A performance audit of the activities of the Export Finance and Insurance Corporation (Efic) has found the Agency to be achieving the tasks it was established to perform but having trouble meeting its reporting obligations.
In his report, Effectiveness of the Export Finance and Insurance Corporation, Auditor-General, Grant Hehir assessed the Agency’s effectiveness.
“Efic is effectively undertaking its functions, except for its annual performance statement reporting,” Mr Hehir said.
He said the primary purpose of Efic was to provide financial solutions and support to Australian export businesses that were unable to secure funding from the private sector.
Mr Hehir said that to form a conclusion against the audit objective, the Australian National Audit Office (ANAO) considered whether Efic was operating within its prescribed mandate; whether it effectively managed its financial and service delivery functions, and whether it was meeting its statutory and prudential responsibilities.
He found it had on each count.
“Efic’s annual performance statement reporting should be enhanced to enable a more comprehensive assessment of overall progress against its purpose,” he said.
The audit recommended Efic include both quantitative and qualitative performance measures in its annual performance statement to enable a more comprehensive assessment of overall progress against its purpose.
“This should include measures to address mandated requirements to encourage banks and other financial institutions to finance, or assist in financing, export contracts or eligible export transactions,” Mr Hehir said.
This was agreed by Efic.
The Auditor-General’s report can be accessed at this PS News link and a 69-page printed report at this link.
The audit team was Josie-Marie Lopez, Kumalie Walker, Tanzim Khan, Robert Nichol and Paul Bryant.
