National Commission of Audit

Dear Treasurer and Minister for Finance

Attached is the Report of the National Commission of Audit on aspects of the management and financial activities of the Commonwealth Government and how they are recorded.

In the three months available to prepare the Report, the Commission has not been able to comprehensively evaluate all areas where improvements might be made. Its approach has been to set out a framework of principles that can be used to assess particular government activities covered by the terms of reference, and then to illustrate how these principles might be applied using particular examples of current government activities. The Commission believes that the Government can use the proposed framework to evaluate public sector activities in its drive to improve the Commonwealth's finances in a medium and long term context.

The Commission considers that application of the proposed framework of principles and the recommended changes in accounting and fiscal reporting practices should lead to substantial improvements in the Commonwealth's financial management and in the performance of Australian governments. At the same time, the quality of government services should be improved.

Although operating as an independent entity, the Commission wishes to acknowledge the many submissions it received and, in particular, the submissions from the Departments of Finance and the Treasury. Above all, the Commission records its appreciation for the first class work of the Secretariat led by Oliver Winder and drawn mainly from the Department of Finance with Treasury representation. The Secretariat at all times carried out its task with skill and professionalism.

Finally, the Commissioners wish to acknowledge the considerable work of the Executive Officer, Geoff Carmody.

Yours sincerely

R.R. Officer E.A. Alexander J.A. Fraser M.L. Newman
Chairman
19 June 1996

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