Four Environment Background and Context

ANAO Report No.10 2014–15 Administration of the Biodiversity Fund Program 32 Administrative arrangements

1.10 The

Biodiversity Fund program is managed by the Biodiversity Conservation Division BCD within Environment. BCD is responsible for the delivery of a number of environmental programs 33 , with the divisional structure aligned to operational activities, such as policy development, program planning, grant assessment and selection exercises, and program implementation rather than individual programs. As at 30 June 2014, BCD had around 160 staff, mostly based in Canberra. 34 Audit objective, criteria, scope and methodology

1.11 The

objective of the audit was to assess the effectiveness of the Department of the Environment’s administration of the Biodiversity Fund program.

1.12 To

form a conclusion against the objective, the ANAO adopted the following high‐level criteria:  governance arrangements were appropriate;  grant assessment processes to select funded projects under the program were open, transparent, accountable and equitable;  negotiation and management of funding agreements with approved applicants was sound; and  effective monitoring, reporting and evaluation arrangements were established to determine the extent to which the program has achieved its objectives.

1.13 The

ANAO examined Environment’s assessment of grant applications and the funding agreements for approved projects under the Biodiversity Fund program. The audit did not examine other aspects of the LSP or related programs.

1.14 In

undertaking the audit, the ANAO:  reviewed departmental files and program documentation;  interviewed andor received written input from departmental staff and relevant stakeholders, including grant recipients, chairs of the assessment Moderation Groups, and peak environment groups; 33 These include the Biodiversity Fund program, the former Caring for Our Country initiative, and new programs such as the Green Army and the National Landcare Programme. 34 There are a small number of staff located in Queensland, Victoria, South Australia and Western Australia. ‐       ANAO Report No.10 2014–15 Administration of the Biodiversity Fund Program 33  conducted a survey of a sample of grant recipients to canvas their views on the department’s administration of the program;  undertook site visits to 10 Biodiversity Fund program projects located in regional New South Wales and Victoria; and  examined a random sample 20 per cent of unsuccessful and successful grant applications, including the funding agreements of successful applicants. 35

1.15 The

analysis of grant applications was undertaken to provide additional assurance that: applicants provided the required information; the assessment and selection process was undertaken in accordance with the grant guidelines and was transparent and accountable; and that for funded projects, agreed milestone requirements had been met before payments were released. 36

1.16 The

audit was conducted in accordance with ANAO Auditing Standards at a cost to the ANAO of 641 000. 35 The ANAO examined 20 per cent of all applications successful and unsuccessful—471 applications in total. The ANAO also examined the funding agreements and other documentation relating to 72 successful applicants 21.5 per cent of the 334 projects funded under the Biodiversity Fund program. 36 The audit did not examine the integrity of payments made through Environment’s Financial Management System, as this type of examination is undertaken during controls testing as part of the