audit office - department of defence · audit office 21 december 2015 ... executive director ... by...
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Australian National
Audit Office
21 December 2015
Mr Phillip Prior Chief Financial Officer Department of Defence CANBERRA ACT 2600
Dear Mr Prior
Defence's management of credit and other transaction cards
I am writing to inform the Department of Defence (Defence) of the status of the audit on Defence's management of credit and other transaction cards. We have largely completed our audit fieldwork and the audit team has prepared the attached Report Preparation Papers for your consideration, and to seek your comment at an Exit Interview, to be organised.
The Report Preparation Papers cover the following areas:
1. Background 2. Controls on the Defence Travel Card and the Defence Purchasing Card 3. Defence's use of its Travel Card and Purchasing Card 4. Fastcards and etickets 5. Fuel cards for vehicles
In addition to keeping the Department of Defence informed of emerging issues, the Report Preparation Papers are designed to assist the Australian National Audit Office (ANAO) clarify our audit findings and conclusions. These Report Preparation Papers are structured to discuss our preliminary audit findings and conclusions against the audit criteria, as well as making potential recommendations. The papers are based on evidence from fieldwork conducted by the audit team, and preliminary results from our analyses, interviews and our understanding at this stage of the audit and will assist the ANAO in the preparation of a proposed audit report under section 19 of the Auditor-General Act 1997 (the Act). The papers are detailed at this stage to enable the audit findings to be fully explored. We will review the level of detail required in preparing the proposed section 19 report.
Confidentiality obligations
Sub-section 36(3)(a)(ii) of the Act now provides that a person who receives a report created
This document is provided in confidence and must not be copied or disseminated except on a strictly need to know basis. Unauthorised disclosure may be an offence against the Auditor-General Act 1997.
Sensitive GPO Box 707 CANBERRA ACT 2601 19 National Circuit BARTON ACT Phone (02) 6203 7300 Fax (02) 6203 7777
Yours
(Dr) Tom Clarke Executive Director Performance Audit Services Group
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for the purpose of preparing a proposed audit report must not disclose any of the information in the report except with the consent of the Auditor-General. These Report Preparation Papers are a report for the purposes of sub-section 36(3)(a)(ii) and, in this context, the Auditor-General authorises that copies of the papers may be distributed to relevant staff of Defence in order to assist in preparing any comments Defence may wish to make.
I ask that if you provide the papers to any relevant staff, you advise each of them of their confidentiality obligations under sub section 36(3)(a)(ii) of the Act, as well as the consequences of any breaches of this obligation. Distribution of the report to any other person requires the approval of the ANAO.
The ANAO would welcome the opportunity to discuss these audit findings and conclusions in an Exit Interview to be arranged through our Defence contact officer. The purpose of the Exit Interview is to obtain feedback on and discuss the preliminary audit conclusions and findings, as well as providing the opportunity to discuss possible recommendations. The ANAO does not necessarily require a written response from Defence in relation to the enclosed papers. However, if Defence wishes to provide a written response or additional evidence, please do so by 25 January 2016, or at the Exit Interview.
Following the Exit Interview, the ANAO will provide Defence a proposed report as required by section 19 of the Act. Section 19(7) of the Act specifies that if written comments are received from Defence within 28 days of receipt, the Auditor-General must consider these comments before preparing the final report. I expect that we will be in a position to provide the proposed report by March 2016.
If you have any questions on these Report Preparation Papers or on the audit process, please contact me on 6203 7346 (email: [email protected]). Aalternatively your staff may wish to contact the Audit Manager, Dr David Rowlands on 6203 7357 (email: [email protected]). We look forward to meeting with Defence at the Exit Interview to discuss the papers.
Endl
cc Mr Geoff Brown OAM, FAS Audit and Fraud Control
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Australian National
Audit Office 22 March 2016
Air Chief Marshal Mark Binskin AC Chief of the Defence Force Department of Defence By email: [email protected]
Dear Air Chief Marshal Binskin
Proposed audit report on Defence's management of credit and other transaction cards
The Australian National Audit Office (ANAO) has prepared a proposed audit report on Defence's management of credit and other transaction cards. The proposed report is provided to you pursuant to section 19 of the Auditor-General Act 1997 (the Act). The Act provides that if the recipient of the proposed report gives written comments to the Auditor-General within 28 days after receiving the proposed report, the Auditor-General must consider those comments before preparing the final report. The final date for providing written comments is 19 April 2016. We expect to present the final report for tabling in the Parliament during May 2016.
I ask that your letter of reply include the Department of Defence's (Defence) formal response to the proposed audit report (your letter of reply will be reproduced as an appendix to the final audit report). You should also provide a response to each of the report's recommendations (indicating whether Defence agrees, agrees with qualifications or does not agree). Your response to each recommendation will be reproduced under the recommendation in the body of the report. It would be appreciated if you would also provide a short, one or two paragraph summary of your formal response that will be included in the report Summary.
In preparing your reply, you may identify comments or matters of an editorial nature that you wish the ANAO to consider incorporating, where appropriate, in the text of the final report. This material should be provided separately, and will not be included as part of Defence's formal response to the audit report.
Our aim is to produce an informative and readable document and we therefore request that Defence's comments on the proposed report be directly relevant to the audit findings and recommendations and be reasonably succinct. This will aid readers, in particular, the Parliament.
This document is provided in confidence and must not be copied or disseminated except on a strictly need to know basis. Unauthorised disclosure may be an offence against the Auditor-General Act 1997.
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GPO Box 707 CANBERRA ACT 2601 19 National Circuit BARTON ACT Phone (02) 6203 7300 Fax (02) 6203 7777
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Following consideration of any comments received, we may make amendments to the report. In this case, we will advise you of any substantive amendments made and discuss with you whether it may be appropriate for you to update your original comments.
I would like to draw your attention to the proposed audit report's cover sheet which outlines the confidentiality requirements contained in the Act relating to the distribution of the proposed report. Copies of the proposed report may be distributed to relevant officers of Defence to assist in preparing your response. As well as advising the recipients about their confidentiality obligations, I would ask that you advise them of the relevant penalty for contravening these obligations.
I would also draw your attention to paragraphs 3.15 to 3.21 and 5.9 to 5.11, relating to the handling of traffic infringement penalties incurred by certain Defence personnel, including members of the ADF.
We are available for further discussions on the proposed report as required. Please contact me on, 6203 7529 ([email protected]). Alternatively, your staff may wish to contact the Executive Director responsible for the audit, Dr Tom Clarke 6203 7436 ([email protected]), or the Audit Manager, Dr David Rowlands on 6203 7357 ([email protected]).
A copy of the final report, incorporating any changes and your formal comments, will be provided to you for your information prior to its tabling. We would be happy to brief you on the report if this would be of assistance. I have written in similar terms to the Secretary of Defence.
Yours sincerely
(Dr) Tom Ioannou Group Executive Director Performance Audit Services Group
cc: Mr Phillip Prior, Chief Finance Officer Mr Geoff Brown OAM, First Assistant Secretary, Audit and Fraud Control
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Australian National
Audit Office 22 March 2016
Mr Dennis Richardson AO Secretary Department of Defence By email: [email protected]
Dear Mr Richard
Proposed audit report on Defence's management of credit and other transaction cards
The Australian National Audit Office (ANAO) has prepared a proposed audit report on Defence's management of credit and other transaction cards. The proposed report is provided to you pursuant to section 19 of the Auditor-General Act 1997 (the Act). The Act provides that if the recipient of the proposed report gives written comments to the Auditor-General within 28 days after receiving the proposed report, the Auditor-General must consider those comments before preparing the final report. The final date for providing written comments is 19 April 2016. We expect to present the final report for tabling in the Parliament during May 2016.
I ask that your letter of reply include the Department of Defence's (Defence) formal response to the proposed audit report (your letter of reply will be reproduced as an appendix to the final audit report). You should also provide a response to each of the report's recommendations (indicating whether Defence agrees, agrees with qualifications or does not agree). Your response to each recommendation will be reproduced under the recommendation in the body of the report. It would be appreciated if you would also provide a short, one or two paragraph summary of your formal response that will be included in the report Summary.
In preparing your reply, you may identify comments or matters of an editorial nature that you wish the ANAO to consider incorporating, where appropriate, in the text of the final report. This material should be provided separately, and will not be included as part of Defence's formal response to the audit report.
Our aim is to produce an informative and readable document and we therefore request that Defence's comments on the proposed report be directly relevant to the audit findings and recommendations and be reasonably succinct. This will aid readers, in particular, the Parliament.
This document is provided in confidence and must not be copied or disseminated except on a strictly need to know basis. Unauthorised disclosure may be an offence against the Auditor-Genera/Act 1997.
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GPO Box 707 CANBERRA ACT 2601 19 National Circuit BARTON ACT Phone (02) 6203 7300 Fax (02) 6203 7777
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Following consideration of any comments received, we may make amendments to the report. In this case, we will advise you of any substantive amendments made and discuss with you whether it may be appropriate for you to update your original comments.
I would like to draw your attention to the proposed audit report's cover sheet which outlines the confidentiality requirements contained in the Act relating to the distribution of the proposed report. Copies of the proposed report may be distributed to relevant officers of Defence to assist in preparing your response. As well as advising the recipients about their confidentiality obligations, I would ask that you advise them of the relevant penalty for contravening these obligations.
We are available for further discussions on the proposed report as required. Please contact me on, 6203 7529 ([email protected]). Alternatively, your staff may wish to contact the Executive Director responsible for the audit, Dr Tom Clarke 6203 7436 ([email protected]), or the Audit Manager, Dr David Rowlands on 6203 7357 ([email protected]).
A copy of the final report, incorporating any changes and your formal comments, will be provided to you for your information prior to its tabling. We would be happy to brief you on the report if this would be of assistance. I have written in similar terms to the Chief of the Defence Force.
Yours sincerely
(Dr) Tom Ioannou Group Executive Director Performance Audit Services Group
cc: Mr Phillip Prior, Chief Finance Officer Mr Geoff Brown OAM, First Assistant Secretary, Audit and Fraud Control
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