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The Auditor-General responded on 2 August 2021 to correspondence from the Hon Catherine King MP and Mr Andrew Giles MP dated 7 July 2021, requesting an audit into the entirety of the Morrison Government's $4.8 billion Urban Congestion Fund.
2 August 2021
Hon Catherine King MP
Shadow Minister for Infrastructure, Transport and Regional Development
Mr Andrew Giles MP
Shadow Minister for Cities and Urban Infrastructure
By email: Catherine.King.MP@aph.gov.au; Andrew.Giles.MP@aph.gov.au
Dear Ms King and Mr Giles
I am writing in response to your letter of 7 July 2021 requesting that the Australian National Audit Office (ANAO) conduct an audit into the entirety of the Commonwealth Government Urban Congestion Fund (UCF).
The objective of Auditor-General Report No. 47 2020–21 Administration of Commuter Car Project within the Urban Congestion Fund was to assess the effectiveness of the administration of the commuter car park projects within the UCF. To form a conclusion against this objective the audit included one criterion focused on whether the UCF was well designed. The findings, including recommendations for improvement, in relation to this audit criterion are outlined in Chapter Two of the audit report.
On 6 July 2021 the ANAO published its 2021–22 Annual Audit Work Program (work program). The work program is designed to reflect the ANAO’s audit strategy and inform the Parliament, government entities and the public of the planned audit coverage for the Australian Government sector for the coming year. The development of audit priority topics is guided by risk, impact, importance, materiality, auditability, and previous coverage. I have considered your request in relation to other competing priorities for audit coverage across the public sector and decided that an audit of additional components of the UCF is not currently a higher priority than other audits currently included in the work program, such as, an audit of the $1.3 billion Building Better Regions Fund (BBRF) grants program.
Ms King, I note that you had referred an audit of the BBRF for my consideration in March 2020 and it was included as a potential audit in the ANAO’s 2020–21 work program. A performance audit titled Award of Funding under the Building Better Regions Fund recently commenced, and will assess whether the award of funding under each round of the BBRF was effective and consistent with the Commonwealth Grant Rules and Guidelines. The audit is due to table in the Parliament in May 2022.
The ANAO will continue to monitor emerging risks and challenges that impact on the public sector and review planned audit coverage throughout the year in response to these factors.
Yours sincerely
Grant Hehir
Mr Grant Hehir
Auditor-General
Australian National Audit Office
GPO Box 707
CANBERRA ACT 2601
Dear Mr Hehir
We write to request an audit into the entirety of the Morrison Government's $4.8 billion Urban Congestion Fund (UCF).
As you are aware, Auditor-General Report No.47 into the administration of the Commuter Carpark component of the UCF found that the administration of the program was not effective, that the approach to project selection was not merit based and that the work underlying the department's advice to award funding to the selected projects was not to an appropriate standard.
In making these findings, you have raised significant concerns regarding the administration of public funds.
Given that this report examined only one component of the Urban Congestion Fund, I now ask that you consider undertaking a broader inquiry into the entirety of the Fund.
It is our clear belief that this inquiry should be undertaken as a matter of urgency, particularly given that the 2021/22 Budget outlines plans to spend over $2 billion out of this fund over the next two years.
Thank you for your consideration and your ongoing good work.
Yours sincerely
Catherine King
Shadow Minister for Infrastructure, Transport and Regional Development
Andrew Giles
Shadow Minister for Cities and Urban Infrastructure