2.24 To ensure administrative processes associated with capital works projects are being complied with, Defence advised that it has a number of checking and quality control mechanisms in place, including:
• audits undertaken by the Inspector-General Division28;
• reviews undertaken by the Infrastructure Division29;
• monthly financial progress reviews of each project within the Infrastructure Asset Development Branch30; and
• quarterly project 'health checks' within the Infrastructure Asset Development Branch.
2.25 The Infrastructure Division's reviews cover various stages of the asset development process, including strategic and detailed business case development, construction and handover. Defence advised that to date the reviews have not covered adherence to the Public Works Committee referral process.
2.26 Defence further advised that the monthly and quarterly reviews that the Infrastructure Asset Development Branch conducts of direct procurement projects are an effective review mechanism to ensure that projects are checked and discussed on a regular basis. Defence considers that this process ensures major issues or problems can be identified and resolved in a timely fashion, and that project managers are supported in their work. The monthly and quarterly review processes are not included on the Infrastructure Management System.
2.27 The ANAO considers that there would be benefit in Defence ensuring that compliance with the Public Works Committal referral process is included in its ongoing review program monitoring capital works projects.
____________________________________________________________________________
28 The Inspector-General Division conducts internal Defence audits.
29 The Infrastructure Division manages all Defence buildings, infrastructure and property.
30 The Infrastructure Asset Development Branch manages all traditionally procured capital works projects.