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Request for audit
Performance Statements Audit Pilot Program
Response provided
Responded: Wednesday 3 November 2021
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Following a request from the Minister for Finance in October 2021, the ANAO is expanding the performance statements audit program from three audits to six audits in 2021–22. The ANAO will continue the program of work with Department of Veterans Affairs, the Attorney-General’s Department and the Department of Social Services and will add three new entities, being the Department of Agriculture, Water and the Environment, the Department of Education, Skills and Employment, and the Treasury.
Auditor-General's response
3 November 2021
Senator the Hon Simon Birmingham
Minister for Finance
Parliament House
CANBERRA ACT 2601
via email: financeminister@finance.gov.au
Dear Minister
Performance Statements Audit Pilot Program
Thank you for your letter dated 22 October 2021 requesting that I continue and expand the audits of selected annual performance statements of Commonwealth entities subject to the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
As you noted, for 2021-22, the ANAO’s program of audits of annual performance statements will be expanded to include six departments. Consequently, the ANAO will continue the program of work with the three departments that were part of the pilot program for 2020-21, the Attorney-General’s Department, the Department of Social Services and the Department of Veterans’ Affairs, and will add three new entities, being the Department of Agriculture, Water and the Environment, the Department of Education, Skills and Employment and the Treasury.
As required by subsection 40(2) of the PGPA Act, I will provide you with a copy of the audit reports on the selected entities’ compliance with the relevant provisions of the PGPA Act and the Public Governance, Performance and Accountability Rule 2014. I anticipate this will occur prior to the tabling of entities’ annual reports.
The ANAO will continue to liaise with the Joint Committee of Public Accounts and Audit (JCPAA) on this program of work, including to review audit methods and outcomes each year, and will actively participate in JCPAA inquiries regarding annual performance statements to ensure ongoing improvements in the program and practice.
Yours sincerely
Grant Hehir
Correspondence from Senator the Hon Simon Birmingham
Transcript of letter from Senator the Hon Simon Birmingham
REF: MS21-000674
Mr Grant Hehir
Auditor-General
Australian National Audit Office
GPO Box 707
CANBERRA ACT 2601
Dear Auditor-General
I am writing to request that you, under section 40 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), continue and expand the audits of selected annual performance statements. Funding to support the Australian National Audit Office (ANAO) undertake this work was provided by the Government in the 2021-22 Budget.
I understand the ANAO has advised the Department of Finance that you propose to continue the audits of the 2020-21 annual performance statements of the Attorney-General's Department, the Department of Social Services and the Department of Veterans' Affairs. Further, you propose to expand the program to a total of six departments in 2021-22.
On completion of these audits, as required by section 40 of the PGPA Act, I will arrange for the tabling of your reports and the related annual performance statements.
My request under section 40 of the PGPA Act will be required for future audits of annual performance statements until the necessary changes are made to both the PGPA Act and Auditor-General Act 1997 to mandate these audits.
The program and methodology is still in an early stage and the first year of work made limited findings about best practice and areas for improvement. I consider that a Joint Committee of Public Accounts and Audit (JCPAA) inquiry to review the audit methods and outcomes each year during the ramp-up of this new stream of work would inform incremental improvements in the program and practice.
Any findings on the approach and.scope of performance statement audits arising from the JCPAA inquiries could inform the design of legislation to permanently embed them as part of the audit program going forward.
I am writing separately to the Chair of the Joint Committee for Public Accounts and Audit, Ms Lucy Wicks MP, to propose that they consider undertaking such an inquiry, as the body responsible for the oversight of the ANAO.
Yours sincerely
Simon Birmingham
22 October 2021