List of Recommendations

Recommendation 1

2.30

The Committee recommends that section 8 of the Auditor-General Act 1997 be amended to define the term ‘independent officer of the Parliament’, and that consideration be given to clearly outlining the implied functions, powers, rights, immunities and obligations arising from this designation of the Auditor-General.

Recommendation 2

2.31

The Committee recommends that the Australian Government consider amendments to administrative arrangements to establish the Australian National Audit Office as a parliamentary department.

Recommendation 3

2.46

The Committee recommends that the Australian Government consider ways to amend the Auditor-General Act 1997 to expand the role of the Joint Committee of Public Accounts and Audit (JCPAA) as the relevant Parliamentary Committee in the appointment process for the Auditor-General. This could include requiring approval by the JCPAA of the Prime Minister’s nominee by unanimous approval or a super-majority.

Recommendation 4

2.53

The Committee recommends that the Australian National Audit Office (ANAO), in consultation with the Joint Committee of Public Accounts and Audit, Department of Prime Minister and Cabinet, the Australian Public Service Commission and other relevant entities, develop and publish guidelines to clarify the role of the Auditor-General and ANAO and make it clear to all observers that it is not the role of the ANAO to assess the relative merits of government policy.

Recommendation 5

2.65

The Committee recommends that the Auditor-General Act 1997 be amended so that audits of annual performance statements are able to be initiated without the need for approval or direction from the Joint Committee of Public Accounts and Audit or Finance Minister.

Recommendation 6

2.74

The Committee recommends that the Auditor-General Act 1997 be amended to provide the Auditor-General with the authority to initiate performance audits of Commonwealth-controlled Government Business Enterprises.

Recommendation 7

2.83

The Committee recommends, as per Report 478, that the Auditor-General Act 1997 be amended to include:

A statutory timeframe of 28 days be legislated in which the Attorney-General is required to make a decision in regards to a section 37 application, and included in this legislative amendment is a mechanism for the Attorney-General to self-execute time extensions for this decision, subject to notification of the extension to the Auditor-General and the Joint Committee of Public Accounts (JCPAA) and Audit;

A provision for a confidential report to be provided to at least the Chair of the JCPAA along with relevant Ministers;

That the JCPAA be consulted on a confidential basis if a proposed certificate affects the audit conclusion or information not otherwise prohibited from disclosure;

To consider amendments to distinguish between types of certificates to at least require confidential consultation with JCPAA before certificates are issued for non-national security matters; and

That substantive reasons be provided when a certificate is issued.

Recommendation 8

2.84

The Committee recommends that the Public Accounts and Audit Committee Act 1951 and the Auditor-General Act 1997 be amended to require that the Joint Committee of Public Accounts and Audit and the Auditor-General be notified of applications for section 37 certificates.

Recommendation 9

2.92

The Committee recommends that the Auditor-General Act 1997, the Public Governance, Performance and Accountability Act 2013 and any other relevant legislation be amended such that the Auditor-General is the auditor of all entities funded entirely by appropriations, including those jointly controlled by corporate Commonwealth entities.

Recommendation 10

2.115

The Committee recommends that the Australian Government consider how audited entities comply with audit recommendations that they agree to, and how they can be better accountable for their implementation. This may include changes to the Public Governance, Performance and Accountability Act 2013.

Recommendation 11

2.116

The Committee recommends that the Auditor-General Act 1997 is amended to clarify that the Auditor-General’s power to disclose information to the Australian Federal Police is not intended to preclude the Auditor-General disclosing information to other relevant agencies as needed.

Recommendation 12

2.117

The Committee recommends that the Joint Committee of Public Accounts and Audit consider, in the next term of Parliament, the matters raised by the Auditor-General regarding access to information from audited entities by remote means.

Recommendation 13

3.9

The Committee recommends that section 19 (1) (a) and (b) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) be amended to clarify that requests made of the Auditor-General related to audits in progress be limited to information of an administrative nature only, like the provisions for courts and tribunals under section 19(2) of the PGPA Act.

Recommendation 14

3.19

The Committee recommends that a future inquiry consider, with input from the national intelligence agencies, amending section 105D of the Public Governance, Performance and Accountability Act 2013 so that the Joint Committee of Public Accounts is notified when this section is used in relation to the Auditor-General’s draft audit reports.

Recommendation 15

3.30

The Committee recommends that to clarify where ANAO documents held by audited entities are subject to Freedom of Information requests, section 36 of the Auditor-General Act 1997 is redrafted to make section 38 of the Freedom of Information Act 1982 expressly apply.

Recommendation 16

3.49

The Committee recommends that the Auditor-General Act 1997 be amended to clarify that working papers and draft reports prepared by the Australian National Audit Office (ANAO) are protected by parliamentary privilege, and also that documents held by the ANAO remain confidential unless they are tabled in the Parliament or released pursuant to other relevant legislation.

Recommendation 17

3.50

The Committee recommends that the Privileges Committees of both the House of Representatives and the Senate clarifies the extent to which parliamentary privilege intersects with the powers under the Auditor-General Act 1997, particularly in relation to parliamentarians and their offices, Presiding Officers, and Ministers and ministerial staff.

Recommendation 18

3.51

The Committee recommends that consideration be given to the development of a Memorandum of Understanding between the Australian National Audit Office and the Parliament is developed that clarifies the application of parliamentary privilege to the Auditor-General’s work.

Recommendation 19

4.22

The Committee recommends that the Australian National Audit Office notify the Joint Committee of Public Accounts and Audit when audit requests are received from Members and Senators. The Australian National Audit Office need not wait for feedback from the Joint Committee of Public Accounts and Audit before forming its own view on requests or actioning any audit.

Recommendation 20

4.23

The Committee recommends that the Australian National Audit Office clearly distinguish between audits undertaken because they have been identified by the Joint Committee of Public Accounts and Audit as an Audit Priority of the Parliament and those undertaken in response to other approaches, including parliamentary committees, resolutions of the House of Representatives or the Senate, or following a request from an individual member or senator.

Recommendation 21

4.24

The Committee recommends that the Australian Government consider amending the Public Accounts and Audit Committee Act 1951 to clarify the Joint Committee of Public Accounts and Audit’s duty to ‘consider the operations’ of the Australian National Audit Office (ANAO), including reference to:

Its role in reviewing annual planning, performance and expenditure; and

Advising the ANAO of the Audit Priorities of the Parliament and considering the Annual Audit Work Program.

Recommendation 22

4.35

The Committee recommends that the Auditor-General Act 1997 be amended to clarify the role of the Independent Auditor, including formalising the Independent Auditor’s reporting requirements to the JCPAA.

Recommendation 23

4.36

The Committee recommends that the Department of Prime Minister and Cabinet develop new standards for the transition between independent auditors to ensure better communication between in going and outgoing roles and to ensure the incoming auditor has enough time to meet reporting deadlines.

Recommendation 24

4.49

The Committee recommends that the Auditor-General Act 1997 be amended to include a clarification that the Auditor-General is required to provide to the JCPAA any relevant information or updates about the ANAO’s budget as soon as practical.

Recommendation 25

4.56

The Committee recommends the Australian Government ensure that funding for the Australian National Audit Office is adequate to ensure the delivery of an average output of 48 performance audits per annum.

Recommendation 26

4.67

The Committee recommends that the Australian National Audit Office set a target to reduce its staff attrition rate to 15 per cent and report back to the Committee within twelve (12) months on progress to achieving this target.

Recommendation 27

4.78

The Committee recommends that the Australian National Audit Office (ANAO) consider further ways of measuring the outcomes of their auditing work to provide assurance to the Parliament that their audit program is meeting Parliament’s needs and supporting an efficient and effective public sector. This could include reporting on feedback from audited entities, measuring the financial impact of the ANAO’s work, or other more qualitative measures.

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