Mr P.J. Barrett (AM) - Auditor-General for Australia, addressed the Senior Women in Management (SWIM) 2000 Group, PSMPC, Canberra

The audit reviewed the implementation of the Whole-of-Government Information Technology Infrastructure Consolidation and Outsourcing Initiative (IT Initiative). The objectives of the audit were to examine the administrative and financial effectiveness of the implementation of the IT Initiative, with the focus being on the first four tenders conducted. Accordingly, the audit assessed:

• the effectiveness of the overall planning and implementation of the IT Initiative, taking into account the tendering, contracting and monitoring processes undertaken in respect of Cluster 3, DEETYA/EN, ATO and Group 5;
• the extent to which those latter processes have contributed to the achievement of the objectives of the IT Initiative; and
• the extent to which the Commonwealth's interests have been adequately protected within this context.

This first Assurance Report on the status of selected Defence equipment acquisition projects, which has the support of the Parliament and the Government, represents a substantial step towards improving transparency and public accountability in major Defence procurement projects. It is the pilot of an annual Defence Materiel Organisation (DMO) Major Projects Report, and was developed in conjunction with the DMO. It covers the cost, schedule and capability progress achieved by nine DMO projects, which had an approved budget totalling $13.535 billion as at 30 June 2008.

This report is organised into three parts. Part 1 comprises an ANAO overview and Auditor–General's Foreword. Part 2 comprises the Major Projects Report prepared by DMO, including an overview reflecting DMO's perspective on their business and on the nine projects included in the. Part 3 incorporates the Auditor-General's Review Report, the statement by the CEO DMO, and the information prepared by DMO in the form of standardised Project Data Summary Sheets covering each of the nine pilot projects.

In the next 12 months, the ANAO will review 15 DMO projects planned for inclusion in the 2008-09 DMO Major Projects Report, with the number of projects rising to 30 projects in subsequent years. The ANAO will also work with DMO to refine the approach adopted for providing assurance on each project's progress toward achieving Final Operational Capability. The ANAO will also consider the inclusion of an analysis of each project's emerging trends, as appropriate, to complement DMO's intention to provide improved analysis of project management performance regarding all projects included in the Major Projects Report.

The audit examined the range of support made available to ADF personnel making the transition from military to civilian life, the extent to which the assistance is utilised, the cost to Defence of such assistance and the relevant responsibilities of those who deliver assistance.

The overall objective of the audit was to determine whether Health's management and operation of selected IT systems:

• met industry better practice;
• met quality and service delivery parameters set by Health and, if applicable, by the Government; and
• operate effectively, efficiently and economically.

The audit applied selected processes from CobiT (Control Objectives for Information and Related Technology) to assist with the assessment of key aspects of Health's management and operation of IT. The audit builds on ANAO's earlier IT audits using CobiT.

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 objective of this audit was to assess the effectiveness of DIAC’s administration of the character requirements of the Citizenship Act.

The objective of this audit was to assess the effectiveness of DEEWR's administration of Job Network service fees. The ANAO examined DEEWR's arrangements to:

• specify the nature and level of services to be supplied by JNMs and to communicate this to the JNMS;
• calculate and pay service fees in accordance with the Employment Services Contract (ESC) 2006–2009 it has with JNMs; and
• obtain assurance that JNMs have delivered services in accordance with the contract.

The objective of the audit was to determine whether Centrelink's planning, monitoring and costing arrangements provide a sound basis to underpin its delivery of quality, cost effective customer services.

Mr Ian McPhee - Auditor-General for Australia, presented to the Defence Senior Leadership Group, Financial Management Course, Canberra