Reports by the Australian National Audit Office (ANAO)
As a central agency, Finance is often referred to in ANAO reports. In relation to reports completed during 2008-09 where recommendations were directed to and agreed by Finance, the department has either implemented or is taking steps to implement these recommendations. The following audit reports either included significant involvement by Finance or included recommendations specific to Finance.
Report Number 3, 2008/2009: Establishment and Management of the Communications Fund – tabled 23 September 2008
The objective of this audit was to assess the effectiveness of the management of the Communications Fund by the former Department of Communications, Information Technology and the Arts. Finance was a member of the working group that examined management options for the fund and had a role in progressing its longer-term investment strategy, but was not significantly involved in the development of the legislation that enabled the fund.
The ANAO made recommendations relating to the way legislative approval and investment advice should be sought in similar circumstances in the future. Finance agreed with the recommendations but, as the department’s ongoing involvement with the Communications Fund is limited, further action by Finance was not required.
Report Number 5, 2008/2009: The Senate Order for Departmental and Agency Contracts (Calendar Year 2007 Compliance) – tabled 25 September 2008
The objective of this audit was to assess the extent to which all agencies complied with the requirement of the Senate Order on Departmental and Agency Contracts to place on the internet a list of contracts valued at $100,000 or more that the agency has entered into in the previous 12 months. The audit also examined the appropriateness of the use by six selected agencies of confidentiality provisions in contracts. Finance produces guidance that assists agencies to meet their obligations under the Senate Order.
The report recommended that agencies implement review measures to assess the appropriateness of decisions to include confidentiality provisions in contracts and provide suitable feedback to the staff involved in their procurement activities. Finance supported the recommendation.
Report Number 14, 2008/2009: Audits of the Financial Statements of Australian Government Entities for the Period Ended 30 June 2008 – tabled 17 December 2008
The objective of this audit was to provide an independent examination of the financial accounting and reporting of public sector entities, including Finance. The audit report expresses the auditor’s opinion on whether the financial statements as a whole, and the information contained within them, fairly reflect the results of each entity’s operation and its financial position.
The report concluded that the 2007-08 Consolidated Financial Statements gave a true and fair view of the Australian Government’s financial position as at 30 June 2008. For the second consecutive year, the Consolidated Financial Statements received an unqualified audit report.
Report Number 18, 2008/2009: The Administration of Grants under the Australian Political Parties for Democracy Program – tabled 3 February 2009
The objective of this audit was to assess the effectiveness of the accountability arrangements and of Finance’s administration of the Australian Political Parties for Democracy Program.
The audit concluded there were opportunities for Finance to strengthen the administrative arrangements for the program. Finance agreed to the four audit recommendations, with some qualifications. On 1 July 2009, administration of the program transferred from Finance to the Australian Agency for International Development (AusAID). AusAID will be responsible for implementing the ANAO’s recommendations.
Report Number 19, 2008/2009: CMAX Communications Contract for the 2020 Summit – tabled 4 February 2009
The objectives of this audit included an examination of whether the Department of the Prime Minister and Cabinet’s appointment of CMAX Communications Pty Ltd for the 2020 Summit was consistent with the Australian Government procurement framework and sound principles of public administration.
The report recommended implementing coordinated procurement arrangements for media and communications advisory services. In response, Finance advised that the level of expenditure on media and communications advice consultancies across government was not sufficient to warrant centralising the procurement of these services.
Report Number 20, 2008/2009: Approval of Funding for Public Works – tabled 5 February 2009
The objective of this audit was to assess the planning and delivery of capital works projects undertaken by Australian Government agencies. The report made recommendations that were relevant to the department relating to the information provided to the Public Works Committee about project cost estimates, project finalisation reports and post-implementation reviews. Finance agreed to the recommendations.
Report Number 24, 2008/2009: The Administration of Contracting Arrangements in relation to Government Advertising to November 2007 – tabled 5 March 2009
The objective of this audit was to assess the effectiveness of the procurement and contracting activities associated with government advertising campaigns and the operation of the Central Advertising System.
The report recommended that in developing arrangements to renew the Central Advertising System, Finance include a performance management framework and transition planning, simplify financial arrangements, and provide for appropriate consultation with clients. Finance supported the recommendations and has incorporated them into the department’s ongoing administration of government advertising.
Report Number 25, 2008/2009: Green Office Procurement and Sustainable Office Management – tabled 11 March 2009
The objective of this audit was to assess and report on government agencies’ progress in achieving better practice in green office procurement and sustainable office management. The report recommended that all agencies strengthen their internal environmental management systems and plans, and improve their sustainability practices. Finance agreed in-principle with all the recommendations and has commenced developing an environmental policy statement and supporting strategies.
Report Number 29, 2008/2009: Delivery of Projects on the AusLink National Network – tabled 23 April 2009
The objective of this audit was to assess the effectiveness of project delivery on the AusLink National Network by the Department of Infrastructure, Transport, Regional Development and Local Government. The audit included discussion of the way AusLink projects that were announced as election commitments had been costed.
The report directed no recommendations to Finance but encouraged the department to consider expanding its guidance on the information required for costing projects in the Charter of Budget Honesty, Costing of Election Commitments: Guidelines. Finance undertook to consider this issue during the regular review of matters relevant to costings under the charter, which will be finalised in 2009-10.
Report Number 37, 2008/2009: Online Availability of Entities' Documents Tabled in the Australian Parliament – tabled 25 May 2009
The objectives of this audit included an assessment of Finance’s policy and guidance to agencies on online publishing, including the department’s Australian Government Web Publishing Guide.
The report found that the guide was relevant, accessible and easy to use. The report suggested the guide could be improved by specifying the requirements relating to tabling papers with greater clarity, providing advice on the period that government entities must maintain documents online and providing advice on whether an entity can electronically archive its parliamentary documents. Finance revised the guide in accordance with the recommendations and released the enhanced version on 17 June 2009.
Report Number 42, 2008-2009: Interim Phase of the Audit of Financial Statements of General Government Sector Agencies for the Year ending 30 June 2009 – tabled 22 June 2009
As part of the interim audit procedures for the 2008-09 financial statements of agencies, the objective of this audit was to examine the internal control structures of major government entities including Finance. These control structures include governance arrangements, information systems and control procedures.
In relation to Finance, the audit found that key internal controls are generally operating satisfactorily. The report made two moderate risk findings associated with the implementation of the department’s new Financial Management Information System. Finance addressed these issues during the 2008-09 financial year and is confident that they will not affect the financial statements for 2009-10.
Report Number 43, 2008/2009: Construction of the Christmas Island Immigration Detention Centre – tabled 23 June 2009
The objectives of this audit were to assess the adequacy of the planning and delivery processes for construction of the Christmas Island Immigration Detention Centre, the extent of the value for money achieved in the delivery of the project, and the project’s compliance with the Public Works Committee Act 1969.
The report noted that the project was more complex than many others undertaken by the Australian Government and recommended changes to the business processes Finance uses to deliver capital projects. Finance agreed to the recommendations and is incorporating the proposed changes into internal guidance material. In particular, the department is addressing the areas of risk assessment, order of accuracy of cost estimates, governance arrangements, and costs over the life of projects where multiple agencies are involved. Finance is also conducting post-project reviews to identify further areas for improvement.
Report Number 44, 2008/2009: Security Risk Management – tabled 23 June 2009
The objective of this audit was to assess whether selected organisations had effective security risk management programs, including whether protective security risk controls were working as designed.
The report recommended that the Attorney-General’s Department work with Finance to clarify the CAC Act organisations to which the Protective Security Manual applies. The department agreed to the recommendation. While the report did not direct any other recommendations to Finance, the department has incorporated relevant suggestions from the audit into its security risk management framework.
Report Number 48, 2008/2009: Planning and Approval of Defence Major Capital Equipment Projects – tabled 30 June 2009
The objective of this audit was to assess whether the strengthened two–pass approval process for major capital equipment projects is being implemented effectively.
The report’s recommendations included requesting that the Department of Defence should reach an agreement with Finance on a suitable approach to whole-of-life costings, and seek Finance’s involvement in the evaluation of capability development costings at an early stage. Finance agreed to the recommendations.