THE Joint Committee of Public Accounts and Audit (JCPAA) has tabled its report on the 2021–22 Commonwealth Financial Statements audits by the Australian National Audit Office (ANAO), a key transparency and accountability measure for the Commonwealth.

The committee’s inquiry focused its examination on the financial sustainability of Home Affairs, Agriculture and the NDIA, Defence’s use of appropriations, and cyber security issues.

Chair of the JCPAA, Julian Hill MP, said, "This inquiry found an unusual range of concerns regarding financial sustainability of key departments, cyber security and a surprising, albeit arcane, question regarding the legality of Defence’s payment of compensation for the Attack Class Submarines.

“The committee was concerned by evidence that the Department of Home Affairs’ budget was fundamentally misaligned with the core activities of the department for years under the previous government. This was made worse because evidence revealed it was forced to cop $180 million of further cuts due to the Liberals’ failed $92 million visa privatisation.

“Agriculture has been facing an underlying structural cash deficit for many years, driven by the cost recovery of biosecurity functions. Given the critical importance of biosecurity activities and the economic and environmental costs of breaches, the committee is of the view that the situation was fundamentally unsustainable and the government and department must respond.

“The committee has welcomed the current review of the NDIS given the evidence that the scheme costs have been growing faster than anticipated for many years, posing risks to the long term sustainability of critical supports to the disability sector.”

The committee was also concerned about Defence’s problematic use of non-operational (‘equity’) expenditure from Appropriation Act (No. 2) 2020–21 to fund the termination payment for the French Attack Class Submarine project, an operational expense.

"The committee’s strong view is that this payment should not have happened in this way and should not be allowed to happen again," Mr Hill said. "Defence clearly understood this was a potential Constitutional issue and sought legal advice. The JCPAA’s view is that this is not really a matter for the courts, it is a question of Parliamentary control over the Executive as Parliament’s intent should not be subverted in the name of quick action.”

The committee has recommended that the Minister for Finance review this matter and accept the JCPAA’s conclusion, and that future Appropriation Bills clarify that an ‘equity injection’ or ‘equity funding’ is non-operating expenditure.

The report also examined cyber security issues under the Protective Security Policy Framework (PSPF), which continue to represent the majority of ANAO’s adverse findings in Financial Statement’s audits.

"The Auditor-General has identified a persistent optimism bias in how agencies self-report their cyber security compliance," Mr Hill said. "This issue has gone on for too long, and it’s time government consider implementing an assurance regime on agencies’ self-reporting on cyber security compliance. Agencies should not be able to disguise the true situation from the government in relation to public sector cyber security vulnerabilities.”

The report makes six recommendations related to the financial sustainability of Home Affairs and NDIA, the proper use of appropriated expenditure, and processes for providing greater assurance and transparency on cyber security compliance under the PSPF.

The committee’s report is available on the Committee website.

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THE Joint Committee of Public Accounts and Audit (JCPAA) held a public hearing this afternoon for its inquiry into a series of procurements conducted by Services Australia and the National Disability Insurance Agency (NDIA) which were connected with consulting firm Synergy 360.

The hearing featured Infosys technologies, a firm mentioned in the media reporting that led to the Independent Review of Services Australia and NDIA Procurement and Contracting (the Watt Review).

​Committee Chair, Julian Hill MP said the committee was examining the expenditure of public funds at the NDIA and Services Australia, as well as the conduct of parties associated with procurements by those agencies.

“The committee considers that the serious problems with these procurements identified by the Watt Review warrant thorough investigation and will leave no stone unturned," Mr Hill said.

Details for the public hearing:

Date: Friday 23 June 2023
Time: 3.15pm – 5pm AEST
Location: Committee Room 2R1, Parliament House, Canberra.

The hearing was broadcast on the APH Website.

Further information is available on the inquiry website.

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THE Joint Committee of Public Accounts and Audit (JCPAA) has tabled an interim report for its inquiry into the Defence Major Projects Report (MPR) and the procurement of the Hunter Class Frigates.

The Committee’s report examines issues relating to the cost, progress, technical attributes and governance of major Defence acquisitions raised in the 2020–21 and 2021–22 MPRs.

Chair of the JCPAA, Julian Hill MP said, "The report makes recommendations to address ongoing issues such as Defence not clearly reporting on capability milestones and its inconsistent approach to capturing lessons learned from past projects.

“The Committee was also concerned about Defence’s 13 month delay in escalating the Civil Military Air Traffic Management System to the Projects of Concern list. There’s no point in having the ‘Projects of Concern’ system if there are delays of over a year in adding projects to the list which the Minister has decided are clearly off track.

"Doing so limits transparency to the Parliament and the public on the performance of major projects.”

Mr Hill said, "This inquiry’s next phase is to consider Defence’s procurement of the Hunter Class Frigates, as well as the scope and guidelines for Defence Major Project Reports to ensure that they are fit for purpose into the future.”

The Committee’s interim report and further information on the inquiry is available on the Committee website.

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THE Joint Standing Committee on Electoral Matters is holding a public hearing on Friday,  June 23, as part of its inquiry into the 2022 Federal Election.

The committee will hear from representatives of the Australian Democracy Network, Australian Conservation Foundation, the Human Rights Law Centre; and electoral analysts Dr Brendan Long, Dr Kevin Bonham, Mr Ben Raue and Mr Malcolm Mackerras AO.

Committee Chair, Kate Thwaites MP said, "The committee will hear from electoral analysts about the principle of ‘one vote, one value’ and examine proposals about representation in Parliament, the size of Parliament and opportunities for reform.

"The committee will also hear from third parties about how they engage in political advocacy and their position on proposed electoral reforms," she said.

The inquiry’s interim report was tabled in Parliament this week. The final report is due to be tabled before the end of this year.

Further information about the inquiry, including published submissions and hearing transcripts, is available on the inquiry webpage.

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Public hearing details in Canberra

Time: 9.45 am–1.30 pm AEST
Date: Friday, 23 June 2023
Location: Committee Room 1R3, Parliament House

The hearing will be broadcast live at aph.gov.au/live.