A performance audit of the National Emergency Management Agency (NEMA) and the National Recovery and Resilience Agency’s (NRRA) administration of disaster relief funds has found they were largely effective.
In his report Administration of the Disaster Recovery Funding Arrangements, Auditor-General Grant Hehir said that from 2018–19 to 2021–22, the Australian Government paid $3.1 billion to State and Territory Governments through the Disaster Recovery Funding Arrangements (DRFA), administered by NEMA and NRRA.
“The Agencies’ administration of DRFA processes and assurance activities has been largely effective,” Mr Hehir said.
“Administration activities, including assurance and claim approvals, are consistent with the DRFA determination,” he said.
“The Agencies have not effectively monitored or reported on DRFA performance.”
Mr Hehir said the Agencies’ administration of DRFA assurance and annual claims processes was largely appropriate.
However, he said while State assurance opinions were submitted as required, NRRA did not assess whether the opinions met the DRFA determination’s requirements.
“The Agencies did not have appropriate arrangements to monitor and report on their performance in administering the Disaster Recovery Funding Arrangements,” the Auditor-General said.
“NEMA does not monitor performance or report against the DRFA determination’s principles,” he said.
“The NRRA’s 2021–22 performance measures did not appropriately incorporate DRFA activities or outcomes.
“Effective monitoring and reporting on the implementation of DRFA related reviews and recommendations does not occur as appropriate governance, planning and assurance arrangements for these activities were not established.”
Mr Hehir made three recommendations aimed at timeliness in DRFA assurance activities, internal performance monitoring and external reporting
The Auditor-General’s report can be accessed at this PS News link and a 71-page pdf version at this link.
The audit team was Joshua Francis, Jake Farquharson, Jemimah Hamilton, Liza Tonkin and Corinne Horton.
