1. Under the Public Works Committee Act (1969) (the Act), any public work1 estimated to cost $15 million or more must be referred to the Parliamentary Standing Committee on Public Works (the Committee).2 In early 2007, the Joint Committee of Public Accounts and Audit (JCPAA) advised the Australian National Audit Office (ANAO) that a priority3 of Parliament was for the ANAO to conduct a performance audit of the processes associated with the development of public works proposals by agencies that fall within the scope of the Committee. Against this background, the ANAO decided to undertake two related audits on this issue.
2. This first audit examines whether the Department of Defence's (Defence's) capital works projects have been submitted in accordance with the Committee's requirements for notification and review prior to entering into financial commitments for the works. A second audit, which is currently underway, will assess the planning and delivery of selected capital works projects, the extent to which these projects have delivered in accordance with expectations, and the extent to which relevant sponsoring agencies have complied with the requirements of the Act and approval procedures.
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1 A public work is defined as a work proposed to be done by the Commonwealth, or on behalf of the Commonwealth, and it includes construction, alteration, repair or destruction of buildings and other structures.
2 The Parliamentary Standing Committee on Public Works is also known as the Public Works Committee or the PWC.
3 Each year, the JCPAA consults with all other Committees of the Australian Parliament to identify the priorities of the Parliament for performance audits to be undertaken in the following financial year by the ANAO.