This audit would assess the effectiveness of the National Indigenous Australians Agency's (NIAA's) arrangements to control the risk of grant recipient fraud and noncompliance.

The Indigenous Advancement Strategy has a budget of $5.2 billion over the four years to 2022–23. As at February 2020, the NIAA was funding 1,838 grants to over 1,000 service providers, valued at $3.97 billion. Inadequate control of fraud and noncompliance would create a significant risk of misuse of public money, and would have a detrimental impact on the performance and availability of services to Aboriginal and Torres Strait Islander peoples.

The audit could provide assurance that the NIAA has effective arrangements supporting the integrity of programs aimed at improving the lives of Aboriginal and Torres Strait Islander peoples.