Joint Committee of Public Accounts and Audit
Recommendations
Recommendation 1
The Committee recommends that the Minister for Defence direct the Secretary
of the Department of Defence to institute an investigation to establish:
the appropriateness or otherwise of the $2.4 million payment to the Australian
Submarine Corporation's broker; whether Commonwealth monies may have been
misdirected; and why a full audit trail could not be produced. (paragraph
3.37)
Recommendation 2
The Committee recommends that where the Department of Defence settles
a commercial dispute, the settlement process be openly and properly
documented. (paragraph 3.38)
Recommendation 3
The Committee recommends that the Auditor-General's Recommendations
No. 4 and No. 5 in Audit Report No. 34, 1997-98, concerning increasing
the frequency of the cost schedule control system surveillance audit
and increasing the proportion of work package progress claims reviewed,
be implemented by the Department of Defence. (paragraph 4.36)
Recommendation 4
The Committee recommends that the Department of Defence apply the utmost
diligence to ensuring that the funds the Australian Submarine Corporation
has in hand and the remaining funds the Department of Defence has yet
to pay under the contract, will be sufficient for the satisfactory completion
of the new submarine project. (paragraph 5.39)
Recommendation 5
The Committee recommends that the Minister for Finance make legislative
provision, either though amendment of the Auditor-General Act or the
Finance Minister's Orders, to enable the Auditor-General to access the
premises of a contractor for the purpose of inspecting and copying documentation
and records directly related to a Commonwealth contract, and to inspect
any Commonwealth assets held on the premises of the contractor, where
such access is, in the opinion of the Auditor-General, required to assist
in the performance of an Auditor-General function. (paragraph 6.20)
Recommendation 6
The Committee recommends that realistic allowances for contingencies
be made in delivery schedules for major Department of Defence projects
and changeovers in platform types. (paragraph 10.45)
Recommendation 7
The Committee recommends that the Government urgently address the outstanding
issue of through-life support for the Collins submarines. (paragraph
10.57)