The ANAO could assess reporting on Closing the Gap in Australian Government entities’ annual performance statements. The objective of the National Agreement on Closing the Gap (Closing the Gap Agreement) is to overcome the entrenched inequality faced by too many Aboriginal and Torres Strait Islander people so that their life outcomes are equal to all Australians. The Closing the Gap Agreement includes four priority reforms and 17 socio-economic outcome areas with 19 targets.

Australian Government departments of state are responsible for leading the Commonwealth’s actions to progress achievement of priority reforms, outcomes and targets relevant to their respective portfolios. Section 5 of the Public Governance, Performance and Accountability Act 2013 sets out the objects of the Act, which include requiring Commonwealth entities to provide meaningful performance information to the Parliament and the public. Annual performance statements are an important way of showing the Parliament and the public how effectively Commonwealth entities have used public resources to achieve desired outcomes.

The ANAO could conduct a program of audits of entities’ compliance with legislative and Australian Government policy requirements derived from the Public Governance, Performance and Accountability Act 2013, the Public Service Act 1999 and other legislative and policy frameworks. These audits include a focus on public sector ethics, integrity and probity.

Topics that may be considered for audit include compliance with: requirements to establish audit committees; requirements relating to recruitment and remuneration in the Australian Public Service; requirements related to privacy; and information management requirements.

ANAO audits have found shortcomings in performance across routine areas of public administration (e.g. record keeping, governance, procurement and risk management). Compliance — not just with mandatory requirements, but also their intent — is a hallmark of integrity, and essential to the craft of public administration. The selection of entities for these audits will be based on relevance, materiality, representativeness and performance history. Audits may include any Commonwealth entities and companies. The ANAO could review the entities’ design, implementation and governance arrangements to ensure compliance with relevant requirements.

The ANAO could assess the progress of selected components of the Australian Government’s Digital Identity program including the effectiveness of the implementation, design and functionality of the Digital Identity System, roles and responsibilities of stakeholders and the allocation and expenditure of funding, including contract management.

The Digital Identity program is delivered by the Department of Finance (policy and program lead), with Services Australia and the Australian Taxation Office (ATO) delivering critical operational functions. Components of the program include the Digital ID Act 2024, the Identity Exchanges (delivered by Services Australia), myID (the Commonwealth’s Identity Provider, delivered by ATO) and connected services to the system.

The Digital ID Act 2024 and the Digital ID (Transitional and Consequential Provisions) Act 2024 commenced on 1 December 2024 and support the expansion of the Australian Government Digital ID System and introduce a voluntary accreditation scheme for digital ID services providers. The Digital ID Regulator is the Australian Competition and Consumer Commission; and the Office of the Information Commissioner as the privacy regulator and Digital ID Data Standards Chair.

The ANAO could assess the governance arrangements in selected entities for monitoring and implementing agreed parliamentary committee and ANAO performance audit recommendations. Parliamentary committee and Auditor-General reports identify areas where administration can be improved and make recommendations to improve the delivery of outcomes. Once entities have agreed to implement performance audit recommendations, or in the case of parliamentary committee reports, the Australian Government has committed to the implementation of recommendations, timely implementation in line with the intended outcome of the recommendation is important in achieving the full benefit of the recommendation.

The ANAO could assess the management of legal risks to ensure programs are implemented and delivered consistent with legislation. The audit or series of audits could explore the management of legal risks, lawfulness of decision making and/or lawfulness of payment calculations.

The ANAO could continue the ANAO’s series of audits on cyber security. The scope would include assessing selected entities’ cyber security frameworks and controls against the controls required under the Protective Security Policy Framework and the Australian Signals Directorate’s Essential Eight Maturity Model.

The ANAO could assesses how selected entities are managing fiscal risks and significant liabilities that may affect the budget balances. A range of factors may influence actual budget outcomes. The Charter of Budget Honesty Act 1998 requires these factors to be disclosed in a statement of risks in each Budget and Mid-Year Economic and Fiscal Outlook. This statement outlines general fiscal risks, specific contingent liabilities and specific contingent assets that may affect the budget balances.

This audit, or series of audits, would explore key issues in procurement and contract management. This could include: entities’ use of Commonwealth Procurement Rules (CPRs) exemptions, including Division 2 exemptions (which allow use of limited tender) and/or exemptions from all or part of the CPRs under paragraph 2.6 of the CPRs; use of contract amendments; and/or other areas of risk in procurement and contract management.

The ANAO could assess the Australian Government’s planning and use of emerging technologies such as artificial intelligence on core processes including governance, human resource management and fraud detection/prevention (internal controls).

Many Commonwealth entities continue to rely on long-lived, business-critical ICT systems that deliver essential services but can be increasingly costly and difficult to support. These systems often sit on older technology stacks, potentially include end-of-support components, and may carry heightened operational, security and continuity risks. The ANAO could examine whether selected entities appropriately identify, govern, secure and sustain or progressively modernise these established platforms.