The audit objective was to assess the effectiveness of the establishment, implementation and operation of the Early Years Quality Fund against the requirements of the Early Years Quality Fund Special Account Act 2013 and the Commonwealth grants administration framework.

This audit focuses on the Australian Defence Force's (ADF) Air Combat fleet's logistics support, regular maintenance and structural refurbishment. These activities are collectively referred to as fleet in-service support. The current Defence White Paper states that Air Combat is the most important single capability for the defence of Australia.

The audit objective was to assess the effectiveness of the Air Combat fleet's in-service support arrangements to provide capability for air combat operations. Capital equipment acquisition projects covered by this report are limited to the Hornet and F-111 structural refurbishment projects, which aim to ensure these aircraft remain serviceable until their withdrawal from service.

The audit objective was to assess the effectiveness of the Department of Health and Ageing and the Australian National Preventive Health Agency in fulfilling the Commonwealth’s role in implementing the Council of Australian Government’s National Partnership Agreement on Preventive Health, to achieve the Agreement’s objectives, outcomes and outputs, including supporting all Australians to reduce their risk of chronic disease.

The objective of the audit was to assess how effectively Geoscience Australia provides geoscientific and geospatial information and services to assist the Australian Government and key stakeholders. Particular emphasis was given to:

• the collection and management of geoscientific and geospatial data and information, including accessibility;
• the provision of products and services; and
• governance arrangements.

The ANAO examined a number of datasets and product and service projects to assess Geoscience Australia's performance in providing geoscientific and geospatial information and services.

The audit reviewed the Defence Materiel Organisation's management of the $3.43 billion Wedgetail Airborne Early Warning and Control (AEW&C) project. The Wedgetail project is to provide the Australian Defence Force with an AEW&C capability based on four Boeing 737 AEW&C aircraft and associated supplies and logistic support. At the time of the audit the AEW&C systems were still in their early development phase, and by November 2003, Defence had spent $1.107 billion on the project.

Mr P.J. Barrett (AM) - Auditor-General for Australia, addressed the Defence Audit and Program Evaluation Committee (DAPEC)

Networking the Nation was established with effect from 1 July 1997 to support activities and projects designed to meet a range of telecommunications needs in regional, rural and remote Australia. Funding is provided by the Regional Telecommunications Infrastructure Fund. The program provides total support of $250 million, of which $50 million was to be allocated annually for the five year period from 1997-98. Funding decisions for grants are the responsibility of an independent Board appointed by the Minister for Communications, Information Technology and the Arts. The objectives of the audit were to examine the administration of the program with a view to ascertaining the scope for improving administration and to provide assurance on the equity, efficiency and effectiveness of the management and administrative processes applied in the administration of grants under the program.

The objective of the audit was to assess the implementation and effectiveness of the enhanced grants administration requirements for:

• reporting to the Finance Minister on the awarding of grants within their own electorate by Ministers who are Members of the House of Representatives;
• reporting to the Finance Minister on instances where Ministers have decided to approve a particular grant which the relevant agency has recommended be rejected; and
• the website reporting of grants awarded.

The audit objective was to assess the effectiveness of DEEWR‘s administration of the initial phases of the NP ECE. The high-level criteria used to make this assessment were the appropriateness of DEEWR‘s:

• establishment of a sound foundation for implementation, including implementation plans, monitoring arrangements and an Indigenous strategy for universal access; and
• ongoing monitoring and support activities, including assessing progress reports, making payments, maintaining relationships, improving data quality and public reporting.

This report is the first of the two reports and focuses on the results of the interim audits, including an assessment of entities’ key internal controls, supporting the 2021–22 financial statements audits. This report examines 25 entities, including all departments of state and a number of major Australian government entities. The majority of entities included in the report are selected on the basis of their contribution to the income, expenses, assets and liabilities of the 2020–21 Consolidated Financial Statements.

This edition of audit insights focuses on efficiency in the public sector. Find out more about what we think efficiency looks like, why we think efficiency is important in ensuring that public sector agencies remain sustainable, and some examples from recently tabled audits of what we can learn from others.

The audit reviewed the coordination of export development and promotion activities across Commonwealth agencies. The objective of the audit was to assess the extent to which export development and promotion activities are managed in a coordinated manner to maximise their effectiveness and transparency, and to minimise duplication. Particular attention was given to:

• Austrade's role in coordinating and advising on the development of export programs across Commonwealth agencies; and
• the design, delivery and evaluation of programs consistent with the Mortimer review design criteria agreed by Government.

The audit examined aspects of financial management in the Health Insurance Commission (HIC). The audit objective was to examine the effectiveness of the HIC's internal control structures, as well as its financial management framework and processes, in order to form an opinion on their ability to support HIC Commissioners and managers to make informed decisions on the efficient and effective use of Commonwealth resources.

The audit examined the ATO's management of its relationship with tax practitioners (tax agents and the wider group of professionals working on taxation matters for clients). However, our main focus was the ATO's management of its relationship with tax agents because they are the core element of the tax practitioner grouping and their role is fundamental to the effective operation of the tax system. The objective of the audit was to assess how well the ATO manages its relationship with tax practitioners, focussing on selected ATO relationships with tax practitioners, in particular its regulatory relationship with tax agents, its service support relationship with tax agents and its relationship with tax agents and members of the wider tax practitioner group in the professional bodies as key stakeholders in tax administration.

The objective of the audit was to assess the awarding of funding for the construction of the Adelaide Desalination Plant (ADP) against the requirements of the Commonwealth's grants administration framework, which includes the Government’s policy requirements for the approval of grants, with a particular focus on the assessments undertaken of each proposed grant in terms of the guidelines for the National Urban Water and Desalination Plan (NUWDP); and identify any potential improvements in grants administration practices.

The Australian National Audit Office (ANAO) 2016-20 Corporate Plan is the primary strategic planning document, and outlines how the ANAO intends to deliver against the purpose over the coming four years.

The objective of the audit was to assess the progress of the M113 Upgrade Project (Defence Project: Land 106), including progress in the development of operational capability resulting from the introduction of the upgraded vehicles into service. The high-level audit criteria used to assess the project’s progress and Defence’s effectiveness in administering the M113 Upgrade Project were:

• the degree to which the schedule for the production and delivery of upgraded M113 vehicles to Defence had been recovered in accordance with Defence’s response to the 2008–09 audit report and contractual requirements, as negotiated over the life of the contract;
• Defence’s measurement and allocation of the total cost of the upgrade project; and
• the development of capability arising from the upgrade project.

The objective of the audit was to assess the effectiveness of the Department of Foreign Affairs and Trade’s management of Australian aid to Vanuatu.

The audit objective was to assess the effectiveness of DEEWR's administration of the National Partnership Agreement on Literacy and Numeracy (LNNP). The three high-level audit criteria used to form a conclusion examined the extent to which DEEWR:

• established sound administrative and payment arrangements consistent with government policy, including through its negotiation of bilateral agreements, implementation plans and reform targets;
• properly managed administrative and payment arrangements; and
• effectively monitored and reported on delivery and outcomes.

The objective of the audit was to assess the effectiveness of OPO's management of the overseas owned estate. In particular, the audit examined whether:

• sound arrangements are in place to effectively plan and oversight the management of the overseas estate;
• OPO effectively manages owned property on a day-to-day basis;
• the condition of the overseas owned estate is adequately maintained by structured and systematic repair and maintenance arrangements; and
• OPO has appropriate information to facilitate the effective management of the owned estate, and appropriately consults with stakeholders.

The objective of the audit was to assess the effectiveness of FaHCSIA's management of the Australian Government's responsibilities under the NPARSD. In this respect the ANAO considered whether:

• planning processes enabled effective establishment of the remote service delivery model;
• implementation of the key elements of the remote service delivery model effectively addressed the quality and timing requirements of the NPARSD; and
• performance measurement systems were developed to enable the parties to the agreement to assess whether the NPARSD objectives are being met.

The objective of the audit is to examine and report on the efficiency and effectiveness of AFP's administration and management of its overseas deployments. The audit specifically examines two deployments and focuses on strategic and operational planning and logistics. The audit examines a planned, long-term overseas deployment (as part of the Participating Police Force (PPF) within the Regional Assistance Mission to Solomon Islands (RAMSI)) and a crisis-driven deployment in response to a specific event (Disaster Victim Identification (DVI) assistance to Thailand following the Indian Ocean Tsunamis of 26 December 2004).

The objectives of the audit were to determine whether FaCS and Centrelink had: a valid Business Case for the Edge project, as revised from time to time, including estimated costs, actual costs, and expected benefits; effective governance of the project, including reviews at critical points in the project and subsequent decisions to continue or, in the final analysis, to discontinue; an appropriate contract with SoftLaw, which was adequately managed; delivered appropriate advice on progress, project viability, and acceptable solutions to technical issues to Executive of FaCS and Centrelink during the project; and valid reasons for discontinuing the project. The ANAO began this audit in March 2004, four months after the Edge project was terminated, following the Auditor-General's agreement to a suggestion by the Joint Committee of Public Accounts and Audit that the project was a suitable subject for audit.

The objectives of the audit were to: examine the efficiency and administrative effectiveness of grant programs administered in the APS; and identify any specific problem areas and evidence of better practice in both program administration and agency guidelines not already included in the ANAO's 1994 Better Practice Guide on the Administration of Grants. The ANAO also sought to incorporate in the revision of the better practice guide the lessons learned through the audit to help ensure its continued relevance in public sector administration at all levels of government.

The objective of the audit was to assess FSANZ's administration of its food standard functions, as specified in the Food Standards Australia New Zealand Act, 1991 (last amended 2007).
Particular emphasis was given to whether:

• FSANZ's performance management and reporting provided effective support and ensures accountability;
• FSANZ effectively administered its food standard development and variation function, including its stakeholder management; and
• FSANZ effectively monitored the implementation of its standards and coordinates relevant jurisdictions to address market failures.

The objective of the audit was to assess the effectiveness of the procurement and contracting associated with:

• the design, development and delivery of government advertising campaigns by Commonwealth departments; and
• the operation of the Central Advertising System (CAS).

The objective of this audit was to provide an independent assurance on the effectiveness of Defence's management of the acqusition of armoured infantry mobility vehicles (IMV) for the Australian Defence Force (ADF). The audit sought to identify the initial capability requirements; analyse the tendering and evaluation process; and examine the management of the project by Defence. As such, this was not an audit of contractor performance, but of the formation and contract management of the aquisition project by Defence.

The objective of the audit was to assess the effectiveness of AGD's arrangements for coordinating the development of the National Identity Security Strategy.

The ANAO's assessment was based on the following criteria:

• governance arrangements for the NISS;
• progress, to date, of the six NISS elements; and
• AGD's administrative arrangements for developing the NISS.

Given the significant expenditure associated with the Super Seasprites, and the problems that the Project had encountered over some time, the ANAO had commenced this performance audit prior to the Government's decision to cancel the Project. The focus of the audit was on Defence's and DMO's administration of the Project. In light of the Government's decision to cancel the Project, the objective of the audit was revised to place greater emphasis on those issues that resulted in the failure of the Project to provide the required capability, and highlighting project management lessons for major Defence acquisitions going forward.Accordingly the audit objective was to:

• identify those factors that contributed to the on-going poor performance of the Project;
• outline measures taken by Defence and DMO in seeking to overcome issues encountered by the Project, and key lessons arising from this project for the benefit of major acquisitions projects generally; and
• determine the capability and cost implications of a project that failed to deliver to expectations.

The objective of the audit was to assess how well agencies had implemented the CPGs and relevant FMA legislation when undertaking Direct Source procurement.

The audit examined whether selected agencies had developed a sound procurement framework; appropriately classified procurement methods when meeting external reporting requirements; implemented the CPGs and relevant legislation when Direct Sourcing; and established effective procurement monitoring and review arrangements.

The ANAO selected four FMA Act agencies to provide a cross-section of the 104 agencies that reported procurement activity in AusTender in
2008–09. The agencies selected for audit were:

• the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA);
• the Department of Innovation, Industry, Science and Research (Innovation);
• the Department of Veterans' Affairs (DVA); and
• the Australian Crime Commission (ACC).

The ANAO examined a stratified random sample of 645 procurements valued at $10 000 and over, across the four agencies. More detailed testing was undertaken for the 285 Direct Source procurements in the sample.