The Navy Operational Readiness audit examined the systems that Navy uses to manage readiness and concludes coverage of Navy: readiness organisation and management structures (as well as the interface between these systems and Defence enabling operations); management and maintenance of operational readiness (covering personnel, collective training and other components of operational readiness); and readiness performance information processes. The objective of the audit was to provide assurance to Parliament concerning the progress that Navy has made in the development of operational readiness management and evaluation systems and to identify areas for improvement in these systems.

The audit reviewed whether DEWR is efficiently and effectively managing the provision of entitlements to eligible former employees under the Employee Entitlements Support Scheme (EESS) and its replacement, the General Employee Entitlements and Redundancy Scheme (GEERS). The audit sought to determine whether DEWR had a mechanism to ensure that claims were properly assessed, taking into account the prevailing risks, whether performance information was adequate, whether relationships with claimants and insolvency practitioners were managed appropriately and whether a cost-effective recovery strategy was in place.

The ANAO regards integrity as a core value of the organisation — critical in sustaining the confidence of Parliament, strengthening public trust in government and delivering quality audit products. Maintaining strong institutional integrity is critical to the operations and reputation of the ANAO.

The ANAO Integrity Framework provides an overarching structure to the integrity control system, supporting our institution’s integrity. The Framework serves to assist in ethical decision-making and risk, fraud and misconduct management.

Beyond its control system, the ANAO maintains an enduring focus on promoting integrity as a value that is embedded in our work and culture. The ANAO recognises that integrity demands quality not only in our products but also in the behaviours of our people.

The ANAO Integrity Advisor supports the effective and ongoing application of the Integrity Framework by providing advice to staff regarding integrity matters. The Integrity Advisor is responsible for increasing integrity awareness across the organisation and for reporting annually to the ANAO Executive Board of Management on actions taken under the Framework. The Auditor-General publishes the ANAO Integrity Report to provide increased transparency of the measures we undertake to maintain a high-integrity culture in the ANAO.

The audit reviewed Australian Development Scholarships (ADS). ADS's are the principal mechanism by which Australia provides scholarship assistance for individuals from developing countries to undertake studies at Australian education institutions. The scholarships help to meet the human resource development needs of developing countries and contribute to their development across various sectors. Scholarships also have an important role in fostering and sustaining Australia's relations with developing countries, particularly in the Asia-Pacific region. The objective of the audit was to evaluate AusAID's management of the ADS scheme.

The objective of the audit was to assess the Australian Taxation Office's approach to client service and the provision of particular client services to Individuals Non-Business clients. The INB business line deals primarily with the tax affairs of individual taxpayers. Audit criteria were developed which examined the ATO's:

• commitment to client service and understanding of client needs and expectations;
• client service strategy and delivery of client services and products; and
• measurement and achievement of service quality and client satisfaction.

Mr P.J. Barrett (AM) - Auditor-General for Australia, presented to the Information Systems Audit and Control Association (Canberra Chapter) in conjunction with the Institute of Internal Auditors (Canberra Branch)

Audit Report No.5 1993-94, Explosive Ordnance, Department of Defence, was tabled in the Parliament in September 1993. The report was structured in three parts. The first part covered explosive ordnance (EO) issues common to all three Services; the second part focused on the management of explosive ordnance by the Navy; and the third part was a follow-up of the 1987 audit report on Air Force explosive ordnance. The report made 39 recommendations. Defence agreed to implement most of them.

It was considered timely to undertake a follow-up audit into key issues of the recommendations contained in the audit report, given the elapsed time since the report was tabled and the issues associated with public safety.

The objective of the audit was to ascertain how efficiently and effectively the ATO administers sales tax collections. The audit excluded an examination of the Australian Customs Service's sales tax administration, although it did examine coordination and liaison arrangements between the ATO and ACS. The audit approach involved analysing the ATO's performance against the five elements of the ATO's established compliance improvement process, namely:

• interpreting and clarifying sales tax law;
• identifying and understanding clients and markets (enabling tax officers to identify and analyse risks of non-compliance);
• providing education and information to clients regarding sales tax obligations, based on identified compliance risks;
• implementing administrative arrangements which ensure and/or assist taxpayers to meet their obligations; and
• detecting non-compliance and taking action to remedy instances of non-compliance.

This annual report documents the performance of the Australian National Audit Office (ANAO) in the financial year ending on 30 June 2015. It addresses the Requirements for Annual Reports for Departments, Executive Agencies and Other Non‑corporate Commonwealth Entities approved by the Joint Committee of Public Accounts and Audit in June 2015; the performance measures set out in the outcome and programs framework in the 2014–15 Portfolio Budget Statements; section 28 of the Auditor‑General Act 1997; and other annual reporting requirements set out in legislation.

The objective of the audit was to assess whether FaCS had established effective business arrangements with Centrelink to help ensure that new claims for Age Pension were properly assessed in accordance with the Social Security Law and the Guide to the Social Security Law. In the context of the audit objective, the primary issues examined were whether FaCS had:

• established an appropriate business framework;
• adopted an appropriate risk management approach;
• appropriately monitored and evaluated performance; and
• provided relevant business support to Centrelink.