Welcome to the inaugural edition of the ANAO’s quarterly Audit Matters newsletter. The purpose of Audit Matters is to inform external audiences — primarily those working in Commonwealth entities — of updates on the ANAO’s work and provide insights on what we are seeing in the Australian Government sector.

Audit Matters complements the range of reports we table in the Parliament as well as our Insights products and events and seminars. I hope you find it useful and please forward it on to your colleagues, and encourage them to sign-up for future editions.

Carla Jago, Acting Deputy Auditor-General

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.

The goal of the $250 million Emerging Markets Impact Investment Fund (EMIIF) is to help address access to finance challenges for small and medium-sized enterprises (SMEs) in South and South East Asia. It invests in funds and other financial intermediaries that in turn invest in early and growth stage SMEs with investments in the range of USD5,000 to USD2 million. The May 2023–24 Federal Budget measure that increased the size of the EMIIF stated that the majority of assistance would be provided via equity and loans (rather than grants), the cost of which will be met from Australia’s existing Official Development Assistance (ODA) funding.

EMIIF is an investment trust with DFAT as the sole beneficiary. Day to day management is undertaken by the investment manager appointed by DFAT and investment decision making is undertaken by the investment committee appointed by DFAT, as well as representatives from the investment manager. The design of EMIIF was intended to enable appropriate DFAT oversight by a DFAT delegate for the EMIIF being responsible for making any contractual and strategic decisions, who would be advised by an SES-level Impact Investing Advisory Group to provide advice, guidance and support regarding the overall direction and implementation of EMIIF and DFAT’s other impact investing programs. In addition, a Secretariat within DFAT is responsible for the day-to-day management of EMIIF, including interaction with counterparties to monitor ongoing performance, disseminate information and prepare relevant reporting to the advisory group or decision-makers. The audit would examine DFAT’s establishment and oversight of the EMIIF.

The objective of the audit was to assess whether the Better Regions Program has been effectively designed and administered. The audit scope included examination of all 106 Better Regions projects.

The audit objective was to assess the effectiveness of the department's administration of general recurrent grants for non-government schools. The audit examined key processes in the department's administration ofgeneral recurrent grants for non-government schools for 2005–08 in accordance with the Schools Assistance (Learning Together—Achievement Through Choice and Opportunity) Act 2004.

The objective of the audit was to assess the effectiveness of AGD's administration of grants provided under the Respondents Scheme. The audit considered the context within which the Respondents Scheme operates and focused on assessing the administration of the scheme including its financial management within AGD.

The objective of the audit was to assess the effectiveness of the Department of Health and Ageing’s administration of the GP Super Clinics program to support improved community access to integrated GP and primary health care services.

The audit objective was to assess the effectiveness of the Department of Industry's administration of the Commercialisation Australia Program.

The objective of the audit was to assess the effectiveness of the delivery of the first and second funding rounds of the Filling the Research Gap program by the Department of Agriculture.

The objective of the audit was to assess the effectiveness of the design and conduct of the funding round for the Building Better Regional Cities Program.