I note the ANAO qualification in the Major Projects Report (MPR) with respect to 'base date' dollars. This qualification relates solely to the non-disclosure of 'base date' information and does not indicate or infer any deficiencies in the adequacy of the DMO's management of project expenditure or non‐ compliance with Australian accounting requirements. As further confirmation of the quality of DMO's financial management, the ANAO has again provided an unqualified audit report for the 2009-10 DMO financial statements.
The standard project management and performance reporting requirements for DMO projects do not require the use of 'base date' dollars to either manage or report. However, several projects converted financial data, particularly contract expenditure, into base date dollars for disclosure in the MPR but this was a time consuming and costly exercise, offering limited value for project management outcomes.
The DMO looks forward to discussing options for reporting project financial performance with the Auditor-General to develop an alternative approach for consideration by the JCPAA in early 2011 to resolve this matter.