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The Defence portfolio includes a range of entities that together are responsible for the defence of Australia and its national interests. The principal entity within the Defence portfolio is the Department of Defence.
Read an overview of the Defence portfolio including details of key activities, expenses and staffing levels. The audit focus section outlines the influences on the ANAO’s allocation of financial audit resources and the selection of performance audit topics and other activities. Also included is a list of material and non-material entities within the portfolio with their corresponding risk profile and key risks. Any risks that are considered key audit matters (KAMs) by the ANAO are separately identified.
This audit would examine the procurement process and value for money of the proposed long-term contract for the operation of the propellant facility at Mulwala and the munitions facility at Benalla. The audit would also follow up on Defence’s implementation of a 2016 ANAO recommendation that Defence develop a cost-effective implementation plan for the future operation of the facilities.
In February 2018, the Government announced that it would enter negotiations with Thales Australia for a new arrangement for the management and operation of these facilities. Defence expects to negotiate the contract by the end of 2018.
The Mulwala and Benalla facilities provide propellant, explosives and munitions to the Australian Defence Force. The Mulwala facility was redeveloped from 2007 to 2015 at a cost of over $415 million.
This audit would examine Defence’s administration of allowances and entitlements paid to civilian personnel.
Defence makes non-salary payments of approximately $100 million per year to its civilian personnel. The audit would review the control framework for payments, including approval and acquittal processes, and processes for recovering overpayments.
This audit would examine the effectiveness of the Department of Defence’s governance and management of its information and communications technology (ICT) environment and major ICT projects. The audit would assess Defence’s management of ICT issues at the whole-of-Defence, ICT-group and project levels.
The Defence Information and Communications Technology Strategic Direction 2016–2020 outlined plans to invest $20 billion in ICT systems over 10 years across both the ICT capital program and the sustainment program.
Defence’s Chief Information Officer Group is undertaking a transformation program for Defence’s ICT capability, which is affecting end-user computing, the Defence network, standalone networks and data centres.
This audit would consider the effectiveness of Defence’s procurement and contract management of the new offshore patrol vessel fleet. The audit would examine the initial procurement and contracting arrangements, as well as construction performance during the build of the first patrol vessel.
German company Lürssen, in partnership with Civmec, will commence construction of the vessels in 2018, with the first two vessels to be built in South Australia and the remaining 10 to be built in Western Australia.
This audit would consider the effectiveness and value for money of Defence’s management of the procurement of new combat reconnaissance vehicles (the LAND 400 Phase 2 project). The audit would examine the tender, evaluation and contracting processes for the procurement.
LAND 400 Phase 2 will acquire a fleet of over 200 combat reconnaissance vehicles to replace the Army’s current Australian light-armoured vehicle fleet. Rheinmetall was announced as lead contractor in March 2018, with a manufacturing base in south-east Queensland.
This audit would examine a key performance management and reporting system within Defence. The audit would assess the governance, use and quality of data within the Sustainment Performance Management System.
Introduced in 2015, the Sustainment Performance Management System is Defence’s primary internal tracking and reporting system for sustainment products. Recent ANAO audits have found that development of an effective sustainment monitoring system remains a work in progress, and that there remains potential to improve the use of key performance indicators and the effectiveness of Defence’s internal reporting systems.
In March 2018, Parliament’s Joint Committee of Public Accounts and Audit recommended that the ANAO consider reviewing Defence’s sustainment reporting system.
This audit would examine Defence’s progress in meeting the scheduled design milestones for the Future Submarine program. The deliverables under the program include the design and construction of 12 diesel-electric submarines, and the development and acquisition of the submarines’ support systems for the Royal Australian Navy at a cost of over $50 billion.
The ANAO’s April 2017 audit of the program (Auditor-General Report No. 48 of 2016–17, Future Submarine—Competitive Evaluation Process) reviewed the competitive evaluation process used to select a partner for the design of the submarine. The audit would be the second in a series of audits to be undertaken over the life of the program to provide assurance on its progress.
This audit would examine Defence Housing Australia’s (DHA’s) governance and financial management arrangements to support its property service for the Australian Defence Force.
DHA’s property portfolio is worth approximately $11 billion, and its 2017–18 budget is approximately $1.3 billion. DHA is a government business enterprise established under the Defence Housing Australia Act 1987 and its primary focus is to provide housing for Australian Defence Force members with dependants.
DHA is a government business enterprise. The ANAO can conduct performance audits of government business enterprises where requested by the Joint Committee of Public Accounts and Audit.
The objective of this audit is to assess the effectiveness of the Department of Defence's preparations for the introduction of the Joint Strike Fighter into Royal Australian Air Force (RAAF) service and its sustainment.
The objective of this report is to provide the Auditor‐General’s independent assurance over the status of the selected Major Projects. The status of the selected Major Projects is reported in the Statement by the Secretary of Defence and the Project Data Summary Sheets (PDSSs) prepared by Defence, in accordance with the Guidelines endorsed by the Joint Committee of Public Accounts and Audit (JCPAA).