The content on this page and other DBCDE document archive pages is provided to assist research and may contain references to activities or policies that have no current application. See the full archive disclaimer.
Appendix 3 External Scrutiny
The Australian National Audit Office (ANAO) issued four reports of relevance to the Department in 2008–09. Three reports required the direct participation of the Department. The fourth report was of special interest to the Department.
2008–09 Direct participation
Report No. 42 Interim Phase of the Audit of Financial Statements of the General Government Sector Agencies for the Year ending 30 June 2009
Tabled: Tuesday, 23 June 2009
This report presented the results of the interim phase of the 2008–09 financial statement audits of all portfolio departments and other major General Government Sector agencies. The purpose of this report was to provide assurance to Parliament that the systems, controls and processes in place were operating in a way that allowed agencies to prepare financial statements that accurately report their financial performance and position at year end.
The factors that contributed to the risk assessment on which the financial statement audit was focused, included program management and grant and subsidies processing and management. There were no significant or moderate risk issues identified during the 2008–09 interim audit. Testing confirmed that the Category B finding from the 2007–08 final audit, related to weaknesses in reporting expenses and accruals for broadband subsidy programs, had been addressed.
The Department’s key internal controls were operating satisfactorily to provide reasonable assurance that the Department will be able to produce financial statements free of material misstatement.
Report No. 14 Audits of the Financial Statements of Australian Government Entities for the Period Ended 30 June 2008
Tabled: Wednesday, 17 December 2008
The Auditor-General Act 1997 established the mandate for the Auditor-General to undertake financial statements audits of all Commonwealth entities including those of Government agencies, statutory authorities and government business enterprises.
Financial statement audits are an independent examination of the financial accounting and reporting of public sector entities. This report complements the interim report and provides a summary of the final audit results of the financial statements of all Australian Government entities.
The ANAO identified that the Department had been unable to provide evidence of a transactional banking agreement which fulfilled the requirements of the Financial Management and Accountability Act 1997 and the Agency Banking framework during the 2007–08 interim audit phase.
The Department had also overdrawn its bank accounts on 15 occasions and it was noted by the ANAO that there were instances where the debit balance was not adjusted the following working day.
This audit finding had been resolved by the formal agency banking agreement with the Department’s transactional banker in July 2008 and procedures were implemented that provide for any overdrawn balances to be adjusted on the following working day.
There were no significant or moderate audit issues identified in non-material entities within the portfolio in 2007–08.
Report No. 3 Establishment and Management of the Communications Fund
Tabled: Tuesday, 23 September 2008
The objective of the audit was to assess the effectiveness of the management and administration of the Communications Fund. The development and implementation of appropriate investment strategies and robustness of the governance structures and controls were assessed by the ANAO.
There were two findings in this audit report:
- The ANAO recommended that, in future circumstances where it was proposed to seek legislative authority for the purchase of investments with higher risk than those permitted under the Financial Management Act 1997 framework, agencies
- assess the benefits and risks of the proposed approach so as to provide well-informed advice to the Government
- consult with the Department of the Treasury and the Department of Finance and Deregulation.
- ANAO recommended that, in future circumstances where agencies are seeking investment advice for asset funds, they provide
- the selected advisor with a clear statement as to the parameters within which the funds are to be invested and accessed
- Ministers with advice that addresses the merits of possible investment approaches.
Both recommendations were agreed by the Agencies involved.
2008–09 Special interest
Report No. 25 Green Office Procurement and Sustainable Office Management.
Tabled: Wednesday, 11 March 2009
The focus of this audit was to assess and report on the progress being made by Government agencies in achieving better practice in green office procurement and sustainable office management. As part of the Audit 63 agencies were included in the audit survey and detailed validation was carried out in nine of these agencies.
The ANAO made seven recommendations designed to assist agencies in meeting the Government’s stated expectations in sustainable development and promote better practice.
The draft report was sent to 22 agencies, being subject of findings, for comment. All agencies that responded were generally supportive of, and agreed to all recommendations. Some agencies however, commented on the constraints imposed by the existing standard of available building stock and the period of nominal occupancy for existing leases. Cost and resource implications of undertaking some measures were also referred to.
There were seven recommendations contained in this report and these did not require direct action by the Department but were monitored.