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The Auditor-General responded on 20 December 2024 to correspondence from the Hon Dr Anne Aly MP dated 26 November 2024, requesting that the Auditor-General conduct an investigation to examine the administrative arrangements of the Inclusion Support Program (ISP).
20 December 2024
The Hon Dr Anne Aly MP
Minister for Early Childhood Education
Minister for Youth
Member for Cowan
Parliament House
CANBERRRA ACT 2600
By email: Minister.Aly@education.gov.au
Dear Dr Aly
Request for audit into Inclusion Support Program
I am writing in response to your letter dated 26 November 2024 requesting that I consider an audit of the Inclusive Support Program (ISP) administrative arrangements.
My office has made preliminary enquiries with the Department of Education (the department) in relation to the issues raised in your letter. The department has advised that it is currently arranging an independent review of the administrative arrangements of the ISP. The review is expected to take place in early 2025.
I have considered your request in relation to the information provided in your letter and our enquiries with the department and have decided to include a potential audit topic in the ANAO’s 2024–25 Annual Audit work program on the department’s administration of grants programs. The work program reflects the ANAO’s audit strategy and informs the Parliament, government entities and the public of the planned audit coverage for the Australian Government sector.
The audit, if commenced, would assess the effectiveness of the Department of Education’s administration of a selection of grant programs, including those delivered with third parties. The audit would consider the design of the grants programs and whether the administration and management of the grant programs are consistent with the Australian Government Grants Framework.
If you or your office subscribe to the audit topic on our website an automated notification will be provided if the audit commences.
Yours sincerely
Dr Caralee McLiesh PSM
Auditor-General
.
Reference: MC24−011643
Dr Caralee McLeish PSM
Auditor-General for Australia
Australian National Audit Office
GPO Box 707
CANBERRA ACT 2601
OfficeoftheAuditorGeneralPerforamanceAudit@anao.gov.au
Dear Dr McLiesh
I refer to recent media regarding the Inclusion Support Program (ISP) administered by the Department of Education. The report raises some questions about the administrative arrangements of the program including contract management, conflict of interest and transparency.
The ISP commenced on 1 July 2016 and provides support to mainstream early childhood education and care (ECEC) services to include children with additional needs through tailored support and funding to services.
Under the ISP, the Australian Government provides funding to assist eligible services through the Inclusion Development Fund (IDF). The Department contracts an Inclusion Development Fund Manager (IDFM) to process funding applications submitted by ECEC services. Payment of funding is provided to eligible services by the Department, however all payments provided to eligible ECEC services are publicly reported under the single contract with KU Children's Services.
Under the ISP, the Australian Government also provides funding to Inclusion Agencies (IAs) in each state and territory. IAs are contracted by the Department to assist ECEC services to build their capability and capacity to provide and enable inclusive practice in the delivery of early learning and care programs. Where appropriate, this includes facilitating access to the IDF for more challenging barriers.
KU Children's Services has been contracted as the IDFM since the commencement of the program and is contracted as the IA for the Australian Capital Territory, New South Wales and Queensland. KU Children's Services also operate ECEC services that could apply for the funding under the program. The department assesses KU Children's Services ISP applications, however, up to August 2023 their applications were assessed by a third-party contracted by KU Children's Services. This change was made after the identification of issues with non-compliance of delegations by the Department.
I ask that you consider an audit of the ISP administration arrangements.
Yours sincerely
Dr Anne Aly
26/11/2024