Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

by leave—at the request of Senator Smith I present his tabling statement on the Joint Committee of Public Accounts and Audit report 447. It was an oversight when he made his contribution to the Senate earlier. I seek leave to have the report incorporated in Hansard.

Leave granted.

The report read as follows—

I present the report from the Joint Committee of Public Accounts and Audit, entitled EPBC Act, Cyber Security, Mail Screening, ABR and Helicopter Program: Review of Auditor-General Reports Nos 32¬54 (2013-14).

This report details the findings of the committee's examination of five Australian National Audit Office reports. Two key themes from these reports were the importance of agencies taking an appropriate risk based approach and also, where appropriate, working cooperatively with others to achieve common objectives.

Chapter 2 of the report discusses the committee's findings concerning Audit Report No. 42 on the screening of international mail. The committee found that Customs and the Department of Agriculture had made progress in response to the audit office recommendations, However, the committee remained concerned about two matters: international best practice for mail screening and the state of cooperative arrangements with other countries regarding identification of illicit firearm shipments.

Accordingly, the committee recommended that Customs and the Department of Agriculture undertake a review of methods of screening international mail to ensure Australia conforms to international best practice, with these agencies to then report back to the committee. We also recommended that Customs report back to the committee on the existing state of cooperative arrangements with other countries regarding identification of illicit firearm shipments, and what discussions might be underway to strengthen these arrangements.

Chapter 3 of the report discusses the committee's findings concerning Audit Report No. 43 on managing compliance with Environment Protection and Biodiversity Conservation Act Conditions of Approval. The committee found that it will require a sustained effort from the Department of the Environment to ensure ongoing improvements to its EPBC Act compliance framework in the transition to new one-stop-shop arrangements.

The committee recommended that the Department of the Environment report back to the committee on its continued progress implementing the audit office recommendations and the new one-stop-shop assurance framework. The committee further recommended that the audit office consider including, in its schedule of future performance audits, a follow-up audit of the department's management of the compliance framework. The committee also recommended that the department take a leadership role in its governance arrangements for this area by demonstrating effective reporting against appropriate performance measures.

Chapter 4 of the report discusses the committee's findings concerning Audit Report No. 48 on the administration of the Australian Business Register. The committee was disappointed to note that, some 14 years after it was established, the Australian Business Register does not yet provide a single entry point for business interactions with government, and that the Australian Taxation Office and its partner agencies have made little real progress towards reducing the registration and reporting requirements of business.

While the committee acknowledges that the tax office and its partner agencies are committed to these whole-of-government objectives, we believe that a closer working relationship between these agencies is necessary. The committee therefore recommended that the tax office and its partner agencies work more closely together to: reduce entry points to government; implement registration and reporting mechanisms that are efficient for business; simplify business access to government services; and update IT infrastructure supporting the register.

Chapter 5 of the report discusses the committee's findings concerning Audit Report No. 50 on Cyber Attacks: Securing Agencies' ICT Systems. Over the course of the review, the committee was concerned to note that, of the seven agencies audited, not a single agency was found to be fully compliant with the top four mitigation strategies and related controls in the Australian Signal Directorate's Information Security Manual, and none of the agencies was expected to achieve full compliance by the mandated target date of July 2014.

The committee recommended that the seven selected agencies achieve full compliance with the top four mitigation strategies and related controls in the Information Security Manual as soon as possible, with each agency to produce a clear plan of necessary activities, including a definite date of compliance. The committee also recommended that the Australian National Audit Office consider including, in its schedule of performance audits, regular audits of commonwealth agencies' compliance with these security strategies and controls.

Chapter 6 of the report discusses the committee's findings concerning Audit Report No. 52 on the Multi-Role Helicopter Program. At over $4 billion, the program is to acquire 47 helicopters and their support system for the Australian Defence Force. The committee recognises that much of what is currently causing difficulty in the program is the result of decisions made about 10 years ago. Since that time, Defence has improved its performance in the area of acquisition and sustainment, and is taking measures to rectify as best as possible the project's shortfalls.

However, the committee believes there is still much to be done. The audit office assessed that there is still a need for Defence to better manage the inherent risks in complex acquisition programs. The committee was also concerned that the DMO was not adequately monitoring the realised Australian Industry Content promised in the contract. The committee considers that the Department of Defence and DMO should publish annually figures on Australian Industry Content in their acquisition and sustainment contracts.

In conclusion, I thank departmental representatives who appeared at public hearings for assisting the committee in its important role of holding Commonwealth agencies to account for the efficiency and effectiveness with which they use public monies.

I commend the report to the Senate.