Mr Mr Ian McPhee - Auditor-General for Australia, presented to the Risk Management Institute of Australia and the Australasian Compliance Institute, at the 2nd Annual GRC Conference, Melbourne

The Commonwealth has significant foreign exchange risk exposures including $A8.4 billion of foreign currency transactions with the Reserve Bank of Australia in 1998-99. Under the Financial Management and Accountability Act and its associated Regulations, all agencies are required to assess and, where possible, manage, foreign exchange risk. The audit reviewed four agencies that have substantial foreign currency payment exposures namely:

• the Department of Defence;
• the Australian Agency for International Development;
• the Department of Foreign Affairs and Trade; and
• the Department of Finance and Administration.

The objective of the audit was to identify and assess the efficiency and cost effectiveness of the management of foreign exchange risk across the selected agencies, also to identify opportunities to improve the management of foreign exchange risk, including any associated potential financial savings that could accrue to the Commonwealth.

The objective of this audit was to examine whether value for money is being delivered by the Australian Rail Track Corporation’s (ARTC’s) management of the Inland Rail pre‑construction program.

The audit objective was to assess the effectiveness of the Department of Health’s records management arrangements, including Health’s progress in transitioning to digital records management.

The objective of the audit was to assess the effectiveness of the Australian Competition and Consumer Commission in managing compliance with fair trading obligations.

The audit reviewed the Commonwealth management and regulation of plasma fractionation. The audit objectives were to:

• assess the administrative and financial effectiveness of the Department of Health and Aged Care's contract management of the PFA;
• assess whether the TGA's implementation of post sale regulatory arrangements adequately protects the community's interests; and
• assess the extent to which agencies have implemented the recommendations made in Audit Report No.14 1995-96 concerning funding of plasma products and regulation of plasma products manufactured under the PFA.

Mr P.J. Barrett (AO) - Auditor-General for Australia, Opening Address to the inaugural conference of the Risk Management Institution of Australasia - Bringing Risk Management Together - What the Future Holds

The Auditor-General responded on 25 May 2020 to correspondence from Senator Katy Gallagher dated 4 May 2020, requesting that the Auditor-General conduct an investigation to examine the effectiveness of the Commonwealth Government’s debt management given the significant and rapidly increasing Commonwealth government debt levels as a result of the COVID-19 pandemic. The Auditor-General provided a follow-up response to Senator Gallagher on 24 July 2020. 

The audit sought to assess the efficiency and effectiveness of the ADF's management of fuel and lubricants and to identify possible areas for improvement. The audit focused on major aspects of the fuel supply chain, in particular the strategic management of fuel (eg. the coordination of fuel requirements and stockholding policy). The audit also reviewed fuel procurement practices, storage and handling issues. The audit coverage addressed the fuel supply aspects of these matters rather than transport, distribution and equipment issues. Although directed principally towards operational fuels, the audit took into consideration issues associated with ADF's requirement for oils and lubricants.

ANAO found that the actions taken by the Department during the course of the audit to update and improve the Notes on Administration and administrative processes, by commissioning various specialist studies and reviewing governance issues, has established a sound basis for ongoing effective management of the National Highway System. The Department advised ANAO that changes to the Notes on Administration reflect joint work done with the ANAO to identify where improvements could be made and incorporate not only suggestions and recommendations that the ANAO has made in the final report but also during the audit. ANAO considers that the comprehensive revision of the Notes on Administration undertaken by the Department should foster marked improvements in the management of the National Highway System.