Attorney-General’s portfolio

In determining the 2022–23 audit work program, the ANAO considers prior-year audit and other review findings and what these indicate about portfolio risks and areas for improvement. The ANAO also considers emerging risks from new investments and changes in policy or operating environments.

The primary risk identified for the portfolio relates to effectiveness and compliance risks for the department’s whole-of-government regulatory frameworks, particularly with respect to the Protective Security Policy Framework (most notably in relation to cyber security risks), resulting in a risk of inappropriate security mitigation strategies across the sector.

Specific risks in the Attorney-General’s portfolio relate to AGD’s grants administration, policy development, and regulation.

Grants administration

AGD uses grants hubs to administer various grant programs. Outsourcing the management of grant programs to service providers does not reduce accountability. AGD needs to obtain assurance from these service providers that the grants have been processed accurately, completely and in line with the department’s requirements. 

Policy development

AGD’s implementation and administration of business-as-usual processes includes the development of a new Commonwealth integrity commission and leading the government’s response to the recommendations outlined by the Australian Human Rights Commission’s Respect@Work Report.

Regulation

AGD is responsible for whole-of-government regulation under the Commonwealth Fraud Control Framework , Protective Security Policy Framework , freedom of information  and privacy legislation, and the Lobbying Code of Conduct and Lobbyist Register.  Audit work in these areas has highlighted that while policy frameworks have been established, compliance with frameworks across government entities has not been strong, particularly in relation to cyber resilience, which increases the risk that the strategies implemented are not appropriate.

Overview

On 1 July 2022 an Administrative Arrangements Order (AAO) took effect which included changes to the responsibilities of the Attorney-General’s portfolio. Entities which are now part of this portfolio are shown in Table 1. The risk profile for each entity is based on the 2021–22 financial statements which were prepared prior to the AAO on 1 July 2022 taking effect.

Table 1: Attorney-General’s portfolio entities and risk profile

Attorney-General’s Department

AGD supports the Attorney-General. The roles of the department are to contribute towards a just and secure society by maintaining and improving Australia’s law, justice, security and integrity frameworks.

On 1 July 2022 an Administrative Arrangements Order (AAO) took effect which included changes to the responsibilities of AGD. The department’s total budgeted revenues for 2022–23  are just under $423.8 million, with sales of goods and services representing 37 per cent, as shown in Figure 2. Trade and other receivables represent 21 per cent of total budgeted assets.

Figure 2: Attorney-General’s Department total budgeted financial statements by category ($’000)

Source: ANAO analysis of 25 October 2022–23 PBS.

Financial Statements Audit

There is one key risk for the AGD’s 2021–22 financial statements that the ANAO has highlighted for specific audit coverage that the AGD will have responsibility for from 2022–23.

• The completeness and accuracy of revenue and related balances from rendering of legal services, which is material to AGD’s financial statements and subject to judgements on revenue recognition.

In addition, the management of the Fair Entitlements Guarantee scheme, which protects certain unpaid employment entitlements for employees who have lost their jobs due to the liquidation or bankruptcy of their employer was also considered a risk for the 2021–22 Attorney-General’s financial statements. The scheme was a material activity for AGD with complexity in the eligibility and payment amounts. This risk will now be considered as part of the 2022–23 financial statements for the Department of Employment and Workplace Relations.

Australian Federal Police

The Australian Federal Police (AFP) is responsible for the provision of police services in relation to laws of the Commonwealth, the provision of policing services to the Australian Capital Territory and external territories, combatting transnational serious organised crime and terrorism, disrupting crime offshore, supporting regional security, and protecting Australian interests and assets.

The AFP’s total budgeted expenses for 2022–23 are just over $1.7 billion, with 59 per cent of these expenses attributable to employee benefits, as shown in Figure 1.

Figure 3: Australian Federal Police’s total budgeted financial statements by category ($’000)

Source: ANAO analysis of 29 March 2022–23 PBS.

The key risk for the AFP’s 2021–22 financial statements is the recognition and measurement of payroll (particularly in light of underpayment of superannuation obligations).

High Court of Australia

The High Court of Australia is responsible for interpreting and applying the law of Australia; deciding on cases of special federal significance, including challenges to the constitutional validity of laws; and hearing appeals, by special leave, from federal, state and territory courts.

The High Court’s total budgeted assets for 2022–23 are just over $241.2 million, with 87 per cent of these assets attributable to land and buildings, as shown in Figure 2.

Figure 4: High Court of Australia’s total budgeted financial statements by category ($’000)

Source: ANAO analysis of 29 March 2022–23 PBS.

The key risk for the High Court’s 2021–22 financial statements is the accuracy of the fair value attributed to land and buildings, as these are special-purpose assets with numerous unique features.