To form a conclusion against this objective, the ANAO adopted the

ANAO Report No.3 2015–16 Regulation of Great Barrier Reef Marine Park Permits and Approvals 15 • a structured risk management framework to assess and manage compliance risks has been implemented; • an effective risk-based compliance program to communicate regulatory requirements and to monitor compliance with permit conditions and regulatory objectives has been implemented; and • arrangements to manage non-compliance are effective.

14. The ANAO examined GBRMPA’s assessment of Marine Park permit

applications, monitoring of permit holders’ compliance and response to permit holders’ non-compliance. 14 The ANAO did not examine GBRMPA’s other regulatory activities, such as the FMCU’s investigation and enforcement activities associated with: activities not subject to a permit; the state marine park; or permits and licenses granted under state legislation. Overall conclusion

15. GBRMPA assesses approximately 400 permit applications each year

and, at any one time, GBRMPA and its partner agencies under the Joint Field Management Program are responsible for monitoring the compliance of approximately 1300 permit holders with their permit conditions and taking appropriate enforcement action in response to identified non-compliance. Over the period July 2012 to June 2014, GBRMPA assessed 76 reported breaches of Marine Park permit conditions approximately five per cent of all recorded breach incidents 15 and conducted 59 investigations.

16. In relation to the regulation of permits, identified shortcomings in

GBRMPA’s regulatory processes and, more particularly, its regulatory practices have undermined the effectiveness of the permitting system as a means of managing risks to the Marine Park. These shortcomings were identified across a broad range of GBRMPA’s regulatory activities, including its assessment of permit applications, monitoring of permit holder compliance and response to non-compliance. 14 The ANAO selected samples of GBRMP permit application assessments and current permits over the period from July 2012 to June 2014. The samples, which equated to 10 per cent of permit application assessments and current permits, were broadly selected in proportion with 12 key parameters of the respective populations. In addition, the ANAO examined all ‘breach of permit’ enforcement actions over the period from July 2012 to June 2014. 15 Most non-compliance incidents and investigations relate to breaches of state fishing permits and licences or for activities not subject to a permit. ANAO Report No.3 2015–16 Regulation of Great Barrier Reef Marine Park Permits and Approvals 16

17. While GBRMPA has well-established arrangements for processing and

assessing permit applications, there were weaknesses in the quality and completeness of the assessments undertaken against regulatory requirements. The causes of these weaknesses included fragmented and incomplete guidance material for staff, incomplete records, insufficient consideration of relevant assessment requirements and limited assurance from quality control processes. As a consequence, the permit application assessment reports prepared for the delegate did not address all regulatory requirements on which decisions to issue or refuse permits were to be based. Delegates did, however, generally document their decisions to issue or refuse permits in an appropriate manner, including the reasons underpinning the decisions, after considering the permit application assessment reports and proposed conditions to be attached to issued permits. These conditions, which are the primary means by which GBRMPA mitigates the risks posed to the reef by proposed activities, generally addressed many of the high or medium-rated risks identified during the assessment process. GBRMPA should, however, periodically review the design of standard permit conditions that it applies to common permit types to help ensure that they effectively address significant risks to the Marine Park.

18. In general, permit monitoring undertaken collectively by GBRMPA and

its partner agencies has been insufficient to determine permit holders’ compliance with permit conditions. Specifically, GBRMPA was not effectively monitoring the timely receipt of most post-approval reporting documentation that permit holders were required to submit under their permit conditions, nor appropriately documenting its assessmentapproval of the post-approval reports submitted. While intelligence and risk-based field compliance operations primarily vessel, aerial and land-based patrols undertaken by GBRMPA and its partners agencies are effective in detecting some forms of permit-related non-compliance, they are not well-suited to detecting other forms of non-compliance such as the condition of sub-surface infrastructure. The limited additional monitoring of permit compliance that has been undertaken by GBRMPA to supplement existing patrols including site inspections, was not, however, informed by an appropriate risk-based approach. The failure to effectively monitor permit holder reporting requirements and to undertake sufficient risk-based supplementary monitoring activities reduces the effectiveness of permit conditions as a means of managing risks to the Marine Park from permitted activities.

19. Until recently, many instances of permit holder non-compliance mostly

related to the provision of required documentation were not identified by