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COMMITTEE'S CONSIDERATION

In its Report No. 44, 57th Parliament – Examination of Auditor-General Reports, tabled on 21 April 2023, the committee reported on its consideration of a number of Auditor-General's reports referred to it, including Auditor-General Report 2: 2022-23 - Improving grants management.  The committee did not resolve to hold further inquiries into these audit reports and made no recommendations to the Legislative Assembly.

Overview

Role of the Auditor-General 

The role of the Auditor-General is to provide Parliament with independent assurance of public sector accountability and performance. This is achieved through reporting to Parliament on the results of its financial and performance audits and other insights.

About the Auditor-General Report

The Auditor-General’s report to Parliament No. 2: 2022-23—Improving grants management (Report 2) is an audit brief providing insight into where Queensland Government grants go. It also includes an assessment of the strengths and weaknesses of the internal controls (people, systems and processes) that 5 departments use to manage 8 grant programs. The grant programs were selected based on both the dollar value and risk of their grant programs.

Report 2 found that in 2020–21, Queensland Government entities distributed $2.8 billion in grants – to community groups, local governments, businesses, and others – to support the objectives and priorities of the government. South East Queensland received 32.5 per cent of grants, with 73 per cent of Queensland’s population living in this area. Regions outside of South East Queensland received 44.3 per cent of grants, with most grants going to Townsville, Whitsunday, and Cairns. Grants provided for state-wide purposes (for example, contributions to public training providers), or to benefit multiple regions, represented 22.1 per cent of total grants. The average amount of grant paid across the state was $542 per person. Sixteen local government areas received more than $10,000 in grant funding per person. 

Report 2 found the grant information systems used by agencies have not always collected information in the format required, and that more needs to be done to ensure the most useful data is provided on the Open Data website. The QAO recommended an interactive dashboard be developed to make the information on grants more accessible and useful. The QAO also recommended agencies collect and check the completeness of grant information, and be required to explain why mandatory information has not been provided for some grants.

In its assessment of the strengths and weaknesses of the internal controls, the QAO found most departments reviewed have appropriate grants management processes. However, the QAO also noted there is room for improvement. Report 2 notes that the grant approval and acquittal processes were the least mature aspects of grants management. It was recommended all departments should self-assess their grant management processes against the Queensland Audit Office’s maturity model and report the outcome of the self-assessment to those charged with governance.

The QAO also recommended building greater consistency and flexibility in grants management, with the Department of State Development, Infrastructure, Local Government and Planning leading improvements in grants management across government.

The QAO found that risk management was the area in which departments could improve the most. The QAO recommended all departments enhance risk management of grants. The QAO also recommended all departments should enhance the acquittal of grants, and that all departments with significant grant programs should develop and implement stronger key performance measures to better monitor grant program performance and outcomes.

Referral to Committee 

Standing Order 194B provides that the Committee of the Legislative Assembly shall as soon as practicable after a report of the Auditor-General is tabled in the Assembly refer that report to the relevant portfolio committee(s) for consideration.  

The committee is responsible under section 94 of the Parliament of Queensland Act 2001 for assessing the integrity, economy, efficiency and effectiveness of government financial management by examining government financial documents and considering reports of the Auditor-General.

The Committee of the Legislative Assembly referred this Auditor-General’s report to the committee on 18 August 2022.