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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 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.
The objective of the audit is to examine the effectiveness of Defence’s quarterly performance report as a mechanism to inform senior stakeholders about risks and issues in the delivery of capability to the Australian Defence Force.
The Australian National Audit Office (ANAO) publishes two reports annually addressing the outcomes of the financial statement audits of Australian government entities and the Consolidated Financial Statements (CFS) of the Australian Government, to provide the Parliament of Australia with an independent examination of the financial accounting and reporting of public sector entities. This report will focus on the results of the interim audit phase, including an assessment of entities’ key internal controls, of the 2018–19 financial statements audits of a range of entities including all departments of state and a number of major Australian government entities.
The objective of this audit is to assess the effectiveness of the administration of Aboriginal and Torres Strait Islander employment targets in government procurement contracts and intergovernmental funding agreements in achieving policy objectives.
The objective of this audit is to examine the effectiveness of Defence’s administration of the Future Submarine program to date. 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. On 11 February 2019 the Commonwealth signed a Strategic Partnering Agreement with Naval Group which sets out the principles of cooperation for the Future Submarine program.
This is the third in a series of audits of the Future Submarine program. The first audit in this series, 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 Future Submarine program was also considered in the context of Auditor-General Report No. 39 of 2017–18 Naval Construction Programs—Mobilisation.
The objective of the audit is to assess whether Defence Housing Australia (DHA) administers its functions efficiently and effectively, and in accordance with the Government Business Enterprise guidelines.
The objective of this report will be to provide the Auditor-General’s independent assurance over the status of the selected major projects. The status of the selected major projects will be reported in the Statement by the Secretary of Defence and the Project Data Summary Sheets (PDSSs) prepared by Defence. Assurance from the ANAO’s review will be conveyed in the Independent Assurance Report by the Auditor-General.