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Audit Act - Auditor-General - Reports - Audit reports 1989-90 - No. 15 - Administrative Services portfolio


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The A uditor - G eneral Audit Report No 15 1989-90

Administrative Services Portfolio

The Auditor-General

Audit Report No 15 1989-90

A dm inistrative Services Portfolio

A u stralian G overnm ent P ublishing Service, C anberra

© Com m onw ealth of A ustralia 1989

ISSN 1033-968 X

ISBN 0 644 10551 8

T h is w o rk is copyright. A p art from a n y u s e a s p e rm itte d u n d e r th e

C o p y rig h t A c t 1 9 6 8 , n o p a r t m a y b e r e p r o d u c e d b y a n y p r o c e s s

w ith o u t w ritte n p e rm issio n from th e D irec to r P u b lish in g a n d M a rk e t­

ing, AG PS. In q u iries s h o u ld b e d ire c te d to th e M anager, GPO Box 84,

AG PS P re ss, C a n b e rra , ACT 2601.

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA PARLIAMENTARY PAPER

No. 1 8 8 OF B89

O rdered to be printed by autnorixy ISSN 0727-4181 i

Printed in Australia by R. D. RUBIE, Commonwealth Government Printer, Canberra

AUSTRALIAN AUDIT OFFICE

A u stralian A udit Office C anberra, ACT 7 Septem ber 1989

D ear Mr P resident D ear M adam S peaker

In accordance w ith th e au th o rity co n tain ed in th e A udit Act 1901, I tra n sm it to th e P arliam ent a Report, signed on 7 Sep­ te m b e r 19 8 9 , o n a u d its , e x a m in a tio n s a n d in s p e c tio n s

carried o u t u n d e r th e provisions of th e A udit Act.

The H onourable th e P resid en t of th e S enate, The H onourable th e S peaker of th e H ouse of R epresentatives,

P arliam ent House, C anberra, ACT

Yours sincerely,

J . C. Taylor A uditor-G eneral

!

CONTENTS

Page

1. A u stralian Surveying an d Land Inform ation G roup 1.1 Program activities 1

2. A u stralian Property G roup 2.1 A sset control 4

3. C orporate Services G roup 3.1 A ccounting services 7

4. A u stralian Archives 4.1 Regional offices 8

5. A u stralian C onstruction Services 5.1 R esource u tilisatio n - la n d and buildings 9

5.2 C o n su lta n ts 31

5.3 F itting-out of leased prem ises 39

5.4 Recoverable ex p en d itu re 46

5.5 P rocurem ent an d sto re s 48

5.6 Fire protection surveys 50

5.7 S alaries and p ay m en ts in th e n a tu re of salary 52

5.8 Project ad m in istratio n 53

A ppendix 55

»

T h is re p o rt c o n ta in e d th e fin d in g s for eleven a u d its com ­

pleted in th e six m o n th s ending 30 J u n e 1989. Key findings were:

A ustralian Surveying and Land Inform ation Group - program a c tiv itie s

• AAO found th e G roup’s perform ance in m onitoring projects a n d c o s t re c o v e ry in Q u e e n s la n d r e q u ir e d m u c h

im provem ent before it c a n be com m ercially com petitive (section 1.1.6).

A ustralian Property Group- a sse t con trol

• The au d it of a sse t control in th e N orthern Territory found th a t th e existing property m an ag em en t inform ation system (PIMS) h ad not been able to provide m anagem ent w ith satisfactory inform ation to a s s is t th e m in th e ir property

planning an d ratio n alisa tio n fu n ctio n s (section 2.1.3), and

• B ecause of th e lim ited capacity of PIMS, AAO questioned w h e th e r th e G ro u p w a s in a p o s itio n to c o n tro l

C om m onw ealth ow ned p ro p e rtie s effectively (section 2.1.3).

A ustralian C onstru ction S ervices- resource u tilisation - land and building

A udits of th e resource u tilisatio n of la n d and buildings were u n d e rta k e n in Q ueensland and W estern A ustralia. A prelim i­ n a ry review w as also u n d e rta k e n in th e A u stralian C apital Territory. Key findings were:

• Large area s of th e Kewdale w o rk sh o p s/sto re s com plex in WA, including th e p la n t w orkshop, th e trad e s w orkshop and th e stores building have been u n derutilised for several y ears (sections 5.1.15 to 5.1.21, 5.1.25, 5.1.38, 5.1.48

and 5.1.60)

• ACS in W estern A u stralia h ad failed to respond adequately to C e n tra l O ffice r e q u e s ts fo r th e d e v e lo p m e n t of

ratio n alisa tio n proposals for Kewdale from 1981 onw ard (section 5.1.69)

• There is scope for am algam ation of m ain ten an ce depots at S w anbourne an d Leeuwin (section 5.1.64)

• There w as little evidence th a t ACS in W estern A ustralia h ad initiated p rocedures to m onitor and com pare th e cost of

operation of its w ages employee workforce to contract lab o u r (section 5.1.42)

• The co sts and benefits of a proposal to replace facilities at Oakey, D rayton an d Toowoomba in Q u een slan d w ith a new facility a t H arristow n h a d not been docum ented (section 5.1.90)

• A stu d y to review th e cost effectiveness of a m ulti-purpose site in B risbane h a d recom m ended th e site be vacated b u t h a d n o t ex ten d ed to c o n sid era tio n of a soils te stin g

laboratory located on the site (section 5.1.84)

• There appeared to be a considerable la n d a re a su rp lu s to th e requirem ents of a depot a t Amberley (section 5.1.88), and

• A prelim inary review in th e ACT indicated th a t th e position w as satisfactory (section 5.1.98).

A ustralian C onstruction S ervices - co n su lta n ts

An au d it of the p rocedures relating to th e em ploym ent of ex­ t e r n a l c o n s u l t a n t s w a s u n d e r t a k e n in A C S ’s

V ictoria/T asm ania S tate Office. Key findings were:

• P rocedures for selection, appointm ent an d perform ance a s s e s sm e n t h a d n o t b een followed (sections 5.2.18,

5.2.24, 5.2.27, 5.2.36, 5.2.40. 5.2.46 and 5.2.48), and

• There w as insufficient evidence to estab lish th a t ACS had e n s u r e d t h a t th e b a s ic p r in c ip le s in d e a lin g w ith

c o n s u lta n ts h a d been observed (sections 5.2.27 and

5.2.28).

A ustralian C on stru ction S erv ices - fittin g -o u t o f leased p rem ises

An a u d it of th e a d m in is tra tio n of th e fittin g -o u t of leased

prem ises w as u n d e rta k e n in ACS’s Q ueensland S tate Office:

• A clear line of dem arcation betw een th e responsibilities of th e APG a n d ACS e le m e n ts of th e D e p a rtm e n t of

A dm inistrative Services h a d not been properly m aintained in Q ueensland leading to ACS being u n ab le to discharge its responsibilities effectively (section 5.3.18)

• T h e re w ere no c o n s o lid a te d i n s t r u c t i o n s to co v er

fitting-out of leased prem ises req u irem en ts or changes foreshadow ed in G overnm ent policy (section 5.3.27)

• P ro c e d u re s for th e reco rd in g of ta rg e t d a te s for th e

com pletion of projects w ere not advised to ACS by APG in w riting and th e re a so n s for delays or events n ot originating w ithin ACS w ere n o t recorded by ACS (section 5.3.31), an d

• Few in sta n c e s w ere observed in w hich client D epartm ents or a u th o rities w ere notified of th e costs of alteratio n to approved p la n s or draw ings, or of th e overall im pact of p r o p o s a ls ( s e c tio n s 5 .3 .3 5 to 5 .3 .3 6 ) . A u s t r a li a n

C onstruction Services- p ro cu rem en t and stores

A u s tr a lia n C o n s tr u c tio n S e r v ic e s - p r o c u r e m e n t an d sto res

An au d it of p ro cu rem en t an d sto res w as u n d erta k en in ACS’s Q ueensland S tate Office in 1989. Key findings were:

• The in tro d u ctio n of a m icro-com puter b ased p u rch asin g a n d sto res control system in Townville w as not operating satisfactorily (sections 5.5.6 an d 5.5.7), and

• Deficiencies related to in tro d u ctio n of th e system included inadequacies in th e tra n s fe r of d a ta to th e new system , defective d ata in p u t controls an d a failure to produce

essen tial rep o rts alth o u g h th e c o n tra c t for in stallatio n had been finalised (sections 5.5.6 an d 5.5.7).

I

i

1. Australian Surveying and Land Information Group

1.1 Program a ctiv ities 1.1.1 The A u stralian Surveying a n d Land Inform ation G roup (AUSLIG) w as form ed in 1987 thro u g h th e am al­ gam ation of th e A u stralian Survey Office from th e form er

D e p a rtm e n t of Local G o v ern m en t a n d A d m in istrativ e Services an d th e D ivision of N ational M apping from the form er D epartm ent of R esources an d Energy.

1.1.2 AUSLIG is responsible for th e provision of advice a n d inform ation on geodesy, m apping (excluding Defence m apping) an d surveying and on general policy an d pro­ cedures relating to accessing, storage an d dissem ination

of la n d r e la te d d a ta r e q u ir e d to a s s is t G o v ern m en t

decision-m aking processes.

1.1.3 AUSLIG is funded u n d e r th e A u stralian Surveying an d Land Inform ation Program . The total 1988-89 n a ­ tio n a l e x p e n d itu re a n d r e c e ip ts for th e p ro g ram w as

e s tim a te d a t $ 4 0 .4 a n d $ 4 0 .2 m illio n re s p e c tiv e ly .

C harging for surveying services w as introduced from 1 J a n u a ry 1988, an d for all n o n-public in terest surveying an d land inform ation activities from 1 J u ly 1988.

1.1.4 On 10 O ctober 1988, th e G overnm ent initiated a n u m b e r of re fo rm s of AUSLIG’s o p e ra tio n s w ith em ­ p h a s is on c o m m e rc ia lisin g its activ ities. T he m a jo r

changes included:

• AUSLIG’s c lie n t b a s e d serv ice s to be provided on a q u a si-c o m m e rc ia l b a s is from 1 J u ly 1990, w ith all

d ep artm en ts an d B udget funded agencies being free to engage th e services of o th e r surveying an d m apping organisations, and

• th e e s ta b lis h m e n t of a T r u s t A c c o u n t for AUSLIG

activities from 1 J u ly 1989.

1

1 .1 .5 A n a u d i t of th e p r o g r a m a c t iv it ie s a t th e

Q ueensland Regional Office of AUSLIG w as com pleted in F ebruary 1989. The objective of th e au d it w as to deter­ m ine w hether ad eq u ate control an d p rocedures existed to en su re th a t th e program w as adm inistered effectively.

Audit conclusion 1.1.6 While acknow ledging th a t AUSLIG h a s undergone sig n ifican t c h a n g e s in re c e n t tim e s w ith th e move to

com m ercialise its o p eratio n s, a n d is still a d ju stin g to new fin an c ial a rra n g e m e n ts a n d p ra c tic e s a sso ciated w ith these changes, AAO concluded th a t AUSLIG’s c u r­ r e n t p e r f o r m a n c e in m o n ito r in g p r o je c ts a n d c o st

recovery would need to be im proved considerably for it to be com m ercially competitive.

Performance monitoring 1.1.7 A Survey C osting System (SURCOS) w as being u s e d by AUSLIG to m o n ito r th e p ro g re ss an d p erfo r­ m ance of m apping and surveying projects. A review of the reports from th is system revealed:

• 75% of th e re c o rd e d jo b s h a d o v e rru n th e ir ta rg e t

com pletion date

• th e m ajority of jo b s did not have all th e ap p ro p riate

m ilestones recorded, and

• n u m e ro u s in s ta n c e s w here jo b s h a d exceeded th e ir original cost estim ate.

1.1.8 AAO reco m m en d ed th a t a m ore co n certed a p ­ p ro a c h be a d o p te d by AUSLIG to m o n ito r re s o u rc e s against estim ates, including the reg u lar u se and review of job m ilestones.

1.1.9 AUSLIG advised th a t in the m ajority of cases ta r ­ get d ates h ad been renegotiated w ith th e client b u t not u p d ated on SURCOS. Also, a n upw ard revision of co st­ in g r a te s in th e o rd e r of 30% w ith o u t th e o rig in a l

e stim a te s being revised h a d c o n trib u te d to cost over­ ru n s. N evertheless, AUSLIG advised of rem edial action to provide for re g u la r m onitoring of project tim es and co sts. AUSLIG fu rth e r advised th a t to overcom e th e

deficiencies of SURCOS, a new co m p u ter system is being introduced w hich w ould provide u p -to -d ate inform ation on estim ates, target d ates and m ilestones.

2

Cost recovery 1 .1 .1 0 B a s e d o n D e p a r tm e n t o f F in a n c e C o s tin g

G u id e lin e s, AUSLIG d e te rm in e d h o u rly co st recovery ra te s for services provided. These ra te s have b een calcu ­ lated b ased on AUSLIG’s operating co sts and overheads an d are th e b a s is for charging clients.

1.1.11 From a review of th e O perating S tatem en t for

th e p e rio d e n d e d 1 F e b ru a ry 1989, AAO n o te d th a t

financially, AUSLIG h a d p erform ed poorly, in cu rrin g a s ig n ific a n t n e t lo s s b o th n a tio n a lly a n d w ith in th e

Q ueensland region. The re a so n s for th e poor re su lts as identified by AUSLIG C e n tra l Office w ere invoicing at below cost, productivity levels le ss th a n anticipated, in ­ a c c u r a te f in a n c ia l in f o r m a tio n p ro v id e d , a n d c o s ts

higher th a n anticipated. A udit w ork u n d erta k en by the AAO in th e Q u een slan d Regional Office supported these findings. AAO also found th e regional office w as slow in in v o ic in g i t s c l ie n ts fo r w o rk c o m p le te d . As a t 2

F eb ru ary 1989, approxim ately $ 1 .3 m illion in revenue earned h a d n o t b een invoiced a n d in addition th ere were s ig n ific a n t d e b to rs o u ts ta n d in g over 60 days. Some

records in th e acco u n ts receivable system were not up to date.

1.1.12 AUSLIG advised th a t any assessm en t of its per­ fo rm a n c e s h o u ld in c lu d e c o n s id e ra tio n of th e steep

learning curve th a t it is going th ro u g h due to com m er­ c ia lis a tio n of its o p e ra tio n s . A lso th e re p o rte d lo ss

includes notional allow ances for all expenses including in te re s t o n c a p ita l, w o rk e rs c o m p e n sa tio n , etc. The

item s w hich a re to be in c lu d ed a s overheads are still

being n eg o tiate d w ith th e D ep artm en t of F in an ce and m ay well alte r th e sta te d loss. AUSLIG fu rth er advised th a t rem edial action w as being ta k e n to reduce th e b ack ­ log in invoicing and to follow up overdue accounts. All

s u b sid ia ry a c c o u n ts receivable reco rd s are now u p to date.

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2. Australian Property Group

2 .1 A sset control 2 .1 .1 T he A u s tra lia n P ro p e rty G ro u p (APG) of th e

D e p a rtm e n t of A d m in istra tiv e S erv ice s m a n a g e s th e C om m onw ealth’s re a l p ro p erty in te re s ts in clu d in g ac­ q u isitio n . developm ent an d d isp o sa l activ ities, acro ss A ustralia. This estate m anagem ent role includes advice to G overnm ent on investm ent an d divestm ent strategies, in re la tio n to all in te r e s ts in re a l p ro p e rty u s e d by

d e p a r t m e n t s a n d m o s t b u d g e t f u n d e d s t a t u t o r y

authorities.

2.1.2 In J u ly 1988 the G overnm ent reaffirm ed APG’s role a s th e Com m onw ealth’s central property authority. This role, including cap ital funding, w ould continue to be b u d g e t fu n d e d a n d re v e n u e from sa le of s u r p lu s

properties w ould co n tin u e to be paid into consolidated revenue.

2 .1 .3 An a u d it of th e co n tro ls over C om m onw ealth

owned properties (land and buildings) u n d e r the control of th e D ep artm en t in th e N orthern T erritoiy w as com ­ pleted in early 1989. The objective of th e au d it w as to

a s s e s s th e ad eq u acy an d effectiveness of control over Com m onwealth owned real properties. AAO found th a t th e existing p ro p erty m an ag em en t in fo rm atio n system (PIMS) h ad not been able to provide m anagem ent with

satisfactory inform ation to assist th em in th e ir property planning and rationalisation functions. B ecause of the lim ited capacity of PIMS, AAO questioned w hether APG w a s in a p o s itio n to c o n tro l C o m m o n w e alth ow ned

properties effectively. AAO noted th a t a new com puter sy stem (MENTOR) w as in th e p ro cess of being im ple­ m e n te d a t th e tim e of a u d it a n d th e s y s te m w ould

eventually replace PIMS. While acknow ledging th a t the new system could m eet m anagem ent needs, AAO raised a n u m b e r of existing deficiencies w ith APG for considera­ tion.

4

Management Information System 2 .1 .4 PIMS w as e sta b lish e d in 1982 to provide APG

w ith a reg ister of all Com m onw ealth p ro p erties for the discharge of th e p ro p erty p la n n in g an d ra tio n alisa tio n functions. AAO found th a t PIMS w as n o t able to be used a s th e sole so u rce of in fo rm atio n by d e p a rtm e n ta l of­

ficers. M any o th e r sources of inform ation w ere needed to be u sed in co n ju n ctio n w ith PIMS to provide sufficient inform ation for m anagem ent. AAO also found th a t the inform ation sto red in th e system m ight not be accu rate

o r u p - to - d a t e b e c a u s e o f th e la c k of d o c u m e n ta r y

evidence of ch eck s on d a ta in p u t or review of existing d a ta . T h ese fa c to rs w o u ld affect th e level of relian ce

m an ag em en t could place on th e inform ation generated by th e system .

2.1.5 APG advised th a t PIMS w as being dow nloaded to MENTOR an d all su ch inform ation w as validated an d the th e tra n s fe r of in fo rm atio n w ould be com pleted by 30 J u n e 1989. APG also advised th a t as it becom es m ore

com m ercialised th e re w ould be a n in creasin g need for m an ag em en t inform ation sy stem s th a t record inform a­ tio n on p ro p e rtie s in c lu d in g c o s ts a n d v a lu a tio n s to

facilitate perform ance a s se ssm e n ts on property m an ag e­ m en t. The MENTOR sy stem is expected to fulfil th is

role. AAO w as also advised th a t th e required checks and review on d a ta in p u t are now docum ented.

Vacant properties and disposal of properties 2.1.6 AAO found th a t PIMS w as not able to provide in ­ form ation on w h eth er a property w as v acan t or un u sed . In addition AAO n oted there w as no evidence of regular

reviews of p ro p erties to identify v acan t or u se d proper­ ties. AAO therefore w as concerned th a t Com m onwealth owned properties m ay be u n derutilised and could resu lt in loss of C om m onw ealth revenue.

2.1.7 APG advised th a t the review of Com m onwealth holdings in th e N orthern T erritoiy h ad been given a low priority in recen t y ears for the following reasons:

• th e close s c ru tin y and s u b se q u e n t ra tio n a lisa tio n of h o ld in g s t h a t o c c u rre d in 1 9 7 8 -7 9 a s p a r t of th e

tra n sitio n to self governm ent, and

5

• th e com pletion of a se p a ra te la n d review exercise in 1982-83.

2.1.8 APG also advised th a t it w as felt th a t little scope existed for fu rth e r ratio n a lisa tio n a t th e c u rre n t time. However APG m an ag em en t predicted th a t renew ed em­ p h a sis would nevertheless be placed on review activity in line w ith APG’s reaffirm ed estate m an ag em en t resp o n ­ sibility.

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3. Corporate Services Group

3.1 A ccoun ting services 3.1.1 In 1988-1989, a u d its of selected asp ects of a c ­

counting services w ere carried out in th e D ep artm en t’s Q u een slan d , S o u th A u stra lia n a n d N o rth ern T erritory Regional Offices. The a u d its reviewed th e p rocedures for th e control over salaries an d p aym ents in th e n a tu re of

salaiy in Q ueensland an d S o u th A ustralia, an d over ex­ p e n d itu r e p ro c e s s in g a n d a c c o u n ta b le fo rm s in th e

N orthern Territory. The objectives of th e au d its were to evaluate th e adequacy of p ro ced u res in operation, com ­ pliance w ith legal an d adm inistrative requirem ents and

th e effectiveness of in te rn a l controls.

3.1.2 The a u d it in D ecem ber 1988 revealed th a t th e

p rocedures an d controls in Q u een slan d were adequate.

3 .1 .3 The re s u lts of th e au d it of salaries an d related

p a y m e n ts p e rfo rm e d in S o u th A u stra lia in D ecem ber 1988 were satisfactory, alth o u g h some m a tters related to a lack of delegations an d ch eck s were rep resen ted to the Group. The G roup h a s advised details of corrective ac­ tion ta k e n or proposed on th e m a tte rs raised.

3 .1 .4 In early 1989 an au d it of th e control over expen­ diture processing an d accountable form s w as conducted in the N orthern Territory. The Corporate Services Group in N o rth ern T e rrito ry provides ad m in istrativ e su p p o rt services to seven portfolio agencies. The au d it disclosed

several u n satisfac to ry m a tte rs related to w eaknesses in th e co n tro l over identification codes u sed to au th o rise an d certify pay m en ts through th e com puterised paym ent system , in ad eq u ate controls over th e usage of acc o u n t­

a b le fo rm s , a n d a la c k of r e q u ir e d d e le g a tio n a n d

accounting in stru ctio n s. The G roup advised of correc­ tive action ta k e n or proposed.

7

4. Australian Archives

4 .1 R egional offices 4.1.1 Reviews of th e A u stralian A rchives T asm anian an d W estern A u stralian Regional Offices have been car­ ried out. The objectives of th e a u d its were to review the o p e ra tio n s of th e R egional O ffices a n d e v alu ate legal com pliance and adm inistrative effectiveness in relation to a n u m b er of its program s.

4.1.2 The AAO found th a t these asp ects were satisfac­ tory. Some m in o r deficiencies were disclosed in relation to re c o rd d is p o s a l a rra n g e m e n ts a n d s e c u rity in th e

search room. The Offices’ responses advised of proposed m e asu re s to tak e account of the AAO’s findings.

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5. AUSTRALIAN CONSTRUCTION SERVICES

5.1 R esource u tilisation - land and buildings

Introduction

5.1.1 The A u stralian C onstruction Services (ACS) ele­ m e n t of th e D e p a r tm e n t is th e p r in c ip a l a u th o r ity

generally responsible for th e planning, design, c o n stru c ­ tio n , f i t t i n g - o u t a n d r e p a i r s a n d m a in te n a n c e of

b u ild in g s an d engineering facilities for Com m onw ealth d ep artm en ts an d m ost sta tu to ry authorities.

5 .1 .2 A c o n s e q u e n c e of th is is th a t ACS is h ig h ly

decentralised, reflecting a m anagem ent philosophy th a t em ployees sh o u ld be located a s n e a r as possible to areas of w ork activity. In 1 9 8 7 -8 8 , ACS’s 7665 em ployees w e re lo c a te d in so m e 1 50 e s t a b l i s h m e n t s a r o u n d

A ustralia ranging from m ajor cen tres in the cap ital cities to sm all w orks depots in o th er locations.

5.1.3 As a general rule, ACS m a in tain s centralised of­ fice f a c i l i t i e s fo r i t s p l a n n in g , p r o f e s s io n a l a n d

a d m in is tra tiv e s u p p o r t fu n c tio n s a n d d e c e n tra lis e d

dep o ts, s to re s an d w o rk sh o p s for its w ages em ployee workforce.

5.1.4 The m ajor S tate/T errito iy Office role is:

• to direct a n d control the A sset Services fu n ctio n s w ithin th e fram ew ork of departm ental objectives, policies and p ractices

• to provide clien ts w ith tech n ical, econom ic, financial an d plan n in g advice, and

• to arrange for th e design and execution of re p a irs and m ain ten an ce an d m inor new w orks.

5.1.5 The A sset Services Division (ASD) is responsible for m anagem ent of the w ages employee workforce w hich

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is u sed , in th e m ain , to u n d e rta k e re p a irs an d m ain ­

te n an ce of C om m onw ealth a sse ts, an d to a s s is t in the im p le m e n ta tio n of th e C om m onw ealth fittin g -o u t and m inor new w orks co n stru ctio n program s. In accordance w ith recent G overnm ent decisions, ACS m anagem ent a n ­ tic ip a te s th a t th e A sset S ervices D ivision is likely to

expand its activities into capital w orks.

5 .1 .6 E x p e n d itu re b y th e ASD in 1 9 8 7 -8 8 a g a in s t

m oneys appropriated to, or u n d e r th e control of ACS, as l well a s rep airs and m ain ten an ce for o th er bodies, p a r­ tic u la rly s ta tu to ry a u th o ritie s , w h ich a re n o t fu n d ed

from ACS b u d g e t allo catio n s to talled $ 3 4 0 m illion, as follows:

Repairs a n d M aintenance (R & M) $M $M

- Civil 67

- Defence 150

- Recoverable 65 282

M inor New W orks (MNW) 58

340

5.1.7 A udits of th e u tilisa tio n of la n d an d b u ild in g s s

owned or leased by ACS were conducted in Q ueensland an d W estern A ustralia in 1988-89. A prelim inary review w as also u n d erta k en in th e ACT.

Audit objectives 5.1.8 The bro ad objectives of th e a u d its w ere to:

• review th e extent of the reso u rces available and the use to w hich those a ss e ts were being p u t, and

• evaluate th e efficiency of resource utilisation.

5.1.9 More specifically, p a rtic u la r objectives were, to establish that:

• th e o b je c tiv e s of th e g e n e ra l w o rk s p ro g ra m w ere

co n sisten t w ith G overnm ent policy

• th e re were appropriate planning m ech an ism s

• p h y sical re s o u rc e s available for th e v a rio u s g eneral w orks activities w ere c o n s is te n t w ith th e fu n ctio n al requirem ents of ACS and were not excessive

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• ACS w as u sin g a n efficient com bination of in te rn a l and e x te r n a l r e s o u r c e s to a c h ie v e its ‘A s s e t S e rv ic e s ’

objectives

• a s s e ts h e ld b y ACS for th is p u rp o s e w ere p ro p e rly

m a in tain ed a n d /o r stored, and

• resource u tilisatio n w as su b ject to reg u lar review and m onitoring by m anagem ent.

Recent policy changes 5 .1 .1 0 In J u l y 1 9 8 7 , th e G o v e rn m e n t a n n o u n c e d

several in itia tiv es co n ce rn in g reform of th e A u stra lia n Public Service. The p a rtic u la r im pact of these decisions on ACS resu lted in:

• a ffirm a tio n of ACS a s th e C o m m o n w ealth ’s c e n tra l w orks au th o rity

• th e intro d u ctio n of fee charging for all client services

• rete n tio n of resp o n sib ility for provision of m ost asset m anagem ent services to Com m onw ealth departm ents, w ith fu rth e r co n su ltatio n req u ired to resolve th e extent of delegation to clients

• full cost recovery to be achieved after three years

• for th e first th re e y e a rs th e G overnm ent to m eet any

shortfall betw een fee incom e an d revenue

• ACS to c o m p e te fo r d e s ig n a n d c o n s t r u c t i o n

supervision b u s in e s s from 30 J u n e 1991, and

• d e le g a tio n o f f i t t i n g - o u t o f le a s e d p r e m i s e s to

d ep artm en ts in som e circum stances.

Audit findings - Western Australia 5.1.11 D etails of th e audit findings together w ith ACS’s response are outlined below.

Background

5.1.12 The m a in ACS depot in W estern A ustralia, w hich is located a t Kewdale, is a special purpose facility built for ACS in 1975. It com prises th ree m ajor buildings -

p la n t w o rk sh o p s, a sto re s b u ild in g w ith a n office a t­

tached, an d a building trad e s w orkshop. O ther su p p o rt b u ild in g s in clu d e a n am en ities b u ild in g an d a n a b lu ­ tio n s building. The to tal site is 4.8 h ectares an d la n d on

11

the site is also u sed for general storage, storage for the p la n t pool, a c a r park, paved roadw ays an d law ns and gardens.

5.1.13 The Kewdale facility is cu rren tly owned by ACS. It is an tic ip a te d in th e fu tu re th a t e ith e r ACS will be

charged in terest on capital for the facility or DAS will im­ pose ren ta l charges. At th is stage, it is u n c le a r w hen

su ch charges m ay be applied. However, c u rre n t indica­ tio n s are th a t it will not be u n til a t least 1 J u ly 1990.

Advice from DAS in J u ly 1988 indicated th e valuation of the entire Kewdale com plex to be $2.3 million.

5 .1 .1 4 O th e r d e p o ts in , o r c lo s e to , th e P e r th

m e tro p o lita n a re a a t B u llsb ro o k (P earce RAAF Base), | S w a n b o u rn e (C am p b ell B a r r a c k s - A rm y ), L eeuw in (Army) and G arden Island (HMAS S tirling - Navy) are lo­ cated on land owned by the D epartm ent of Defence and are provided re n t free to ACS. A depot a t th e R epatria­

tion G eneral H ospital, Hollywood is sim ilarly provided to ACS re n t free by th e D e p artm en t of V eteran s A ffairs. '

O ther ACS facilities are also m ain tain ed a t th e Cocos Is­ lands, L earm onth, D erby and N ortham . I General indications of underutilisation of resources at Kewdale

5.1.15 After a review of w orkshop o p eratio n s in New S o u th W ales, Q u e e n sla n d an d W estern A u stra lia , th e 1 M arch 1981 R eport of th e A u d ito r-G e n e ra l ex p ressed concern about u n d eru tilisatio n of w orkshop capacity in Perth.

5.1.16 In O ctober 1981, the ACS resp o n se to the DAS Review of Com m onwealth Property gave no indication of u n derutilisation. D espite this, the F ebruary 1982 report of th e J o in t M anagem ent Review of G eneral Works F u n c­ tio n s s ta t e d t h a t all f a c ilitie s a t th e ACS d e p o t a t

K ew dale in WA w ere g ro ssly o versized for th e (then) p r e s e n t level of th e d a y la b o u r w o rk fo rc e a n d w ere

seriously underutilised.

5.1.17 In May 1987, on the b a sis of advice th a t u n d e r­ u tilisa tio n in P erth h ad n o t been elim inated, the AAO u ndertook a prelim inary review to estab lish th e extent of any continuing problem .

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5.1.18 The AAO su b seq u en tly noted th a t in May 1987 ACS h ad responded to a S enate E stim ates Com m ittee D question on notice from S enator B aum e. The question read:

‘For each financial year since 1982-83 has any property leased, rented or owned by the Commonwealth remained unoccupied or significantly underutilised for any length of time?1

5.1.19 The ACS resp o n se included, am ong o th er things:

‘...There are no properties currently unoccupied or sig­ nificantly underutilised, however the Department’s holdings are currently being investigated for possible dis­ posal next financial year.’

5.1.20 In D ecem ber 1987, ACS responded to a fu rth e r S e n a te E s tim a te s C om m ittee q u e s tio n on n o tice from S enator B aum e. The qu estio n was:

‘What properties that are government owned, rented or leased for the use of (ACS) have been empty or significant­ ly underutilised this financial year compared with last year?’

5.1.21 The response w as th a t ACS in WA did not have any su ch properties com pared w ith la st year, b u t th at:

‘The Plant Workshop and Supply facilities are under­ utilised and action is progressing on a complete re-appraisal of these activities and our property require­ ments at Kewdale.'

Plant workshop - Kewdale 5.1.22 The m ajor p u rp o se of th e p la n t w orkshop is to

provide m a in ten a n ce facilities for th e eighty m ajor plant item s operated by th e civil engineering group of w ages em p lo y ees o r h e ld a t o th e r d e p o ts. M a in te n a n c e of

m inor c o n stru ctio n equipm ent is also u n d ertak en .

5.1.23 The p la n t w orkshop is also responsible for the

m ain ten an ce of approxim ately 115 light vehicles in clu d ­ ing ca rs, u tilitie s an d tru c k s o p e ra te d by ACS in th e

P erth m etropolitan area on T ran sp o rt an d Storage Group (TSG) co u n try hire rates. C ountry hire ra te s require ACS to provide all re p a irs and m a in ten a n ce as well a s fuel

an d lu b rican t costs. O ther vehicles on co u n try hire b u t based away from th e m etropolitan area are norm ally se r­ viced by local g arages and th e co sts paid by ACS. In

13

ad d itio n to its c o u n tiy hire vehicles, ACS also h a s 23

vehicles on m etropolitan hire. U nder m etropolitan hire, vehicle servicing is conducted by TSG.

5.1.24 As a re s u lt of the la te st review of Kewdale in

S eptem ber 1988, planning is underw ay to tra n sfe r all ex­ isting plant w orkshop functions to th e sto res building at a n e stim ated co st of $ 2 0 7 0 0 0 . T hese will occupy an

area of approxim ately 430 sq u are m etres in th e stores bu ild in g p lu s approxim ately 150 sq u a re m etres of ad­ j a c e n t ro o fe d a r e a e x t e r n a l to th e b u ild in g . It is

envisaged th a t th e existing p lan t w orkshop building will be leased out ra th e r th a n sold. This is intended to pro­

vide ACS w ith fle x ib ility by r e ta in in g th e o p tio n of

moving b ack into th e building in th e future.

Underutilisation

5.1.25 The p la n t w orkshop at Kewdale covers a floor a re a of a p p ro x im a te ly 2 2 2 8 s q u a re m e tre s . D esp ite

a w a re n e ss by b o th DAS an d ACS of th e problem , the

p la n t w o rk sh o p h a s b e e n sig n ific a n tly u n d e ru tilis e d since a t least 1982. On the b asis of the anticipated size of th e p ro p o s e d re p la c e m e n t p la n t w o rk sh o p in th e

sto res building, and on the assu m p tio n th a t all existing functions should continue, AAO considers th a t at least 1798 s q u a re m e tre s of th e e x istin g p la n t w o rk sh o p

building are s u rp lu s to requirem ents. At the J u ly 1988 ren tal value of approxim ately $50 per sq u are m etre for equivalent properties in th e Kewdale area th is rep resen ts a cost of $90000 per year.

5.1.26 Advice by ACS to DAS in J u ly 1982 indicated th a t th e u s e of fo u r b a y s by S u rfa c e T ra n s p o rt h a d

resolved the problem . AAO noted, however, th a t th is ac- 1 c o u n te d for only a p p ro x im a te ly 160 s q u a re m e tre s .

F rom 1982 u n til T r a n s p o rt’s d e p a rtu re in 1987, th e

s u rp lu s floor space w as therefore 1680 sq u are m etres w ith a J u ly 1988 ren tal value of approxim ately $84000 per annum .

Light vehicle servicing

5.1.27 D espite clear C entral Office policy guidance, ac­ tio n to tra n s fe r resp o n sib ility for th e servicing of ACS lig h t v e h ic le s to TSG h a s n o t o c c u r r e d . T h is h a s

14

resu lted in u n n ece ssary light vehicle servicing being c a r­ ried out a t th e P lant W orkshops a t Kewdale.

5 .1 .2 8 A lth o u g h it w as a p p a re n t th a t TSG h a d th e

capability of servicing ACS vehicles a s early a s 1983, the AAO noted th a t ACS h ad retain ed th is function on the b a sis of th e lower co sts of ACS servicing. The AAO w as advised th a t a n additional reaso n for retaining th is fu n c­

tio n is th e n e e d to p ro v id e w o rk to p la n t w o rk sh o p

em ployees d u rin g periods of low activity in th e servicing m ajor plant. By D ecem ber 1986, ACS files indicate th a t th e relative c o sts of TSG a n d ACS were approxim ately equal.

5.1.29 The AAO suggests th a t a com parison of th e cost effectiveness of light vehicle servicing by ACS, TSG and th e p riv ate s e c to r be u n d e r ta k e n to confirm w h e th e r

th ere is a co n tin u in g need for th is activity to be carried out a t th e p la n t w orkshop.

Servicing o f major plant

5.1.30 The m ain function of th e p lan t w orkshop is to

service m a jo r p la n t ite m s o p e ra te d by th e civil gang.

While acknow ledging th a t th e m obile civil gang m ay be found to be cost effective u n d e r the c u rren t com m ercial policy, th e AAO c o n sid e rs th a t th e re w as in su fficien t evidence to confirm th a t th e need to m ain tain th e civil gang h ad b een reviewed adequately in th e past. In addi­

tion, th ere w as evidence th a t reduction of the civil gang since 1986 by red ep lo y m en t a n d re d u n d a n c y h a d not been realistically considered a s a n alternative to n a tu ra l w astage. As a resu lt, th e AAO considers th a t reten tio n

of a p la n t w orkshop capability for the purpose of servic­ ing m ajor p la n t h a s not been justified adequately.

5.1.31 U ntil 1987, inadequate consideration w as given to th e h irin g of m a jo r p la n t a s a n alte rn a tiv e to p u r ­

c h a s e . If th e h ire of m ajo r p la n t ite m s from p riv ate

co n tra cto rs h a d been found to be a cost effective a lte rn a ­ tive, it could have significantly red u ce d th e volum e of w ork carried out in the p la n t w orkshop, irrespective of any re q u ire m e n t to c o n tin u e th e activities of th e civil

gang.

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5.1.32 The u se of th e private sector for m aintenance

an d servicing of m a jo r p la n t item s h a s n o t been con­

sidered adequately as a n alternative to perform ing this w ork in ACS w o rk sh o p s. In th e a b s e n c e of s u c h an

analysis, it w as not possible for the AAO to confirm the effectiveness of in -h o u se servicing of m a jo r p la n t. If w ork a t the p la n t w orkshop h a s n o t been cost effective, th e n use of the building and associated equipm ent may have been excessive or unnecessary.

5.1.33 The AAO suggested th a t a com parison of private s e c to r a n d ACS c o s t e ffe c tiv e n e ss be u n d e rta k e n to

determ ine w h eth er th e re is co n tin u in g ju stific a tio n for retention of th e civil gang, w h eth er m ajor p lan t should be hired or p u rch ased , an d w hether m ajor p lan t should be serviced in-house or by the private sector. The con­ tin u in g re q u ire m e n t for a p la n t w o rk sh o p sh o u ld be ,

c o n firm e d p r io r to th e p ro p o s e d c o n s tr u c t io n of a

sm aller p lan t w orkshop in the stores building.

ACS response

5.1.34 ACS advised th a t while th e c u rre n t proposal for ra tio n a lisa tio n of lan d a n d buildings by ACS and TSG w ithin DAS is being investigated, action to modify a sec­ tio n of th e existing sto re s bu ild in g to provide a sm all

p lan t w orkshop will be suspended.

Building trades workshop - Kewdale 5.1.35 The bu ild in g tra d e s w orkshop h a s two m ajor

f u n c tio n s . O ne is to p ro v id e a r e p a i r s a n d m a in ­

te n a n c e /m in o r new w orks service to clien ts in or n ear the m etropolitan area. The other is to provide a service for the fitting-out of leased prem ises. AAO noted th a t th e fittin g -o u t service provided by ACS is confined to W estern A ustralia. No other ACS S tate Office m ain tain s

a com parable joinery w orkshop facility.

5.1.36 In the p ast, these functions have been subject to G overnm ent policy to have a s m u c h w ork as possible carried out by th e private sector, and ACS C entral Office policy th a t 50% of R&M w ork and 60 % of MNW w ork be contracted out.

5.1.37 As a re su lt of th e Prime M inister’s policy s ta te ­ m ent in J u ly 1987, ACS will be required to charge its

16

clients com petitive ra te s and com pete ag ain st th e private sector for its work. The AAO u n d e rs ta n d s th a t th e c u r­ r e n t ACS s t r a t e g y is to e n s u r e t h a t A CS is c o s t

co m p etitiv e a n d to re g a in a s m u c h of th e w o rk p re ­

viously allocated to th e private secto r as possible.

Underutilisation

5 .1 .3 8 E v id en ce of u n d e ru tilis a tio n of th e b u ild in g

tra d e s w orkshop d a te s b ack a s far as 1982. Since th e n

th ere have b een red u ctio n s in th e fitting-out workload, overall re d u c tio n s in th e n u m b e r of w ages em ployees o p eratin g from th e b u ild in g tra d e s w orkshop, a n d the relocation of th o se facilities associated with th e form er D epartm ent of T ran sp o rt o u t of the building. In 1986, ACS indicated th a t th e re w as sp are w orkshop capacity,

and in 1988 confirm ed th a t a 25% reduction in th e exist­ ing w o rk sh o p a re a s co u ld b e achieved. N evertheless, only the D ecem ber 1986 proposal developed by ACS for

ratio n alisatio n of Kewdale recom m ended investigation of a sm aller depot. S u b se q u e n t ratio n alisa tio n proposals have su p p o rted reten tio n of th e existing facility.

5.1.39 The AAO considers th a t u p to 300 square m etres in th e w orkshop area s of th e building m ay cu rren tly be u n d eru tilised . At th e J u ly 1988 re n ta l value of $38 -

$60 p er s q u a re m e tre for eq u iv alen t p ro p erties in th e

Kewdale area th is re p re se n ts a cost of betw een $11400 an d $18000 per year.

Private sector cost com parisons

5.1.40 In May 1987 the A uditor-G eneral reported on an efficiency a u d it of D epartm ent of H ousing and C o n stru c­ tion: R epairs an d M aintenance of Com m onwealth A ssets. Section 5.3.3 of th e report expressed concern th a t in the

absence of a n an aly sis over tim e of th e relative costs of w ork being u n d e rta k e n by w ages em ployees or by con­ t r a c t , A CS w a s n o t w ell p la c e d to e n s u r e t h a t

m ain ten an ce w ork w as u n d e rta k e n in th e m ost cost ef­ fective m anner. The Report recom m ended th a t action be ta k e n to o b ta in d e ta ils of th e re la tiv e c o st of w ages

em ployees and co n tract and th a t th e criterion of relative cost be considered a t th e tim e decisions are m ade on the m ethod of executing m ain ten an ce projects.

17

5.1.41 The AAO noted th a t a t th a t tim e th e Departm ent rejected an inference th a t w ages em ployees were utilised to keep them fully employed and sta te d th a t c u rre n t pro­ c e d u r e s r e q u ir e d t h a t p la n n e d s p e c ific a n d u rg e n t

m ain ten an ce be executed by co n tra cto rs u n le ss approval w as given for th e use of wages em ployees. The AAO also noted th a t th e H ouse of R epresentatives S tanding Com­ m ittee on F inance an d Public A dm inistration Report of

November 1988 concluded th a t ACS h a d initiated proce­ d u re s to m onitor an d com pare th e co st effectiveness of th e w ages em ployee w orkforce to c o n tra c t labour. The c u rre n t review found little evidence th a t th e foregoing w as th e case. The AAO w as inform ed th a t th e procedure for allocating w ork to th e building tra d e s w orkshop is in­ itially to a s s e s s th e e stim ated co st of th e w ork being

carried out by w ages employees, an d th e availability of resources to enable th e w ork to be com pleted on time. Only if th e w ork c a n n o t be com pleted on tim e, or the

co st e s tim a te is c o n s id e re d ex ce ssiv e , a re q u o te s or

ten d ers called from private contractors.

5.1.42 D espite th e p re-Ju ly 1987 governm ent policy of allocating a s m u c h w ork to th e private secto r a s pos­

sible, there w as no evidence on ACS files of any form al analysis of the relative costs of private sector w ork ver­ s u s ACS work. In th e absence of su ch a n analysis, it

w as not possible for th e AAO to confirm th a t the m ost c o st effective m ix of p riv ate a n d ACS c o n tra c tin g for repairs, m ain ten an ce an d fitting-out w ork h a s occurred. If w ork a t th e build in g tra d e s w orkshop h a s not been

cost effective, th e n u se of th e bu ild in g an d associated equipm ent m ay have been excessive or unnecessary.

5.1.43 Ultimately, th e c u rren t G overnm ent policy of full cost recovery will prove the viability or otherw ise of the building tra d e s w orkshop. N evertheless, th e AAO su g ­ g e s te d t h a t a c o m p a ris o n of p riv a te a n d ACS c o s ts

(including c o n sid era tio n s of quality an d tim eliness) be u n d e rta k e n . This w ould a ssist in identifying w ork for w hich ACS h a s a dem o n strab le com petitive advantage an d w ould enable early confirm ation of th e continued need for a building tra d e s w orkshop.

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D evolvement o f repairs a n d m aintenance

5.1.44 A lthough ACS recognises th e potential workload re d u c tio n s h o u ld o th e r D e p a rtm e n ts ch o o se to fully

u tilis e th e ir o p tio n of u n d e rta k in g w ork u n d e r th e ir

general re p a irs an d m a in te n a n c e delegations to u n d e r­ ta k e c e r ta in w o rk to th e v a lu e of $ 1 5 0 0 in a n y one

in stan ce, th e re w as no evidence of th is issue being con­ s id e re d in a n y o f th e ACS K ew dale r a ti o n a li s a tio n

stu d ies. R ecom m endations arisin g from th e se stu d ie s were, therefore, b ased on a n incom plete analysis of the potential m ark et for ACS re p a irs and m ain ten an ce se r­ vices. N e v e rth e le ss, th e AAO acknow ledges th a t th e

situ a tio n h a s now changed an d th a t th e growth strategy recently adopted by ACS is aim ed at w inning as m uch of th is w ork as possible .

ACS response

5.1.45 ACS advised th a t th e building trad e s w orkshop rem ains a b ase for A sset Services operations in th e Perth m etropolitan area. To im prove w ork co-ordination and control, a significant group of staff presently associated w ith A sset S ervices fu n ctio n s, presently located at th e

S h erato n C ourt S tate Office, have been relocated to the building tra d e s w orkshop. T h is in tu r n will lead to a

fu rth e r review of space occupied in S heraton C ourt and, along w ith o th er co n tra ctio n s of functions, could lead to a re d u c tio n in o ccu p ied sp a c e an d a saving in re n ta l

costs.

Supply function at Kewdale 5 .1 .4 6 T h e s to r e s b u ild in g a t K ew dale s u p p o r ts a

v a rie ty of f u n c tio n s u n d e r th e c o n tro l of th e S u p p ly

M anager a n d com prises a store of approxim ately 2560 s q u a r e m e t r e s a n d o ffice a c c o m m o d a tio n o f a p ­

p ro x im a te ly 145 s q u a re m e tre s . T he office s e c tio n

provides a cen tralised p u rch asin g service for supplies re ­ quired by ACS (although individual depots co n d u ct some p u rch asin g using a n em ergency p u rch ase system ). The stores area provides facilities for a tru s t store com prising

a p p ro x im a te ly one th ird of th e av ailab le s p a c e , an d

storage of item s for tra n s-sh ip m e n t to Cocos Island or rem ote locality ACS jobs. D irect p u rch ase item s for all project sto res (depots) except Hollywood are delivered to

19

K ew d ale fo r o n f o r w a r d in g . T h e re is a ls o a sm a ll

stationery store. S eparate areas w ithin th e building are allocated for a tim b er crating area, two flam m able liquid sto res area s an d a m aterial su rp lu s store. Large outside a re a s to th e re a r of the stores building are also u sed for

holding Cocos Island tra n s it stores.

5.1.47 O ther th a n th e tru s t store, usage of th is storage space varies considerably. Prior to shipping of tran sit sto res to th e Cocos Islands, storage space is generally well u sed b u t at o th er tim es it can be virtually empty.

Underutilisation

5.1.48 D espite aw areness by both DAS and ACS of the p ro b lem , th e s to re s b u ild in g h a s b e e n u n d e ru tilis e d

since a t least 1982. B ecause of th e large variations in

stock holdings for tra n s it to Cocos Island, it is difficult to provide a precise figure for th e a m o u n t of s u rp lu s

space. N evertheless, th e tran sfer to private co n tracto rs of storage of A boriginal housing p an els in early 1987 (es­ tim ated at 300 sq u are m etres) an d th e c u rre n t proposal to relocate th e p la n t w orkshop into th e stores building, confirm th a t approxim ately 430 sq u are m etres h a s been s u rp lu s since early 1987. At the J u ly 1988 ren tal value of ap p ro x im ately $ 50 p er sq u a re m e tre for equivalent properties in th e Kewdale area, th is re p re se n ts a cost of $21500 per year.

Decentralisation o f purchasing

5 .2 .4 9 D e sp ite ev id en ce of u n d e r u tilis a tio n of th e

sto res building since a t least 1982, ACS in WA h a s con­ sisten tly arg u ed a g a in st d ecen tralisatio n of th e supply function and su p p o rted retention of the full facility.

5.2.50 In the D ecem ber 1986 Kewdale R ationalisation S tu d y , ACS reco m m en d ed th a t th e ex istin g a rra n g e ­ m e n ts be r e ta in e d p e n d in g f u r t h e r in v e s tig a tio n of

alternative supply system s. N evertheless, th e only such in v e stig atio n of su p p ly a lte rn a tiv e s identified by AAO w as conducted in A ugust 1988. This analysis identified

savings of approxim ately $211000 p er a n n u m if:

• th e entire supply staff were located in P erth Office, and

20

• tra n s p o rt of supplies to Pearce an d G arden Island, and p r e p a ra tio n of m a te ria ls for s h ip p in g to th e Cocos

Islands, w ere h andled by private concerns.

5.1.51 In S eptem ber 1988, th is review w as rejected on th e b a sis th a t it did not analyse all th e costs associated

w ith changing th e operations of th e sto res function. It w as recom m ended th a t there sh o u ld be no change to the sto re s fu n ctio n u n til a detailed an aly sis proved o th e r­ wise. The AAO w as u n ab le to locate evidence of su ch a n

a n a ly sis b ein g reco m m en d ed or su b se q u e n tly carried out.

5.1.52 T ra n sfe r of th e Cocos Islan d s tra n s-sh ip m e n t

fu n c tio n to e ith e r DAS o r th e p riv a te s e c to r h a s th e

potential to save up to tw o -th ird s of th e storage space in th e stores building p lu s large are a s of land u se d for tem ­ p o r a r y s to r a g e a t th e r e a r of th e K ew dale fa c ility .

Prelim inary d iscu ssio n s held betw een ACS a n d DAS in J u ly 1987 confirm ed the p racticality of tran sferrin g th is function, yet th e re w as no evidence of su b se q u en t action by ACS to fu rth e r exam ine th e proposal.

5.1.53 In th e absence of a reliable analysis by ACS of

th e p ra c tic a lity a n d c o s ts o f th e v a rio u s s u p p ly an d

d ecen tralisatio n options, th e AAO w as unable to confirm th a t u se of th e sto res building for centralised p u rc h a s ­ ing, as a tr u s t store, or for tra n s it operations is, or h a s

been, cost effective. If it h a s n o t been cost effective, th e n the use of th e building for th e se pu rp o ses h a s been u n ­ n e c e s s a r y . A t th e J u l y 1 9 8 8 r e n t a l v a lu e of

a p p ro x im a te ly $ 5 0 p e r s q u a re m e tre fo r e q u iv a le n t

properties in th e Kewdale area, th is rep resen ts a poten­ tial u n n e c e ss a ry re n ta l cost of approxim ately $135000 per year.

5.1.54 The AAO suggests th a t ACS determ ine th e con­ tin u in g need for th e sto res b u ild in g by u n d e rta k in g a

d e t a ile d a n a l y s i s of th e f u ll r a n g e o f s u p p ly a n d

d e c e n tra lis a tio n options. C om pletion of th is an aly sis prior to th e proposed co n stru ctio n of the sm aller plant w orkshop in th e sto re s b u ild in g is suggested, a s co n ­

stru ctio n of th e w orkshop m ay com plicate th e disposal or lease of p a rt or all of the sto res building should it be

found th a t it is not needed. A possible alternative loca-

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Trust store

Kewdale land

tion for the sm aller p la n t w orkshop (if needed) is u n d er­ utilised space in th e building tra d e s w orkshop, or at the re a r of the building tra d e s w orkshop.

ACS response

5.1.55 ACS advised, a s previously indicated th a t while th e c u r r e n t p ro p o s a l fo r r a tio n a lis a tio n of la n d and

b u ild in g s by ACS an d TSG w ith in DAS is being inves­ tigated, action to modify a section of th e existing stores b u ild in g to p ro v id e a sm a ll p la n t w o rk sh o p w ill be

suspended.

5 .1 .5 6 Space u tilisa tio n by th e tr u s t sto re h a s been

o v erstated . T he AAO observed th a t th e generally low shelving and racking system s in the tr u s t store used ex­ cessive am o u n ts of floor space. A lternative high racking system s could significantly reduce th e am o u n t of space used.

5.1.57 The AAO also noted th a t m any of the b u lk p u r­ chase and b u lk delivery cost advantages claim ed by ACS to ju stify reten tio n of item s in a centralised store were n o t valid. The AAO w as advised th a t a d v an tag es of a

centralised supply system included price reductions for b u lk p u rc h a sin g an d red u ced delivery co sts com pared w ith direct delivery to depots or projects. E xam ination of

co n tracts for large volum e item s held in th e tru s t store revealed, however, th a t in m ost in sta n c e s th ere were no m inim um order q u an tities or price p en alties for sm all or­ ders. In addition, m ost c o n tra cts provided for prom pt free delivery w ithin th e P erth m etropolitan area irrespec­ tive of the order size.

5.1.58 Subject to ACS determ ining th a t a tru s t store is n ece ssary , th e AAO su g g ested th a t th e range of stock h e ld , p r o c u r e m e n t p o lic y a n d s to r a g e m e th o d s be

reviewed to m inim ise th e am o u n t of storage space re ­ quired.

usage 5.1.59 In addition to th e buildings on th e Kewdale site, th e re are large a re a s of lan d allocated for carparking,

outside storage areas, law ns and g ardens, and parking area s for plant. Large area s of the Kewdale site not used

22

for buildings are u nderutilised. In addition, fu rth e r con­ sideration of decentralisation of th e supply function and the need for a p la n t fleet could re su lt in land currently

u sed for storage or parking becom ing s u rp lu s to req u ire­ m e n ts . T he AAO n o te d th a t th e c u rre n t p ro p o sa l to

lease out th e p la n t w orkshop building also provided for th e lease of u n u s e d land to th e n o rth of th e building.

Amenities and ablutions buildings at Kewdale 5.1.60 The am enities and ab lu tio n buildings at Kewdale are significantly underutilised.

5.1.61 At Kewdale, a sep arate am enities building and a b lu tio n s b u ild in g have b e e n provided a d jacen t to the sto res building office. In addition, toilet facilities have been provided in b o th the building tra d e s w orkshop and p la n t w orkshop buildings. The p la n t w orkshop building

a ls o h a s a s h o w e r, a n d a n a m e n iti e s ro o m of a p ­

proxim ately 82 sq u are m etres is provided in th e building tra d e s w orkshops.

5.1.62 A lthough th e c u rre n t w ork force b ased at Kew­ dale is ap p ro x im ately 90, th e AAO w a s inform ed th a t over h alf of th e se are norm ally w orking a t client sites

elsew here. The AAO w as also inform ed th a t u se of the am enities an d ab lu tio n s b u ild in g s is generally lim ited to people w orking in th e sto res building.

5.1.63 U nderutilisation of th e se facilities is expected to be partially resolved by c u rre n t proposals to relocate a p ­ proxim ately te n office staff from the S tate Office to the existing am enities room in the building trad e s w orkshop. With the loss of th e building tra d e s am enities room, ex­

isting building tra d e s em ployees will m ake g reater use of th e am enities building. In addition, th e proposed tra n s ­ fer of th e p la n t w o rk sh o p in to th e s to re s b u ild in g is

likely to increase usage of th e am enities an d ab lu tio n s building by existing plant w orkshop employees.

Amalgamation of Swanbourne and Leeuwin depots 5.1 .6 4 A lthough th e AAO noted th a t office fu n ctio n s have alre ad y b een tra n s fe rre d from Leeuw in to Swan- bourne, th e re is scope for fu rth e r am algam ation of the

S w anbourne and Leeuwin depots.

23

»

5.1.65 The S w anbourne and Leeuwin ACS depots are located on D ep a rtm e n t of Defence lan d . Sw anbourne se rv ic e s th e re p a ir s , m a in te n a n c e a n d m in o r w orks

need s of th e Special Air Services Regim ent a t Campbell B arracks. Leeuwin services Leeuwin B arrack s and other D efence a n d civil c lie n ts in th e F re m a n tle area. Al­ }

th o u g h w ork sh o p s a t each depot are n o t large for the

ty p e of w o rk c a r r ie d o u t, e a c h d e p o t h a s s to ra g e ,

w orkshop a re a s an d equipm ent for a n equivalent range of trades.

5.1.66 The n u m b ers of w ages em ployees and ap p ren ­ tic e s h a s declined betw een J u n e 1981 a n d D ecem ber 1988 from 36 to 23 a t S w a n b o u rn e a n d 26 to 11 at

Leeuwin. At th e tim e of th e au d it th e com bined num ber at both depots w as therefore less th a n th e n u m b er su p ­ ported by S w anbourne in 1981.

5.1 .6 7 The AAO w as advised th a t a t le a st one other

d e p a rtm e n t h a s e x p re s s e d a n in t e r e s t in u s in g th e

Leeuwin site should it be su rp lu s to ACS requirem ents.

ACS response

5.1.68 ACS agreed w ith AAO observations on the Sw an­ b o u rn e and Leeuwin depots an d advised th a t they are investigating th e m erit of com bining th e ir operations at Sw anbourne.

Summary of audit findings 5.1.69 AAO review h a s established th a t u n d e ru tilisa ­ tion of the land an d buildings a t th e Kewdale facility h as b een a p p a re n t since a t le a st 1982. From J u ly 1981,

despite rem inders from th e form er D epartm ent of H ous­ ing an d C onstruction’s, and m ore latterly, ACS’s C entral O ffice, ACS in WA fa ile d to re s p o n d a d e q u a te ly to

C e n tr a l O ffice r e q u e s t s fo r th e d e v e lo p m e n t of

rationalisation proposals for Kewdale. At th e insistence of th e C en tral Office, th e first of fo u r ra tio n a lisa tio n

proposals w as su b m itted by ACS WA to ACS C entral Of­ fice in O ctober 1986. A lthough a t th e tim e of the audit th e la te s t p ro p o sa l in S e p te m b e r 1988 h a d b een a c ­

cepted for im plem entation, th e re w as no evidence th a t C en tral Office approval h ad b een given for th e earlier ra tio n a lisa tio n pro p o sals; n o r w as th e re any evidence

24

th a t form al Im p lem en tatio n ac tio n h a d b een ta k e n in

WA.

5.1.70 The AAO acknow ledges th a t action is currently being ta k e n to resolve the long te rm u n d eru tilisatio n of th e Kewdale p la n t w orkshop b u ild in g an d to in c re ase

usage of th e sto res building. Largely as a re su lt of the

J u ly 1987 ch an g e s to governm ent policy, considerable effort is being applied at b o th the C entral and WA Offices of ACS to in c re a s e th e c o s t e ffe c tiv e n e s s of w ag es

employee operations.

5.1.71 The AAO considers, however, th a t th ere w as in ­ ad eq u a te a d h e re n c e to th e p re -J u ly 1987 governm ent policy of having a s m uch w ork a s possible carried out by the private sector. Since th e n , th e Prime M inister’s Ju ly

1987 policy statem en t h a s required ACS to develop com ­ p e titiv e p r ic in g b a s e d o n fu ll c o s t re c o v e ry . T h is

effectively h a s now rem oved th e re q u ire m e n t to have asset services w ork carried o u t by the private sector if

ACS services are cost com petitive.

5.1.72 The AAO also considers th a t there w as insuffi­ c ie n t e v id e n c e t h a t re v ie w s o f d e p o t o p e r a t io n s

c o n d u cted by ACS since a t le a st 1981 ad eq u a tely a s ­ sessed th e relative costs and availability of private sector reso u rces. The AAO w as th erefo re, u n ab le to confirm th a t w ork co n d u cted in -h o u se by ACS could not have been m ore cost effectively perform ed by th e private sec­ to r. H ow ever, if in - h o u s e w o rk h a s n o t b e e n c o st

effective, th e n u s e of A sset Services b u ild in g s and a s ­ s o c ia te d e q u ip m e n t m a y h a v e b e e n e x c e s s iv e o r

unnecessary.

5.1.73 The proposal for ratio n alisatio n of th e Kewdale facility being im plem ented a t th e tim e of th e au d it in ­ cludes sub -leasin g of the p la n t w orkshop building while reta in in g th e rem a in d er of th e facility an d all existing fu n c tio n s. The decision to re ta in th e b u ild in g tra d e s

w orkshop an d th e stores building together w ith all exist­ ing K ew dale fu n c tio n s w a s b a s e d on a n in c o m p le te

analysis of the range and cost effectiveness of available o p tio n s. ACS in d ic a te d th a t th e d ecisio n h a d b een

b a s e d on a p e rc e iv e d n e e d to m a in ta in o p e ra tio n a l

fle x ib ility g iv e n th e c u r r e n t u n c e r t a in t y a b o u t cir-

25

cu m stan ces facing ACS in the future. The AAO is never­ t h e l e s s u n a b l e to c o n firm t h a t th e m o s t e ffic ie n t

com bination of in te rn a l an d ex tern al reso u rces will be adopted.

5.1.74 In 1982 and 1983, resp o n ses by ACS to DAS re­ q u e s ts for in fo rm atio n co n ce rn in g u n d e ru tilis a tio n of Kewdale w ere u n n e c e ss a rily delayed. A lthough th ere have been a n u m b er of proposals for alternative use of Kewdale, th e only one to be im plem ented involved ab ­ s o r p tio n of s t o r e s a n d w o r k s h o p s of t h e S u r f a c e

T ra n sp o rt u n it of th e form er D ep artm en t of T ran sp o rt u p o n its a m a lg a m a tio n w ith th e th e n D e p a rtm e n t of

H ousing an d C o n stru ctio n in 1982. ACS accepted an A ugust 1983 DAS proposal for th e B u reau of M eteorol­ ogy to u s e p a r t of th e s to re s b u ild in g (alth o u g h th e

proposal w as la te r w ithdraw n). However, all su b seq u en t DAS proposals for sh ared use of Kewdale or takeover of the whole Kewdale facility have been rejected. R easons given for rejection were not adequately docum ented. In addition, the AAO noted th a t req u ests directed to DAS by ACS seeking provision of feasibility stu d ie s and advice

on th e fu tu re u s e of Kewdale have b een b a se d on a s ­

s u m p tio n s th a t r e s tr ic te d th e n u m b e r a n d ra n g e of

options to be evaluated.

ACS response 5.1.75 While accepting th a t th e Kewdale facilities have b e e n u n d e ru tilis e d , ACS com m ented th a t th e a s s e s s ­ m ent th a t ACS h ad not ta k e n adequate s te p s to rem edy the situ atio n need s to be considered in context.

5.1 .7 6 In p articu la r, ACS advised th a t th e functions

provided by th e Kewdale facilities have been required by ACS from th e tim e th e y w ere b u ilt. T he n u m b e r of

e m p lo y e e s h a s d e c lin e d o v er th i s p e rio d . In 1982

G o v ern m en t policy an d A d m in istrativ e A rran g em en ts w ere c h a n g e d w ith fo rm a tio n o f th e D e p a rtm e n t of

T ra n s p o rt a n d C o n stru c tio n . C o m p atib le ‘T ra n s p o rt’ fu n c tio n s w ere ac c o m m o d a te d a t K ew dale, u n til th e D epartm ent of H ousing an d C onstruction w as reformed in M arch 1983. S ubsequently, other Com m onwealth or­ g a n is a tio n s w ere invited to s h a re th e facility, b u t no

acceptable arran g em en ts were concluded. The need for w orkshop and storage facilities and ch an g es in Govern-

26

Audit findings -

Background

m e n t policy or A d m in istrativ e A rra n g e m e n ts have af­ fected consideration of actions w hich should be ta k e n to improve u tilisatio n of Kewdale.

5 .1 .7 7 ACS a ls o a d v ise d t h a t a f u r th e r review of

facilities u tilis a tio n a t Kewdale h a s b e e n com m enced. Prelim inary d iscu ssio n s have b een held w ith the TSG in WA on jo in t u s e of th e site b a s e d on co m p lem e n tary

vehicle servicing an d storage functions and th e sim ilar com m ercial objectives of th e tw o o rg a n isa tio n s. ACS stated th a t th e WA S tate M anager of TSG h a s indicated an in terest in all buildings and facilities at Kewdale. The tr a n s f e r of TSG o p e ra tio n s to Kewdale w ould rele ase

other TSG lan d and facilities for other u se rs or disposal.

5 .1 .7 8 ACS in d ic a te d t h a t it c o n s id e re d t h a t th e

ra tio n a lisa tio n of lan d and b uildings by ACS an d TSG w ithin DAS w ould overcome m any of th e facility u n d e r­ utilisation co n cern s expressed in the au d it findings. The

m a tter will be p u rsu e d w ith TSG by establishing a w ork­ in g p a r ty to id e n tif y i s s u e s fo r i n v e s t ig a t io n a n d

resolution. The working p arty will aim to estab lish the feasibility of jo in t u se by O ctober 1989.

5.1.79 The question of viability of ACS operational ac­ tivities an d alternative m ean s of delivering services will be subject to co n tin u in g review by ACS in th e light of

m ark et prices and cost recovery perform ance.

Queensland 5.1.80 D etails of th e au d it findings together w ith ACS’s resp o n ses are outlined below.

5.1.81 The AAO undertook inspection of a n u m b e r of ACS estab lish m en ts in Q ueensland. As a re su lt of th a t inspection an d exam ination of d epartm ental records, the AAO noted th a t ACS h ad recently u n d e rta k e n rev alu a­

tion of land and buildings owned, leased or occupied on a perm issive occupancy b asis. This w as done u sing a

com bination of the A u stralian V aluation Office and ex­ te rn a l c o n su lta n ts in a n effort to obtain a m ore realistic assessm en t of th e value of its holdings.

27

5.1.82 The AAO also noted th a t a critical evaluation of the utilisation of these resources h a d been commenced. In ad d itio n , ACS is ch arg in g A re a /D is tric t M anagers notional re n ta ls on resources u n d e r th e ir control from

1 Ju ly , 1989 in a bid to sim ulate th e prospect of applica­ tion of ren t charges after 1 J u ly 1990 and to encourage m a n a g e rs to o p e ra te in a c c o rd a n c e w ith com m ercial principles. It is anticipated th a t th is will resu lt in the

focusing of atten tio n on uneconom ic resource holdings.

Nott Street

5.1.83 The AAO inspected a m u lti-p u rp o se site at Nott S treet in B risbane. The AAO noted th a t a n electronics w o rk sh o p , a so ils te s tin g la b o ra to ry a n d a fu rn itu re

store were located on th e site. The AAO also noted th a t th e e le c tr o n ic s w o rk s h o p w a s a f a c ility u n iq u e to

Q ueensland.

5.1.84 D uring the inspection, th e AAO w as advised th a t the re su lts of a stu d y to review th e cost effectiveness of the Nott Street, B risbane site indicated th a t ACS should v acate th e site a n d relocate its electro n ics w orkshop. The AAO noted, however, th a t no consideration had a p ­

p a re n tly b e e n g iv en to th e f u tu r e of a s o ils te s tin g

laboratory co-located and q u estio n ed th e su ita b ility of Nott S treet for m aintenance of a fu rn itu re store as it a p ­ peared m ore ap p ro p riate for obsolete fu rn itu re to have been declared for disposal. The AAO also sought fu rth er background on th e b a sis of operation of th e electronics workshop.

5.1.85 ACS advised th a t the electronics w orkshop w as ap p ro v ed in 1960 by th e G en eral W orks M anager in

r e s p o n s e to a n e e d fo r s p e c ia lis e d s e rv ic e s in th e

electronics/m echanical controls area, th a t the seventeen staff employed were a n integral com ponent of the w ages employee workforce and th a t a m ajor p a rt of its w ork re ­ la te d to th e m a in te n a n c e a n d m o d if ic a tio n of

air-conditioning co n tro ls system s, secu rity p an els and fire alarm system s.

5.1.86 ACS also confirm ed th a t, since the AAO review, relocation of th e electronics w orkshop h a d been agreed an d advised th a t th e soils testing laboratory w as closed on 31 May, 1989 due to evidence th a t th e fees charge­

28

able for th e services provided w ere insufficient to cover the cost of operation.

5.1.87 In addition, ACS indicated th a t action is u n d e r­ w ay to dispose of all fu rn itu re sto red a t Nott S treet. In

th e fu tu re , reserve sto ck s will be k ep t to a b are m ini­

m um and s u rp lu s item s, unlikely to be required w ithin a reasonable tim e fram e, declared for disposal.

Amberley

5.1.88 Review of ACS’s Amberley depot indicated th a t th ere appeared to be a considerable la n d area s u rp lu s to re q u ire m e n ts. However, in th e ab sen ce of a ltern ativ e

use or dem and, it w as not clear th a t th ere w ould be any a d v an tag e/p u rp o se in relinquishing tenure,.

5.1.89 ACS agreed th a t th e re w as an area s u rp lu s to its req u irem en ts an d advised th a t it intended to liaise with th e RAAF re g a rd in g p o ssib le ra tio n a lis a tio n v is-a-v is RAAF u se. In th e event th a t it w as deem ed to be the

ow ner an d w as required to pay re n t after 1 J u ly 1990,

th e s u rp lu s area w ould be declared for disposal.

Toowoomba

5.1.90 The AAO noted th e existence of a proposal to

replace facilities at Oakey, D rayton an d Toowoomba city centre w ith a new facility at a site to be p u rch ased from th e Army a t H arristow n. However, th e reaso n s for the pro p o sal a n d th e expected co sts an d b enefits h a d not

been docum ented.

5.1.91 Sim ilarly, a decision to proceed w ith th e first

stage of th e proposal an d to fund th e acquisition of the land h a d n o t b een fully docum ented. T hat is, while the fact th a t funding h ad been obtained had been recorded a n d c o rre sp o n d e n c e betw een ACS a n d th e A u stra lia n

Property group (APG) and betw een APG and Defence w as o n file, th e r e w a s no re c o rd of how th e d e c isio n to

proceed w as reached or who m ade th e decision.

5.1.92 ACS advised th a t th e decision to develop a new sin g le fa c ility to re p la c e th e e x istin g w o rk s h o p s at

D rayton an d O akey an d th e leased office space in th e

city h ad its origins in advice from RAAF (Toowoomba) in m id -1987 th a t th e Cooksey R eport on th e availability of Defence lan d for disposal w as likely to recom m end th a t

29

th e existing D rayton Depot site be u se d for other pur­ poses.

5.1.93 In th e long ru n , th is recom m endation did not

eventuate. The possibility of w ithdraw al of ACS occupan­ cy from the site, together w ith related factors su ch as the age an d u n su ita b ility of th e D rayton D epot to m odern technology, its presence as a n in d u stria l com plex in a

r e s i d e n t i a l a r e a , u n d e r - u t i l i s a t i o n of th e O akey

D epot/w orkshops, and the ren ta l charged for leased of­ fice sp a c e in T oow oom ba, w as c o n s id e re d su fficie n t ju stificatio n to include the proposed p u rch ase of a bare site on th e 1988-89 A cquisitions Program .

5.1.94 Since the AAO review, a financial assessm en t of the options available in Toowoomba h a s been completed by Coopers & Lybrand. It clearly d em o n strates th a t the proposal for a com bined office/depot/w orkshop complex is a m ore econom ical proposition th a n retaining th e ex­ isting facilities an d upgrading D rayton an d Oakey to an acceptable stan d ard . It h a s been decided, therefore, to proceed with the ratio n alisatio n of th e facilities.

Townsville

5.1.95 D uring a n inspection of th e Townsville depot, the AAO w as advised th a t a steam cleaning facility w as rarely used. S u b seq u en t enquiries revealed the facility m ay be declared for disposal.

5.1.96 ACS advised th a t, if th e steam cleaning facility w as declared for disposal, the 50m 2 of la n d it occupied (out of the 3.88 h a of th e total site) w ould be available. However, it w as im practical to excise th e steam cleaning site in isolation.

5.1.97 It also indicated th a t, a s it will be required to

pay ren t for the property from 1 J u ly 1990, it is intended to develop a m a s te r p la n for th e G a rb u tt com plex so

th a t, if the total area c a n be rationalised, it will be done in su ch a m a n n e r su ch th a t the u n req u ire d area m ay be excised for disposal or sub-let.

Audit findings - Australian Capital Territory 5.1.98 A prelim inary review of resource utilisation in the ACT indicated th a t the position w as satisfactory.

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5 .2 C onsultants

Introduction

5 .2 .1 T he D e p a rtm e n t of A d m in is tra tiv e S erv ice s,

th ro u g h A u stralian C o n stru ctio n Services (ACS), is the p rin cip al a u th o rity generally resp o n sib le for th e p la n ­ ning, design, co n stru ctio n , fittin g -o u t a n d re p a irs and m a in ten a n ce of b u ild in g s a n d engineering facilities for

C o m m o n w e a lth D e p a r tm e n ts a n d m o s t s t a t u t o r y

authorities.

5.2.2 In providing design a n d c o n stru c tio n services,

ACS au g m e n ts its fixed workforce a s n ece ssary by the engagem ent of private sector c o n su lta n ts. U ntil 30 J u n e 1988, governm ent policy required at least 50% of ACS’s co n stru ctio n program design w ork to be carried out by c o n su lta n ts. T h at req u ire m en t w as rescin d ed co n cu r­

rently w ith a decision th a t ACS should move to full cost recovery by 1991.

5.2.3 Individual c o n su lta n ts are engaged a s necessary to provide expertise n o t available or to p erm it ACS to m eet tig h t tim e co n strain ts.

5 .2 .4 T he m a jo rity of c o n s u lta n ts en g ag e d a re a r ­

c h i t e c t s , e n g in e e r s , q u a n t i t y s u r v e y o r s a n d

d ra fts p e rs o n s , a lth o u g h th e re h a s b e e n a ste a d y in ­

c r e a s e in th e u s e of c o m p u tin g a n d m a n a g e m e n t

c o n su lta n ts in recen t years.

5.2.5 An am o u n t of $10.8 m illion w as expended on the em ploym ent of e x te rn a l c o n s u lta n ts in V ic to ria /T a s ­ m ania in 1987-88.

5.2.6 An au d it of th e p ro ced u res relating to th e em ploy­ m ent of ex tern al c o n su lta n ts by the Victoria /T asm an ia S tate Office w as com pleted in J u n e 1989.

5.2.7 An au d it of th e p rocedures relating to th e em ploy­ m e n t of c o n s u lt a n ts in th e N o rth e rn T e rrito ry w as

reported in section 2.4 of the M arch 1988 Report.

Audit Objectives 5.2.8 The objectives of th e au d it were to:

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• determ ine w h eth er ACS, in deciding to u se consultants, h ad paid due regard to time, quality an d cost aspects of com pleting projects and satisfying client needs

• e n s u r e th a t ACS h a d e x e rc ise d d u e p ro p rie ty and

p ro b ity in it s d e a lin g s w ith c o n s u l t a n t s , t h a t its

c o n s u l t a n t s ’ e n g a g e m e n ts m e t th e p r in c ip le s of

essentiality, fair com petition, an ability to m eet public scrutiny, effective service and value for money, and

• e v alu ate a n d form a n opinion on th e a d eq u a cy and

adm inistrative effectiveness of ACS p rocedures for the adm inistration of co n su ltan ts.

Audit findings 5.2.9 The AAO concluded th a t th e first of th e objectives outlined above h ad been satisfactorily m et. However, it also concluded th a t the S tate Office h a d failed to follow ACS procedures for th e selection, appointm ent and p er­

fo rm ance a s s e s sm e n t of c o n s u lta n ts com m issioned to un d ertak e w ork on its b eh alf and th a t, a s a resu lt, there w as insufficient evidence available to estab lish th a t ACS h ad en su red th a t the basic principles involved in dealing

w ith c o n su lta n ts h a d been observed. It also appeared th a t th e c u rre n t ad m in istrativ e system did not always m eet th e objective of adm inistrative effectiveness.

5.2.10 In reaching these conclusions, th e AAO w as con­ cerned to note th a t deficiencies referred to in its M arch 1988 Report were sim ilar in a n u m b e r of respects.

5.2.11 D etails of th e au d it findings are outlined below.

Administrative procedures 5.2.12 The AAO noted th a t ACS’s principal in stru c tio n s relating to c o n s u lta n ts are its O p e ra tio n a l Procedures for th e Selection and E ngagem ent of Technical C onsult­

a n ts ’ (OP900). It w as also noted th a t o th er sources of

reference for procedural m a tters were:

• ACS’s C o n tracts M anual and S ta n d a rd C onditions of C ontract for C o n su ltan t Services

• D e p a rtm e n t of A d m in istra tiv e S e rv ic e s G u id e lin e s entitled T h e E ngagem ent of C o n su lta n ts: G uidelines for Com m onwealth Officers’, and

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• other m em o ran d a and p ap ers circulated from tim e to tim e in relatio n to specific issues.

5.2.13 The AAO also noted th a t th e G uidelines m e n ­ tio n e d a b o v e h a d g e n e r a l a p p l ic a t io n o u ts id e th e

D ep artm en t of A dm inistrative Services (DAS) an d th a t, although ACS m ight refer to th e G uidelines, th e re w as a n e e d fo r ACS, a s a s p e c ia lis e d te c h n ic a l ag en c y , to

develop a com prehensive set of in stru c tio n s for applica­ tion to its operations.

5.2 .1 4 The AAO so u g h t ACS’s views on th e need for

d e v e lo p m e n t of a m a n u a l c o m p le m e n tin g th e DAS

G uidelines an d consolidating its own in stru ctio n s.

5.2.15 ACS advised th a t O P900 is co n sisten t w ith the DAS G uideline objectives b u t is currently being reviewed w ith a view to bring it m ore into line w ith revised ACS com m ercialisation strategies an d delegation changes. It

will cover th e sp e c ia list, te c h n ic a l a rra n g e m e n ts th a t ACS believes are necessary for its specific purposes. It is expected th a t som e of the ACS requirem ents will not be re le v a n t to th e e n g a g e m e n t of c o n s u lta n ts by m a n y

D ep artm ents. ACS consultancies are operational in n a ­ t u r e a n d , fo r th e m o s t p a r t , a r e n o t d ir e c te d a t

m anagerial or com puting consultancies.

5 .2 .1 6 T h e AAO n o te d t h a t O P 9 0 0 a n d th e ACS

response ad d ressed only ACS’s req u irem en ts in the te c h ­ n ic al field a n d c o n s id e re d th a t th e re is a n eed for a

c o m p re h e n s iv e a n d c o n s o lid a te d s e t of in s tr u c tio n s

w h ich w o u ld a lso ap p ly to o th e r a re a s of A CS’s a d ­

m inistration.

Consultants’ Register 5.2.17 ACS operational p rocedures require a register of e x te rn a l c o n s u lta n ts w ho a re available to u n d e rta k e

w ork to be m ain tain ed together w ith details of co n su lt­ a n ts who have received com m issions.

5 .2 .1 8 A rev iew of t h a t p a r t of th e c o m p u te ris e d

’C o n su lta n t C atalog’ (CONCAT) w hich in c o rp o ra tes the availability reg ister indicated th a t it is not k ep t up-to- date an d th a t th e details relevant to some co n su lta n ts

w ere in c o m p lete. In view of th is s itu a tio n , th e AAO

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found th a t th e register w as not a reliable source of refer­ ence w hen considering th e engagem ent of a con su ltan t.

5.2.19 The AAO suggested th a t, if the register did not m eet th e n e e d s of th e in te n d e d u s e r s , c o n sid e ra tio n

co u ld be given to c h a n g in g th e p ro c e d u re s an d s u b ­

s t i t u t i n g a m o re p r a c t ic a l s y s te m t h a t m e t A C S ’s

objectives. However, in the absence of a suitable revised system , the register should be kept up -to -d ate and used for its intended purpose.

5 .2 .2 0 ACS ad v ised th a t c o n s u lta n ts co n sid ered for

engagem ent by ACS are draw n from available sources of in fo rm atio n w h ich in c lu d e th e C o n s u lta n ts ’ R egister, C o n s u l t a n t s ’ R eview C o m m itte e M in u te s , A n n u a l

R eports, p rofessional an d tech n ical m agazines, Project M anager and R esource M anager d iscu ssio n s and general in d u stry knowledge. The C o n su lta n ts’ Register provides details of all professional and technical c o n su lta n ts who have reg istered th e ir in te re s t in providing services to ACS. Any c o n s u lta n t w ishing to be c o n sid ere d for a

com m ission c a n be registered w ith ACS by notifying a regional office of h is /h e r availability.

5.2.21 It also indicated th a t due to th e rapidly ch an g ­

in g p r o f e s s io n a l c o n s u lt in g w o rld , a n e x c e s s iv e ,

c o n tin u o u s ad m in istrativ e effort w ould be req u ired to m ain tain entirely up-to-date records in th e C o n su lta n ts’ R egister. Every effort is, how ever, m a d e to keep th e

register up-to-date.

5.2.22 The AAO noted th a t ACS does not rely on its

C o n su lta n ts’ Register exclusively an d considers th a t, if it w as m aintained on a n up-to-date b asis, other sources of reference should not be needed.

Short-listing of consultants 5.2.23 ACS p rocedures established for th e identifica­ ti o n a n d s e le c tio n o f c o n s u l t a n t s p ro v id e fo r th e

developm ent of a sh o rt-list of c o n s u lta n ts from w hich one is to be se le c te d w ith a view to n e g o tia tio n of a

m utually acceptable fee.

5.2 .2 4 D iscu ssio n w ith ACS officers an d review of a

n u m b e r of com m issions aw arded disclosed in ad eq u ate

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d o c u m en tatio n of th e b a s is for sh o rt-listin g a n d som e m inor inconsistencies in th e p rep aratio n of sh o rt-lists.

5.2.25 ACS sta te d th a t th e p ro ced u res established to

develop a sh o rt-list of c o n su lta n ts are followed by ACS personnel. However, b ecau se of th e volum e of com m is­ s io n s b e in g rev iew ed a t a n y o ne tim e , a s e q u e n tia l

involvem ent of personnel occu rs in ste ad of conducting a m eeting.

5 .2 .2 6 T he AAO c o n s id e rs th a t, irre sp e c tiv e of th e

p ro c e ss u s e d , p ro p e r d o c u m e n ta tio n sh o u ld be m a in ­ tained.

Issuing of a written brief 5.2.27 ACS p rocedures do not indicate w h eth er or not th ere is any requirem ent for m ore th a n one c o n su lta n t to be req u ested to provide a n estim ate of th e cost of u n d e r­

taking technical com m issions. The AAO view is th a t, in the absence of a specific requirem ent for the invitation of an appropriate n u m b e r of offers, particu larly for m ajor assig n m e n ts, it w ould n o t be possible to d em o n stra te th a t value for m oney w as being obtained. The AAO con­

s id e r s t h a t th i s is a f u n d a m e n ta l d e fic ie n c y in th e

existing p ro ced u res an d th a t ACS should have specific and clear in stru c tio n s w ith regard to the n u m b e r of con­ su lta n ts who are be requested to provide a n estim ate of the cost of w ork required.

5.2.28 In th is context, ACS’s a tten tio n w as draw n to

the underlying in ten tio n of F inance R egulations 51, 52, 52AA an d 53 th a t all those who w ish to p articipate in

governm ent b u sin e ss are to be given an opportunity to do so, th a t th e governm ent m a in ta in s a rep u ta tio n for

fair dealing a n d th a t public m oney is sp e n t effectively an d econom ically. A lthough th e R eg u latio n s are not directly applicable, it is sta te d in th e b ackground to Sec­ tion 25 of th e D epartm ent of F inance D irections th a t the u n d erly in g in te n tio n sh o u ld alw ays be b o rn e in m ind w hen alternative procedures are applied.

5.2.29 The AAO noted th a t, while th e actu al procedures employed are m ore co n sisten t w ith th e above principles, in some cases, th e decision a s to w h eth er m ore th a n one

of the c o n su lta n ts would be issu ed w ith a w ritten brief

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w as influenced by th e size and com plexity of th e project, and in others, a w ritten brief w as issu ed only to th e con­ s u lta n t selected from th e sh o rt-list for com m issioning.

5 .2 .3 0 W hile observing th a t p ra c tic e s followed were generally designed to en su re prices were com petitive, the AAO noted th a t ACS procedures do not require th a t, in all circu m stan ces in w hich prices are not dictated by a

sch ed u le of ra te s , a m in im u m n u m b e r of c o n s u lta n ts should be issu ed w ith a n appropriate brief.

5.2.31 The AAO recom m ended to ACS th a t, as a general rule, all sh o rt-listed c o n su ltan ts sh o u ld be issued with the w ritten brief. S ubm issions from c o n su lta n ts could th e n be formally evaluated and retain ed a s evidence of

attem p ts to en su re fair com petition an d th a t decisions m a d e w ere p u b lic ly d e fe n s ib le . E x c e p tio n s to th is

general rule should be stipulated in ACS guidelines.

5.2.32 ACS advised a pre-estim ate of cost is prepared by experienced professionals who are aw are of the time required to carry out com m issions an d are fam iliar with appropriate fee scales. This p re-estim ate is used as a

b en ch m ark for com parison of fee proposals. In e sta b ­ lishing a n ap p ro p riate level of professional fee, ACS is not inviting quotations. Competitive qu o tatio n s are too inducive to a re d u c tio n in th e q u ality of p ro fessio n al

skills applied to th e task.

5 .2 .3 3 It is ACS policy to seek a p ro p o sal from th e

p referred c o n s u lta n t on a s h o rt-lis t. If th e p ro p o sal

m eets ACS requirem ents th e n the co n su lta n t is engaged. If the fee is n o t acceptable or com parable w ith the ACS pre-estim ate, th e n negotiations are com m enced to seek a

b e tte r outcom e. S hould th is action n o t be successful, th e n a n ap p ro ach is m ade to th e next c o n su lta n t and

sim ilar negotiations com menced.

5 .2 .3 4 T h e AAO n o te d t h a t d e ta ile d in f o r m a tio n

provided on th e sh o rt-listin g of c e rta in c o n s u lta n ts in response to AAO inquiries indicated th a t in one case a firm w as selected b e c a u se th e fee p ro p o sed w as 15% lower th a n th a t su b m itted by th e a n o th e r firm. They

w ere equal in all o th e r resp ects. The AAO h a s noted

36

prices were obtained from two or m ore firm s in th a t and other in stan ces.

Review by the Consultants Review Committee (CRC) 5.2.35 The c u rre n t review p ro ced u res for th e engage­ m e n t of c o n s u lt a n ts re q u ire th e CRC to a s s e s s th e

su itab ility of c o n s u lta n ts w ho are being considered for engagem ent. The review to be carried out by th e CRC is detailed in OP900.

5.2.36 An AAO review of approved com m issions failed to disclose any docum ented evidence of the CRC having reviewed proposed com m issions in accordance w ith the

detailed re q u ire m e n ts of O P900. The AAO n o ted brief references to th e C om m ittee’s endorsem ent of com m is­ sions in th e relevant m in u te s of th e CRC m eetings b u t th is w as not evidence th a t th e reviews were conducted.

5.2.37 The AAO suggested th a t th e review of proposed com m issions by the CRC w as a key control in en su rin g t h a t d e c is io n s m a d e w e re p u b lic ly d e fe n s ib le a n d

provided fair com petition, effective service and value for money. The AAO considered th a t there w as a need for the CRC to d em onstrate th a t it w as fulfilling th is role.

5.2.38 ACS advised th a t review of the proposed com ­ m issio n by th e CRC is a k ey control in en su rin g th a t

decisions m ade are publicly defensible and th a t, th e re ­ fo re , t h e r e is a n e e d fo r th e CRC to r e c o r d its

deliberations. In stru c tio n s are being issu ed to en su re th is is done in all in stan ces.

Non-selection of consultants 5 .2 .3 9 ACS policies an d o p e ra tio n a l p ro c e d u re s a s ­

sociated w ith th e engagem ent of c o n su lta n ts also require the CRC to review c o n su ltan ts who were short-listed b u t were u n su ccessfu l in securing a com m ission an d to con­ sider th e reaso n s for th eir non-selection.

5.2.40 The AAO noted th a t th e CRC is not alw ays given full details of the c o n su lta n ts an d th e re a so n s for th eir

non-selection.

5.2.41 In keeping w ith ACS selection procedures, the AAO suggested th a t th e re a so n s w hy c o n s u lta n ts were

37

not selected for engagem ent sh o u ld be provided to the CRC so th a t it can effectively fulfil its stip u lated role.

5.2.42 ACS advised th a t operational procedures require reaso n s for non-selection of c o n su lta n ts to be provided to the CRC. In stru ctio n s are being issu ed to en su re this is done in all instances.

Streamlining the engagement and administrative processes 5.2.43 The n u m b e r of people involved w ith the engage­ m e n t of c o n s u l t a n t s , u n d e r c u r r e n t p r o c e d u r e s ,

appeared to th e AAO to be excessive. To reach the point w here a com m ission w as approved by th e delegate, there could be in p u t from up to fifteen officers, depending on w hether short-listing w as carried out or not.

5.2.44 The AAO recom m ended th a t th e procedures in place for the engagem ent of c o n su lta n ts be reviewed with the objective of stream lining the processes involved and thereby reducing co sts of adm inistration.

5.2.45 ACS indicated th a t its p rocesses are th e subject of ongoing review w ith the objective of red u cin g co sts w hile at th e sam e tim e en su rin g th e ad equacy of any

new or changed arrangem ents.

Formal acceptance of commissions by consultants 5.2.46 The AAO noted a significant n u m b e r of in s ta n ­ c e s w h e re c o n s u lt a n ts h a d fa ile d to a d v ise ACS in

w ritin g of th e ir a c c e p ta n c e of a c o m m issio n an d th e

s ta n d a rd conditions of contract. The com m issions were in respect of eith er initial engagem ents or a n extension of existing engagem ents. The AAO also noted th a t letters confirm ing th e e x ten sio n of som e of th e engagem ents h ad not been issued.

5 .2 .4 7 ACS confirm ed th a t its p ro c e d u re s require a

c o n su lta n t’s acceptance of a com m ission in writing. In ­ stru ctio n s are being issu ed to en su re th is is done in all

instances, even though th ere is alw ays verbal confirm a­ tio n an d su b se q u e n t dialogue and exchange of fu rth e r detailed briefing inform ation w hich serves to confirm the acceptance by th e c o n s u lta n t of th e scope of w ork re ­

quired.

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Performance reporting 5.2.48 The AAO found th a t re p o rts on the perform ance of c o n su lta n ts were eith er n o t being com pleted or were n o t b e in g c o m p le te d in a tim e ly m a n n e r. R e c o rd s

review ed by th e AAO c o n ta in e d p e rfo rm a n c e re p o rts w hich were p rep ared betw een periods of one an d a half m o n th s to one an d a half y ears after final pay m en ts h ad

been m ade to th e c o n su lta n ts. A fu rth e r two files h ad no perform ance reports. The AAO also found th a t th e re are no p ro ced u res in operation for th e follow-up of o u ts ta n d ­ ing reports.

5 .2 .4 9 ACS in d ic a te d th a t com m issio n p erfo rm an ce reporting a t th e com pletion of each com m ission is also a n ACS req u irem en t and in stru c tio n s are being issu ed to en su re th a t th is o ccurs in all in sta n ces.

5 .3 F ittin g-out o f leased p rem ises

Introduction

5 .3 .1 T h e D e p a rtm e n t of A d m in is tra tiv e S erv ice s,

th ro u g h A u stralian C o n stru ctio n Services (ACS), is the p rin cip al a u th o rity generally resp o n sib le for th e p la n ­ ning, design, con stru ctio n , fitting-out and m ain ten an ce of buildings an d engineering facilities for Com m onwealth

d ep artm en ts an d m ost sta tu to ry authorities.

5.3.2 In m o st circu m stan ces, ACS exercises its resp o n ­ sib ility for th e fittin g -o u t of le a se d p re m ise s p rio r to

Com m onw ealth occupancy. Individual d ep artm en ts and au th o rities are required to provide u se r briefs detailing t h e i r f it tin g - o u t r e q u ir e m e n t s to ACS th r o u g h th e

D epartm ent’s A u stralian Property G roup (APG).

5.3.3 The ACS em ploys both its own staff and external c o n s u lta n ts to design and do cu m en t fitting-out w orks. C o n s tru c tio n is, how ever, u s u a lly su p e rv ise d by ACS

staff w ith th e actu al co n stru ctio n w ork being carried out m ostly by private contractors.

5.3.4 E xpenditure on the fitting-out of leased prem ises (FOLP) in 1988-89 am ounted to $79.7 m illion w ith $6.0 million being expended in Q ueensland.

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Audit objectives

Audit findings -

5.3.5 An au d it of FOLP in Victoria w as reported in sec­ tion 1.3 of th e April 1989 Report. At th a t tim e, th e AAO indicated th a t fu rth e r action w as being ta k e n to review arran g em en ts adopted by th e D epartm ent for th e co-or­ dination of th e respective responsibilities of ACS and the APG w ith a view to establishing w h at scope th ere might be for reduction of the incidence of ‘dead re n t’.

5.3.6 An au d it of FOLP w as u n d e rta k e n in th e ACS’s Q ueensland S tate Office in 1988-89.

5.3.7 The objectives of the audit w ere to:

• determ ine w h eth er ACS, in carrying out FOLP projects, h a s regard to time, quality and cost, an d utilisation of th e b est available resources and m eth o d s in satisfying client d ep artm en ts’ and a u th o rities’ needs

• ev alu ate an d form a n opinion on th e ad eq u acy and

a d m in istra tiv e effectiveness of ACS’s p ro ced u res for a s s is tin g in th e d e v e lo p m e n t of c lie n t b rie fs a n d

carrying o u t design, d ocum entation, cost-estim ation, supervision and review of FOLP projects, and

• determ ine w h eth er ACS en su res, a s far as is practicable t h a t ‘d e a d r e n t ’ p e r io d s d u r in g f i t t i n g - o u t a re

m inim ised.

Victoria 5.3.8 The re s u lts of the fu rth e r w ork u n d e rta k e n in

connection w ith th e V ictorian au d it are outlined below.

Dead rent

5.3.9 At the tim e of th e audit, it appeared to th e AAO

th a t dead re n t am ounting to approxim ately $3.6 million, or 52% of th e actu al cost of the fitting-out w ork of about $7 million for the D epartm ent of A dm inistrative Services, the Public Service Board and th e A u stralian B ureau of S tatistics in th e Rialto Building in M elbourne, w as ex­

cessive.

5.3.10 S u b seq u en t advice from ACS indicated, however, th a t the m ajor factors contributing to the dead ren t cost, w hich related to delays in the su b m issio n of client briefs

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Audit findings

an d in d u stria l disputation, w ere outside its ju risd ictio n to control.

5.3.11 After fu rth e r consideration, th e AAO sought a d ­ vice from th e D e p a rtm e n t of A d m in istra tiv e S ervices (DAS) an d th e A u stralian B u reau of S tatistic s (ABS) on th e re a s o n s for su b m issio n of clien t b riefs a t or after

com pletion of th e building w hich appeared, in th e AAO’s view, to have resu lted in a n avoidable dead re n t cost of $1.6 m illion.

5.3.12 The AAO also sought advice on the outcom e of a n in te rn a l review of dead re n t u n d e rta k e n by DAS in

J u ly /A u g u s t 1987 w hich su g g e ste d , in te r alia, th a t a

fu n d am en tal change w as req u ired in the way fitting-out w orks were handled.

5.3.13 At th e date of p rep aratio n of th is Report, a w rit­ t e n r e s p o n s e h a d n o t b e e n re c e iv e d fro m th o s e

o rg a n isa tio n s alth o u g h a jo in t d isc u ssio n b etw een all p arties involved h ad been convened by DAS to clarify the issues.

Queensland 5.3.14 The AAO found th a t ACS h ad developed satisfac­ to ry p ro c e d u re s, h a d h a d re g a rd to tim e, q u ality and

cost and th e u se of the b e st available reso u rces and had en d e a v o u re d to e n s u re d e a d re n t p erio d s w ere m in i­

mised.

5.3.15 C ertain m a tte rs w hich were, however, directed to ACS’s a tte n tio n an d one specific m atter, w hich w as referred to DAS, are detailed below.

Responsibility fo r fitting-out work

5.3.16 The G overnm ent recently affirm ed ACS’s role as th e ce n tra l w orks au th o rity w ith general responsibility for th e C om m onw ealth’s project m an ag em en t services, covering planning, design an d co n stru ctio n supervision

of fitting-out w orks. The AAO noted, however, th a t the in v o lv e m e n t of A CS’s p re d e c e s s o r o rg a n is a tio n , th e form er D epartm ent of H ousing an d C onstruction (DHC),

41

in th e fittin g -o u t of p re m ise s a t 363 A delaide S treet,

B risb an e for th e A u stra lia n C u sto m s Service a n d the D e p a rtm e n t of T ra n s p o rt w a s lim ited by APG to the

provision of technical advice.

5.3.17 The AAO also noted th a t delay in th e subm ission of flo o r p l a n s to th e b u ild in g c o n t r a c t o r b y th e

prescribed date resu lted in p en alties/p ro lo n g atio n costs of $ 3 1 3 5 0 4 over w hich DHC/ACS h a d no control and th a t d ead r e n t a s s o c ia te d w ith th e fittin g -o u t w orks

am ounted to a n estim ated fu rth e r $284120.

5.3.18 In th e circum stances, th e AAO considered th at th e b asis of DHC/ACS involvem ent in th is project was not co n sisten t w ith th e G overnm ent’s requirem ents and th a t n e ith e r DHC n o r ACS w ere able to pro p erly d is­

charge th e ir responsibilities.

5.3.19 An additional m a tte r w hich the AAO considered m ay have som e b earin g on th e ro les of th e respective

p a rtie s in Q u e e n s la n d in re s p e c t of th e p ro jec t co n ­

cerned, although of m uch m ore recent origin, is th a t an APG b rochure outlining services provided as a ‘one stop property sh o p ’ does not provide a clear line of dem arca­ tion betw een th e functional responsibilities of APG and ACS.

5.3.20 The bro ch u re concerned refers to ‘fit-o u t/lay -o u t design’ u n d er a heading of ’Leasing’ a s one com ponent of a range of Com m onwealth property services provided. It a ls o i n d i c a t e s u n d e r a h e a d i n g o f ‘P la n n in g a n d

D evelopm ent’ th a t it provides civil w orks and, u n d e r a h ead in g of ‘P ro p erty M an ag em en t’, re p a irs an d m a in ­ tenance, m echanical services (air-conditioning, lifts, etc), energy conservation, and fire safety services. No m e n ­ tion is m ade of ACS.

5 .3 .2 1 As a re s u lt it co u ld a p p e a r, p a rtic u la rly to

anyone not co n v ersan t w ith th e resp o n sib ilities of the re sp e c tiv e o rg a n is a tio n s , th a t APG re g a rd s its e lf a s

having a w ider role th a n it does in fact have.

5.3.22 In th e c irc u m sta n c e s outlin ed , th e AAO also

referred the m a tte rs m entioned involving responsibility to the D epartm ent of A dm inistrative Services and sought advice on proposals w hich are being developed for the

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ratio n alisatio n / integration of th e sep arate facilities and services provided by two of its elem en ts ACS an d th e

APG.

5.3.23 ACS advised th a t in general it agreed w ith the

AAO’s findings.

5.3.24 ACS also advised th a t, in its role a s th e central

p r o p e r ty a g e n c y , APG, o r DOLGAS a s it w a s th e n ,

s e c u re d th e le a s e d a c c o m m o d a tio n a t 3 6 3 A d elaid e

S treet and elected, for th a t building, to arrange fit-out by the building ow ner as p a rt of th e lease agreem ent. As a consequence DHC carried no responsibility for execution of th e fitting-out, w hich w as n o t funded from any a p ­

p ro p ria tio n u n d e r DHC’s c o n tro l. APG so u g h t DHC’s services in a technical advisory capacity only. ACS indi­ c a te d th a t th e is s u e s ra is e d in re la tio n to th e co sts,

client liaison an d dead re n t on th e 363 Adelaide S treet building sh o u ld be ta k e n up w ith APG.

5.3.25 In addition, ACS pointed o u t th a t creation of the A d m in istra tiv e S erv ice s p o rtfo lio in J u ly 1987 drew

together the property m anagem ent an d design and con­ s tr u c tio n fu n c tio n s . S ince th e n APG a n d ACS have

en h an ced th e co -o rd in atio n of th e ir respective re sp o n ­ sibilities for accom m odation m a tte rs and closer working re la tio n sh ip s have developed. In p a rticu la r, APG and ACS now hold m onthly co-ordination and w orking party m e e tin g s a n d m e e tin g s o n m a jo r p r o je c ts . T h e s e

developm ents will serve to alleviate problem s sim ilar to th o s e id e n tifie d by th e AAO in th e fittin g -o u t of 363

Adelaide S treet.

5 .3 .2 6 At th e d a te of p re p a ra tio n of th is R ep o rt a

response h a d not been received from DAS b u t, as m en­ tioned previously, a discussion h a d been convened.

Procedures

5.3.27 The AAO noted th a t th e C om m onw ealth Civil W orks B u d g e tin g A d m in is tra tiv e P ro c e d u re s is s u e d originally in 1968 by th e D ep a rtm e n t of th e T re a su ry

an d am ended from tim e to tim e h ad been u p d ated peri­ odically by v a rio u s ACS in te rn a l m em o ran d a b u t th a t th ere w as no consolidated set of in stru c tio n s to cover the

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cu rre n t requirem ents or changes foreshadow ed by recent changes in G overnm ent policy.

5.3.28 ACS advised th a t th e p ro ced u res specified in

T reasury C ircular (Works Budgeting) 1 968/1 lapsed on th e 30 J u n e 1989 and would be replaced w ith new pro­ cedures w hich would reflect th e changes foreshadowed, including funding of fitting-out by departm ents.

Preparation o f briefs

5.3.29 The AAO w as not able from its exam ination of ACS records to sight ACS req u irem en ts for the su b m is­ sion of client briefs. A lthough accepting th a t ACS does provide advice an d assistan ce to its clients on request,

the AAO suggested th a t ACS should develop appropriate criteria for th e guidance of clients and th a t these would be beneficial in overcoming delays in th e subm ission of fitting-out requirem ents.

5.3 .3 0 ACS advised th a t it is actively m ark etin g the

v a rio u s serv ice s it p ro v id es, in c lu d in g a s s is ta n c e to

clients in the p rep aratio n of briefs. Brief development and active office layout services are being well received by clients.

Target dates fo r completion

5.3.31 The AAO noted th a t the ACS is not always in ­

form ed of the targ et d ates for th e com pletion of projects in w riting a s th ese are usually com m unicated verbally by the APG a t m onthly co-ordination m eetings.

5 .3 .3 2 The AAO also n o te d th a t ta rg e t d a te s w ere

am ended at co-ordination m eetings b u t th a t the reaso n s for am endm ent or deferm ent were not recorded.

5.3.33 The AAO advised ACS th a t it considered th a t ACS sh o u ld form ally o b ta in an d reco rd project targ et com pletion d ates and am endm ents and th e reaso n s for a m e n d m e n ts . In te r a lia , re c o rd in g w o u ld fa c ilita te

project m anagem ent and control and a ssist in the iden­ tification of the b ases of delays or dead rent.

5 .3 .3 4 ACS in d ic a te d th a t it re p o rts p ro jec t s ta tu s

regularly to th e APG. ACS records satisfactorily detail co n tract delays and events for w hich ACS is responsible.

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The fu rth e r com pilation of th e se records into rep o rts is provided w here clients are prep ared to pay for th e costs of th e serv ice . To d a te , APG h a s n o t re q u e s te d th e

facility.

Notification o f costs to clients

5.3.35 A lthough ACS advises th e APG of in creases or d ecreases in fitting-out co sts arisin g from re q u e s ts for v aria tio n of th e w ork, few in s ta n c e s w ere observed in w hich clien ts were notified of th e co sts of alteratio n s to

approved p la n s or draw ings.

5.3.36 In addition, su ch advices did not extend to an

evaluation of th e overall im pact of proposals a s ACS w as not aw are of lease ren ta l details, re n t free periods and

other inform ation affecting th e co sts of com pletion of fit­ ting-out work.

5.3.37 The AAO considers th a t, in th e in te re sts of more efficient m a n ag em e n t, it is e s s e n tia l th a t ACS sh o u ld develop p rocedures w hich will enable it to obtain such in fo rm atio n a n d inform clie n ts of th e full c o st co n se­ q u e n c e s o f p ro p o s a ls o r v a r ia tio n s to th e m . S u c h

p rocedures would be co n sisten t w ith the recent G overn­ m e n t d e c is io n t h a t ACS s h o u l d m o v e to fu ll c o s t

recovery.

5.3.38 ACS sta te d th a t it h a s alw ays kept clients in ­

form ed of th e co n stru ctio n co sts of alterations to works. In m o st c a s e s to d a te , APG h a s b e e n th e clie n t w ith

other d ep artm en ts being APG's clients.

5.3.39 In fu tu re fitting-out of leased prem ises, client

d e p a rtm e n ts will control th e fu n d s for th e ir fitting-out projects an d will have to m anage th e cost im plications of th e ir c o n stru ctio n and property requirem ents, including

th e fu n d in g of a n y a lte ra tio n s to previously p rep ared p la n s or draw ings. Clients will also be responsible for th e p a y m e n t of an y a d d itio n a l ACS fees in c u rre d in

m aking req u ested changes.

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5 .4 Recoverable expenditure

Introduction

5 .4 .1 T he D e p a rtm e n t of A d m in is tra tiv e S ervices,

th ro u g h A u stralian C onstruction Services (ACS), is the p rin cip al a u th o rity generally re sp o n sib le for th e p lan­ ning, design, co n stru ctio n , fittin g -o u t a n d rep airs and m a in ten a n ce of b u ild in g s an d engineering facilities for C o m m o n w e a lth D e p a r tm e n ts a n d m o s t s t a t u t o r y

authorities.

5 .4 .2 U ntil 1 J u ly 1988, ACS w a s n o t re q u ire d to

charge D epartm ents of S tate for its public w orks services b u t it did charge those ‘u n tied ’ a u th o rities and agencies on a prescribed list.

5.4.3 In general term s, charges were m ade on one of

two bases:

• fu ll c o s t re c o v e ry (d ire c t c o s ts p lu s a lo a d in g for

overheads), or

• m a rk e t ra te s w here co m p arab le goods an d serv ices were available in th e private sector.

5 .4 .4 ACS u s e d g u id e lin e fee s c a le s of th e v a rio u s

professional consulting associations an d in d u stry p ra c ­ tice to establish m ark et rates.

5.4.5 It also h ad a n u m b e r of form al agreem ents with

m ajor clients required to pay for g o o d s/serv ices in ac­ cordance w ith th e D epartm ent of F inance D irections.

5 .4 .6 W ith effect from 1 J u ly 1988, th e G overnm ent

h a s d e te r m in e d t h a t ACS s h o u ld a c h ie v e fu ll c o s t

reco v ery for p ro je c t m a n a g e m e n t se rv ic e s an d a s s e t

m anagem ent services over a three year period. In addi­ tion, with effect from 1 Ju ly 1989 su ch services are to

operate on a tr u s t account basis.

5 .4 .7 An a u d it w as co n d u cted in ACS’s Q ueensland

S tate Office in 1988-89 w ith th e objective of assessing ACS’s progress in adopting a m ore com m ercial m an n er of operation.

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Audit findings 5.4.8 In general, th e AAO considers th a t ACS h a s in tro ­ d u ced fee sc a le s c o n s is te n t w ith th o se of com m ercial o rg an isatio n s, h a s in itia te d sy stem s to en su re th a t all

c o s t s a r e id e n tif ie d a n d a c c o u n te d fo r, a n d h a s

developed p ro ced u res to recover co sts of operation.

5.4.9 The d etails of th e a u d it findings to g eth er with

ACS’s resp o n ses are outlined below.

Full cost recovery 5.4.10 The AAO noted th a t ACS h a d previously entered into a n u m b e r of ag reem en ts w ith som e of its ‘untied* clients for th e im plem entation of w ork on th e b a sis of

recovery of direct co sts p lu s a percentage. The AAO con­ s id e re d t h a t th is m ay n o t h av e g u a r a n te e d full co st

recovery.

5.4.11 ACS advised th a t the A u stralian P ostal Com m is­ s io n w as th e only clie n t still co vered by th is type of

agreem ent. N egotiations w ith th e C om m ission on a new agreem ent b ased on fixed p rices w ere being conducted w ith th e aim of application by J u ly 1989.

Conflicting bids for work 5 .4 .1 2 The AAO observed a s itu a tio n in w hich bid s

could be su b m itted from different offices w ithin the State for the sam e task .

5.4.13 ACS advised th a t b id s for w orks m ay be s u b ­

m itte d by th e re s p o n s ib le B u s in e s s or P rofit C en tre

M anager. It also indicated th a t Profit Centre M anagers in the A sset M anagem ent D ivision have been rem inded th a t b id s for m ajor project w ork are th e responsibility of th e Projects Division and th a t they are au th o rised to bid for w ork offering in th e ir defined areas only.

Other matters 5.4.14 In response to other AAO suggestions or com ­ m ents, ACS:

• agreed th a t it w as essential th a t all fees were invoiced m onthly an d advised th a t, while there m ay still be some p r o je c ts in p r o g r e s s fo r w h ic h q u a r te r ly b illin g

agreem ents apply, su ch agreem ents will be p h ased out a s soon a s possible

J

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• ad v ise d th a t a s p a r t of th e in v o icin g p ro c e d u re , a

c r o s s - c h e c k a g a i n s t c o s t d a t a e n t e r e d in its

c o m p u te r is e d F ee A c c o u n tin g a n d C o st T ra c k in g S y s te m w ill b e u n d e r ta k e n to e n s u r e a ll w o rk in

progress h a s been invoiced

• a c k n o w le d g e d a re q u ir e m e n t to re m in d c lie n ts of

o u tstan d in g debts

• ag re e d th a t it w o u ld n eed to m o n ito r th e p ay m en t

history of clients an d advised th a t inform ation for this purpose w as available in its records

• agreed th a t th e need to m a in ta in a satisfactory cash flow would dem and th a t o u tsta n d in g debts be recovered w ithin a reasonable tim e and advised th a t th e level of activ ity w o u ld be m o n ito re d to e n s u re a p p ro p ria te

resources were available to atte n d to th is work, and

• co n firm ed th a t it w as p ro p o sin g to a le rt all budget

funded clients to th e need to b udget for th e paym ent of fe e s d u r in g th e S u p p ly P e rio d to av o id p ro b le m s

experienced in 1988-89 in recouping costs. ACS also indicated th a t clients and the D epartm ent of Finance w ill be a d v ise d of e s tim a te d S u p p ly p e rio d fees in

1989-90.

5 .5 Procurem ent and stores

Introduction

5.5.1 An au d it of procurem ent an d sto res w as u n d e r­ ta k e n in the Q ueensland S tate Office in 1989.

5.5.2 The objectives of the au d it w ere to en su re th at:

• all p u rc h a se s were required for official pu rp o ses and properly au th o rised

• goods received w ere properly ch eck ed an d recorded, both into th e stores and d epartm ental financial ledger s y ste m s /a ss e ts registers, and

• all m ovem ents of sto res stocks and a sse ts were properly controlled and recorded.

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5.5.3 A lthough p u rch asin g w as considered to be s a tis ­ factory, it w as necessary to draw a n u m b e r of m a tte rs to ACS’s atten tio n .

5 .5 .4 D etails of th e a u d it findings to g e th er w ith th e

S tate Office response are outlined below.

Townsville

5.5.5 The AAO reviewed operation of a m icrocom puter based p u rch asin g an d sto res control system in operation due to p lan n ed extension of th e stock control com ponent

of the system to th e rem a in d er of the S tate in 1989 in a

m odified form.

5.5.6 The AAO found th at:

• a stocktake h ad not been u n d e rta k e n prior to, or after, conversion of th e previous sy stem to a com puterised form at. T esting in d icate d a 30% error ra te betw een sto c k b a la n c e s recorded on th e system a n d physical

stocks

• d ata entry controls were defective in th a t in p u t to the s y s te m w a s n o t v erified in a n y way; co d in g e rro rs

resu ltin g in incorrect b ala n c e s an d costs were identified

• in co n sisten cies in th e b a s is of stores stock recording and issu e of q u an tities w ere noted, and

• d isco u n ts received h ad n o t b een tra n sla te d into stock prices.

5.5.7 The system w as also not fully operational even

though th e co n tract for in sta lla tio n had been finalised:

• a n u m b e r of rep o rts essen tial to effective control of the system could not be produced

• a ‘P urge T ra n s a c tio n F ile’ option, designed to dum p o u t-d a te d tr a n s a c tio n d a ta to h a rd copy to e n s u re

processing tim e w as not im paired due to th e volum e of tra n s a c tio n s , w as n o t w orking; a second system had been installed onto a netw orked personal com puter to reco rd all p u rc h a s e d e ta ils to th e end of November,

1988, and

• a s to c k o v e r-is s u e re p o rt, w h ich re c o rd e d c o u n te r

issu es w hen stock ledger b alan ces were zero, w as not in

Audit findings

49

1

u se due to th e excessive tim e req u ired to produce it; th e AAO n o te d t h a t n u m e r o u s o v e r - is s u e s w ere

recorded w hen it w as used.

5.5.8 The AAO also noted th a t th e re w as no reconcilia­ tio n betw een th e value of sto ck reco rd ed in th e stock

co n tro l sy stem a n d ACS’s c o m p u terised d ep artm en tal a c c o u n tin g a n d in fo rm a tio n sy ste m (DAIS). All pay­ m en ts and project co sts are recorded in DAIS.

Amberley

5.5.9 The AAO noted th a t th ere w as no au d it trail for

credit card p u rc h a se s m ade ag ain st a Field M aintenance R equest (FMR). The AAO suggested cross-referencing of the FMR n u m b er on th e sales slip w ould overcome the problem . The AAO also noted a n inadequacy in depot security.

ACS response 5.5.10 ACS advised rem edial action proposed an d indi­ cated th a t, a s a re su lt of th is au d it, m e asu re s h ad been

in tr o d u c e d to r e s to r e g e n e ra l h o u s e k e e p in g in th e

Tow nsville S to re to a s a tisfa c to ry level a n d th a t th is

should overcome a n u m b e r of the problem s brought to atten tio n . In addition, th e au d it h a d been valuable in

th a t it h ad identified a n u m b e r of issu e s w hich needed to be addressed before th e ‘supply’ system w as installed in other D istricts, or, indeed, in o th e r Regions. These is­ su es h ad been ta k e n up locally.

5 .6 Fire p rotection surveys

Introduction

5.6.1 The D epartm ent of A dm inistrative Services (DAS), th ro u g h its A u stralian C onstruction Services (ACS) ele­ m e n t is resp o n sib le for th e co n d u c t of surveys of th e

ad eq u acy an d effectiveness of fire p ro tec tio n in Com­ m onw ealth owned or leased properties.

5.6.2 An au d it of th e fire protection survey program

w as co n d u cted in th e T a sm an ian com ponent of ACS’s V ictorian/T asm anian Region.

5 .6 .3 A s im ila r review w as u n d e r ta k e n in W estern

A ustralia in 1988. The resu lts of th e W estern A ustralian

50

au d it w ere reported in section 2.5 of th e S eptem ber 1988 Report.

Audit objective 5.6.4 The objective of the a u d it w as to a s s e s s th e ef­

fic ie n c y a n d e f f e c tiv e n e s s o f t h e p r a c t i c e s a n d

p rocedures u sed in th e ad m in istratio n of th e fire protec­ tion survey program .

Audit findings 5.6.5 The AAO found th a t th e practices and p rocedures used by ACS were generally satisfactory b u t th a t proce­ d u r e s fo r th e i m p le m e n ta t io n of s u rv e y

recom m endations w ere inadequate.

5.6.6 D etails of th e au d it findings together w ith ACS’s response are outlined below.

Survey recommendations 5.6.7 O n th e com pletion of individual surveys, ACS a d ­ vises th e building owner or lessee of th e re s u lts of the

survey. It is th e responsibility of th e ow ner or lessee to take ap p ro p riate rem edial action w here th is is necessary.

5 .6 .8 T he AAO n o te d th a t th e re w as a w id e sp re a d

f a ilu r e b y b u ild in g o w n e rs a n d le s s e e s to re m e d y

b r e a c h e s of m a n d a to r y fire s a fe ty r e q u ir e m e n ts ex­

peditiously. These included:

• n o n - im p le m e n ta t io n of e m e rg e n c y e v a c u a tio n

procedures

• failure to in sta l illum inated em ergency u n it signs

• a lack of sufficient fire ex tin g u ish ers

• im proper storage of flam m able liquids

• th e absence of th e rm al fire detector system s or smoke detectors

• in adequate fire doors

• poorly located fire sprinklers, and

• insufficient fire exits

5.6.9 In response to AAO inquiries, ACS indicated th a t it accep ts responsibility for co nducting fire safety s u r ­ veys a s p a rt of its asset m anagem ent activities. There is,

51

how ever, no m a n d a to ry re q u ire m e n t for fire surveys w hich began in th e 1960’s an d have co n tin u ed on the

b a sis of Com m onwealth Fire B oard (CFB) recom m enda­ tions.

5 .6 .1 0 ACS advised th a t th e D ep artm en t of Finance

(DOF) h a s indicated th a t it should com m ence charging for su rv ey s from 1 J u ly 1989 a n d th a t it is advising

client D epartm ents of th e benefits of surveys and recom ­ m ending th a t they continue.

5.6.11 It also advised th a t th e CFB h ad recom m ended to DOF on 2 N ovem ber 1988 th a t F in an c e G uideline

2 6 /1 2 relating to th e protection of p ersonnel and proper­ ty a g a in s t fire s h o u ld be a m e n d e d a n d u p g ra d e d to

F in a n c e D ire c tio n s ta tu s . At th e p r e s e n t tim e, th e

G uideline is re stric te d to g uidance on th e need to ‘in ­ s p e c t a n d t e s t ’ fire fig h tin g e q u ip m e n t a n d to keep

p assag es to exits clear. The Board considers th a t fire­ fighting equipm ent is only a sm all p a rt of the total fire p ro tec tio n package a n d th a t th e obligation to inspect, test, and m a in tain fire-fighting equipm ent should be ex­ t e n d e d to a ll fire p r o t e c t i o n e q u ip m e n t on

Com m onwealth owned or occupied property.

5.6.12 The AAO su p p o rts the B oard’s view.

5 .7 Salaries and p aym ents in th e nature o f salary

Introduction

5.7.1 A udits of the system s an d p ro ced u res for process­ ing salaries an d paym ents in th e n a tu re of salary were carried out in th e D epartm ent’s A u stralian C onstruction Services’ A u stra lia n C apital T erritory a n d Q ueensland Offices in 1989. The objective of each au d it w as to a s ­ s e s s th e a d eq u a cy of th e s y ste m s a n d p ro c e d u re s in

operation and the effectiveness of in tern al controls.

Audit findings 5.7.2 The AAO concluded th a t control system s op erat­ ing in th e A u stra lia n C apital T errito ry w ere generally effective and reliable in ensuring th e accuracy, com plete­ n ess and validity of payroll processing, although:

• no form al directives h ad been issu ed by the Secretary a s r e q u ir e d b y F in a n c e D ir e c tio n 18A to e n s u r e

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a d e q u a te c o n t r o l s o v e r th e p r e p a r a t i o n a n d

m ain ten an ce of th e payroll w ere in existence

• p ay ro ll c o m p u te r re p o rts re q u irin g ac tio n w ere not adequately evidenced for action ta k e n and com pleted

• checks u n d e rta k e n by su p erv iso rs in connection w ith leave and atten d an c e records co n tain ed inadequacies, and

• a n a u to m a tic o v e r-rid e fac ility in c o rp o ra te d in th e

D epartm ent of Finance salaries system h a d prevented a c tio n in g of a p a y v a ria tio n ad v ice c e a sin g s a la ry

p a y m e n ts , w ith th e r e s u lt t h a t a n o v e rp a y m e n t of

salary occurred (recovered before th e au d it began).

5.7.3 The D epartm ent advised of rem edial action tak en or proposed. It also said it w as ta k in g up th e m a tte r

relating to cessatio n with th e D ep artm en t of Finance.

5.7.4 In Q ueensland, alth o u g h it w as found reliance

could be p laced on th e sy stem s in u se , several m inor

d e fic ie n c ie s, re la tin g to th e a d m in is tr a tio n of leave,

seg reg atio n of d u tie s co n cern in g pay, a n d n o n -p erfo r­ m a n c e o f s u p e r v i s o r s d u t i e s w e re r e f e r r e d to th e

D ep artm en t w hich advised of rem edial action ta k e n or proposed.

5 .8 Project adm inistration

Introduction

5.8.1 A prelim inary review of m ajor project ad m in istra­ tio n w as u n d e rta k e n in Q u e e n sla n d in 1988-89. Two

projects w ere exam ined:

• D ev elo p m en t of New U tility H elico p ter F a c ilitie s a t RAAF Base, Townsville, and

• Redevelopm ent of th e Townsville Domestic Airport.

5 .8 .2 T h e o b je c tiv e of th e a u d it w a s to e s ta b lis h

w h e th e r eac h p ro jec t h a d b e e n com pleted w ith in th e

relev an t tim e fram e and estim ated co st an d to perfor­ m a n c e sp e c ific a tio n s an d , if n o t, to p ro ceed to m ore

detailed exam ination.

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w

Audit findings 5.8.3 The AAO concluded th a t th e criteria outlined had been satisfactorily achieved in each case.

7 Septem ber 1989 J.C . Taylor

C anberra, ACT A uditor-G eneral

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APPENDIX: The title s listed below are th o se p u b lish ed in th e F inancial Year 1989-90 and ap p e a r in series order:

A udit R eport No. 1 D ep artm en t of Defence - O verseas P rocurem ent

A udit Report No. 2 D ep artm en t of V eterans’ Affairs

A udit Report No. 3 In dustry, Technology an d Comm erce Portfolio

A udit Report No. 4 D ep artm en t of Em ploym ent, E ducation an d T raining - A boriginal S tu d en t A ssistance Schem es

A udit Report No. 5 D ep artm en t of Em ploym ent, E ducation an d T raining - J o b s ta rt

A udit Report No. 6 D ep artm en t of Em ploym ent, E ducation an d T raining - Post g rad u ate aw ards

A udit Report No. 7 D ep artm en t of Em ploym ent, E ducation a n d T raining - Com m onw ealth R ebate for A pprentice F ull Time T raining

A udit R eport No. 8 D e p a rtm e n t of th e A rts, S port, th e E n v iro n m en t, T ourism an d T erritories - ACT A dm inistration

A udit Report No. 9 D ep artm en t of Defence - P o st-sep aratio n Em ploym ent

A udit Report No. 10 Office of th e Supervising S cientist for th e A lligator Rivers Region - R esearch Project A dm inistration

A udit Report No. 11 D ep artm en t of Defence - recru itm en t p ractices

A udit Report No. 12 D ep artm en t of Aborginal Affairs

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A udit Report No. 13 Im m igration, Local G overnm ent an d E thnic Affairs Portfolio

A udit Report No. 14 A ttorney-G eneral’s D epartm ent

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