1.33 In November 2008, the Infrastructure Coordinator wrote to the Auditor‐General inviting an independent assessment of the integrity and robustness of the processes that had been adopted in:
• undertaking the first National Infrastructure Audit; and
• developing the first Infrastructure Priority List.
1.34 The Auditor‐General agreed to this request as it was consistent with the published audit strategy for the Infrastructure, Transport, Regional Development and Local Government portfolio. The objective for the Australian National Audit Office (ANAO) performance audit was to assess the effectiveness of the conduct of the first National Infrastructure Audit and development of the Infrastructure Priority List, with particular emphasis on:
• the submissions process, and the methodology used to assess submissions;
• the overall conduct of the Audit process;
• the formulation of the Interim and Final Infrastructure Priority Lists; and
• the provision of advice and recommendations to the Government.
1.35 Audit work originally commenced in March 2009 but was put on hold in late June 2009 in order to respond to a request from the then Prime Minister for a performance audit of a range of matters relating to representations to the Treasury regarding automotive finance arrangements for car dealers. Audit work re‐commenced in August 2009.
1.36 The audit involved examination of relevant documentation held within the Office of the Infrastructure Coordinator (including papers and Minutes relating to Council meetings), DITRDLG, the Department of Finance and Deregulation, the Department of the Treasury and the Department of the Prime Minister and Cabinet. ANAO also discussed the conduct of the Infrastructure Australia processes with a selection of project proponents.
1.37 Between February and March 2010, four audit Issues Papers were provided to the Office of the Infrastructure Coordinator so as to verify the accuracy and completeness of the information and audit analysis included in them and to obtain views on conclusions reached, as an input to the preparation of the proposed audit report to be issued under Section 19 of the Auditor‐General Act 1997. Two of the Issues Papers were also provided to DITRDLG, given the role of the department in the establishment of Infrastructure Australia, and in advising the Government on the funding of some of the projects included on the Final Priority List.
1.38 In addition to a number of meetings with the Infrastructure Coordinator and his Office to discuss the Issues Papers, ANAO discussed the preliminary audit findings and conclusions with the Chair of the Infrastructure Australia Council. To inform these discussions, in May 2010 the Chair was provided with an advance version of the proposed audit report.
1.39 The formal proposed report was issued in June 2010 to the Infrastructure Coordinator, the Infrastructure Australia Council and DITRDLG. Written comments were provided by the Council and the Infrastructure Coordinator, with various amendments made as appropriate in the report.66 In addition, Infrastructure Australia provided formal comments on the report, which have been reproduced in full.
1.40 The audit was conducted under Section 18 of the Auditor‐General Act 1997, in accordance with ANAO Auditing Standards at an estimated cost to the ANAO of $573 000.
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66 In this respect, a revised proposed report was provided to the Council and the Infrastructure Coordinator to inform further discussions, and the deadline for any written comments was extended by 12 days.