17 August 2026

Senator the Hon Katy Gallagher
Minister for Finance
Parliament House
CANBERRA ACT 2600

Dear Minister

Annual Performance Statements Audit Program 2026–27

I am writing to seek your written request under subsection 40(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) for me to undertake the proposed performance statements audit program for 2026–27.

The program has matured through its expansion from six entities in 2021–22 to 21 entities since 2024–25, with audit coverage now extending to entities responsible for around 90 percent of Australian Government expenditure. This work is helping to shift strategic planning and performance reporting beyond compliance with mandatory PGPA Act requirements, towards a core business practice that supports transparency, accountability and effective stewardship of public resources.

Auditing the same 21 entities in 2025–26 has allowed entities to consolidate improvements in governance, reporting and performance systems capability. It has also provided the ANAO with a more robust evidence base to refine its methodology and identify opportunities to improve efficiency while maintaining the level of assurance provided to the Parliament.

For 2026–27, I propose to retain the same 21 entities in the audit program, while further sharpening the program’s focus on impact, risk and efficiency. This would enable audit effort to be better targeted to areas of higher risk and materiality, reinforce expectations under the Commonwealth performance framework, and support a more productive audit cycle for both entities and the ANAO.

Attachment A sets out the 21 entities proposed for inclusion in the 2026–27 performance statements audit cycle.

Retaining the same 21 entities for 2026–27 is a proportionate next step in the program’s development. For the ANAO, this approach will provide a stable base to continue supporting stronger entity performance reporting capability, test improvements in audit productivity and inform options for the program’s future development. It will also support ongoing work by the ANAO and the Department of Finance, through the Commonwealth Performance Framework Working Group, to strengthen the quality of performance information available to the Parliament and the public.

More broadly, the proposed approach will maintain significant audit coverage of Australian Government expenditure, strengthen incentives for entities to improve planning, monitoring and reporting, and support the Parliament’s scrutiny of whether public resources are being used effectively to deliver intended results.

The contact officer for the program is George Sotiropoulos, Group Executive Director, Performance Statements Audit Services Group. He can be contacted on (02) 6203 7370 or via email at George.Sotiropoulos@anao.gov.au. I would also be pleased to discuss any aspect of this proposed approach with you.

Yours sincerely

Dr Caralee McLiesh PSM
Auditor-General

Attachment A - List of the 21 proposed entities for the 2026–27 audit cycle