The ANAO should consider extending its internal budgeting to forward years, to provide greater alignment to key corporate strategies and priorities, and to enable a more strategic forward outlook to assist in managing future risks and operational pressures.

Agreed.

The ANAO agrees that implementation of the recommendations made will further improve the ANAO’s budgeting and forecasting processes and practices. The ANAO accepts the insights and observations made in the report and will consider these in its future budgeting and forecasting activities.

Completed.

The ANAO commenced preparing current year and forward estimates operating and capital budgets for the 2020-21 financial year. This budget aligns with PBS funding. Four year operating and capital budgets will be updated and considered by the Executive Board of Management at least bi-annually.

As part of the annual budget setting process, the ANAO should: 

• identify key internal plans and strategies which impact the internal budget; and 
• strengthen and evidence the alignment of key internal plans and strategies to the internal budgeting and decision making processes.

Agreed.

The ANAO agrees that implementation of the recommendations made will further improve the ANAO’s budgeting and forecasting processes and practices. The ANAO accepts the insights and observations made in the report and will consider these in its future budgeting and forecasting activities.

Completed

The ANAO’s 2021-22 to 2024-25 Budget and Financial Strategy document was approved in June 2021. The updated strategy reflects changes in the operating environment, new and emerging budget pressures, capital investment principles and strategies including a capital management plan, an annual post-budget review process, and alignment with the ANAO’s key planning documents and four-year planning horizon.

PASG should review its internal processes relating to budget overruns to ensure there is appropriate monitoring and approval of variations to original baseline budgets. 

Consideration should also be given to providing additional training or education to audit teams in relation to expected requirements.

Agreed.

The ANAO agrees that implementation of the recommendations made will further improve the ANAO’s budgeting and forecasting processes and practices. The ANAO accepts the insights and observations made in the report and will consider these in its future budgeting and forecasting activities.

Completed

The ANAO has implemented adjustments in the audit planning process to ensure a greater focus on risk assessment at audit budget costing stage to better reflect the likely budget requirements of the audit given the scope and risks. The ANAO also provided training on budget management to audit teams and uses system reporting to actively monitor audit costs against budget.

The ANAO should implement a post budget review as part of its annual internal budget process. This should consider the efficiency and  effectiveness of processes undertaken, to encourage continual improvement in future budget processes.

Agreed.

The ANAO agrees that implementation of the recommendations made will further improve the ANAO’s budgeting and forecasting processes and practices. The ANAO accepts the insights and observations made in the report and will consider these in its future budgeting and forecasting activities.

Completed.

The ANAO’s 2021-22 to 2024-25 Budget and Financial Strategy document was approved in June 2021. The updated strategy reflects changes in the operating environment, new and emerging budget pressures, capital investment principles and strategies including a capital management plan, an annual post-budget review process, and alignment with the ANAO’s key planning documents and four-year planning horizon.