A performance audit of the Department of Defence’s administration of enabling services, specifically, the Enterprise Resource Planning (ERP) Program has found the Program has been largely effective.
In his audit Defence’s Administration of Enabling Services — Enterprise Resource Planning Program: Tranche 1, Auditor-General Grant Hehir found the ERP Program a major ICT reform initiative of strategic importance to the Department, intended as it is to assist in the delivery of an integrated, enterprise approach to service delivery as set out in the First Principles Review: Creating One Defence.
Mr Hehir found there was scope for the Department to improve program governance arrangements.
He said this applied in particular to the management of probity and the management of conflicts of interest in decision-making arrangements for varying contracts.
The Auditor-General found the Department had established largely fit-for-purpose planning, governance, monitoring and reporting arrangements to support implementation of the ERP Program.
“Defence conducted a largely effective procurement process for Tranche One of the ERP Program, which included consideration of value for money,” Mr Hehir said.
He said the Department had also established largely fit-for-purpose contracting arrangements that supported the achievement of Tranche One outcomes and its strategic priorities.
Mr Hehir made five recommendations aimed at improving the Department’s risk reporting; probity management; program decision-making arrangements; contract governance; and benefits realisation planning.
He said the Department agreed to implement all five recommendations.
The online Audit Report can be found online at this PS News link and a 93-page pdf report at this link.
The Audit team was Kelly Williamson, James Woodward, Corne Labuschagne, Nate Wirihana, Tara Rutter and Sally Ramsey.
