The Joint Committee of Public Accounts and Audit (JCPAA) has tabled its report on the 2021–22 Commonwealth Financial Statements audits by the Australian National Audit Office (ANAO), a key transparency and accountability measure for the Commonwealth. The Committee’s inquiry focused its examination on the financial sustainability of Home Affairs, Agriculture and the NDIA, Defence’s use of appropriations, and cyber security issues.

Media release issue date: Thursday, 29 June 2023

The Joint Committee of Public Accounts and Audit (JCPAA) has tabled its report on the 2021–22 Commonwealth Financial Statements audits by the Australian National Audit Office (ANAO), a key transparency and accountability measure for the Commonwealth. The Committee’s inquiry focused its examination on the financial sustainability of Home Affairs, Agriculture and the NDIA, Defence’s use of appropriations, and cyber security issues. The Chair of the JCPAA, Mr Julian Hill MP, said that “this inquiry found an unusual range of concerns regarding financial sustainability of key Departments, cyber security and a surprising albeit arcane question regarding the legality of Defence’s payment of compensation for the Attack Class Submarines. “The Committee was concerned by evidence that the Department of Home Affairs’ budget was fundamentally misaligned with the core activities of the Department for years under the previous Government. This was made worse because evidence revealed it was forced to cop $180 million of further cuts due to the Liberals’ failed $92 million visa privatisation.” “Agriculture has been facing an underlying structural cash deficit for many years, driven by the cost recovery of biosecurity functions. Given the critical importance of biosecurity activities and the economic and environmental costs of breaches, the Committee is of the view that the situation was fundamentally unsustainable and the Government and Department must respond.” “The Committee has welcomed the current review of the NDIS given the evidence that the scheme costs have been growing faster than anticipated for many years, posing risks to the long term sustainability of critical supports to the disability sector.” The Committee was also concerned that Defence’s problematic use of non-operational (‘equity’) expenditure from Appropriation Act (No. 2) 2020–21 to fund the termination payment for the French Attack Class Submarine project, an operational expense. Mr Hill said “the Committee’s strong view that this payment should not have happened in this way and should not be allowed to happen again. Defence clearly understood this was a potential Constitutional issue and sought legal advice. The JCPAA’s view is that this is not really a matter for the courts, it is a question of Parliamentary control over the Executive as Parliament’s intent should not be subverted in the name of quick action.” The Committee has recommended that the Minister for Finance review this matter and accept the JCPAA’s conclusion, and that future Appropriation Bills clarify that an ‘equity injection’ or ‘equity funding’ is non-operating expenditure. The report also examined cyber security issues under the Protective Security Policy Framework (PSPF), which continue to represent the majority of ANAO’s adverse findings in Financial Statement’s audits. Mr Hill said “the Auditor-General has identified a persistent optimism bias in how agencies self-report their cyber security compliance. This issue has gone on for too long, and it’s time government consider implementing an assurance regime on agencies’ self-reporting on cyber security compliance. Agencies should not be able to disguise the true situation from the Government in relation to public sector cyber security vulnerabilities.” The report makes six recommendations related to the financial sustainability of Home Affairs and NDIA, the proper use of appropriated expenditure, and processes for providing greater assurance and transparency on cyber security compliance under the PSPF. The Committee’s report is available on the Committee website. Media inquiries Mr Julian Hill MP, Chair of the Joint Committee of Public Accounts and Audit on (03) 9791 7770 (Electorate Office) or via Patrick Lee on 0484 187 009. For background information Committee Secretariat 02 6277 4615 jcpaa@aph.gov.au For more information about this Committee, you can visit its website. On the site, you can make a submission to an inquiry, read other submissions, and get details for upcoming public hearings. You can also track the Committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right-hand corner of the page.

The Joint Committee of Public Accounts and Audit (JCPAA) will hold a public hearing on Friday 14 April to examine the findings of the Independent Review of Services Australia and NDIA Procurement and Contracting led by Dr Ian Watt AC (the Watt review), as part of its ongoing inquiry into Commonwealth procurement.

Media release issue date: Thursday, 13 April 2023

The Joint Committee of Public Accounts and Audit (JCPAA) will hold a public hearing on Friday 14 April to examine the findings of the Independent Review of Services Australia and NDIA Procurement and Contracting led by Dr Ian Watt AC (the Watt review), as part of its ongoing inquiry into Commonwealth procurement. The Watt review examined 95 procurements undertaken by Services Australia and NDIA from 2015–16 to the present, and found that 19 procurements with an approximate value of $374 million showed inconsistencies with the Commonwealth Procurement Rules or did not show good practice. Mr Julian Hill MP, the Chair of the Committee, noted that Dr Watt’s findings closely mirrored the issues that had been raised by the Australian National Audit Office during the Committee’s procurement inquiry. “The Watt review flagged five of the 95 procurements as being of lower standard than comparable procurements undertaken by the agencies,” Mr Hill stated. “The Committee is keen to question the key parties involved in the procurement process to gain an understanding of where the issues lie and how they have been addressed.” The Committee will be hearing from Dr Ian Watt AC, followed by the two agencies subject of the review, as well as representatives from a number of companies who were awarded contracts identified as being of particular concern in the Watt review including Infosys Pty Ltd, Portland, Synergy 360 / Milo Consulting and Australian Property Reserve Pty Ltd. Following the session on procurement, the JCPAA will continue its program of public hearings for its inquiry into Commonwealth Financial Statements hearing from the NDIA. Details for the public hearings are: Friday 14 April 2023 Inquiry into Commonwealth procurement Time: 10.00am – 4.00pm AEST Venue: Committee Room 2R1, Parliament House, Canberra Inquiry into Commonwealth Financial Statements Time: 4.15pm – 6.00pm AEST Venue: Committee Room 2R1, Parliament House, Canberra Further information about the inquiries is available on the Committee website. Media inquiries Mr Julian Hill MP, Chair of the Joint Committee of Public Accounts and Audit on (03) 9791 7770 (Electorate Office). For background information Committee Secretariat 02 6277 4615 jcpaa@aph.gov.au For more information about this Committee, you can visit its website. On the site, you can make a submission to an inquiry, read other submissions, and get details for upcoming public hearings. You can also track the Committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right-hand corner of the page.

The Joint Committee of Public Accounts and Audit (JCPAA) will hold public hearings this week for its inquiries into Commonwealth procurement, Commonwealth Grants Administration and the Commonwealth Financial Statements 2021-22.

Media release issue date: Wednesday, 29 March 2023

The Joint Committee of Public Accounts and Audit (JCPAA) will hold public hearings this week for its inquiries into Commonwealth procurement, Commonwealth Grants Administration and the Commonwealth Financial Statements 2021-22. THURSDAY: Procurement Inquiry wrapping up Thursday 30 March 2023 Time: 08.00am – 09.00am Venue: Committee Room 2R1, Parliament House, Canberra The Australian National Audit Office (ANAO) and the Community and Public Sector Union will appear before the JCPAA to further discuss concerns about contract management by the Department of Home Affairs. This hearing will allow the Committee to sum up the broader evidence received throughout the inquiry in what is likely to be the last hearing. FRIDAY: Grants Administration Inquiry continues Friday 31 March 2023 Time: 08.30am – 10.00am Venue: Committee Room 2R1, Parliament House, Canberra On Friday, JCPAA will welcome the Department of Finance and the ANAO for the final hearing for the inquiry into Commonwealth Grants Administration. The Committee will consider questions on the effectiveness of the Commonwealth Grants Rules and Guidelines and best practice in the administration of grants programs. FRIDAY: Commonwealth Financial Statements Inquiry kicks off Friday 31 March 2023 Time: 10:15am – 12:30pm Venue: Committee Room 2R1, Parliament House, Canberra Also on Friday, the JCPAA will commence public hearings for its inquiry into the Commonwealth Financial Statements. Key themes to be explored include: ANAO concerns regarding Defence’s use of appropriations Financial sustainability of government departments, in the context of media reports that the Department of Agriculture, Fisheries and Forestry is “on the cusp of requiring a financial bailout”, and concerns regarding the Department of Home Affairs. The Committee Chair, Mr Julian Hill MP, noted that these themes were just two of many matters raised in the ANAO’s audit findings from its review of the financial statements. ‘The Committee has a particular interest in understanding how Commonwealth entities are managing their financial resources to meet their present and future funding commitments,’ Mr Hill said. Further information about the inquiries is available on the Committee website. Media inquiries Mr Julian Hill MP, Chair of the Joint Committee of Public Accounts and Audit on (03) 9791 7770 (Electorate Office). For background information Committee Secretariat 02 6277 4615 jcpaa@aph.gov.au For more information about this Committee, you can visit its website. On the site, you can make a submission to an inquiry, read other submissions, and get details for upcoming public hearings. You can also track the Committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right-hand corner of the page.

The Joint Committee of Public Accounts and Audit (JCPAA) has commenced an inquiry into the 2021-22 Commonwealth Financial Statements.

Media release issue date: Wednesday, 25 January 2023

The Joint Committee of Public Accounts and Audit (JCPAA) has commenced an inquiry into the 2021-22 Commonwealth Financial Statements. The Commonwealth Financial Statements are audited each year by the Australian National Audit Office (ANAO) to provide the Parliament with an independent examination of the Commonwealth’s accounts. The audit identifies financial statement risks, issues with governance arrangements, and any problems with the internal control frameworks of Commonwealth entities. The Chair of the JCPAA, Mr Julian Hill MP, said that the JCPAA inquiry would examine the ANAO’s findings and engage with agencies mentioned in the audit. ‘This process is an important accountability and transparency mechanism whereby the Parliament can interrogate in detail issues raised by the Auditor-General regarding the financial statements of all Commonwealth entities,’ Mr Hill said. ‘The Committee looks forward to hearing about improvements agencies have made in response to the audit’. The inquiry will examine Auditor-General Report No. 8 of 2022-23: Audits of the Financial Statements of Australian Government Entities for the Period Ended 30 June 2022. The Committee invites submissions to the inquiry addressing the terms of reference to be received by Friday, 3 March 2023. Details of the inquiry – including the terms of reference and public hearings – will be made available on the Committee website. Media inquiries Mr Julian Hill MP, Chair of the Joint Committee of Public Accounts and Audit on (03) 9791 7770 (Electorate Office) or via Patrick Lee on 0484 187 009. For background information Committee Secretariat 02 6277 4615 jcpaa@aph.gov.au For more information about this Committee, you can visit its website. On the site, you can make a submission to an inquiry, read other submissions, and get details for upcoming public hearings. You can also track the Committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right-hand corner of the page.