Follow-up audit of APY – Any improvement in accountability?

The APY Lands get funding through State and Federal Government grants. A report by Ernst & Young in April 2016 indicates that during the 2014-15 financial year, there were 15 government funding agreements with APY.

The report by Ernst & Young of its audit of government funding and grant transactions, shows that 53 per cent of the transactions were in accordance with required standards – this means that documentation was located which supported the transaction and was spent in accordance with the relevant funding agreement. However, 5 per cent of transactions were not in accordance with required standards – documentation was located but it did not support that the transaction was in accordance with the relevant funding agreement; and 42 per cent of transactions could not be determined i.e. the supporting documentation could not be located or the documentation that was located did not contain sufficient information to verify if the transaction was expended in accordance or not in accordance with the relevant funding agreement. The 5 per cent plus 42 per cent equate to 47 per cent – or just under half – of all transactions that cannot adequately be accounted for.

For example, the Ernst &Young report shows that there were no clear records of how 39 per cent of the State funding for land rights administration had been spent or of how 52 per cent of the Commonwealth biodiversity funding had been spent. There is insufficient documentation or record-keeping to indicate how these grants were spent.

The Ernst & Young audit follows a previous audit completed by KPMG which had shown significant irregularities and poor record keeping of financial transactions.

  • The Ernst & Young Phase One report of April 2016 focused on a review of transactions in relation to State and Federal government grants. This report was followed by the Phase Two report in May 2016 that focused on the development of supporting policies and procedures to address areas needing improvement.
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