A recent committee report has reiterated its recommendation to remove ministerial approval for performance audits. 

The Joint Committee of Public Accounts and Audit (JCPAA) says that the auditor-general should have the authority to initiate performance statement audits without requiring approval from the finance minister.

Committee chair Julian Hill has expressed frustration at the lack of action on this matter in the past.

“In fact, we recommended that this requirement be removed twice before but the previous government took no action,” committee chair Julian Hill said.

“While we appreciate it’s not the highest priority change to pursue, we continue to see it as important to streamline the ANAO’s work and hope the minister will progress the change.”

The report also includes three additional recommendations. 

Firstly, it suggests that the ANAO prepare a summary of performance reporting trends and best practices. 

Secondly, it proposes a revision of the schedule for performance statements to allow the ANAO to commence its work earlier in the cycle, enabling interim findings to contribute to budget statements. 

Lastly, the committee calls for increased transparency by urging the ANAO to share its audit methodology, audit strategy documents, and agencies' feedback on these papers, while Finance should provide guidance related to performance statements.

Hill says that Australians lack a reliable means to determine the accuracy of performance statements. 

He raised questions about the validity of Key Performance Indicators (KPIs) and their representation of agency activities. 

He also emphasised the significance of performance statement audits and the committee's strong support for their introduction.

Hill pointed out that the ANAO's audits of the 2021-22 performance statements revealed improved performance reporting by audited entities and increased engagement across the public sector.