This audit would examine the effectiveness of the Department of Defence’s (Defence’s) procurement of ICT-related services.

Defence relies on contracted services for the management and delivery of its ICT-related projects. In April 2023, the Defence Strategic Review highlighted this reliance as an important risk. Auditor-General Report No. 1 2021–22 Defence’s Administration of Enabling Services — Enterprise Resource Planning Program: Tranche 1 identified shortcomings in, and made one recommendation to improve, Defence’s management of probity for that program.

This audit would examine the effectiveness of Defence’s procurement and contract management for its ICT-related services to achieve value for money and the successful delivery of intended outcomes. It also provides an opportunity to update the Parliament on Defence’s progress in improving its management of probity risks in ICT procurements.

This audit would assess the effectiveness of the Department of Education’s administration of the National Collaborative Research Infrastructure Strategy (NCRIS). NCRIS provides funding for national research infrastructure including physical assets (such as the National Computational Infrastructure that supports Australia’s weather and climate modelling capability) and intangible assets (such as the Australian Research Data Commons, a portal that supports researchers to access and reuse existing data). It would examine areas relating to the department’s allocation of funding and ongoing engagement with NCRIS projects.

The Australian Government has committed to provide $4 billion NCRIS funding between 2018 and 2029. The program will receive an estimated $503 million in 2024–25. Funding is allocated on the basis of roadmaps, which provide a pathway to addressing Australia’s future research infrastructure needs. As at April 2024 NCRIS supports 26 funded projects and an international membership. The projects are led by organisations including universities, publicly funded research organisations and private companies. They form a network involving over 400 delivery partnerships, and employ over 1900 technical experts, researchers and facility managers. Users relying on NCRIS range from early career researchers and small businesses, who would otherwise struggle to access world class national research infrastructure, to global research leaders tapping into the unique facilities that NCRIS provides.

This audit would assess the effectiveness of the National Disability Insurance Agency (NDIA) in the design and implementation of its new customer relationship management (CRM) system named ‘PACE’, including the broader supporting program known as ‘3P’ (Participant, Platform and Process).

PACE will replace existing business and payments systems and portals with a new embedded CRM system. PACE is intended to improve system controls, including controls to validate payments for services. Following a pilot of PACE that started in November 2022 for Tasmanian participants and providers, PACE implementation began across all remaining NDIA locations on 30 October 2023. Full implementation is expected to take 18 months with NDIA’s existing systems continuing to be used alongside PACE during that period.

This audit would review the progress of the Digital Identity System implementation, design and functionality, including the roles and responsibilities of stakeholders and the allocation and expenditure of funding, including contract management.

The Digital Identity program is delivered by Services Australia, Australian Taxation Office (ATO), Department of Home Affairs and Department of Finance. Components of the program include the Trusted Digital Identity Framework, the Identity Exchanges (delivered by Services Australia), myGovID (the Commonwealth’s Identity Provider, delivered by ATO) and connected services to the system.

The Digital ID Act 2024 and the Digital ID (Transitional and Consequential Provisions) Act will commence on 1 December 2024 and support the expansion of the Australian Government Digital ID System and introduce a voluntary accreditation scheme for digital ID services providers.

Under the AusCheck Act 2007 and operating on a cost recovery basis, AusCheck coordinates national security background checks and related functions for the aviation, maritime and national health security sectors. The purpose of AusCheck is to help to prevent criminal, terrorist and foreign interference threats from using privileged, insider access to circumvent security measures. The department has a performance target of completing 98 per cent of checks in five business days or less.

The audit would examine whether the Department of Home Affairs’ administration of AusCheck is efficient including the timeliness of checks and the administration of the review and appeal processes.

This audit would assess the effectiveness of Services Australia’s use of enforcement powers in its child support and social security compliance programs.

In 2022–23, Services Australia delivered $140.3 billion in social security and welfare payments on behalf of the Australian Government, including facilitating $1.8 billion in child support payments. In ensuring recipients receive only the payments to which they are entitled, Services Australia has a range of enforcement powers it applies through compliance activities. These include powers to require individuals to provide information, produce documents, answer questions, and make payments (including through the use of garnishee orders).

This audit would assess the effectiveness of the enterprise governance at Services Australia. The Chief Executive Officer is the accountable authority of Services Australia. The Public Governance, Performance and Accountability Act 2013 requires the accountable authority of an entity to establish and maintain an appropriate system of risk oversight and management, and an appropriate system of internal control.

Services Australia delivers payments and services on behalf of other entities (such as income support payments on behalf of the Department of Social Services and pharmaceutical benefits scheme payments on behalf of the Department of Health and Aged Care) and services to other entities (for example, corporate shared services such as payroll or ICT for the National Disability Insurance Agency). These services are underpinned by bilateral agreements between Services Australia and each entity, including oversight arrangements, performance measures and reporting and the management of shared risk.

The audit would examine enterprise level administrative, governance and oversight arrangements within Services Australia and compliance with key legislative and policy requirements, including oversight of bilateral arrangements.

This audit would assess the effectiveness of the enterprise governance at the Department of Home Affairs. The Public Governance, Performance and Accountability Act 2013 requires the accountable authority of an entity to establish and maintain an appropriate system of risk oversight and management, and an appropriate system of internal control.

The audit would examine enterprise level administrative, governance and oversight arrangements within the department, and compliance with key legislative and policy requirements.

In its Report 495 Inquiry into Commonwealth Grants Administration, the Joint Committee of Public Accounts and Audit (JCPAA) recommended that the ANAO considers a future audit of the process by which the Minister for Finance is informed of grant approvals against the recommendation of the awarding agency. A cross portfolio audit examining this aspect of the grants framework was last conducted by the ANAO in 2011–12 (Auditor-General Report No. 21 2011–12 Administration of Grant Reporting Obligations). It is envisaged that a similar audit methodology will be employed, including undertaking a comprehensive analysis of agency briefs over a specified period provided to Ministerial decision-makers. The potential audit would also examine any analysis undertaken by the Department of Finance of reports provided to the Minister for Finance, and any resulting advice to the Minister for Finance either on a particular grant award or the grants framework.

This audit would assess the effectiveness of the Department of Industry, Science and Resources (DISR) and the Digital Transformation Agency (DTA) in the development and implementation of frameworks to govern the use of new and emerging technologies. DISR has oversight of frameworks that support Australian industries (private sector) and DTA oversees Australian Government entities’ application of emerging technology such as artificial intelligence (AI).

The Australian Government announced $101.2 million in the 2023–24 Federal Budget to support businesses to integrate quantum and AI technologies into their operations. The investment is expected to support the creation of 1.2 million tech-related jobs by 2030, increasing local capacity and capability and driving the uptake of these technologies.