ANAO Recommendations

Australian Wool Innovation (AWI) Chairman Jock Laurie has welcomed the Australian National Audit Office (ANAO) report on whether AWI is largely complying with the Statutory Funding Agreement (SFA) with the Australian Government.

The report found:

• AWI is largely effective in meeting the requirements of the SFA.
• AWI’s management and governance arrangements are largely fit-for-purpose.
• AWI is largely effective in applying the performance principles under the SFA.
• AWI’s arrangements for the management of funds are largely effective.

There were six recommendations to AWI aimed at improving:

• board performance reviews;
• the development and maintenance of a balanced portfolio;
• measurement and reporting on improvements in administrative efficiency;
• arrangements to determine eligible research and development (R&D) processes for preparing matching payment claims;
• and risk management.

AWI has agreed to implement all recommendations.

RECOMMENDATION 1

Australian Wool Innovation update its polices, board performance review processes and reporting to include all skills listed in the Statutory Funding Agreement.

RECOMMENDATION 2

Australian Wool Innovation develop, implement and maintain a balanced portfolio by:

1. establishing an investment profile, which outlines a target proportion of projects against AWI, government and industry priorities and for each risk and return category; and

2. monitoring investments and the balance of the portfolio against these targets.

RECOMMENDATION 3

Australian Wool Innovation establish performance indicators to measure and report on improvements in administrative efficiency.

RECOMMENDATION 4

Australian Wool Innovation improve its arrangements for determining eligible R&D by:

1. updating its policies and processes to align with the 2020–2030 Statutory Funding Agreement; and

2. establishing methodology outlining how to consistently determine and review the proportion of eligible R&D assigned to projects.

RECOMMENDATION 5

Australian Wool Innovation improve its processes for preparing matching payment claims by:

1. using consistent terminology that aligns with the terminology used by the Department of Agriculture, Fisheries and Forestry; and

2. accurately calculating and recording excess R&D in accordance with the Statutory Funding Agreement 2020–2030 and the Wool Services Privatisation Act 2000.

RECOMMENDATION 6

Australian Wool Innovation consistently apply the processes and requirements for project risk management outlined in its Risk Management Framework.