Auditor-General's Reports
Six Auditor-General's reports relating specifically to Defence were tabled during the year. The key findings and recommendations of each report were referred to relevant areas within Defence for implementation. Additional information regarding reports that relate specifically to the DMO can be found in the Defence Annual Report 2005–06—Volume 2 (DMO).
ANAO reports and general information on the audit office's operations, including its audit timetable, can be accessed through the website at: http://www.anao.gov.au.
Audit Report No. 3, Tabled 28 July 2005—Management of the M113 Armoured Personnel Carrier Upgrade Project
The objective of the audit was to provide an independent assurance on the effectiveness of the management of the upgrade of the M113 fleet for the ADF. The audit sought to identify the initial capability requirements and approval process; analyse the contract negotiation process; and examine the management of the project and contracts.
The ANAO made three recommendations. Defence and the DMO agreed to, and have implemented, all three recommendations.
Audit Report No. 8, Tabled 26 August 2005—Management of the Personnel Management Key Solution (PMKeyS) Implementation Project
The objective of the audit was to assess the project's planning and approval processes and the Project's contract and project management. The audit addresses the scope of the delivered system, the expectations of end-users, and the system's ability to meet their capability requirements.
The ANAO made three recommendations to which Defence agreed. Defence is currently implementing these recommendations.
Audit Report No. 10, Tabled 23 September 2005—Upgrade of the Orion Maritime Patrol Aircraft Fleet
The objective of the audit was to examine the adequacy of Defence's and the DMO's management of the nearly completed elements of Project Air 5276. This audit was undertaken towards the conclusion of the major approved elements of Project Air 5276, when more than 90 per cent of estimated project costs were expended. The elements of the Project examined in the audit were initiated in the early 1990s, predating the recent reforms in the Defence capability development and acquisition framework. These reforms led to the 'two pass' capital equipment definition, analysis and approval process outlined in the 2005 Defence Capability Development Manual.
No recommendations were made by the ANAO.
Audit Report No. 24, Tabled 23 January 2006—Acceptance, Maintenance and Support Management of the JORN System
The audit objective was to assess the effectiveness of the DMO's Jindalee Over-the-Horizon Radar Network and Jindalee Facility Alice Springs maintenance and support arrangements. The audit examined the maintenance and operation of the Jindalee Over-the-Horizon Radar Network and Jindalee Facility Alice Springs radars, and their facilities.
The ANAO made one recommendation to which Defence and the DMO agreed, and has implemented.
Audit Report No. 36, Tabled 2 May 2006—Management of the Tiger Armed Reconnaissance Helicopter Project-Air 87
The objective of the audit was to assess the effectiveness of management of the procurement of a major, new capability for the ADF by the DMO and Defence. The audit reviewed the initial capability requirements and approval process; analysed the contract negotiation process; and examined management of the Acquisition and Through-Life-Support Contracts. Coverage of the audit extended from development of the concept for the requirement, to acceptance of deliverables in the period prior to the award of the Australian Military Type Certificate. The audit fieldwork was undertaken during the delivery phase of the project, following delivery of the Armed Reconnaisance Helicopters numbers one, two and five.
The ANAO made five recommendations to which Defence and the DMO agreed. Defence and the DMO have implemented three recommendations and have commenced action to implement the remaining two recommendations.
Audit Report No. 40, Tabled 17 May 2006—Procurement of Explosive Ordnance for the Australian Defence Force (ARMY)
The objective of the audit was to examine processes used by Defence and the DMO to procure explosive ordnance for the ADF, with an emphasis on Army requirements. The audit reviewed the extent to which the DMO effectively translated the explosive ordnance requirements of the ADF, and particularly of Army, into procurement and through life support arrangements.
The ANAO made 15 recommendations to which Defence and the DMO agreed. Defence and the DMO have implemented one recommendation and have commenced action to implement the remaining 14 recommendations.