A performance audit of the Department of Defence’s management of the delivery of health services to the Australian Defence Force has found the service to be ‘partly effective’.
In his report, Auditor-General Grant Hehir said the Department’s management demonstrated shortcomings in ensuring the implementation of all contracted requirements.
“While Defence has developed largely fit for purpose contract governance arrangements, the implementation of contracted requirements has been partly effective,” Mr Hehir said.
“Defence has not managed the contract to ensure that: all plans required under the contract have been put in place; contract change proposals are made in accordance with processes established in the contract; all reports prepared by the contractor meet the minimum contracted requirements; invoices are complete; and contract payments are only made on the basis of complete invoices,” he said.
“Weaknesses identified in Defence’s control framework for payments have not been fully resolved, reducing Defence’s ability to provide assurance on the proper use of public resources for which it is responsible,”
The Auditor-General found the Department had included a fit for purpose performance management framework in the contract.
“However, implementation has been partly effective,” he said.
He found Defence had not managed the contract to ensure the full suite of performance measures.
Mr Hehir made four recommendations related to the Department honouring its contract, all of which were agreed.
The Auditor-General’s online report can be accessed at this PS News link or at his 84-page report at this link.
The audit team was Joyce Knight, Elizabeth Wedgewood, Georgia Johnston, James Wright, Michael Brown, Dale Todd, Nathan Daley, Qing Xue, Sally Ramsey and Amy Willmott.
