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ANAO Corporate Plan 2023–24
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The ANAO Corporate Plan 2023–24 outlines how we intend to deliver against our purpose over the next four years (2023–24 to 2026–27). The corporate plan is the ANAO’s primary planning document – it outlines our purpose; the dynamic environment in which we operate; our commitment to building capability; and the priorities, activities and performance measures by which we will be held to account. The corporate plan is complemented by the annual audit work program, which reflects the ANAO’s audit strategy for the coming year.
This corporate plan was updated on 26 March 2024:
- organisational structure changes — ‘Professional Services and Relationships Group’ to ‘Professional Services Group’
- Measure 3 — change type from ‘Efficiency / Qualitative’ to ‘Efficiency / Quantitative’
- Measure 15, reporting mechanism 4 — replaced text to reflect updated JCPAA feedback process
- Measure 16, reporting mechanism 3 — replaced references to ‘insights’ with ‘lessons’
Introduction
Auditor-General’s foreword
The Australian National Audit Office (ANAO) Corporate Plan 2023–24 updates the previous corporate plan and outlines how we intend to deliver against our purpose over the next four years (2023–24 to 2026–27).
The corporate plan is the ANAO’s primary planning document – it outlines our purpose; the dynamic environment in which we operate; our commitment to building capability; and the priorities, activities and performance measures by which we will be held to account. The plan highlights our desire to engage positively and transparently in delivering audit and support services to the Parliament. In addition, the plan details our approach to risk management, which is critical to successfully meeting our responsibilities in providing professional and independent audits to the Parliament.
The corporate plan is part of our strategic planning process. This process allows us to continually improve organisational practices and capability and demonstrate value in delivering our services to the Parliament. The corporate plan is complemented by the annual audit work program, which reflects the ANAO’s audit strategy for the coming year.
Statement of preparation
As the accountable authority of the Australian National Audit Office under the Auditor-General Act 1997, I am pleased to present the ANAO Corporate Plan 2023–24, which covers the period 2023–24 to 2026–27, as required under paragraph 35(1)(b) of the Public Governance, Performance and Accountability Act 2013.
Grant Hehir
Auditor-General
6 July 2023
At a glance
A summary of the ANAO’s purpose, outcome, programs and shared activity is shown in Figure 1.
Note: The ANAO’s three programs and one area of shared activity are outlined in the Portfolio Budget Statements 2023–24. Performance measure numbers refer to numbers used in this corporate plan.
Purpose
Our purpose
The purpose of the Australian National Audit Office is to support accountability and transparency in the Australian Government sector through independent reporting to the Parliament, and thereby contribute to improved public sector performance.
The ANAO delivers its purpose under the Auditor-General’s mandate in accordance with the Auditor-General Act 1997, the Public Governance, Performance and Accountability Act 2013 and the Public Service Act 1999.
The executive arm of government is accountable to the Parliament for its use of public resources and the administration of legislation passed by the Parliament. The Auditor-General provides independent assurance as to whether the executive is operating and accounting for its performance in accordance with the Parliament’s intent (Figure 2).
The Governor-General, on the recommendation of the Joint Committee of Public Accounts and Audit (JCPAA) and the Prime Minister, appoints the Auditor-General for a term of 10 years. As an independent officer of the Parliament, the Auditor-General has complete discretion in the performance or exercise of the functions or powers under the Auditor-General Act 1997 (the Act). In particular, the Auditor-General is not subject to direction in relation to:
- whether a particular audit is to be conducted;
- the way a particular audit is to be conducted; or
- the priority given to any particular matter.
In exercising the functions or powers under the Act, the Auditor-General must have regard to the audit priorities of the Parliament, as determined by the JCPAA and any reports made by the committee under the Public Accounts and Audit Committee Act 1951.
Under the Act, the Auditor-General’s functions include:
- auditing the annual financial statements of Commonwealth entities, Commonwealth companies and their subsidiaries, and the consolidated financial statements;
- conducting performance audits and assurance reviews;
- audits of the annual performance statements and performance measures of Commonwealth entities and Commonwealth companies and their subsidiaries;
- conducting a performance audit of a Commonwealth partner as described in section 18B of the Act;
- providing other audit services as required by other legislation or allowed under section 20 of the Act; and
- reporting directly to the Parliament on any matter or to a minister on any important matter.
The Auditor-General’s functions are a key component of the accountability and integrity framework, and form part of the core business of Australian public sector entities. The Act sets out the requirements for entities to engage with the Auditor-General in the carrying out of Auditor-General functions.
The ANAO supports the Auditor-General in this role.
ANAO values
The ANAO upholds the Australian Public Service (APS) values as set out in the Public Service Act 1999. The ANAO places particular focus on respect, integrity and excellence – values that align with the APS values and address the unique aspects of the ANAO’s business and operating environment. The ANAO’s values guide the office in performing its role objectively, with impartiality and in a manner that supports the Parliament.
Corporate structure
The ANAO is organised into six functional areas:
- Corporate Management Group leads corporate strategy and change for the ANAO. It provides services based on specialised knowledge, best practices and technology that enable the delivery of the ANAO's purpose and audit outcomes. Corporate Management Group also provides legal advice and support to the Auditor-General and manages the ANAO's external relations.
- Financial Statements Audit Services Group provides independent assurance on the financial statements and financial administration of all Australian Government entities. It also conducts assurance reviews.
- Performance Audit Services Group conducts performance audits and assurance reviews of Australian Government entities and their activities, and produces performance audit publications, including the annual Major Projects Report on Defence equipment acquisitions, and information reports.
- Performance Statements Audit Services Group conducts audits of Australian Government entities’ annual performance statements and measures.
- Professional Services Group provides technical accounting, and audit advice and support to the Auditor-General; and establishes, manages and monitors the implementation of the quality assurance and integrity frameworks; and manages the ANAO’s external relations.
- Systems Assurance and Data Analytics Group provides IT audit and data analytics support to the ANAO’s full range of audit work.
The ANAO website contains further information about the ANAO’s structure.
Key relationships
The ANAO’s primary relationship is with the Australian Parliament and the ANAO’s key interaction with the Parliament is through the JCPAA. Among its responsibilities, the JCPAA considers the operations and resources of the ANAO, including the ANAO draft budget estimates, about which it makes recommendations to both houses of parliament. The JCPAA is required to review all ANAO reports that are tabled in the Parliament and to report the results of its deliberations to both houses of parliament. The committee’s functions in relation to the ANAO are specified in the Public Accounts and Audit Committee Act 1951.
The Auditor-General, supported by the ANAO, assists the work of the Parliament by providing independent reporting, assurance and opinions. The ANAO further supports the Parliament by appearing before, and providing submissions, briefings and other information to, parliamentary committees, as well as providing briefings to parliamentarians. The Parliament and its committees also scrutinise the work and administration of the ANAO.
The ANAO’s relationship with the accountable authorities of Australian Government entities is important, as accountable authorities have a duty to govern in a way that promotes the proper (that is, efficient, effective, economical and ethical) use of public resources, the achievement of their entity’s purpose, and the financial sustainability of their entity. The ANAO regularly engages with officials of audited entities and attends audit committee meetings of Australian Government entities.
The ANAO invests in its external relationships to support learning through the two-way exchange and sharing of information and practices, and to support other nations through peer-to-peer institutional capacity development. The ANAO contributes to the Australasian auditing community as a member of the Australasian Council of Auditors-General. The ANAO also has close links with the international and regional auditing community through the International Organization of Supreme Audit Institutions and its related regional organisations, particularly the Pacific Association of Supreme Audit Institutions and the Asian Organisation of Supreme Audit Institutions. The ANAO’s regional engagement contributes to the delivery of the Australian Government’s development program in the Indo-Pacific region.
The ANAO values its relationships with the Australian Accounting Standards Board and the Auditing and Assurance Standards Board in their roles of setting and maintaining professional and ethical standards for the accounting and auditing professions, which underpin the delivery of quality audit services.
The ANAO website contains further information about the ANAO’s relationships.
Strategic planning framework
The ANAO’s governance and strategic direction are underpinned by a strategic planning framework (Figure 3). The corporate plan is the ANAO’s primary planning document and covers the next four-year period, 2023–24 to 2026–27. From this plan, the ANAO’s annual priorities flow into the annual audit work program, business plans, and then to individual performance agreements. The ANAO reports on its activities through its annual report.
Environment
This section sets out the nature of the ANAO’s operating environment over the four-year period of this corporate plan. It outlines how factors and changes in the environment may affect and influence the focus of the ANAO’s annual audit work program.
Understanding, adapting and responding to changes in our operating environment is critical to delivering on the ANAO’s purpose.Supporting the Australian Parliament
The ANAO will seek to achieve its purpose by supporting the Auditor-General’s independent exercise of functions under the Auditor-General Act 1997. Key activities will include a program of audit and assurance engagements to provide assurance to the Australian Parliament on entities’ administration and financial statements, and the preparation of reports to inform the Parliament on aspects of Commonwealth administration and performance.
The ANAO will further support the Parliament through ongoing assistance to parliamentarians and committees, particularly the Joint Committee of Public Accounts and Audit (JCPAA), which has statutory duties relating to the ANAO under the Public Accounts and Audit Committee Act 1951. These duties include examining all Auditor-General reports that are tabled in the Parliament. The ANAO will continue to actively engage and provide advisory support to the JCPAA.
In supporting the Parliament, the ANAO recognises the complexities of auditing in a contestable environment – specifically with the shift towards government and service provider information being held not only as commercial-in-confidence, but at increasingly higher levels of security classification. Access to information is critical to the audit process, providing the foundation for substantive, accurate, evidence-based conclusions. The role of the auditor will always be focused on driving transparency and providing the information necessary to assist the Parliament in holding executive government to account. The ANAO will continue to manage the complexities that such a shift creates in the conduct of our audit work and, as necessary, bring them to the Parliament’s attention in our audit reports.
Further, in an environment where accountable authorities are charged with delivering the government’s agenda, the ANAO identifies delivery risks against the frameworks established by the Parliament, the government and by accountable authorities themselves. This can create tension when the delivery does not deliver the level of compliance with mandatory requirements that the Parliament expects. Some evidence indicates that the Parliament is signalling a desire for more system-level assurance and transparency of the operation of public sector frameworks, such as the:
- performance reporting, corporate planning and risk management rules under the Public Governance, Performance and Accountability Act 2013;
- Protective Security Policy Framework, including cybersecurity rules;
- Commonwealth Procurement Rules;
- Commonwealth Grant Rules and Guidelines; and
- ethical decision-making in the public sector including the requirements of the Public Service Act 1999.
Increasingly, the Parliament is also seeking insight from the ANAO on the relationship between compliance and organisational culture. The ANAO will continue to focus on providing transparency and accountability on regulatory frameworks through our audit work.
New audit products and standards
The ANAO will support the Parliament by continuing the staged implementation of performance statements audits and further assessing entities’ ethical and efficient use of public resources.
Performance statements audits
To support the Parliament and contribute to further maturity in the Australian Government sector’s performance reporting, the ANAO’s Portfolio Budget Statements 2022–23 introduced a new program for the staged implementation of performance statements audits. The purpose of the program, and its related audits, is to drive improvement in the quality of entities’ performance reporting to the Parliament and the public, against the requirements of the Commonwealth Performance Framework.
During the ANAO’s annual performance statements audit pilot program (2020–21), the ANAO noted improvement in the standard of performance statements preparation and reporting for each of the audited entities. Again, in 2021–22, audits showed that entities were continuing to improve the quality of their performance reporting, enabling the Parliament to have greater confidence in the information reported by entities in their performance statements. These improvements demonstrate that mandated audits of annual performance statements can drive more transparent and meaningful performance reporting to the Parliament. The ANAO has begun providing end-of-year reports to the Parliament on this program of work.
While entities have demonstrated their willingness to improve the quality of their annual performance statements, we have observed that performance reporting capability and supporting evidence systems require further maturity and improvement. This is important if performance information is to contribute to entity strategic planning and provide an evidence base for entities to justify new policy proposals and evaluate existing policy and program settings.
To date, the ANAO has taken an educative approach to engaging with entities on audits of annual performance statements. Our focus is on supporting entities to apply general guidance to their own circumstances and on how to make incremental improvements over time. This approach has assisted in improving the quality of entities’ performance reporting.
Moving forward, the ANAO will continue to refine its audit methodology to ensure it remains fit for purpose and encourages entities to improve the quality and usefulness of their performance reporting. This will include supporting entities to meet both the requirements of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) and the spirit and intent of the Commonwealth Performance Framework. The ANAO has established a Performance Statements Expert Advisory Panel, which will play an important role in guiding maturity of the audit program as it reaches full implementation. The ANAO will also support the JCPAA in its inquiry into Annual Performance Statements
The ANAO aims to work closely with the Department of Finance, as the policy owner of the Commonwealth Performance Framework, to support ongoing improvements to performance reporting and evaluation. This will include providing feedback to the Department of Finance on how the PGPA Rule is operating following the 2022–23 audit cycle.
Auditing ethics and efficiency
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) requires accountable authorities of Commonwealth entities to govern their entities in a way that promotes the proper use and management of public resources. The PGPA Act defines ‘proper’, when used in this context, to mean efficient, effective, economical and ethical – known as the ‘4 Es’. The ANAO assesses all aspects of the proper use of resources, with effectiveness being the most common of these objectives examined.
The importance of ethics in government programs has been highlighted in several audits, particularly in procurement and grants administration. A theme that we have identified across a number of audits is a lack of adequate documentation and records to support the rationale for decisions made and actions undertaken. Lack of proper documentation of decision-making processes makes it difficult for entities to be assured that the activity was undertaken with integrity and without improper influence or consideration of inappropriate factors.
Greater scrutiny in this area will help ensure that the public sector is looking beyond technical compliance with the rules and policy framework and operating in line with the intent behind these frameworks, alongside community expectations of integrity. A culture of integrity in an organisation flows from the standards set by its leaders.
In November 2022, the ANAO finalised the design of an audit framework against which to test ethics. We have applied this new methodology in our work, with several audit reports tabled in Parliament with a view on whether entities have acted ethically and with integrity in the delivery of government programs.
The ANAO will continue to focus on the ethical aspect of proper use and management of public resources, including entity governance and ethical frameworks.
Alongside an ethical approach to spending taxpayers’ money, efficiency is an important consideration in the management of public resources. In 2016, the ANAO developed and implemented an audit methodology for undertaking performance audits focused on efficiency. In a public sector auditing context, efficiency is primarily about entities making the most of available resources – that is, minimising inputs used to deliver the intended policy outputs in terms of quality, quantity and timing.
Shifting priorities in the public sector
The ANAO must maintain a contemporary understanding of the public sector. This understanding is critical in supporting the delivery of an integrated audit work program that provides assurance on public sector performance to the Parliament. Failure to adequately respond to changes in the government sector could negatively impact:
- confidence in the ANAO;
- our ability to contribute to improved performance and accountability in the public sector; and
- the effective and professional operation of the ANAO.
Under the powers granted in the Auditor-General Act 1997, the Auditor-General is not subject to direction on whether a particular audit is to be conducted or what priority is to be given to any particular matter. In this context, the ANAO remains attuned to significant shifts in public administration that may impact the development of our work program. A draft annual audit work program is provided to the Parliament for consultation on the audit priorities of the Parliament, through the JCPAA. The JCPAA may seek input from other parliamentary committees to develop a consolidated response on the audit priorities of the Parliament. The ANAO also invites feedback from accountable authorities of Australian Government entities affected by the proposed audit coverage, members of the public, the Commonwealth Ombudsman, the Inspector-General of Taxation, the Inspector-General of Intelligence and Security, and the Office of the Australian Information Commissioner. Going forward the ANAO will also consult with the Commonwealth’s Integrity Commissioner.
The ANAO is aware of those factors that may influence the wider stance on, and expectations of, the Australian Public Service (APS). In recent years, executive governments have committed to delivering a stronger public service through APS reform. This reform agenda acknowledges that trust in government can only be maintained by a sector that upholds integrity, and unwaveringly supports the necessary transparency that substantiates this trust.
Further, the ANAO is cognisant of the government’s establishment of a national integrity commission, which commenced operations on 1 July 2023 under the National Anti-Corruption Commission Act 2022. The National Anti-Corruption Commission, looks to prevent, detect, investigate and report on serious or systemic corruption in the Commonwealth public sector. The ANAO recognises the importance of strengthening the Commonwealth’s integrity agenda and assuring the operation and function of independent bodies.
Similarly, the ANAO notes the surfacing of community concerns over appropriate stewardship of the APS. While the concept of stewardship (like integrity) is not formally defined within the Public Service Act 1999, public servants and institutions are responsible for acting, and expected to act, in a way that is committed to public interests. The Royal Commission into the Robodebt Scheme highlighted the consequences of management approaches that not only fall short of upholding these values, but fail to take carriage of the responsibility associated with public interest decision-making. The ANAO will continue to monitor stewardship of the APS, specifically the link between APS culture, organisational culture and improving public sector performance.
As part of our environmental scanning, the ANAO also considers emerging risks from new and ongoing investments within the public service operating environment – particularly where prior-year audit and other review findings suggest risks associated with program sustainability. This is especially important with service delivery programs that represent a significant financial commitment by government, and thereby bring significant risk. The National Disability Insurance Scheme, established under the National Disability Insurance Scheme Act 2013, is an example of such a service delivery program. The National Disability Insurance Agency manages a significant volume of taxpayer funding through payments to individuals and providers.
Similarly, in June 2022, the Australian Government lodged an updated nationally determined contribution (NDC) under the Paris Agreement on climate change. The updated NDC communicates Australia’s commitment to reduce greenhouse gas emissions and build resilience to adapt to climate change. The recent Climate Change Act 2022 makes consequential amendments to 14 Acts to support the effective implementation of the updated NDC. It embeds Australia’s greenhouse gas emissions reduction targets into the objectives and functions of a range of Commonwealth entities and schemes. While the government’s commitment to addressing climate change serves to meet growing global concerns, public sector responsibility for managing and coordinating implementation risks is broad and complex. Effective government administration is contingent on effective risk management. Increased areas of risk in program or policy implementation often means adjusting audit risk profiles. The ANAO will continue to monitor these areas of critical government administration to ensure that such substantial investments of resources not only meet the requirements set out within public sector frameworks, but also deliver the intended outcomes for the Australian public.
Shifts in public sector priorities are also heavily influenced by the ever-changing nature of technology. While often enabling operational improvements, advances in technology and changes within the IT landscape also create challenges within the sector, especially in preserving resilient national security. At a global level, data breaches are illustrating the importance of maintaining personal privacy when managing large datasets.
With growing cybersecurity threats, organisations need to understand their information and data risks and protect their critical information assets – including private, sensitive and security-classified data – from malicious actors. Appropriate security can only be maintained through a considered and appropriately resourced approach to cyber resilience, supported by effective cyber controls. Appropriate cybersecurity, driven by auditing against the mandatory Australian Government frameworks, will remain a focus of our audit work.
Within this changing national security environment, the ANAO has observed increasing complexities associated with auditing in a contestable environment. As noted previously, government and service provider information is being held not only as commercial-in-confidence, but at increasingly higher levels of security classification. Throughout the course of our work, we have also noted more issues being raised regarding the protection of personal information. Impediments, or perceived barriers, to accessing information represent a challenge to the audit process. The role of the auditor will always be focused on transparency and providing the information necessary to assist the Parliament in holding the executive arm of government to account.
The efficient collection of sufficient and appropriate information – to form substantive, accurate, evidence-based conclusions – is critical to our work. Preserving and refreshing the Auditor-General’s information-gathering powers in the shifting environment of the public service remains a key issue for the ANAO.
Impact of new legislation
The ANAO must remain cognisant of changes to existing laws and to legislation, especially developments that may impact, or may be perceived to impact, the independence of the Auditor-General.
In September 2020, the Joint Committee of Public Accounts and Audit (JCPAA) resolved to undertake a review of the Auditor-General Act 1997 (the Act). The ANAO’s submission to the review was based on strengthening the independence of the Auditor-General and the ANAO – including the creation of the ANAO as a parliamentary department.
In March 2022, the JCPAA concluded the 2020 review of the Act and presented Report 491: Review of the Auditor-General Act 1997. In the report, the JCPAA noted that it is vital that the Act remains fit for purpose – specifically, that the Act must continue to assure the Auditor-General’s independence and remit, establish clear processes, and interact consistently with other legislation. The report made 27 recommendations, including amendments to the Act and other related legislation. The ANAO considers that the report by the JCPAA provides a strong foundation to strengthen the independence of the Auditor-General and, as a result, the position of the ANAO within the public sector.
Further, throughout the inquiry, the JCPAA showed an interest in the collection of evidence in the ANAO’s work as new technology emerges. In February 2022, the ANAO provided an additional submission to the JCPAA outlining the complexities related to the Auditor-General’s information-gathering powers (sections 32 and 33 of the Act), and the potential for legislative amendments to modernise and clarify how information is collected under those powers.
The efficient collection of sufficient and appropriate information, to form the evidence base to support audit opinions and conclusions, is a key issue in the ANAO’s role in supporting the Parliament through independent reporting. With the emergence and adoption of new technology across government, there has been a significant shift away from paper-based evidence to more digitalised formats. This shift has raised questions about the operations of sections 32 and 33 of the Act, specifically the Auditor-General’s ability to:
- require remote access to entities’ information and communications technology systems for evidence-gathering purposes; and
- specify the form in which entities are to provide requested information.
Amendments to the legislation could provide greater clarity for future ANAO information gathering to allow more clearly for remote access, and to enable the Auditor-General to specify the form of requested information. The ANAO will continue to support the JCPAA to understand these complexities within our environment, the powers of the Auditor-General under the Act, and possible impacts on the conduct of our work.
Beyond considering the recommendations related to the Act, the ANAO continues to stay abreast of changes to policy and legislation within the public sector, including whole-of-government measures. While whole-of-government measures can create operational efficiencies within the public service, requirements for the ANAO to participate in such measures can reduce our ability to provide independent reporting on the accountability and transparency of such arrangements. The ANAO will continue to monitor emerging whole-of-government measures and possible impacts on the ANAO, specifically where they present conflicts for our independence and ability to deliver on our purpose.
Audit profession
Auditing is an important profession. The demand for skilled auditors is high globally, as public and private sectors respond to increasing community expectations of transparency and assurance in their activities. The importance of high-quality audit work has meant significant growth and demand for auditing skills across both sectors – and as such, we remain alert to changes in the audit profession and their impact on the ANAO workforce.
The ANAO is a professional organisation with strong technical and specialist skills. It is through our high-quality, high-performing people that the ANAO produces quality audits and delivers on its purpose to the Parliament. We must continue to invest in our people to support audit now and into the future.
Continuous improvement of staff skills will be a key requirement over the next four years, through the office’s ability to attract, retain and develop quality people. Auditors will always need deep knowledge and experience in traditional areas such as auditing standards, financial accounting and reporting, internal controls, IT, managerial accounting, and taxation. ANAO auditors also need to have:
- good communication skills;
- deep industry expertise;
- strong digital skills;
- the ability to think critically and creatively; and
- the ability to use technology to collect and analyse audit data.
Increased public interest in the ethics and integrity of government decision-making has seen a shift in the profession towards developing audit frameworks to highlight the fundamental requirements of good governance and public sector performance. In response to the community’s high expectations of the audit profession to perform its functions independently and professionally, integrity, ethics and quality in auditing will remain cornerstones of the ANAO’s work.
Maintaining adequate resources is a critical area of focus for the ANAO in building our workforce capability. Attrition in the profession, whether in public or private sector auditing, is typically high. We further recognise that the university sector faces significant ongoing challenges in addressing the decline in enrolments in degrees that typically lead to careers in the auditing profession. These factors, coupled with the increasing demand for audit-related expertise, have resulted in a competitive recruitment environment and tight labour market. The ANAO will continue to monitor the trends emerging across the sector – particularly those that may have long-term impacts on the supply of appropriate candidates who are essential to our audit disciplines.
The ANAO will continue to look for opportunities to build our workforce capability, while maintaining a culture of professionalism and excellence and retaining a strong cohort of leaders who can effectively respond to current and emerging challenges.
Technology and data
In delivering our work to the Parliament, it is critical that the ANAO remains responsive to technology and data changes, specifically in analysing how government is using technological advances to support program implementation service delivery and manage risk. The ANAO recognises that entities are continuously seeking opportunities to advance their technology by implementing automated and standardised approaches to find efficiencies, manage risk and support sound decision-making. The emergence of AI in the sector is a watchpoint for the ANAO both in terms of the auditability of the technology and its use and the use of AI in auditing itself.
Over the last several years, the ANAO has invested in building data analytics capability within our audit work. Data analytics can inform evidence-based policy, drive risk-based compliance and regulatory activities, and enable performance monitoring and measurement. Data analytics has enabled the ANAO to better identify financial reporting, fraud and operational business risks, and tailor our approaches to deliver more targeted risk-based audits. Our continued investment in data analytics, coupled with a digitally confident workforce, will enable the ANAO to better use data to strengthen audit outcomes and present data in a more accessible way to the Parliament.
The effective use of technology to support cooperation and communication with entities remains a key focus for the ANAO. We are working closely with public sector entities to increase opportunities for remote access to entity systems. The ANAO will continue to leverage technology to support the delivery of our work, maintain connection with entities, and increase the flexibility of our audit approach.
Capability
The ongoing development of the ANAO’s capability ensures that we can continue to achieve our purpose. Investments in capability also support the ANAO to uphold public sector principles and values, while building sufficient flexibility and expertise to meet future needs.
Over the next four years, the ANAO intends to make capability investments in several key areas – workforce; productivity; technology, data and information management; and quality.
Workforce
The ANAO is a professional organisation of people with strong specialist and technical skills. We are committed to investing in our people and supporting their development as leading audit and public service professionals.
Auditing is an important profession, and we recognise that our people are our most valuable asset. While the fast-paced, information-driven environment of the public service means that we will need to leverage analytic technology to enhance our work, auditing will always require the sound judgement, insight and expertise of skilled individuals.
In 2022, to support our workforce requirements, we developed the ANAO Workforce Plan 2022–25. The plan outlines how we will attract, develop and retain a highly capable workforce to ensure we remain suitably skilled to deliver on our purpose to the Parliament. In 2023–24, we are continuing to implement the initiatives set out within the plan, while remaining attuned to emerging workforce priorities and risks.
While competition within the recruitment environment requires us to cast our net wider for talent, our attention has turned further towards our capacity to ‘grow our own’ and support the professional development of our people. While auditing will always require deep knowledge across a range of disciplines, the plan considers the fundamental skills we require in our people and the opportunities that exist to develop the potential of talented individuals to deliver our work. As such, we have increased our focus on internal training through an integrated learning approach – the ANAO Academy.
Launched in late 2022, the ANAO Academy is designed to uplift and refine both the technical and non-technical skills required of our people. The Academy encompasses a complete learning and development curriculum – tailored to our unique role within the Australian Government sector, the specialist capability required to deliver our audit work, and the leadership potential we will need for the future. The ANAO Academy fulfils our commitment to fostering a contemporary and continuous learning culture, beyond traditional forms of training and development.
Over the next four years, to support the capability of our workforce and people, the ANAO will:
- attract excellent candidates with broad skills and teach them how to become great auditors, strong leaders and exemplary public servants;
- develop the capability of our workforce to navigate the complexities of public sector administration and meet the demand of rapidly evolving technologies;
- focus on identifying opportunities and mechanisms to support retention across the organisation;
- deliver an integrated, comprehensive curriculum approach to learning and development, embedding continuous learning within our work practices;
- empower our people by providing structured pathways and programs for achieving their professional goals;
- uplift our organisational training capability by investing in impactful and technology-enabled training, and adopting a ‘one ANAO’ approach to knowledge sharing; and
- continue to uphold an organisational culture that is driven by our values – integrity, respect and excellence – and focused on providing a positive working experience for our people.
Productivity
The ANAO maintains an ongoing focus on enabling productivity improvements within our operations. We recognise that improved productivity is critical to demonstrating the efficient use of taxpayer funds in the delivery of our work to the Parliament and the public Improving organisational processes and design will ensure the ANAO keeps pace in a contestable environment with reliable, adaptive and professional business practices.
We will seek to achieve productivity improvements by using resources strategically, streamlining our business practices and modernising our ways of working. These activities will become part of our business-as-usual processes, enabling continued improvement and enhanced capability.
Auditing is a mobile profession and the ANAO is focused on enabling and maintaining a flexible, collaborative and modern workplace – one that supports our people to feel connected to their work, each other, and our purpose. Our recent investments in technology, coupled with an increased focus on uplifting technical confidence, have empowered our workforce to work securely and remotely – anywhere, anytime.
Further, the ANAO recognises that we are able to improve audit outcomes by using a data-enabled approach that automates procedures and analyses relationships between variables. The ANAO continues to refine automated processes, through data analytics and technology, to gain efficiencies while maintaining audit quality.
Our approach to leveraging analytics reflects emerging productivity shifts in the public sector as entities explore opportunities to implement automation to create efficiencies and increasingly use data to inform decision-making. Such changes mean that the ANAO must not only remain attuned to the IT landscape of entities, but also remain focused on growing our technical proficiency and knowledge so that we can audit system environments efficiently and effectively.
In order to respond to these environmental shifts, the ANAO is developing a digital strategy aimed at aligning the objectives of our digital functions and providing a roadmap for future investment.
Over the next four years, to support improvements in productivity, the ANAO will:
- enable our people, primarily Canberra based, to operate effectively and flexibly through activity-based working arrangements, recognising our work can be performed and delivered in varied working environments and settings;
- improve our connective technology to support increasingly flexible working patterns, stronger collaboration between staff, enhanced engagement with entities, and integration across systems and tools;
- grow our capacity through the use of fit-for-purpose technology and platforms, enabling our people to have the right tools to deliver quality outcomes;
- continue investments in our data capability and use of technology, including:
- utilising data analytics to support higher degrees of assurance, support better audit planning, and provide greater insights for the Parliament;
- integrating effective and systematic use of standardised solutions to improve audit efficiency, drive innovation, enhance audit quality and ensure consistency in the use of data for audit outcomes;
- refining our approach to cybersecurity and cyber resilience audits to respond to emerging risks and parliamentary requests; and
- increasing our understanding of the evolving automation and artificial intelligence landscape, across both the IT industry and the public sector (and its impact on our work and the work of entities).
- support an organisational culture that embraces innovative solutions; and
- build the technical proficiency of our people through learning and development.
Technology, data and information management
Advances in technology present opportunities and challenges to both public administration and our role as auditors. The ANAO is focused on keeping pace with advances in technology to ensure we remain positioned to respond to environmental changes, mitigate risks and deliver on our purpose. Our technology infrastructure enables the way we work, the outcomes we produce, how we connect to each other and how we engage the public sector.
As the interface between citizens, businesses and government continues to change with the adoption of advancing technology, so too does the nature of raw data and data exchange. The ANAO recognises that as the breadth and complexity of public sector systems evolve, our approach to examining these environments must be supported by effective, fit-for-purpose solutions and tools. Where government entities continue to pursue contemporary IT solutions to support the delivery of their work, the ANAO must continue to evolve the way in which we analyses, collect, manage and securely store data.
Over the next four years, we will make technology investments that:
- support the delivery of our work, communicate effectively with entities, and increase the flexibility of our audit approach;
- leverage modern, consumption-based cloud environments to enable a robust, flexible and cost-effective technology platform that can readily scale to support evolving needs;
- support digital transformation and innovation across the organisation, enabling an environment that leverages new tools to automate repetitive tasks, make information assets discoverable, and deliver high-quality, data-driven insights in a timely manner;
- ensure that the ANAO’s internal business processes reflect contemporary best practice, and support the efficient and effective management of the ANAO’s resources; and
- retain the skills capability required to effectively maintain and support our IT infrastructure.
The ANAO is also investing in its capability to securely hold the information it collects in carrying out its auditing functions. As a custodian of sensitive information, we will continue to enhance the ANAO’s security environment, with a focus on maintaining strong organisational cyber resilience and streamlining secure data governance, collection and classification methods. Equally we will continue to invest in the skills of our audit staff, with the assistance of the Australian Signals Directorate, to be able to provide assurance to the Parliament of the management of cyber security risk in the sector.
Quality
The quality of ANAO audit work is reliant on the strength of its independence and quality management framework. A sound quality management framework supports high-quality audit work and enables the Auditor-General to have confidence in the opinions and conclusions in the reports prepared for the Parliament. This facilitates the Parliament’s confidence that the ANAO operates with independence, and that the audit approach meets the auditing standards set by the Auditor-General.
The ANAO has implemented an enhanced system of quality management compliant with revised Australian quality management standards ASQM 1 – Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements; ASQM 2 – Engagement Quality Reviews; and ASA 220 – Quality Management for an Audit of a Financial Report and Other Historical Financial Information. The revised standards introduced a quality management approach that is focused on proactively identifying and responding to risks to quality, and also enhanced requirements and focus on governance and leadership, monitoring and remediation, which came into effect on 15 December 2022. The ANAO’s enhanced system of quality management is articulated in the ANAO Quality Management Framework and Plan 2023–24.This document also outlines the key activities that we will undertake over the next 12 months. A report against each year’s quality management plan is published annually in September.
The ANAO is subject to external review, through peer review arrangements with international colleagues, a voluntary arrangement with the Australian Securities and Investments Commission, and external audits by the Independent Auditor, appointed under section 41 of the Auditor-General Act 1997.
Over the next four years, the ANAO will continue its focus on implementing the quality management plan and further enhancing the quality framework, with particular emphasis on:
- monitoring compliance with ASQM 1 – Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements; ASQM 2 – Engagement Quality Reviews; and ASA 220 – Quality Management for an Audit of a Financial Report and Other Historical Financial Information;
- continuing to expand our root cause analysis program – in particular, expanding the program to include analysing results from quality assurance reviews of performance statements audit and performance audit files, as well as continuing to expand the existing program for analysing results from financial statements audit quality assurance reviews;
- continuing to refine the performance statements audit manual and methodology; and
- refining the methodology associated with auditing efficiency and ethics, including reviewing application of the efficiency methodology in practice and monitoring implementation of the ethics methodology.
Activities and performance
The ANAO has one purpose: to support accountability and transparency in the Australian Government sector through independent reporting to the Parliament, and thereby contribute to improved public sector performance.
Performance measurement informs the Parliament about how well the ANAO is delivering its purpose, and provides accountability to the Parliament. Our performance framework also helps the ANAO’s leadership and staff to understand the impact of their activities in delivering the ANAO’s purpose.
The ANAO’s performance measures provide information about what we expect to achieve in the next four years. We will report annually on our performance against the measures, and will review the measures each year to ensure they remain relevant and appropriate.
The performance measurement framework is based on measuring:
- what we did (output);
- how well we did it (quality and/or efficiency); and
- what the benefits were (impact).
Taken together, the performance measures tell a story of how well the ANAO is achieving its purpose. As the ANAO operates in a contestable environment, we are committed to demonstrating transparency in our operations.
The output measures relay progress in the delivery of the ANAO’s audit work. This audit work generates findings and recommendations for improvement that are directed at entities and tabled in the Parliament. The quality and efficiency measures are intended to demonstrate efficient use of taxpayer resources and a commitment to quality in our work. We use information from public audit offices in other jurisdictions to benchmark much of our performance. The effectiveness and impact measures provide information on entities’ responses to audit findings and implementation of recommendations, and the extent to which the Parliament’s engagement with our work leads to improvements in public sector administration.
The ANAO’s annual report contains our annual performance statements, which assess our performance against the performance measures and provide narrative and analysis.
The three programs and one area of shared activity that contribute to achieving our purpose are:
- financial statements audit services;
- performance audit services;
- performance statements audit services; and
- shared relationships corporate and professional services.
Measuring impact
The ANAO recognises that good performance information should provide insight into not only what we do, and the efficiency and quality of our work, but also its impact. We measure impact through a number of key measures.
For example, the ANAO provides entities with audit findings and recommendations based on observations during the conduct of audits. These findings and recommendations are aimed at assisting entities to improve their performance reporting, internal controls and business processes. The ANAO measures the percentage of findings and recommendations to which entities agree without qualification, as entities are more likely to fully address findings and implement recommendations that are agreed without qualification.
To measure the impact that the ANAO’s audit work has on public administration, the ANAO also measures the percentage of moderate or significant findings that are addressed by entities. By capturing the findings that are addressed by audited entities, we are able to understand the improvements that are being made within the public sector control environment as a result of our work.
The ANAO’s annual performance statements will also include a narrative on the impact of our audits on public administration by:
- including analysis of key improvements made by entities during an ANAO audit process, based on information included in tabled audit reports;
- reporting on the results of surveys of audited entities; and
- reporting on the JCPAA’s level of satisfaction that the ANAO is providing support to the committee through briefings, submissions, appearances and other mechanisms as requested.
The ANAO’s annual performance statements are audited by an independent auditor, at the request of the Auditor-General.
Financial statements audit services
Financial statements audit services contribute to the ANAO achieving its purpose through:
- providing assurance on the fair presentation of financial statements of the Australian Government and its controlled entities by providing independent audit opinions for the Parliament, the executive government and the public;
- presenting two reports annually addressing the outcomes of the financial statements audits of Australian Government entities and the consolidated financial statements of the Australian Government, to provide the Parliament with an independent examination of the financial accounting and reporting of public sector entities; and
- contributing to improvements in the financial administration of Australian Government entities.
The ANAO audits the annual financial statements of all Australian Government entities and the consolidated financial statements of the Australian Government. The consolidated financial statements present the consolidated whole-of-government financial result inclusive of all Australian Government–controlled entities, including entities outside the general government sector. These audits are designed to give assurance to the Parliament that each entity’s and the whole-of-government financial statements fairly represent their financial operations and positions at year end. Insights and findings from the Financial Statements Audit Services program are tabled in the Parliament twice a year, generally in May and December.
The ANAO also undertakes a range of assurance reviews by arrangement with entities, and in accordance with section 20 of the Auditor-General Act 1997.
The performance measures and targets for financial statements audit services from 2023–24 to 2026–27 are shown below.
Measure 1
Number of mandated financial statements audit reports issued
Type
Output / Quantitative
Method
The number of mandated financial statements audit reports issued (to entities requiring an audit opinion). The source for this performance measure is the ANAO’s end-of-year financial statements report tabled in December, which includes the number of mandated financial statements audit reports issued.
Why do we measure this?
Under the Auditor-General Act 1997, the Auditor-General’s functions include the mandatory auditing of the annual financial statements of Commonwealth entities, Commonwealth companies and their subsidiaries, and the consolidated financial statements. This measure reports on the number of those reports issued.
Target
2023–24
247
2024–25
247
2025–26
247
2026–27
247
Measure 2
Percentage of mandated financial statements audit reports issued in time to meet entity annual reporting timeframes
Type
Efficiency
/ QuantitativeMethod
The number of mandated financial statements audit reports issued (to entities requiring an audit opinion) within three months of the end of the financial year, divided by the total number of entities requiring an audit opinion.
Why do we measure this?
In line with the requirements set out in the Public Governance, Performance and Accountability Act 2013, the ANAO aims to finalise financial statements audit reports within three months of the financial-year-end reporting date. Timely reporting supports entities to report on their financial performance through annual reports to the Parliament.
Target
2023–24
85%
2024–25
85%
2025–26
85%
2026–27
85%
Measure 3
Average cost of a financial statements audit does not increase from the prior year
Type
Efficiency / Quantitative
Method
The average cost of mandated financial statements audits for the audit cycle completed in that financial year, compared to the average cost of mandated financial statements audits for the audit cycle completed in the previous financial year.
Why do we measure this?
Delivering cost-effective audits is one way the ANAO can demonstrate the efficient use of taxpayer resources in our work. This measure captures the average cost of delivering mandated financial statements audits and allows comparison over time.
Target
2023–24
Average cost of financial statements audit does not increase from prior year
2024–25
Average cost of financial statements audit does not increase from prior year
2025–26
Average cost of financial statements audit does not increase from prior year
2026–27
Average cost of financial statements audit does not increase from prior year
Measure 4
Percentage of moderate
or significant findings from mandated financial statements audit reports agreed to by audited entitiesType
Effectiveness (Impact) / Quantitative
Method
The number of findings agreed to (without qualification) by mandated audited entities, divided by the total number of findings made. Significant or moderate findings are Category A or B findings.
Why do we measure this?
The ANAO provides entities with audit findings (and recommendations) based on observations during the conduct of financial statements audits. These findings are aimed at assisting entities to improve their performance, internal controls and business processes. Entities are more likely to fully address findings that are agreed to without qualification.
Target
2023–24
90%
2024–25
90%
2025–26
90%
2026–27
90%
Measure 5
Percentage of moderate or significant findings that are addressed
by mandated audited entities within 24 months of reportingType
Effectiveness (Impact) / Quantitative
Method
The number of moderate or significant findings addressed by audited entities within 24 months of reporting, divided by the total number of moderate or significant findings issued. Significant or moderate findings are Category A or B findings.
Why do we measure this?
To measure the impact that the ANAO’s audit work has on public administration, the ANAO measures the percentage of moderate or significant findings that are addressed. This measure captures findings (significant and moderate) that are addressed by audited material entities within 24 months, resulting in improvements to the public sector control environment.
Target
2023–24
90%
2024–25
90%
2025–26
90%
2026–27
90%
Performance audit services
Performance audit services contribute to the ANAO achieving its purpose through audits of the performance of Australian Government programs and entities, including identifying opportunities for improvements and lessons for the sector.
The ANAO’s performance audit activities involve the audit of all or part of an entity’s operations to assess its economy, efficiency, effectiveness, ethics, and legislative and policy compliance. The ANAO identifies areas for improvement in aspects of public administration, and makes specific recommendations to assist public sector entities to improve their program management. Entities indicate their agreement to implement ANAO recommendations in the audit report, which is tabled in the Parliament. In this way, entities inform the Parliament of improvements they intend to make as a result of ANAO audits.
Performance audits are the major factor driving the number of ANAO briefings and submissions to, and appearances before, parliamentary committees.
The performance measures and targets for performance audit services from 2023–24 to 2026–27 are shown below.
Measure 6
Number of performance audit reports
presented to ParliamentType
Output / Quantitative
Method
The number of performance audit reports presented to the Parliament.
Why do we measure this?
Under the Auditor-General Act 1997, the Auditor-General’s functions include conducting performance audits of Commonwealth entities and Commonwealth companies and their subsidiaries (sections 17, 18 and 18B of the Act). This measure reports on the number of those reports presented to the Parliament against the targets established in the ANAO’s portfolio budget statements.
Target
2023–24
45
2024–25
48
2025–26
48
2026–27
48
Measure 7
Average cost of a performance audit does not increase from the prior year
Type
Efficiency / Quantitative
Method
The average cost of all performance audits completed in the financial year, compared to the average cost of performance audits completed in the previous financial year.
Why do we measure this?
Delivering cost-effective audits is one way the ANAO can demonstrate the efficient use of taxpayer resources in our work. This measure captures the average cost of delivering performance audits and allows comparison over time.
Target
2023–24
Average cost of a performance audit does not increase from prior year
2024–25
Average cost of a performance audit does not increase from prior year
2025–26
Average cost of a performance audit does not increase from prior year
2026–27
Average cost of a performance audit does not increase from prior year
Measure 8
Percentage of recommendations included in performance audit reports agreed to by audited entities
Type
Effectiveness (Impact) / Quantitative
Method
The number of recommendations
agreed to (without qualification) by audited entities, divided by the total number of recommendations made, within the current financial year.Why do we measure this?
The ANAO provides entities with audit findings and recommendations based on observations during the conduct of performance audits. These findings and recommendations are aimed at assisting entities to improve their performance, internal controls and business processes. Entities are more likely to fully implement recommendations that are agreed to without qualification.
Target
2023–24
90%
2024–25
90%
2025–26
90%
2026–27
90%
Measure 9
Percentage of ANAO recommendations implemented within 24 months of a performance audit report being presented
Type
Effectiveness (Impact) / Quantitative
Method
The number of recommendations implemented
within 24 months of a performance audit being presented to the Parliament, divided by the total number of recommendations.Why do we measure this?
To measure the impact that the ANAO’s audit work has on public administration, the ANAO measures the percentage of recommendations that are implemented by audited entities after a performance audit has been tabled. This measure captures the recommendations that are implemented by audited entities within 24 months, resulting in improvements to the public sector control environment.
Target
2023–24
70%
2024–25
70%
2025–26
70%
2026–27
70%
Performance statements audit services
Performance statements audit services contribute to the ANAO achieving its purpose through audits of the annual performance statements of selected Australian Government entities.
Performance statements audits are designed to give assurance to the Parliament that an entity’s annual performance statements have been prepared, in all material respects, in accordance with the requirements of Division 3 of Part 2-3 of the Public Governance, Performance and Accountability Act 2013.
While the ANAO continues to roll out the staged implementation of performance statements audits across the public sector, the Commonwealth Performance Framework does not currently require audited entities to include the performance statements audit conclusion in its annual report (as is the case for financial statements audit opinions). The ANAO continues to provide the Auditor-General’s independent assurance reports on entities’ annual performance statements to the Minster for Finance for tabling in the Parliament.
The performance measures and targets for performance statements audit services from 2023–24 to 2026–27 are shown below.
Measure 10
Number of performance statements audit reports issued
Type
Output / Quantitative
Method
The number of performance statements audit reports issued.
Why do we measure this?
Under section 15 of the Auditor-General Act 1997, the Auditor-General’s functions include auditing annual performance statements of Commonwealth entities in accordance with the Public Governance, Performance and Accountability Act 2013. This measure reports on the number of those reports issued.
Target
2023–24
10
2024–25
14
2025–26
21
2026–27
21
Measure 11
Percentage of performance statements audit reports issued in time to meet entity annual reporting timeframes
Type
Efficiency
/ QuantitativeMethod
The number of performance statements audits issued within three months of the end of the financial year, divided by the total number of entities requiring an audit opinion.
Why do we measure this?
The ANAO aims to issue performance statements audit reports within three months of the financial-year-end reporting date. The issue of timely audit reports supports entities to include audited annual performance statements in their annual reports to the Parliament.
Target
2023–24
100%
2024–25
100%
2025–26
100%
2026–27
100%
Measure 12
Average cost of a performance statements audit does not increase from the prior year
Type
Efficiency / Quantitative
Method
The average cost of performance statements audits for the audit cycle completed in that financial year, compared to the average cost of performance statements audits for the audit cycle completed in the previous financial year.
Why do we measure this?
Delivering cost-effective audits is one way the ANAO can demonstrate the efficient use of taxpayer resources in our work. This measure captures the average cost of delivering performance statements audits and allows comparison over time.
Target
2023–24
Average cost of a performance statements audit does not increase from the prior year
2024–25
Average cost of a performance statements audit does not increase from the prior year
2025–26
Average cost of a performance statements audit does not increase from the prior year
2026–27
Average cost of a performance statements audit does not increase from the prior year
Measure 13
Percentage of moderate
or significant findings and recommendations from performance statements audit reports agreed to by audited entitiesType
Effectiveness (Impact) / Quantitative
Method
The number of moderate or significant findings, and recommendations, agreed to (without qualification) by audited entities, divided by the total number of moderate or significant findings, and recommendations, made. Significant or moderate findings are Category A or B findings.
Why do we measure this?
The ANAO provides entities with audit findings and recommendations based on observations during the conduct of performance statements audits. These findings and recommendations are aimed at assisting entities to improve their performance reporting, internal controls and business processes. Entities are more likely to fully address findings and implement recommendations that are agreed to without qualification.
Target
2023–24
90%
2024–25
90%
2025–26
90%
2026–27
90%
Measure 14
Percentage of agreed moderate or significant findings that are addressed
by audited entities within 24 months of reportingType
Effectiveness (Impact) / Quantitative
Method
The number of agreed moderate or significant findings addressed within 24 months of reporting, divided by the total number of moderate or significant findings issued. Moderate or significant findings are Category B or A findings.
Why do we measure this?
To measure the impact that the ANAO’s audit work has on public administration, the ANAO measures the percentage of agreed moderate or significant findings that are addressed by audited entities. This measure captures findings (moderate or significant) that are addressed by audited entities within 24 months.
Target
2023–24
70%
2024–25
70%
2025–26
70%
2026–27
70%
Relationships, corporate and professional services
Relationships, corporate and professional services are not a separate program in the ANAO’s portfolio budget statements, and performance measures in this area are shared across the ANAO. This area of shared activity contributes to the ANAO achieving its purpose through:
- facilitating dissemination of the ANAO’s findings to members of parliament, the executive government and the public;
- providing organisation-wide support services for the ANAO, based on specialised knowledge, professional practice and technology; and
- ensuring ANAO audits are of high quality and compliant with auditing standards.
We publish insights from performance audit activities four times a year (Audit Insights), addressing key themes identified through our audit work.
The performance measures and targets for relationships corporate and professional services from 2023–24 to 2026–27 are shown below.
Measure 15
The ANAO supports the Parliament to carry out its functions on the operations of the Australian Government sector
Type
Effectiveness / Qualitative
Method
The ANAO uses several internal reporting mechanisms to assess the level of support provided to the Parliament to hold the Australian Government sector to account. This measure captures information on our engagement with the Parliament, parliamentary committees and parliamentarians.
Why do we measure this?
Part of the ANAO’s purpose is to support accountability and transparency in the Australian Government sector through independent reporting to the Parliament. Supporting the Parliament to carry out its functions is critical to delivering on our purpose.
Target
2023–24
Achieved
2024–25
Achieved
2025–26
Achieved
2026–27
Achieved
The ANAO has identified four reporting mechanisms (with defined targets) to assess the level of support provided to the Parliament. The ANAO considers that the mechanisms identified are a reasonably complete and appropriate set of mechanisms to assess the overall measure.
To achieve Measure 15, the ANAO must meet all four targets of the outlined reporting mechanisms.
Reporting mechanism 1 |
|||
Percentage of appearances for private briefings and public hearings undertaken at the request of parliamentary committees |
|||
2023–24 |
2024–25 |
2025–26 |
2026–27 |
100% |
100% |
100% |
100% |
Reporting mechanism 2 |
|||
Percentage of private briefings undertaken at the request of parliamentarians |
|||
2023–24 |
2024–25 |
2025–26 |
2026–27 |
100% |
100% |
100% |
100% |
Reporting mechanism 3 |
|||
Percentage of inquiries and audit requests from parliamentarians responded to within 28 days |
|||
2023–24 |
2024–25 |
2025–26 |
2026–27 |
90% |
90% |
90% |
90% |
Reporting mechanism 4 |
|||
Feedback from the Joint Committee of Public Accounts and Audit (JCPAA) indicates the ANAO has contributed to improved public sector accountability and transparency and public sector administration through its reports and services to the Parliament. |
|||
2023–24 |
2024–25 |
2025–26 |
2026–27 |
Achieved |
Achieved |
Achieved |
Achieved |
Measure 16
The ANAO supports the Australian Government sector to improve public sector performance
Type
Effectiveness / Qualitative
Method
The ANAO uses several internal reporting mechanisms to assess other means by which we aim to support the Australian Government sector and improve public sector performance. This measure captures information on the additional reports and products that provide insight into public sector performance (based on the findings within our audit programs).
Why do we measure this?
Part of the ANAO’s purpose is to support accountability and transparency in the Australian Government sector and thereby contribute to improved public sector performance. Supporting the Australian Government sector to understand possible areas for improvement in performance is critical to delivering on our purpose.
Target
2023–24
Achieved
2024–25
Achieved
2025–26
Achieved
2026–27
Achieved
The ANAO has identified five reporting mechanisms (with defined targets) to assess other means by which we aim to support the Australian Government sector. The ANAO considers that the mechanisms identified are a reasonably complete and appropriate set of mechanisms to assess the overall measure.
To achieve Measure 16, the ANAO must meet all five targets of the outlined reporting mechanisms.
Reporting mechanism 1 |
|||
Number of reports summarising the results of ANAO financial and performance statements audit work presented to the Parliament |
|||
2023–24 |
2024–25 |
2025–26 |
2026–27 |
3 |
3 |
3 |
3 |
Reporting mechanism 2 |
|||
Completion of all assurance audit reports by arrangement that are accepted by the Auditor-General |
|||
2023–24 |
2024–25 |
2025–26 |
2026–27 |
100% |
100% |
100% |
100% |
Reporting mechanism 3 |
|||
Number of published audit lessons from across ANAO activities (audit lessons may be a standalone publication or integrated within other audit publications) |
|||
2023–24 |
2024–25 |
2025–26 |
2026–27 |
4 |
4 |
4 |
4 |
Reporting mechanism 4 |
|||
Percentage of performance audits that include observed improvements in entities’ processes during the audit |
|||
2023–24 |
2024–25 |
2025–26 |
2026–27 |
70% |
70% |
70% |
70% |
Reporting mechanism 5 |
|||
Percentage of positive feedback from entity surveys on the impact of audits |
|||
2023–24 |
2024–25 |
2025–26 |
2026–27 |
70% |
70% |
70% |
70% |
Measure 17
The ANAO’s independent Quality Assurance Program indicates that audit opinions and conclusions are appropriate
Type
Activity
/ QualitativeMethod
The ANAO has established a quality assurance framework that includes internal and external reviews of audit quality under the Quality Assurance Program. The framework is a system of quality controls designed to provide assurance that audits performed by the ANAO comply with applicable professional standards and relevant regulatory and legal requirements, and that the reports issued are appropriate in the circumstances. This measure captures information on the assessments made within the ANAO’s independent Quality Assurance Program.
Why do we measure this?
Part of the ANAO’s purpose is to support accountability and transparency in the Australian Government sector through independent reporting to the Parliament. Quality is critical in supporting the integrity of audit reports and maintaining the confidence of the Parliament and public sector entities.
Target
2023–24
Achieved
2024–25
Achieved
2025–26
Achieved
2026–27
Achieved
Risk oversight and management
The effective management of risk is integral to achieving our objectives and supporting our purpose over the life of this plan. The ANAO’s management of risk is embedded into business-as-usual practices – we use consistent language, approaches and documentation, and adopt both qualitative and quantitative risk analysis tools across all operations and groups.
Strategic risks are monitored monthly by the Executive Board of Management. Operational risk management occurs in line with the defined roles and responsibilities in the ANAO’s risk management framework. The framework is consistent with the Commonwealth Risk Management Policy and the international standards set out in ISO 31000 – Risk Management. The Auditor-General, taking into account the advice of the Executive Board of Management and the Audit Committee, establishes the ANAO’s appetite and tolerance for risk and oversees the framework.
The risk management framework identifies specific responsibilities for key personnel across the ANAO, and the enterprise risk register assigns owners and tolerances for identified enterprise-level risk. In addition, all ANAO staff have a general responsibility to practise active risk management – a responsibility that staff are prepared for through ongoing mandatory training.
Risk management within the ANAO is one of our core strengths, supported by multilevel and independent review across all major audits, procurements and projects. Risk is integrated into our governance structure through all of our committees, and the chair of each committee ensures that risks are sufficiently managed, analysed, captured and reported, and efficiently escalated as required to the Auditor-General.
The Executive Board of Management continually monitors the environment in which the ANAO operates, adjusting the ANAO’s risk profile as necessary. The ANAO’s ongoing approach to monitoring risk enables the board to implement mitigation plans and introduce additional controls to bring enterprise risks rated above our tolerance levels back to an acceptable level.
The Audit Committee, supported by our internal audit function, receives all internal audit reports and directs senior leaders to provide information as necessary, to ensure that risk is being managed proactively. The committee provides advice, assurance and reports directly to the Auditor-General.
The ANAO defines strategic risks as those that can arise due to factors outside the ANAO’s control. We have identified three strategic risks, which are managed in line with the risk management framework. The strategic risks are:
- the ANAO’s capacity for independent reporting is reduced;
- the Parliament questions the ANAO’s ability to execute its mandate; and
- the ANAO is unable to deliver expected targets (in accordance with the Parliament’s expectations and the ANAO’s established performance measures).
The ANAO further recognises that the risk environment for Commonwealth entities is dynamic. As a result, the ANAO must continually monitor the risk to entities’ ability to provide accurate evidence for audits. Where appropriate, the ANAO may adjust audit plans to ensure that quality is maintained and auditing standards are not compromised. The ANAO maintains ongoing contact with contracted audit service providers to ensure consistent application of the auditing standards and the ANAO’s audit manual.