A performance audit into whether the Department of Health effectively managed its Medical Research Future Fund (MRFF) has found it was largely effective but lacked adequate performance measures.
In his Report, Department of Health’s Management of Financial Assistance under the Medical Research Future Fund, Auditor-General, Grant Hehir said the Department’s management of financial assistance under the MRFF was largely effective, as was its governance arrangements for the management of the Fund.
“Clear governance roles, responsibilities and coordinating structures have been established and Health has implemented largely effective arrangements with its implementation partners to administer MRFF,” Mr Hehir said.
“Health has effectively supported consultations by the Australian Medical Research Advisory Board (AMRAB) and expert advisory panels, but it has not actively consulted with State and Territory Governments on the implementation of the Program,” he said.
“The identification and documentation of the management of issues and risks should be improved.”
Mr Hehir said the Department’s management of grants of financial assistance to support medical research and medical innovation was largely consistent with the MRFF Act and the Commonwealth Grant Rules and Guidelines 2017 (CGRGs).
“Health does not have adequate performance measures for MRFF and has not effectively measured and reported on the performance of MRFF financial assistance in its annual performance statements,” he said.
“Health published a monitoring and evaluation strategy in November 2020, with most of the activities yet to occur.”
The Auditor-General said the Department had also made a number of improvements to the operation of the program.
Mr Hehir made three recommendations to the Department to identify, assess and manage risks at the initiative level of the 10-year Plan; report grants in the same way that grant opportunities were classified in the relevant guidelines; and improve MRFF performance measures and reporting.
The Auditor-General’s Report can be accessed at this PS News link and the 68-page printed Report at this link.
The Audit team was John McWilliam, Fraser McEachan, Clarina Harding, Dr Cristiana Linthwaite-Gibbins and Deborah Jackson.
