The Auditor-General has responded to a request from Mr Pat Conroy MP dated 28 September 2018, asking that the Auditor-General conduct an audit of aspects of the Government advertising campaign: Powering Forward.

This edition of audit insights covers audit reports tabled in Parliament during the fourth quarter of 2017–18 with a focus on the key learnings relating to cyber resilience. Cyber security is an increasing risk across government and one that requires attention by Accountable Authorities.

Under section 57 of the Financial Management and Accountability Act 1997 (FMA Act) the Auditor-General is required to report each year to the relevant Minister, on whether the financial statements of agencies have been prepared in accordance with the Finance Minister's Orders (FMOs) and whether they give a true and fair view of the matters required by those Orders.

Our interim audits of agencies encompass a review of governance arrangements related to agencies' financial reporting responsibilities, and an examination of relevant internal controls, including information technology system controls. An examination of such issues is designed to assess the reliance that can be placed on internal controls to produce complete and accurate information for financial reporting purposes.

The Auditor-General responded on 19 November 2021 to correspondence from Senator Malcolm Roberts dated 28 October 2021, requesting that the Auditor-General clarify issues relating to the Disaster Recovery Funding Arrangements. 

The Auditor-General received further correspondence about this matter from the Chief Executive Officer of the Queensland Reconstruction Authority, Mr Brendan Moon on 6 June 2022. 

The Auditor-General responded on 29 March 2019 to correspondence from Ms Cathy McGowan AO MP dated 5 March 2019, requesting that the Auditor-General investigate the conduct of a range of parties in relation to the announcement of grants under Round 3, Building Better Regions Fund. 

The objective of the audit was to assess the effectiveness of Indigenous Business Australia’s management and implementation of the Indigenous Home Ownership Program.

The audit objective is to assess the effectiveness of the Department of Defence's management of the Mulwala Redevelopment Project.

The Auditor-General responded on 18 March 2019 to correspondence from the Hon. Shayne Neumann MP dated 19 February 2019 and 14 March 2019.  The Auditor-General further responded on 1 April 2019. The correspondence from Mr Neumann requested that the Auditor-General conduct an audit into the circumstances surrounding the Department of Home Affairs' procurement of garrison support and welfare services in Papua New Guinea. 

The objective of the audit was to assess the effectiveness of the Australian Government’s personnel security arrangements for mitigating insider threats.

The Auditor-General responded on Thursday 27 February 2020 to correspondence from Mr Andrew Giles MP dated 4 February 2020, requesting that the Auditor-General undertake a performance audit of the Urban Congestion Fund. The fund is administered by the Department of Infrastructure, Transport, Regional Development and Communications. The Auditor-General provided follow-up responses to Mr Giles MP on 24 July 2020 and 19 August 2020. 

The audit objective was to assess the effectiveness of the Australian Taxation Office's (ATO) strategies and activities to address the cash and hidden economy.

The objective of this audit was to examine the effectiveness of the Department of Home Affairs' administration of the support arrangements designed to ensure that the Cape Class patrol boats are achieving contracted availability and performance requirements.

The audit objective was to assess whether the Department of Home Affairs is effectively managing the Civil Maritime Surveillance Services contract.

The objective of this audit was to assess the effectiveness of the administration of tobacco excise and excise equivalent goods.

The Auditor-General responded on 29 March 2019 to the follow-up correspondence from the Hon. Mark Dreyfus QC MP dated 26 March 2019. Mr Dreyfus requested that the Auditor-General extend his investigation to look at the conduct of a range of parties in relation to the announcement of grants. This is in addition to the request to investigate the conduct of a range of parties in relation to the announcement of the grant to the Yankalilla Bowling Club, which was the subject of the original correspondence dated 24 February 2019. 

The Auditor-General responded on 17 June 2021 to correspondence from the Hon Mark Dreyfus QC, MP dated 21 May 2021, requesting that the Auditor-General conduct an investigation to examine how part-time members of the Social Services and Child Support Division and “sessional part-time members” in the Migration and Refugee Division of the Administrative Appeals Tribunal are being remunerated. 

The Auditor-General provided a follow-up response to the Hon Mark Dreyfus QC, MP on 17 December 2021. 

The objective of this audit was to assess how effectively the Defence Science and Technology Group (DSTG) administers the science and technology work it undertakes for the Australian Defence Organisation.

The audit objective was to review the effectiveness of the Department of Defence’s (Defence) arrangements for delivering selected non-platform sustainment.

The objective of the audit was to assess the effectiveness of the Department of Social Services’ (DSS’s) and Services Australia’s management of the accuracy and timeliness of welfare payments.

The objective of the audit was to examine the effectiveness of Navy’s strategy for recruiting and retaining personnel with specialist skills. The effective delivery of Navy capability depends on Navy having available sufficient numbers of skilled personnel to operate and maintain its fleet of sea vessels and aircraft, and conduct wide‑ranging operations in dispersed locations. Without the right personnel, Navy capability is reduced. Navy’s budget for 2014–15 included $1.86 billion in employee expenses.

The audit concluded that, in its strategic planning, Navy had identified its key workforce risks and their implications for Navy capability. To address these risks Navy had continued to adhere to its traditional ‘raise, train and sustain’ workforce strategy; developed a broad range of workforce initiatives that complemented its core approach; and sought to establish contemporary workforce management practices. However, long‑standing personnel shortfalls in a number of ‘critical’ employment categories had persisted, and Navy had largely relied on retention bonuses as a short‑ to medium‑term retention strategy.

Navy had developed a broad range of workforce initiatives, some designed specifically to address workforce shortages in its critical employment categories. To date, Navy had primarily relied on paying retention bonuses and other financial incentives; recruiting personnel with prior military experience to work in employment categories with significant workforce shortfalls; and using Navy Reserves in continuous full time roles. Ongoing work was required for Navy to firmly establish a range of promising workforce management practices, including providing the right training at the right time; more flexible approaches to managing individuals’ careers; and improving workplace culture, leadership and relationships. More flexible and tailored workforce management practices could help address the underlying causes of workforce shortfalls, particularly when the traditional approaches were not gaining sufficient traction.

The ANAO made two recommendations aimed at Navy: drawing on external human resource expertise to inform the development and implementation of its revised workforce plan; and evaluating the impact of retention bonuses on the Navy workforce to determine their future role within its overall workforce strategy.

The objective of the audit was to assess whether the award of funding under the Regional Jobs and Investment Packages program was informed by appropriate departmental advice and that processes complied with the grants administration framework.

The objective of this audit was to examine the effectiveness of the Department of Social Services’ administration of NRAS allocations; processing of market rent valuations, statements of compliance and incentive payments; and the supporting business systems and processes.

The objective of the audit was to assess whether the contract for the acquisition of the Civil Military Air Traffic Management System demonstrably represents value for money.

The objective of the audit was to assess the effectiveness of the design and implementation of the Department of Human Services' Quality Framework.

The objective of the audit was to assess the effectiveness of the Department of Education, Skills and Employment in managing the integrity of payments to employment service providers.

The objective of the audit was to examine the effectiveness of the integration of the Department of Immigration and Border Protection (DIBP) and the Australian Customs and Border Protection Service.

Mr P.J. Barrett (AM) - Auditor-General for Australia, presented at the 18th Commonwealth Auditors-General Conference, Malaysia

Mr P.J. Barrett (AM) - Auditor-General for Australia, presented at the Association of Risk and Insurance Managers of Australasia - South Australia Chapter

Mr P.J. Barrett (AM) - Auditor-General for Australia, presented at the 1999 Department of Employment, Training and Industrial Relations Biennial Risk Management Conference, Brisbane

Mr P.J. Barrett (AM) - Auditor-General for Australia, presented at the Senate Occasional Lecture Series