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COMMITTEE'S CONSIDERATION

In its Report No. 34, 57th Parliament - Annual Report 2021-22, tabled on 17 October 2022, the committee reported on its consideration of a number of Auditor-General's reports referred to it, including Auditor-General Report 4: 2021-22 - 2021 status of Auditor-General recommendations.  The committee did not resolve to hold further inquiries into these audit reports and made no recommendations to the Legislative Assembly.

OVERVIEW

Role of the Auditor-General

The role of the Auditor-General is to provide Parliament with independent assurance of public sector accountability and performance. This is achieved through reporting to Parliament on the results of its financial and performance audits.

About the Auditor-General Report

The Auditor-General’s report to Parliament 4: 2021-22—2021 status of Auditor-General’s recommendations (Report 4) provides an update on the self-assessed progress of 50 public sector entities, including local governments, in implementing recommendations issued by the Queensland Audit Office (QAO) as part of 32 performance audits finalised during the financial years 2015–16 and 2017–18. Report 4 advises that the QAO selected these years for examination to allow enough time for entities to have acted on the recommendations. 

In Report 4, the QAO offers insights as to where all entities can improve their systems and practices in implementing audit recommendations, including reporting:

• Entities should ensure they establish systems and processes that assign appropriate accountability for recording, monitoring, and reporting on their progress in implementing the QAO recommendations and those from other reviews and inquiries. This process should be overseen by their audit and risk management committee.
• Entities need to evaluate the outcome of their actions when implementing the QAO recommendations. Timely and robust evaluations help entities determine what has worked well and what they can improve.

The report advises that, of the 447 performance audit recommendations, entities reported that they had:

• implemented 72 per cent (322)
• partially implemented 19 per cent (83)
• not implemented 6 per cent (28).

Entities reported that the remaining 3% (14) of recommendations were no longer applicable.

The QAO’s analysis found that 65% (72) of the 111 outstanding recommendations related to performance monitoring and reporting, governance, and strategic planning (the most common of the recommendations made by the QAO). Entities reported limited progress in implementing recommendations aimed at improving interagency coordination and information sharing.

The audit also found:

• ‘[M]ost departments reported good progress implementing the 250 recommendations addressed to them’, with 84% fully or partially implemented.
• Hospital and health services reported ‘varied progress in implementing the 128 recommendations made to them’, with 66% fully or partially implemented.
• The 13 local governments to which the QAO made recommendations reported they had implemented 28.6% of 56 recommendations.
• Of the 7 recommendations addressed to particular statutory bodies and government owned corporations, the relevant entities reported all were implemented.

referral to committee

Standing Order 194B provides that the Committee of the Legislative Assembly shall as soon as practicable after a report of the Auditor-General is tabled in the Assembly refer that report to the relevant portfolio committee(s) for consideration. 

The relevant committee is responsible under section 94 of the Parliament of Queensland Act 2001 for assessing the integrity, economy, efficiency and effectiveness of government financial management by examining government financial documents and considering reports of the Auditor-General.

The Committee of the Legislative Assembly referred this Auditor-General report to the Economics and Governance committee for its consideration on 18 November 2021.