Chapter 2 Summary of activities for 2009-10
Committee reports
Report 415: Review of Auditor-General’s Reports tabled between
September 2008 and January 2009
2.1
This report, tabled in November 2009, concluded the Committee’s
examination of 14 audit reports presented to the Parliament by the
Auditor-General. Of those 14 reports, the Committee had selected the following
five for detailed scrutiny at public hearings conducted in March 2009:
- no. 4 2008-09, The
Business Partnership Agreement between the Department of Education, Employment
and Workplace Relations and Centrelink;
- no. 7 2008-09, Centrelink’s
Tip-off System;
- no. 11 2008-09, Disability
Employment Services;
- no. 12 2008-09, Active
After-school Communities Program; and
- no. 17 2008-09, Administration
of Job Network Outcome Payments.
2.2
The report contained five recommendations directed to the relevant
agencies.
Report 416: Review of the Major Projects Report 2007-2008
2.3
In November 2008 the first Defence/ANAO Major Projects Report
(MPR) was tabled in Parliament. In March 2009 the JCPAA had held a public
hearing to review the MPR, with officers of the ANAO and the Defence Materiel
Organisation (DMO) giving evidence.
2.4
In August 2009 the Committee took evidence from DMO at a further public
hearing. The main purpose of that hearing was to follow up on the findings
reported in the Committee’s August 2008 Report 411: Progress on equipment
acquisition and financial reporting in Defence. Information related to
progress on the MPR was also provided to the Committee at that hearing.
2.5
The Committee subsequently tabled its Report 416 in November
2009. The report contained five recommendations concerning the format and
methodology for future MPRs.
2.6
A further public hearing was held in March 2010 to review the Major
Projects Report 2008-09. While a report was not released prior to the 2010
federal election, the Committee in the 43rd Parliament has
subsequently resolved to continue to review the MPRs on an annual basis.
Report 417: Review of Auditor-General’s Reports tabled between February
2009 and September 2009
2.7
This report – the last tabled by the Committee in the 42nd
Parliament – concluded the examination of 31 audit reports presented to the
Parliament by the Auditor-General. Of those reports, the Committee had selected
the following nine for detailed scrutiny at public hearings conducted from June
to November 2009:
- no. 25 2008-09, Green
Office Procurement and Sustainable Office Management;
- no. 27 2008-09, Management
of the M113 Armoured Personnel Carrier Upgrade Project;
- no. 28 2008-09, Quality
and Integrity of the Department of Veterans’ Affairs Income Support Records;
- no. 35 2008-09, Management
of the Movement Alert List;
- no. 36 2008-09, Settlement
Grants Program;
- no. 40 2008-09, Planning
and Allocating Aged Care Places and Capital Grants;
- no. 43 2008-09, Construction
of the Christmas Island Immigration Detention Centre;
- no. 48 2008-09, Planning
and Approval of Defence Major Capital Equipment Projects; and
- no. 05 2009-10, Protection
of Residential Aged Care Accommodation Bonds.
2.8
The report contained 18 recommendations directed to the various
agencies. As with past reviews of audit reports, in several cases the
Committee recommended that agencies provide it with progress reports to ensure
that the recommendations of the ANAO are being properly implemented.
Inquiries in progress at 30 June 2010
2.9
As at 30 June 2010 the Committee had two policy inquiries underway, in
addition to its ongoing review of Auditor-General’s reports.
Inquiry into the Auditor-General Act 1997
2.10
In February 2009 the Committee had resolved to undertake a review of the
Auditor-General Act 1997. The inquiry examined:
- whether the Act’s
focus on the Auditor-General’s traditional assurance audit and performance
audit roles gives the ANAO sufficient legislative backing for newer functions;
- any amendments
necessary to clarify the ANAO’s rights and obligations in relation to
conducting audits and reviews;
- whether there should
be changes to the categories of agencies that the Auditor-General audits, in
particular section 16 of the Act which limits the Auditor-General’s capacity to
audit Government Business Enterprises;
- any proposed
amendments to the Act which would strengthen the audit independence of the ANAO
and the Auditor-General’s capacity to fulfil his role as an Independent Officer
of the Parliament; and
- the Auditor-General’s
capacity to examine the financial and performance outcomes from Commonwealth
investments in the private sector and Commonwealth grants made to State and
local governments.
- The Committee took evidence at three public hearings in 2009-10 (in
addition to an earlier public hearing in June 2009). The inquiry received 18
submissions.
2.12
The inquiry was still in progress as at 30 June 2010, and subsequently
lapsed with the dissolution of the House for the 2010 federal election.
However, the inquiry was resumed by the JCPAA in the 43rd Parliament
and a report containing 13 recommendations was released in December 2010.[1]
Inquiry into the Auditor-General’s role in scrutinising government
advertising
2.13
In July 2008 the Government announced new guidelines for Commonwealth
advertising, including a formal scrutiny role for the Auditor‑General for
all advertising campaigns over $250 000 (in the form of a limited assurance
review on whether anything had come to the Auditor‑General’s attention
which caused him to believe that the proposed advertising campaign was
inconsistent with the guidelines).[2]
2.14
The Committee subsequently resolved to assess the Auditor-General’s role
under the guidelines. In 2009-10 the Committee took evidence at six public
hearings (following two hearings in 2008-09), with evidence taken from the
ANAO, a range of government departments and others. As at 30 June 24
submissions had been received.
2.15
The inquiry was still in progress as at 30 June 2010, and subsequently
lapsed with the dissolution of the House for the federal election. The inquiry
has since been resumed by the JCPAA in the 43rd Parliament.
Review of Auditor-General’s reports
2.16
As at 30 June 2010 the Committee was reviewing the following nine Auditor‑General’s
reports, selected from 37 audits presented to the Parliament between September
2009 and May 2010:
- no. 07 2009-10, Administration
of Grants by the National Health and Medical Research Council;
- no. 08 2009-10, The
Australian Taxation Office’s Implementation of the Change Program: a strategic
overview;
- no. 10 2009-10, Processing
of Incoming International Air Passengers;
- no. 15 2009-10, AusAID’s
Management of the Expanding Australian Aid Program;
- no. 20 2009-10, The
National Broadband Network Request for Proposal Process;
- no. 26 2009-10, Administration
of Climate Change Programs;
- no. 27 2009-10, Coordination
and Reporting of Australia’s Climate Change Measures;
- no. 31 2009-10, Management
of the AusLink Roads to Recovery Program; and
- no. 33 2009-10, Building
the Education Revolution – Primary Schools for the 21st Century.
2.17
The audit reports were reviewed at six public hearings held between
March and June 2010.
2.18
The reviews were still in progress as at 30 June 2010, and subsequently
lapsed with the dissolution of the House for the federal election. However,
the reviews were resumed by the JCPAA in the 43rd Parliament and a
report containing four recommendations was released in December 2010.[3]
Other Committee activities for 2009-10
Audit priorities of the Parliament
2.19
In May 2010 the Committee received the ANAO’s draft audit work program
for 2010-11, and forwarded it to other parliamentary committees for comment so
as to help determine the annual audit priorities of the Parliament.
2.20
Following responses from the other committees, the JCPAA advised the
Auditor-General that the Parliament’s audit priorities, for his consideration
as appropriate in finalising his 2010-11 work program, included:
- the
Attorney-General’s Department’s management of territories;
- Customs’ detection of
illicit drugs and precursors;
- Customs’ management
arrangements for the processing of imports;
- Customs’ processing
of incoming international passengers (secondary examination phase);
- the Australian
Federal Police’s management of Project Spectrum;
- the Department of
Foreign Affairs and Trade’s management of biometric passports (ePassports);
- electronic records
management by agencies;
- governance
arrangements for commercial enterprises established by, or in partnership with,
public sector agencies;
- agencies’ compliance
with national archiving standards; and
- agencies’ compliance
with Freedom of Information requirements and their preparedness for changes to
FOI legislation.
Statement on the draft estimates for the ANAO, budget day 2010
2.21
In February 2010 the Committee was briefed by the Auditor-General and
other ANAO officers on the ANAO’s budget proposals for 2010-11. On
10 May, the day before the Federal Budget, the Committee was again briefed
by the Auditor-General on the ANAO’s confirmed appropriation.
2.22
On budget day the then Chair gave the customary speech to the House on
the adequacy of the ANAO’s appropriation. A corresponding statement was later
delivered to the Senate by one of the Committee’s Senate members.
2.23
On behalf of the Committee the Chair noted the Auditor-General’s advice
that his appropriation for 2010-11 would allow him to meet his obligations,
including maintaining his targets for production of performance audit reports
and public sector “Better Practice Guides”.
2.24
On that basis the Committee endorsed the budget proposed for the ANAO. However,
the Chair expressed the Committee’s concern about a lack of new funding for the
substantial workload associated with a full revision to the Australian Auditing
and Assurance Standards taking effect in 2010. The Chair urged the Government
to support any request for such funding in the 2011-12 budget process.[4]
Biannual public hearings with the Commissioner of Taxation
2.25
The Committee held two public hearings with the Commissioner of Taxation
during the course of the year, in October 2009 and April 2010. The first
hearing was preceded by private briefings from the Inspector‑General of
Taxation Mr Ali Noroozi and Professor Valerie Braithwaite from the Australian
National University. The customary private briefings were not held prior to
the second hearing, to enable detailed examination of an ANAO audit of the
ATO’s comprehensive Change Program[5], which includes a new
income tax processing system as part of the replacement of many ATO IT systems
and processes.
2.26
A wide range of matters concerning administration of the tax system and
taxpayer compliance were discussed at the hearings. At the April 2010 hearing
the Committee closely scrutinised the management of the ATO’s Change Program
and subsequent delays in some tax returns in early 2010. Transcripts of the
hearings are available on the Committee’s website.
2009-10 Annual Report Requirements for Commonwealth agencies
2.27
In June 2010 the Committee approved the draft Requirements for Annual
Reports for Departments, Executive Agencies and FMA Act Bodies for release
to agencies, following a briefing for the Chair and Deputy Chair by relevant
officers of the Departments of Prime Minister and Cabinet and the Department of
Finance and Deregulation.
2.28
The most significant changes to the Requirements as approved by the
JCPAA the preceding year reflected changes to the format for agencies’
Portfolio Budget Statements from 2009-10 onwards, and a heavier emphasis on
reporting achievements against key performance indicators.
2.29
The Requirements as approved by the Committee are available on the
website of the Department of Prime Minister and Cabinet.[6]
Briefing on public sector governance issues
2.30
An innovation trialled by the JCPAA in recent years has been occasional
private briefings with the Secretary of the Department of Prime Minister and
Cabinet and the Australian Public Service Commissioner, who is responsible for
promoting leadership, learning and development in the public service. The
meetings help to inform the Committee of the latest initiatives in enhancing
public service management capacity.
2.31
A further such briefing was held in August 2009, with the list of
attendees expanded to include the Auditor-General and the Secretary of the
Department of Finance and Deregulation. The discussions were wide‑ranging
and included the findings of the Public Service Commissioner’s annual State
of the Service report, the impact of the ongoing efficiency dividend,
workforce planning issues, the public service’s capacity for strategic policy
advice and effective implementation of government programs, interaction between
the public service and consultants, progress on public sector ICT reforms, opportunities
and challenges presented by interactive communications technologies, the
capacity of public servants to provide frank advice to Government and to brief
non-government members as appropriate, the interaction between public servants
and parliamentary committees, the operation of the Lobbying Code of Conduct,
and “whistleblower” protections for public servants.
Engagement with the Independent Auditor
2.32
During 2009-10 the Committee endorsed a proposed program of performance
audits of the ANAO put forward by the Independent Auditor of the ANAO, Mr Geoff
Wilson (CEO of KPMG Australia).
2.33
The Committee subsequently noted the findings of a May 2010 review by
Mr Wilson of the effectiveness of ICT management across the ANAO’s key
applications and systems. His report was broadly supportive but suggested some
areas for improvement to business processes.[7]
Speeches and meetings with delegations
2.34
The Committee is keen to disseminate information on its role and
activities, and to contribute where it can to enhancing public sector
accountability. Accordingly, the Committee’s Chair and secretariat regularly
make presentations to seminars and visiting delegations.
2.35
During 2009-10 the Committee’s then-Chair Sharon Grierson MP and secretariat
staff made the following presentations:
|
Role of the JCPAA (Committee Secretary)
|
Indonesian officials on secondment to the ANAO
|
August 2009
|
|
Role of the JCPAA (Committee Secretary)
|
Visiting parliamentary delegation from Finland
|
August 2009
|
|
Parliamentary oversight of public expenditure and the
FMA Act (Committee Chair)
|
Seminar in Dili for members of the East Timor National
Assembly
|
August 2009
|
|
Accountability in government (Committee Chair)
|
CPA Regional Seminar, Wellington New Zealand
|
November 2009
|
|
Role of the JCPAA (Committee Secretary)
|
Visiting parliamentary delegation from Kiribati
|
February 2010
|
|
Role of the JCPAA (Committee Secretary)
|
Visiting parliamentary delegation from Bangladesh
|
February 2010
|
|
How to run a committee (Committee Secretary)
|
Indonesian members and officials attending CDI seminar on
“Effective Financial Scrutiny: The Role of Parliament in Public Finance”
|
February 2010
|
|
Role of the JCPAA in oversight of Defence major
projects (Committee Chair and secretariat staff)
|
Visiting parliamentary delegation from Indonesia
|
June 2010
|
|
Role of the JCPAA (Committee Secretary)
|
Visiting delegation of officials from Mongolia
|
June 2010
|
|
|
|
|
Robert Oakeshott MP
Committee
Chair
