Preliminary Pages
Foreword
This report provides the findings of the Joint Committee of
Public Accounts and Audit’s examination of the Auditor‑General’s reports
tabled in Parliament between November 2010 and May 2011.
The Committee selected four reports to examine in detail.
First, the Committee reviewed the report on the audits of the 2009-10 financial
statements of Australian Government entities. The Committee also examined three
performance reports in detail, covering a range of departments and identified
key areas for improvements in administration, performance measurement and
evaluation, as well as reporting.
In terms of financial reporting, the Committee was pleased
to see another year of positive results for the financial statement audits of
Australian Government entities. With this in mind and rather than reviewing
individual entities audit results, the Committee decided to use this inquiry to
focus on broader aspects of the financial framework, including the transparency
of reporting to Parliament and the ability to demonstrate value for money to
the people of Australia. Noting that Finance is currently undertaking a major
multi-year Commonwealth Financial Accountability Review, the Committee
recommends that options for improved cross-agency and cross jurisdictional
financial reporting are fully considered as part of Finance’s review.
The three ANAO performance reports selected for review were:
the Digital Education Revolutions — National Secondary School Computer Fund;
Management of the Defence Estate; and the Management of Student Visas. These
reports gave the Committee the opportunity to look at a range of areas to
ensure the respective departments are operating effectively, reporting openly,
and providing value for money.
The Digital Education Revolution Program - National
Secondary School Computer Fund is a program delivered under the federal
financial relations framework with potential for widespread long-term community
benefit. The report suggested that the Department of Education Employment and Workplace
Relation’s overall administration of the program has been effective, although aspects
of monitoring and evaluation were omitted in the rush to meet the Government’s timeline.
Based on evidence given by DEEWR it appears likely the program’s target will be
met so that all students in Years 9 to 12 will have a computer by the start of
the 2012 academic year.
However, while the Department may meet the target, the lack
of performance indicators aimed at the qualitative aspects of the program and a
yet to be finalised evaluation mechanism are significant issues that need
addressed. This program is an investment involving federal, state and territory
governments. It deserves the full and timely scrutiny of the Parliament and the
public to ensure value for money and benefit for students. As such, the
Committee recommends DEEWR publicly release in full the findings from the mid‑program
review scheduled for 2012 within three months of completion.
With $20 billion at stake, the Committee opted to review the
report on the Maintenance of the Defence Estate. The Committee was concerned
with reports of deteriorating condition of the Defence estate, which includes
major bases, historically significant buildings and sites that have significant
occupational health and safety issues. The findings of the report indicated
that the Department of Defence’s management has not been fully effective and
that the current funding is not enough to preserve existing assets. The
Committee fully supports ANAO’s recommendations aimed at improving Defence’s
management of maintenance of its estate through improvements to maintenance
planning and delivery of maintenance services.
During the course of the inquiry, Defence advised the
Committee of efforts to incorporate the implementation of the ANAO’s
recommendations within the wider Defence estate strategy. Defence also noted
there were a number of major reviews and new activities to support the
implementation of the ANAO’s recommendations, though these are in the early
stages. To ensure that progress continues, the Committee recommends that
following the tabling of this report Defence provide an interim report to the
Committee within six months and a full report within twelve months on its progress
on implementation of the ANAO’s recommendations and the outcomes of the reform
and review activities underway.
The final performance report reviewed by the Committee was
the management of student visas. By 2009–10 the international education and
training sector had grown to be Australia’s third largest export industry, but it
was also the first year of negative growth in applications for some time.
Causes of this downturn included the global financial crisis, negative media
coverage, and policy changes. While it is appropriate policy settings that set
the tone for the reputation of the Australian education sector, it is
ultimately sound management that is the critical enabler of the student visa
program.
The Committee welcomed assurances from Department of
Immigration and Citizenship (DIAC) and the Department of Education, Employment
and Workplace Relations (DEEWR) that positive changes are underway. However,
the Committee was concerned to note that a number of reviews and evaluations
done across the student visa area over the years have not been finalised or
fully implemented. In light of the recent release of the Government’s response
to two major reviews that impact on the international student visa program, the
Baird Review and Knight Review, the Committee has decided to ask for a follow‑up
report from DIAC and DEEWR on implementation of the recommendations and
progress on other matters six months after the tabling of this report.
Overall, this inquiry has demonstrated that Australian
Government departments and agencies are well-positioned to continue meeting
their financial management obligations. It is also clear that the departments
reviewed are making progress in addressing outstanding issues highlighted by
the ANAO audits. However, there are still areas of concern, for example: rushed
implementation of programs at the expense of whole of project planning; and reviews
undertaken at significant cost to the taxpayer that remain either incomplete or
only partially implemented.
In closing, the Committee encourages other departments and
agencies across the Australian Public Service to learn from the findings of these
inquiries. In doing so, the Committee stresses to all agencies the importance of
reflecting not only on their own performance but also on the challenges, achievements,
and creativity of others - so as to collectively find new and better ways to
deliver services to Australians.
I would also like to sincerely thank each Committee member
for the non-partisan spirit in which work continues to be done on these
inquiries, and the ongoing focus on better public administration for
Australians.
Rob Oakeshott MP
Chair
Membership of the Committee
Chair
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Mr Rob Oakeshott MP
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Deputy
Chair
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Ms Yvette D’Ath MP
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Members
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Hon Dick Adams MP
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Senator Mark Bishop
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Mr Jamie Briggs MP
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Senator Helen Kroger
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Ms Gai Brodtmann MP
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Senator Glenn Sterle
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Mr Darren Cheeseman MP
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Senator Matt Thistlethwaite
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Mr Josh Frydenberg MP
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Ms Deb O’Neill MP
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Ms Laura Smyth MP
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Hon Alex Somlyay MP
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Committee Secretariat
Secretary
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Mr David Brunoro
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Inquiry
Secretaries
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Dr Narelle McGlusky
Ms Vikki Darrough
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Research
Officers
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Ms Lynette Mollard
Ms Emilia Schiavo
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Administrative
Officers
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Ms Dorota Cooley
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Ms Katrina Gillogly
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List of abbreviations
AASB
|
Australian Accounting Standards
Board
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ABS
|
Australian Bureau of Statistics
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ADF
|
Australian Defence Force
|
AL
|
Assessment Level
|
ANAO
|
Australian National Audit Office
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ATO
|
Australian Taxation Office
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AUASB
|
Australian Auditing and Assurance Standards Board
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CFS
|
Consolidated Financial Statements
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CMS
|
Comprehensive Maintenance Services
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COAG
|
Council of Australian Governments
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DEEWR
|
Department of Education,
Employment and Workplace Relations
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Defence
|
Department of Defence
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DEMS
|
Defence Estate Management System
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DER
|
Digital Education Revolution
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DIAC
|
Department of Immigration and Citizenship
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DSG
|
Defence Support Group
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ESOS
|
Education Services for Overseas
Students
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Finance
|
Department of Finance and
Deregulation
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GEMS
|
Garrison and Estate Management System
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GSS
|
Garrison Support Services
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ICT
|
Information and Communication
Technology
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IMF
|
International Monetary Fund
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JCPAA
|
Joint Committee of Public
Accounts and Audit
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NBN
|
National Broadband Network
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NOM
|
Net Overseas Migration
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NPA
|
National Partnership Agreement
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NSSCF
|
National Secondary Schools
Computer Fund
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RMW
|
Risk Managed Works
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SRP
|
Strategic Reform Program
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VET
|
Vocational Education and Training
|
List of recommendations
2 Audits of Financial Statements of Australian Government
Entities
Recommendation 1
The Joint Committee of Public Accounts and Audit recommends
that the Department of Finance and Deregulation develop options for improved
cross-agency and cross‑jurisdictional financial reporting as part of the
Commonwealth Financial Accountability Review.
3 Digital Education Revolution – National Secondary
Schools Computer Fund
Recommendation 2
The Joint Committee of Public Accounts and Audit recommends
the Department of Education, Employment and Workplace Relations publicly
release in full the findings from the mid‑program review scheduled for
2012 within three months of completion.
4 Maintenance of the
Defence Estate
Recommendation 3
Due to concerns raised by the
Joint Committee of Public Accounts and Audit in regard to implementation
timelines, the Committee recommends that following the tabling of this report,
the Department of Defence provide updates on the implementation of the ANAO’s
recommendations as follows:
- an
interim report within six months; and
- a
full report within 12 months.
The reports to the Committee
should address each recommendation and demonstrate how the outcomes of the
reform, and review activities underway, have contributed to the implementation
of the ANAO’s recommendations.
5 Management of Student Visas
Recommendation 4
The Joint Committee of Public Accounts and Audit recommends
that the Department of Immigration and Citizenship and the Department of
Education, Employment and Workplace Relations report back to the Committee in
six months from the tabling of this report on:
- implementation
of recommendations (including those of the ANAO, the Knight Review, and the
Baird Review);
- the
rectification of the Non-Compliance Notice issues;
- the
effectiveness of the new work arrangements between the Department of
Immigration and Citizenship and the Department of Education, Employment and
Workplace Relations; and
- an
update on developments with eVisa arrangements and online products, including
autogrant rate statistics.