Review conclusion

13.  Under arrangements with the DMO, the ANAO has agreed to review specified PDSS data and present a formal review conclusion.

14.  The conclusion of the review of the PDSSs was that, except for the non-inclusion of project expenditure history expressed in base date dollars6 for 19 Major Projects and the prime contract price in base date dollars for four Major Projects (as explained further in paragraph 1.21 below), nothing has come to the attention of the ANAO that causes us to believe that the information in the PDSSs, within the scope of our review, has not been prepared in all material aspects, in accordance with the guidelines on completing the PDSSs. Table 2 below details the specific PDSS table items that are subject to qualification by the ANAO.

Table 2

ANAO's Review of 2009-10 PDSSs: Qualifications

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6  Base date dollars is the amount, adjusted for the impact of inflation (prices) and foreign exchange movement over the period from a specified date. In order that the initial budgeted cost of a project can be compared to the actual expenditure over time, in like terms, the financial tables in the PDSSs also adjust for real variations to budgeted costs, which involve: changes in the quantities of equipment or capability; transfers to the Defence Support Group to fund the acquisition of facilities and transfers to other projects; and budgetary adjustments such as the impact of efficiency dividends. Alternatively, original budgets could be inflated for price and foreign exchange movements to allow for a current day comparison. This method will be explored further by the DMO, in consultation with the ANAO, in the 2010-11 MPR.