The Department of Veterans' Affairs (DVA) uses information technology (IT) extensively in providing services to Australia's veteran and defence force communities. The audit reviewed DVA's management of its IT outsourcing contract. The audit considered DVA's planning to meet its strategic IT needs through the IT outsourcing contract, the provisions of the contract, contract administration, management of the impacts of the outsourced services on DVA's business and the outcomes of DVA's approach to the contract.

The Defence Estate comprises the land, buildings and other facilities that Defence uses across Australia. These facilities are vital to achieving the Defence mission - to prevent or defeat the use of armed force against Australia and its interests. The Estate has a gross replacement value of $14.8 billion. Defence Estate Organisation's (DEO's) Facilities Operations (FACOPS) Program delivers general maintenance and minor new works to Defence facilities on a regional basis across the country. DEO's Estate Operations and Planning Branch and its nine Regional Estate Centres are responsible for the FACOPS Program. Resources available for the Program have been reduced in recent years. The total DEO budget for 2000-01, which includes funds for capital works, facilities operations and property management, is $2.6 billion. Of this total, the FACOPS Program has a cash allocation of $213 million and an additional $15.6 million for employee expenses associated with the Program's 283 staff. The objective of the audit was to assess the efficiency and effectiveness of selected Defence facilities operations, including tendering and contracting, with a view to adding value with practical recommendations for enhancing operations.

The Australian Taxation Office (ATO) is the Commonwealth's principal revenue collection agency. In 1998-99, the ATO accounted for total tax revenue of $135.3 billion. The objective of this audit was to review the ATO's administration of penalties, with particular emphasis on its corporate governance framework and issues relating to consistency, effectiveness and accountability of penalty administration. In particular, the audit examined the administration of two penalty types, Late Lodgement and Tax Shortfall, as case studies.

The audit sought to assess the efficiency of Defence property management; provide assurance that probity and compliance requirements are being met; and make practical recommendations for enhancing property operations. It focused on Infrastructure Division's property management, with recognition that other areas manage certain property service contracts, such as those for electricity supply and cleaning.

The audit reviewed the Australian Taxation Office's use of audit of individual taxpayers as part of its approach to encouraging taxpayer compliance. The objective of the audit was to examine the use of audit as an element of the compliance management function within the Individuals Non-Business line of the ATO.

The audit reviewed the Australian Customs Service (Customs) fraud control arrangements. The audit objective was to assess whether Customs has implemented appropriate fraud control arrangements consistent with the Commonwealth's Fraud Control Guidelines and the administrative effectiveness of these arrangements.

Address by Richard Rundle, Executive Director, Business Assurance Services, at the Security in Government 2002 Conference

Mr P.J. Barrett (AM) - Auditor-General for Australia, presented at the Security in Government 2001 SES Seminar

The objective of the audit was to provide assurance to Parliament on effectiveness of FMIS implementations by:

• evaluating the effectiveness of selection and implementation management; and
• evaluating whether the implemented FMIS met the needs of agencies.

The audit objective was to assess the effectiveness of the Department of Veterans’ Affairs management of complaints and other feedback to support service delivery. The audit criteria were that DVA has:

• a well-designed framework for managing complaints and other feedback;
• effective processes and practices to manage complaints; and
• appropriately analysed complaints to inform service delivery.