A performance audit to assess whether the Commonwealth Scientific and Industrial Research Organisation’s (CSIRO) 2012 Property Investment Strategy achieved the benefits it intended has found that is didn’t.
In his report, Implementation of the Commonwealth Scientific and Industrial Research Organisation (CSIRO) Property Investment Strategy, Auditor-General, Grant Hehir says CSIRO’s approach to measuring its property footprint and operating costs was not effective.
“The CSIRO did not design and implement its 2012 property investment strategy in a way that is delivering the intended benefits,” Mr Hehir said.
“The 2019 Property Strategy was not sufficiently informed by lessons learned and does not include any performance targets,” he said.
“The evidence indicates that the CSIRO will not achieve the aim of reducing its property footprint by 26 per cent and eliminate the forecast annual increase in operating costs compared with 2012–13 levels.”
Mr Hehir said CSIRO had not been effective in establishing governance arrangements to support the implementation of its 2012 Property Strategy.
He recommended the Organisation develop a consistent, transparent and effective approach to measure the entirety of its property portfolio footprint; develop a property strategy risk management plan; that its Executive report at least annually to its Board on the progress of implementing the property strategy; and establish quantifiable performance targets for its 2019 Property Strategy.
Mr Hehir identified a number of key messages from the audit for all Australian Government entities including that the delivery of complex investment and divestment projects required strong governance arrangements; setting targets in asset management strategies provided a clear focus for performance in delivering benefits; and major asset management strategies required strong oversight by accountable authorities.
He said all Australian Government entities should actively identify, manage and monitor risks in accordance with organisational risk appetite, risk management policies and guidelines.
The Auditor-General’s report can be accessed online at this PS News link and his 68-page tabled report at this link.
The Audit team was Sandra Dandie, Andrew Gavin and Brian Boyd.
