Please direct enquiries relating to requests for audit through our contact page.
The Auditor-General responded on 19 September 2017 to correspondence from Mr Stephen Jones MP dated 6 September 2017, requesting that the Auditor-General undertake an independent assessment of the project funding provided to Central Coast Group Training Ltd (CCGT) for the Central Coast Youth Skills and Employment Centres, and the administration of the Community Development Grants Program.
19 September 2017
Mr Stephen Jones MP
Shadow Minister for Regional Services, Territories and Local Government
Shadow Minister for Regional Communications
By email: stephen.jones.MP@aph.gov.au
Dear Mr Jones
I am writing in response to your correspondence of 6 September 2017 requesting I undertake an audit of the administration of the Community Development Grants Program and more specifically the project funding provided to the Central Coast Group Training Ltd (CCGT) for the Central Coast Youth Skills and Employment Centres.
As advised in my previous letter, the Australian National Audit Office’s (ANAO’s) Annual Audit Work Program 2017–18 includes a potential performance audit topic titled Administration of the Community Development Grants program. In the event that the ANAO commences the proposed audit during this financial year, I will consider the matters you have raised in the context of planning the objectives and scope of the audit.
Yours sincerely
Grant Hehir
Auditor-General
Mr Grant Hehir
Australian National Audit Office
GPO Box 707
Canberra ACT 2601
6 September 2017
Dear Mr Hehir,
On 15 May 2017, I wrote to you about the Community Development Grants Programme administered by the Department of Infrastructure and Regional Development.
I have recently been made aware of some anomalies associated with a specific project funded under this program that I wish to draw to your attention.
The project is the Central Coast Youth Skills and Employment Centres with funding provided to 4Central Coast Group Training Ltd (CCGT).
The description of the project is as follows: the project will be delivered in two stages. Stage One will provide the backbone IT connectivity that business start-ups and other occupants of the skills centre complex require to deliver employment services and training to the unemployed of the area. Stage Two will provide a factory space for local trades based businesses to operate and showcase their businesses to school-based apprentices and trainees.
The funding amount of $2,970,000 was awarded on 19/11/2015, made up of $2 million in Community Development Grant funding and $700,000 for IT.
The specific issues I want to raise with you are that a grant for a near identical purpose and for the near identical amount was made in 2013. Doug Eaton, CEO of CCGT was the Mayor of Wyong Council from 2012-2016 during the period of both grants and Greg Best, Manager of CCGT was a council member at the relevant time.
It has been raised with me that very little training is taking place at the premises built with funding by the Commonwealth for the specific purpose of training. I also understand that Central Coast Group Training are paying $120 per year to the Central Coast Council to lease these premises.
I believe that the circumstances of the awarding of funding to a project of so little benefit to the Commonwealth, for a building that is not being used for the purposes for which funding was provided and with questions about conflict of interest, should raise concerns.
The lack of due diligence associated with a program that is not a competitive grants program does not to me meet the guidelines in the Department of Finance Commonwealth Grants Rules and Guidelines.
I believe this may be the case in the grant to 4Central Coast Group Training Ltd.
For these reasons I am asking the ANAO to undertake an independent assessment of the circumstances of this particular project funding and the administration of the Community Development Grants Program.
I draw your attention to coverage of this project funding in the Newcastle Herald of today's date.
Yours sincerely,
Stephen Jones MP
Shadow Minister for Regional Services, Territories and Local Government;
Shadow Minister for Regional Communications