Attorney-General’s portfolio

The Attorney-General’s portfolio is responsible for: legal services; national security and criminal law; integrity and anti-corruption matters; the Commonwealth justice system including courts, tribunals, justice policy and legal assistance; regulation and reform; protecting and promoting human rights; and support for Commonwealth royal commissions.

The Attorney-General’s Department (AGD) is the lead entity in the portfolio and is responsible for Australia’s Law and justice framework and providing legal services to the Commonwealth. Further information is available from the department’s website.

In addition to AGD and the High Court , there are 16 portfolio entities that are responsible for delivering programs and initiatives in relation to law and justice. The portfolio’s material entities are AGD, the High Court of Australia and the Australian Federal Police.

In the 2023–24 Portfolio Budget Statements (PBS) for the Attorney-General’s portfolio, the aggregated budgeted expenses for 2023–24 total $4.6 billion. The PBS contain budgets for those entities in the general government sector (GGS) that receive appropriations directly or indirectly through annual appropriation Acts.

The level of budgeted departmental  and administered  expenses, and the average staffing level for entities in the GGS within this portfolio are shown in Figure 1. The Australian Federal Police represents the largest proportion of portfolio expenses, and departmental expenses of the portfolio are the most material component, representing 86 per cent of the entire portfolio’s expenses.

Figure 1: Attorney-General’s portfolio – total expenses and average staffing level by entity

Source: ANAO analysis of 9 May 2023–24 Portfolio Budget Statements.

In determining the 2023–24 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 or changes in the operating environment.

The primary risks identified for the portfolio relate to supporting Australian Government entities to act lawfully in carrying out its functions and the 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 grants administration, policy development and regulation.

Grants administration

The department’s grants administration responsibilities increased with the movement to it of various functions formerly within the Home Affairs portfolio. Grant programs are often delivered through grant hub arrangements, an approach that does not diminish the department’s responsibility for program design and delivery including the standard of application assessments.  It is also important that decision making on the award of grant funding be informed by appropriate advice. 

Policy development

AGD is playing an important policy development and implementation role in areas that include: including a First Nations Voice to Parliament in the Constitution; the implementation of a National Anti-Corruption Commission; the government’s response to the recommendations outlined by the Australian Human Rights Commission’s Respect@Work Report; and exploring opportunities to reform statutory appointment processes.

Regulation

AGD is responsible for: whole-of-government regulation under the Commonwealth Fraud Control Framework; Protective Security Policy Framework ; freedom of information ; privacy legislation; and the Lobbying Code of Conduct and Lobbyist Register . The department is also responsible for assisting Australian Government entities to comply with the Legal Services Directions (through a Compliance Framework, guidance notes and education program) and support Australian Government entities to act lawfully in carrying out its functions.

• Audit work in some of 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.

The ANAO’s performance audit activities involve the independent and objective assessment of all or part of an entity’s operations and administrative support systems. Performance audits may involve multiple entities and examine common aspects of administration or the joint administration of a program or service.

During the performance audit process, the ANAO gathers and analyses the evidence necessary to draw a conclusion on the audit objective. Audit conclusions can be grouped into four categories:

• unqualified;
• qualified (largely positive);
• qualified (partly positive); and
• adverse.

In the period between 2018–19 to 2022–23 entities within the Attorney-General’s  portfolio were included in tabled ANAO performance audits 17 times . The conclusions directed toward entities within this portfolio were as follows:

• none were unqualified;
• five were qualified (largely positive);
• nine were qualified (partly positive); and
• three were adverse.

Figure 2 shows the number of audit conclusions for entities within the Attorney-General’s portfolio that were included in ANAO performance audits between 2018–19 and 2022–23 compared with all audits tabled in this period.

Figure 2: Audit conclusions 2018–19 to 2022–23: entities within the Attorney General’s portfolio compared with all audits tabled

Source: ANAO data.

The ANAO’s annual audit work program is intended to deliver a mix of performance audits across seven audit activities: governance; service delivery; grants administration; procurement; policy development; regulation and asset management and sustainment. These activities are intended to cover the scope of activities undertaken by the public sector. Each performance audit considers a primary audit activity. Figure 3 shows audit conclusions by primary audit activity for audits involving entities in the Attorney-General’s portfolio.

Figure 3: Audit conclusions by activity for audits involving entities within the Attorney-General’s portfolio, 2018–19 to 2022–23

Source: ANAO data.

Overview

Entities within the Attorney-General’s portfolio, and the risk profile of each entity, are shown in Table 1.

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

Attorney-General’s Department

The Attorney-General’s Department (AGD) supports the Attorney-General through the provision of expert advice and services on a range of law, justice, integrity and national security issues.

AGD’s total budgeted revenues for 2023–24 are just over $461.4 million, with sales of goods and services representing 36 per cent, as shown in Figure 4. Trade and other receivables represent 21 per cent of total budgeted assets.

Figure 4: Attorney-General’s Department total budgeted financial statements by category ($’000)

Source: ANAO analysis of 9 May 2023–24 Portfolio Budget Statements.

There is one key risk for the AGD’s 2022–23 financial statements that the ANAO has highlighted for specific audit coverage.

• 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.

Australian Federal Police

The Australian Federal Police 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 Australian Federal Police’s total budgeted expenses for 2023-24 are just over $1.9 billion, with 56 per cent of these expenses attributable to employee benefits, as shown in Figure 5.

Figure 5: Australian Federal Police budgeted financial statements by category ($’000)

Note: Lease liabilities is shown as a negative figure to reflect the balance as per the budgeted departmental balance sheet in the AFP 2023-24 PBS.

Source: ANAO analysis of 9 May 2023–24 Portfolio Budget Statements.

The key risk for the Australian Federal Police’s 2022–23 financial statements that the ANAO has highlighted for specific audit coverage is the recognition and measurement of payroll expenses including 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 of Australia’s total budgeted assets for 2023-24 are just over $245.4 million, with 87 per cent of these assets attributable to land and buildings, as shown in Figure 6.

Figure 6: High Court of Australia’s budgeted financial statements by category ($’000)

Source: ANAO analysis of 9 May 2023–24 Portfolio Budget Statements.

The key risk for the High Court’s 2022–23 financial statements is the valuation of land and buildings, as these are special-purpose assets with numerous unique features.