3.18 In its report on the 2007-08 MPR, the JCPAA identified some shortcomings present in the financial information included in the MPR.98 To address the JCPAA's concerns, the DMO and the ANAO worked together to redevelop a number of the Project Data Summary Sheets (PDSSs) Section 2 financial performance tables.
3.19 In the 2009-10 MPR, in Section 2 of the PDSS, the DMO included contract prices and subsequent expenditure for the top five contractors for each project. In addition, the non-contract element of project budgets and expenditure were separately disclosed in the line item 'Other', which includes items such as operating expenditure; contingencies; legal costs; purchases of minor equipment; consultancies, contractors and professional service providers; and other operating and capital expenditure not attributable to the top five contracts.
3.20 While these disclosures are valuable in increasing the transparency of project financial management, further development of the tables in Section 2 of the PDSS is still required to achieve the full level of visibility over Major Project expenditures that the JCPAA requested.99 Some examples of this increased level of clarity could include facilities, in-service support, maintenance and spare parts and other inputs to capability.
3.21 In its Report 422, the JCPAA recommended that the DMO present the findings on its examination of the presentation of financial data on all possible methods for project expenditure information (e.g. base date, out turned and current dollars), including a preferred method and proposal for transition towards the proposed new arrangement.100
3.22 Following this recommendation, a further enhancement to the presentation of financial data in the 2010-11 MPR has been the inclusion of out turning indexation, to assist in comparisons between the amount of remaining budget and (i) remaining schedule and (ii) the materiel element of capability yet to be delivered.
3.23 The JCPAA is yet to receive the findings of DMO's examination referred to in paragraph 3.21 at the date of this report. However, the DMO and the ANAO continue to work together to ensure that Section 2 of the PDSS provides the information the Parliament and other stakeholders are seeking in order to make sound judgements concerning the financial management status of projects.
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98 Joint Committee of Public Accounts and Audit, Report 416, Review of the Major Projects Report 2007-2008, November 2009, p. 9.
99 Joint Committee of Public Accounts and Audit, Report 416, Review of the Major Projects Report 2007-2008, November 2009, p. 9.
100 Joint Committee of Public Accounts and Audit, Report 422, Review of the 2009-10 Defence Materiel Organisation Major Projects Report, April 2011, p. xii.