on the reforms required to be made to the CDP’. The government subsequently announced reforms to the CDP in the 2018–19 Budget. In May 2021, the government announced that a new program, the Remote Employment Program (REP), would be rolled out in 2023 to replace the CDP. In October 2022, the government announced that funding for the REP would be redirected to a trial of a New Jobs Program, which would create up to 200 job opportunities in remote and very remote locations with thin labour markets. In November 2022, the NIAA advised the Senate that about 40,000 people were still participating in the CDP. The audit would examine the NIAA’s planning and management of reforms to remote Indigenous employment programs, including its use of co-design and trials.

Administration of the Regulatory Impact Analysis Framework

This audit would assess the effectiveness of the Regulatory Impact Analysis (RIA) framework.

The RIA framework is designed to help policymakers identify the relevant policy problem, examine a range of viable options, assess the costs and benefits of the options, and develop the evidence base for well-informed decision making. The Office of Impact Analysis (OIA) within the Department of the Prime Minister and Cabinet aims to ensure that major policy decisions are supported by sound evidence and analysis. The OIA has a dual role: ensuring compliance with the RIA framework; and providing guidance and coaching across the Australian Public Service to assist entities to produce high quality analysis. The OIA refreshed the RIA framework in March 2020.

The audit would examine the OIA’s administration of the RIA framework, and selected entities’ application of it in their work.

COVID-19 (Phase 3): Australian Government Crisis Management Framework

This audit would assess the effectiveness of the Australian Government Crisis Management Framework (the Framework) in facilitating the Australian Government’s response to the COVID-19 pandemic.

Delivery of community-led justice reinvestment initiatives

Design and Implementation of the APS Reform Agenda

This audit would assess the effectiveness of the design and implementation of the Australian Public Service (APS) Reform Agenda announced in the October 2022–23 Budget.

In June 2022, a Secretary for Public Sector Reform was appointed for a two-year term to design and deliver recommendations to strengthen the public sector. In the October 2022 Budget, the Australian Government allocated: $40.8 million for the Department of the Prime Minister and Cabinet (PM&C) and the Australian Public Service Commission to develop and implement a reform plan to strengthen the APS; and $25 million over two years from 2023–24 for an APS Capability Reinvestment Fund.

The October 2022 announcements followed earlier initiatives to reform the APS. A 2018 review (Our Public Service, Our Future) outlined the need for a capable, citizen-focused and trusted APS that collaborates with others and delivers decisively new ways of working and harnesses data and technology. There were 40 recommendations, to which the government agreed partially or in full to 35. In February 2020, the APS Reform Office was established within PM&C. The PM&C 2021–22 Annual Report reported that there were ‘positive trends in 80 percent of APS Reform overarching outcomes’ for 2021–22.

Implementation of recommendations in the Indigenous affairs portfolio

This audit would assess the implementation of recommendations accepted by the Australian Government arising from the performance audits conducted since 2018–19, which may include:

Auditor-General Report No. 18 2021–22 Remote Housing in the Northern Territory;
Auditor-General Report No. 36 2020–21 Indigenous Business Australia’s Business Support and Investment Activities;
Auditor-General Report No. 11 2020–21 Indigenous Advancement Strategy — Children and Schooling Program and Safety and Wellbeing Program;
Auditor-General Report No. 34 2019–20 Aboriginal and Torres Strait Islander Participation Targets in Intergovernmental Agreements;
Auditor-General Report No. 25 2019–20 Aboriginal and Torres Strait Islander Participation Targets in Major Procurements;
Auditor-General Report No. 27 2018–19 Closing the Gap; and
Auditor-General Report No. 7 2018–19 Management of the Regional Network.

Additionally, this audit may assess the implementation of recommendations from four inquiries concluded by the House of Representatives Standing Committee on Indigenous Affairs between December 2017 and 2021:

House of Representatives Standing Committee on Indigenous Affairs, Commonwealth of Australia, Report on Indigenous Participation in Employment and Business, (2021);
House of Representatives Standing Committee on Indigenous Affairs, Commonwealth of Australia, Report on food pricing and food security in remote Indigenous communities, (2020);
House of Representatives Standing Committee on Indigenous Affairs, Commonwealth of Australia, Report on the impact of inauthentic art and craft in the style of First Nations peoples, (2018); and
House of Representatives Standing Committee on Indigenous Affairs, Commonwealth of Australia, The power of education: from surviving to thriving – educational opportunities for Aboriginal and Torres Strait Islander students, (2017).

The audit may also assess the implementation of a recommendation made by the Finance and Public Administration Legislation Committee during Budget Estimates 2022–23, and other recommendations made by parliamentary committees (including the Joint Standing Committee on Aboriginal and Torres Strait Islander Affairs) made before 1 July 2023.

Implementation of the myClearance system

This audit would assess the effectiveness of the Australian Government Security Vetting Agency’s (AGSVA’s) implementation of the myClearance system.

Indigenous Land and Sea Corporation’s management of non-financial assets

This audit would examine the effectiveness of the Indigenous Land and Sea Corporation’s (ILSC) management of non-financial assets.

The ILSC is a corporate Commonwealth entity established under the Aboriginal and Torres Strait Islander Act 2005 (the Act). One function of the ILSC is to acquire land to grant to Indigenous corporations. Under section 191D of the Act, the ILSC must make a grant of an interest in land acquired for that purpose within a reasonable time after its acquisition. At 30 June 2022, the ILSC and subsidiary corporations held the Ayers Rock Resort valued at $427 million, other properties valued at $153 million, and livestock on properties valued at $16 million. While the ILSC holds properties, it is responsible for maintenance, statutory costs and the operation of related businesses. The audit would examine the ILSC’s asset management strategy and practices, including those related to the divestment of properties.

Management of climate risks to remote Indigenous communities

A June 2022 study by the University of Sydney and the New South Wales (NSW) Government found that Aboriginal populations in NSW were disproportionately exposed to climate extremes, experience higher rates of climate-sensitive health conditions, and experience higher rates of socioeconomic disadvantage, which impacts their capacity to adapt to climate change. In December 2020 the Standing Committee on Indigenous Affairs released the report of its inquiry into food pricing and food security in remote Indigenous communities (House of Representatives Standing Committee on Indigenous Affairs, Commonwealth of Australia, Report on food pricing and food security in remote Indigenous communities (2020)). The inquiry concluded that despite three previous examinations of food security, concerns remained. The Australian Government responded to the inquiry in December 2021, supporting or providing in-principle support to 10 of the 16 recommendations.

In the October 2022–23 Budget the Australian Government allocated $15.9 million over four years from 2022–23 to establish the Torres Strait Climate Change Centre of Excellence, and to build the capability and capacity of Torres Strait Islander peoples to respond and adapt to the impacts of climate change. As part of the 2023 Closing the Gap Implementation Plan, the government provided additional funding of $150 million over four years to support water infrastructure in remote and regional Indigenous communities; and $11.8 million over two years for the National Strategy for Food Security in remote communities.

Office of the Registrar of Indigenous Corporations’ management of non-compliance

This audit would assess the effectiveness of the Office of the Registrar of Indigenous Corporations’ (ORIC’s) management of non-compliance with the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).

The Registrar of Indigenous Corporations (the Registrar) is an independent statutory office holder supported by around 40 employees within the National Indigenous Australians Agency. ORIC describes its purpose as ‘to register Indigenous groups that want to incorporate or to transfer their registration to operate under the CATSI Act; help Aboriginal and Torres Strait Islander corporations to run properly — according to their own rules and cultures — and ensure they don’t break the law; and offer support, advice and training to help corporations do the best job for their communities’.

In 2021, the National Indigenous Australians Agency released a final report of a review into the CATSI Act recommended enhancements to the regulatory powers available to the Registrar under the Act. An amendment bill to the CATSI Act passed the House of Representatives in 2021 but lapsed at the end of the 46th Parliament. This audit would examine the use of the Registrar’s powers and functions to manage non-compliance with the CATSI Act.

Procurement by National Intelligence Community agencies

This audit would examine whether entities’ procurement activities have been conducted in accordance with relevant Commonwealth Procurement Rules.

Workplace Gender Equality Agency’s management of compliance with the Workplace Gender Equality Act 2012

The audit will examine the effectiveness of the Workplace Gender Equality Agency’s (WGEA’s) management of compliance with the Workplace Gender Equality Act 2012 (the Act).

The Act requires non-public sector employers with 100 or more employees to submit an annual report containing data on workplace gender equality to the WGEA. Employers with 500 or more employees must also comply with minimum standards for gender equality. Employers that fail to comply with the Act may be publicly named by the WGEA and may be excluded from tendering for Australian Government contracts, receiving Australian Government grants, or tendering for contracts with some state governments.

The audit may examine the WGEA’s use and assurance of data, identification and monitoring of non-compliant employers, and certification of compliance. The audit may also examine whether non-compliant employers have been awarded Australian Government contracts and grants.

Services Australia

Administration of parenting payments (Paid Parental Leave, Dad and Partner Pay, Newborn Upfront Payment and Newborn Supplement)

This audit would assess the effectiveness of the Department of Social Services’ (DSS) and Services Australia’s administration of parenting payments (including Paid Parental Leave, Dad and Partner Pay, Newborn Upfront Payment and Newborn Supplement).

The Australian Government provides a range of parenting payments to parents for children. Some are one-off payments (such as the Newborn Upfront Payment and the Dad and Partner Pay) and others (such as Paid Parental Leave (PPL) and the Newborn Supplement) are ongoing payments. DSS is responsible for parenting administration and Services Australia provides parenting payments to eligible recipients on DSS’s behalf.

In March 2022, changes to PPL were announced to come into effect from 1 July 2023 (subject to the passing of legislation) to enhance the flexibility of the scheme, and in the October 2022 Budget, $531.6 million was allocated over four years to ‘modernise the PPL scheme and promote a more equal distribution of work within households’. Changes include expansion of the PPL scheme from 18 to 26 weeks by 1 July 2026, allowing working parents to choose how they share the weeks of PPL entitlements between parents, and introducing a family income limit in addition to the individual income limit to determine eligibility. In 2021–21, PPL of $2.6 billion was paid to 178,788 individuals.

Administration of the Age Pension

This audit would assess the effectiveness of the Department of Social Services’ (DSS) and Services Australia’s administration of the Age Pension.

The Age Pension provides income support to senior Australians subject to age, residency requirements and income and asset tests. DSS is responsible for Age Pension policy and Services Australia provides Age Pension payments to eligible recipients on DSS’s behalf. In 2021–22, $51.1 billion was paid to 2,557,691 eligible Age Pension recipients, representing approximately 42 per cent of DSS’s personal benefit expenses during 2021–22. Recent changes to the Age Pension include increasing the eligibility age from 65 to 67 (effective from 1 July 2021) and increasing allowable income test thresholds to encourage older Australians to remain in the workforce without losing access to their pension and benefits.

Administration of the Pharmaceutical Benefits Scheme

This audit would examine the effectiveness of the administration of the Pharmaceutical Benefits Scheme (PBS).

The PBS provides Australians requiring access to certain prescribed medicines with subsidies on the total price. The PBS lists 925 medications under 5,178 brands. In 2021–22, the PBS cost the Australian Government $14.7 billion (excluding recovery revenue).

Coercive powers in child support and social security and welfare payments

This audit would assess the effectiveness of Services Australia’s use of coercive powers in its child support and social security compliance programs.

In 2021–2022, Services Australia delivered $152.2 billion in social security and welfare payments on behalf of the Australian Government, including facilitating $1.8 billion in child support payments. In ensuring recipients receive only the payments to which they are entitled, Services Australia has a range of coercive powers it applies through compliance activities. These include powers to require individuals to provide information, produce documents, answer questions, and make payments (including through the use of garnishee orders).

Developing and delivering digital identity reforms — Digital Identity system

Effectiveness and efficiency of Services Australia’s workforce planning

This audit would assess the effectiveness and efficiency of Services Australia’s workforce planning, including examining the operation of its 2019–2023 Strategic Workforce Plan and its ability to respond rapidly to unplanned and critical priorities.

Since 2020, Services Australia has been required to respond to increased demand for services and payments due to the COVID-19 pandemic and a series of natural disasters. For the year 2021–22, there were: 9.3 million service centre contacts; 73 million calls handled; 1.2 billion online transactions; and 517.6 million claims processed.

Management of Centrepay

This audit would assess the effectiveness of Service Australia’s management of Centrepay, including the approval of businesses to join the scheme and the protections provided to people who use Centrepay to pay their bills.

Centrepay is a free and voluntary service that enables welfare recipients to pay bills as regular deductions from their income support payments. Services Australia charges businesses a fee for accepting Centrepay deductions from welfare recipients’ payments. In 2021–22, Services Australia made 24.6 million deductions for 608,021 recipients. These deductions had a value of $2.72 billion with 10,512 businesses receiving at least one payment.

Managing the privacy of client information

Services Australia and the ATO hold and manage client (customer and taxpayer) information in the course of their delivery of services and payments and oversight of the tax and superannuation systems. Services Australia and the ATO share data for the purposes of comparing income data. Risks to the integrity and privacy of client information comprise data breaches through human error or system faults. Thirty-seven per cent of all notifiable data breaches in agencies covered by the Privacy Act in January to June 2022 were from human error and system faults and 63 per cent from malicious and criminal attack, with 41 per cent of all data breaches resulting from cyber security incidents.

Service delivery modernisation — implementing customer-centric approaches

This audit would examine the effectiveness of Services Australia’s use of customer insights, experience and feedback in human-centred service design and delivery; and how service delivery performance and improvements are monitored and evaluated.

Services Australia is seeking to transform and modernise the way it works, stating that it intends to deliver ‘simple, helpful, respectful and transparent service delivery’. Modernisation programs included: website improvements; the Welfare Payment Infrastructure Programme; Single Touch Payroll; and modernisation of service centres.

The management and oversight of fraud and non-compliance programs within the Child Care Subsidy program

This audit would examine the effectiveness of the Department of Education and Services Australia’s management and oversight of fraud and non-compliance within the Child Care Subsidy program.

Transitional arrangements for the Cashless Debit Card

This audit would assess the effectiveness of Department of Social Services’ (DSS’s) and Services Australia’s management of transitional arrangements for the Cashless Debit Card (CDC) program, including the procurement of a new income management card provider.

The Australian Government introduced the CDC in 2016 to assist people receiving income support to better manage their finances and encourage socially responsible behaviour. Under the program, a proportion of participants’ social welfare payments were allocated to restricted bank accounts, accessible by debit card (the CDC), which prohibited cash withdrawals and payments for alcohol, gambling or cash-like products. In September 2022, the Australian Government passed legislation to abolish the CDC. Since October 2022, DSS and Services Australia have been responsible for managing the transition of participants off the CDC program. This includes procuring a new income management card provider, with the new card expected to be available to previous CDC participants from March 2023 and other welfare recipients from July 2023.

Social Services

Administration of parenting payments (Paid Parental Leave, Dad and Partner Pay, Newborn Upfront Payment and Newborn Supplement)

In March 2022, changes to PPL were announced to come into effect from 1 July 2023 (subject to the passing of legislation) to enhance the flexibility of the scheme, and in the October 2022 Budget $531.6 million was allocated over four years to ‘modernise the PPL scheme and promote a more equal distribution of work within households’. Changes include expansion of the PPL scheme from 18 to 26 weeks by 1 July 2026, allowing working parents to choose how they share the weeks of PPL entitlements between parents, and introducing a family income limit in addition to the individual income limit to determine eligibility. In 2021–21 PPL of $2.6 billion was paid to 178,788 individuals.

Administration of the Age Pension

This audit would assess the effectiveness of the Department of Social Services’ (DSS) and Services Australia’s administration of the Age Pension.

The Age Pension provides income support to senior Australians subject to age, residency requirements and income and asset tests. DSS is responsible for Age Pension policy and Services Australia provides Age Pension payments to eligible recipients on DSS’s behalf. In 2021–22 $51.1 billion was paid to 2,557,691 eligible Age Pension recipients, representing approximately 42 per cent of DSS’s personal benefit expenses during 2021–22. Recent changes to the Age Pension include increasing the eligibility age from 65 to 67 (effective from 1 July 2021) and increasing allowable income test thresholds to encourage older Australians to remain in the workforce without losing access to their pension and benefits.

Data security and governance at accredited data service providers

The Data Availability and Transparency Act 2022 (DAT Act), which commenced on 1 April 2022, established new requirements for sharing Australian Government data. The DAT Act was a key recommendation from a 2017 Productivity Commission Inquiry Report on Data Availability and Use, which highlighted the value of Australia’s national data set. Under the DAT Act, accredited data service providers are responsible for providing complex data integration, de-identification and secure data access services to support data sharing. As at January 2023, six data service providers had been accredited, including four Australian Government entities (ABS, AIFS, AIHW and DSS). The National Data Commissioner within the Department of Finance is responsible for regulating data sharing under the DAT Act, including accrediting data services providers, and providing advice, guidance and education on data handling and sharing.

Design and implementation of the Safe Places Emergency Accommodation Program

This audit would examine the design and implementation of the Safe Places Emergency Accommodation program by the Department of Social Services, including whether the program is meeting objectives in accordance with the National Plan to Reduce Violence against Women and their Children.

In September 2020, the Australian Government announced funding for 40 projects under the $60 million Safe Places Emergency Accommodation Program. The Government committed an additional $12.6 million to the program in the 2021–22 Budget and an additional $100 million in the October 2022–23 Budget, bringing the total funding allocation to $172.6 million over eight years (2019–20 to 2026–27). Safe Places projects provide new or expanded emergency accommodation for women and children experiencing family and domestic violence. During the COVID-19 pandemic, domestic and family violence agencies reported an increase in domestic violence incidents, which is the leading cause of homelessness for women.

Effectiveness of the NDIS Quality and Safeguards Commission’s regulatory functions

This audit would assess the effectiveness of the National Disability Insurance Scheme (NDIS) Quality and Safeguards Commission’s (the Commission’s) regulatory functions.

The Commission is an independent agency established on 1 January 2018 to improve the quality and safety of NDIS supports and services. The Commission’s regulatory responsibilities include: provider registration and NDIS worker screening; complaints management; behavioural support oversight; compliance and enforcement activities, including investigations; and market oversight, including monitoring and mitigating market-related risks. Total entity resourcing for 2022–23 was $115 million.

Transitional arrangements for the Cashless Debit Card

Treasury

COVID-19 (Phase 3): Implementation of COVID-19 schools initiatives

This audit would examine the effectiveness of the administration of two grant programs that aim to improve the resilience of schools and students to COVID-19.

The audit would consider compliance of the grants programs with the Commonwealth Grants Rules and Guidelines.

Data security and governance at accredited data service providers

This audit would assess the effectiveness of data security and governance arrangements at Australian Government accredited data service providers (currently the Australian Bureau of Statistics (ABS), Australian Institute of Family Studies (AIFS), Australian Institute of Health and Welfare (AIHW) and Department of Social Services (DSS)), and the National Data Commissioner’s regulation of data sharing.

The Data Availability and Transparency Act 2022 (DAT Act), which commenced on 1 April 2022, established new requirements for sharing Australian Government data. The DAT Act was a key recommendation from a 2017 Productivity Commission Inquiry Report on Data Availability and Use, which highlighted the value of Australia’s national data set. Under the DAT Act, accredited data service providers are responsible for providing complex data integration, de-identification and secure data access services to support data sharing. As at January 2023, six data service providers had been accredited, including four Australian Government entities (ABS, AIFS, AIHW and DSS). The National Data Commissioner within the Department of Finance is responsible for regulating data sharing under the DAT Act, including accrediting data services providers, and providing advice, guidance and education on data handling and sharing.

Design, development and Implementation of the Energy Plan

This audit would assess the design and development, along with the Australian Competition and Consumer Commission’s and Australian Energy Regulator’s (AER) implementation, of the amendments included in the Treasury Laws Amendment (Energy Price Relief Plan) Bill 2022 passed in December 2022.

The audit would also follow-up on the AER’s progress in implementing the findings and recommendation relating to Auditor-General Report No. 5 of 2020–21 Regulation of the National Energy Market.

Implementation of the Consumer Data Right (CDR)

This audit would assess whether the design and implementation of CDR is fit for purpose.

Treasury leads CDR policy and program delivery, including development of rules and advice to government on next steps in the CDR. The Australian Competition and Consumer Commission is responsible for the accreditation process, including: managing the Consumer Data Right Register; ensuring provider compliance with the rules; and taking enforcement action where necessary. The Office of the Australian Information Commissioner regulates privacy and confidentiality under the CDR. It handles complaints and notifications of eligible CDR data breaches.

Treasury’s provision of advice to the Government underpinning the development a Measuring What Matters Statement

This audit would examine the effectiveness of Treasury’s advice to government underpinning the Measuring What Matters Statement.

The Australian Government and state and territory governments publish many progress and wellbeing indicators in reports, agreements and dashboards. These publications support decision making and accountability for particular policy areas. Australia does not have a national framework or central set of indicators to complement the existing reporting and track overall progress. In 2023, the government will release a new stand-alone Measuring What Matters Statement. While drawing on the work of the Organisation for Economic Co-operation and Development Framework for Measuring Well-being and Progress, it will be unique to the Australian context.

Veterans’ Affairs

Management of the Australian War Memorial’s development project

This audit would examine the effectiveness of the Australian War Memorial’s management of the development project, including planning, achieving value for money in procurement, and progress to date in delivering the project.

The building, land and cultural assets held by the Australian War Memorial are valued at over $1.3 billion. In 2018, the government allocated $498.7 million over nine years in funding for the Australian War Memorial’s major development project, known as ‘Our Continuing Story’. In March 2022, the Australian Government allocated an additional $50 million in funding to offset the increased construction costs due to inflation and supply chain issues.

Managing the veteran compensation claim backlog

This audit would assess the effectiveness of the Department of Veterans’ Affairs’ (DVA’s) progress towards eliminating its backlog of compensation claims under the Veterans’ Entitlements Act 1986, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 and the Military Rehabilitation and Compensation Act 2004.

DVA is responsible for processing veteran compensation claims for liability, permanent impairment and incapacity. As at 31 May 2022 DVA had a backlog of 41,799 compensation claims. The Royal Commission into Defence and Veteran Suicide’s August 2022 Interim Report included a recommendation that DVA eliminate the claims backlog. The Australian Government agreed to the recommendation. With the commitment of additional resources, DVA plans to remove the backlog of claims by 31 December 2023 without adversely affecting the quality of decisions or veterans’ experience.

Cross Entity

Administration of the Freedom of Information Act 1982 — Follow-on

This audit would assess the effectiveness and efficiency of entities’ administration of the Freedom of Information Act 1982 (FOI Act).

The Australian Information Commissioner’s Freedom of Information functions include conducting merits review of decisions of agencies made under the FOI Act and the handling of complaints. The Information Commissioner is supported in these functions by the Freedom of Information Commissioner, appointed in March 2022. A new whole-of-government information management policy was adopted on 1 January 2021.

Administration of the Regulatory Impact Analysis Framework

This audit would assess the effectiveness of the Regulatory Impact Analysis (RIA) framework.

The RIA framework is designed to help policymakers identify the relevant policy problem, examine a range of viable options, assess the costs and benefits of the options and develop the evidence base for well-informed decision making. The Office of Impact Analysis (OIA) within the Department of the Prime Minister and Cabinet aims to ensure that major policy decisions are supported by sound evidence and analysis. The OIA has a dual role: ensuring compliance with the RIA framework; and providing guidance and coaching across the Australian Public Service to assist entities to produce high quality analysis. The OIA refreshed the government’s RIA framework in March 2020.

The audit would examine the OIA’s administration of the RIA framework, and selected entities’ application of it in their work.

Annual reporting to Parliament required by legislation

This information report would provide data and insights in relation to the executive government’s compliance with legislative requirements to report to Parliament. This information report will neither be an audit nor an assurance review and will present no conclusions or opinions.

The formal presentation of documents and reports by Ministers is one of the means whereby the Parliament is kept informed of public sector activity.

Developing and delivering digital identity reforms — Digital Identity system

Evaluation of Australian Government pilot programs

This audit would assess the effectiveness of the monitoring and evaluation of selected pilot programs run by Australian Government agencies.

Pilot programs are trial programs of limited size that are used to collect evidence on whether a proposed policy should be adopted, and to learn whether adjustments to the proposed policy should be made before adoption. Successful pilots require: an evaluation methodology to be integrated into the program design; performance monitoring to ensure the pilot is generating useful evidence; the evaluation of evidence relating to policy design, administration and impact; and the presentation of analysis and findings to government to inform policy decisions.

Evaluation was identified as one of six highest priority capability gaps in the Australian Public Service (APS) to be addressed by the APS Reform agenda. This audit would examine the evaluation methodology and activities, and advice to government, for selected Australian Government pilot programs.

Government Advertising

This audit would assess the effectiveness of the Department of Finance’s and selected entities’ implementation of the Australian Government’s campaign advertising framework.

Successive Australian governments have maintained a framework to regulate the use of campaign advertising by selected government entities. The overarching aim of the framework introduced in 2008 is to provide the Parliament and the community with confidence that public funds are used to meet the genuine information needs of the community. The Australian Government periodically issues guidance for entities undertaking information and campaign advertising. The latest update to the Australian Government Guidelines on Information and Advertising Campaigns by non-corporate Commonwealth entities was released in December 2022.

Implementation of the myClearance system

This audit would assess the effectiveness of the Australian Government Security Vetting Agency’s (AGSVA’s) implementation of the myClearance system.

In 2016, the Australian Government agreed a suite of reforms to improve government agencies’ management of the threat posed by malicious insiders. The Vetting Transformation Project supported a number of these reforms through the delivery of a transformed vetting capability with modernised business processes enabled by a secure, flexible, and scalable ICT. The Australian Government’s new security vetting system, myClearance, was launched on 28 November 2022. The implementation of myClearance was to enhance AGSVA’s data security, drive efficiencies, and bring AGSVA in line with Australia’s key security partners.

Implementation of the Sustainable Procurement Guide — Cross-entity

This audit would assess the effectiveness of the selected entities’ arrangements for applying the sustainability guidelines in procurement.

Achieving value for money is the core rule of the Commonwealth Procurement Rules. Price is not the sole factor when assessing value for money. When conducting a procurement, an official must consider the relevant financial and non-financial costs and benefits of each submission including the environmental sustainability of the proposed goods and services (such as energy efficiency, environmental and climate change impact and the use of recycled products). Entities are required to consider the Australian Government’s Sustainable Procurement Guide where there is opportunity for sustainability or use of recycled content.

Management of cybersecurity

This audit would continue the ANAO’s series of audits of cybersecurity.

The scope would include comparing the entities’ cybersecurity frameworks and controls against the controls required under the Protective Security Policy Framework for Policy 2 — Management structures and responsibilities, Policy 4 — Security maturity monitoring, and Policy 10 — Safeguarding information from cyber threats, and the Australian Signals Directorate’s Essential Eight Maturity Model.

Managing the privacy of client information

Services Australia and the ATO hold and manage client (customer and taxpayer) information in the course of their delivery of services and payments and oversight of the tax and superannuation systems. Services Australia and the ATO share data for the purposes of comparing income data. Risks to the integrity and privacy of client information comprise data breaches through human error or system faults. Thirty-seven per cent of all notifiable data breaches in agencies covered by the Privacy Act in January to June 2022 were from human error and system faults and 63 per cent from malicious and criminal attack, with 41 per cent of all data breaches resulting from cyber security incidents.

National Reconstruction Fund

This audit would examine the effectiveness of the establishment of the National reconstruction Fund (NRF).

The government’s October 2022 Budget committed $15 billion to the establishment of the NRF. The NRF aims to diversify Australian industry and drive sustainable economic growth. The NRF will be an independent financier providing finance options to industry targeted at seven priority areas. The fund will be governed by a board with guidance on investment decisions provided by an investment mandate.

Procurement by National Intelligence Community agencies

This audit would examine whether entities’ procurement activities have been conducted in accordance with relevant Commonwealth Procurement Rules.

Public Sector Budgeting

Use of the Management Advisory Services Panel

This audit would assess the extent to which entities’ use of the Management Advisory Services Panel supported the achievement of value for money.

Use of the Whole of Government Legal Services Panel

This audit would assess the extent to which entities’ use of the Whole of Government Legal Services Panel supported the achievement of value for money.

It was designed to better leverage the Commonwealth’s purchasing power and improve the efficiency in the Commonwealth’s engagement with external legal services providers.

There were 1,414 contract notices published on AusTender in 2021–22 under this Panel totalling $282.9 million.

Footnotes

1 https://www.ato.gov.au/Business/International-tax-for-business/Transfer…

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