COMMITTEES

Mr BURNS (Macnamara) (09:11): On behalf of the Joint Committee of Public Accounts and Audit, I present the following reports: Report 516: Inquiry into Commonwealth financial statements 2023-24 and 2024-25 and Report 517: Annual report 2025-26. Report made a parliamentary paper in accordance with standing order 39(e). Mr BURNS: by leave—First of all, I present the report of the Joint Committee of Public Accounts and Audit No. 516: Inquiry into Commonwealth financial statements 2023-24 and 2024-25.

The annual auditing of financial accounting and reporting by Commonwealth entities by the Australian National Audit Office provides assurance to the parliament on the financial position of the Australian government and the expenditure of taxpayer money. This report considers the findings of both the 2023-24 and 2024-25 financial statements audits, with a particular focus on three areas of interest to the committee: compliance with legislation, including section 83 of the Australian Constitution; the information technology environment; and the governance of emerging technologies, including artificial intelligence.

Legislative non-compliance has increased across the two audit periods. While the committee welcomes evidence that entities have accepted the seriousness of issues identified by the ANAO, and are taking active steps toward remediation, the committee remains concerned by the number of breaches that persist across multiple audit cycles. The IT control environment continues to account for the largest proportion of audit findings.

It is clear to the committee that IT governance and controls continue to be a persistent challenge for entities. The committee was encouraged by the approaches undertaken by the Department of Defence and NBN Co, both of which have successfully resolved findings relating to unauthorised post-separation access of IT networks. In these cases, resolution was achieved by addressing the issue as a whole-of-business issue rather than one confined to IT alone.

The committee considers this approach instructive for the broader public sector and encourages other entities to apply similar methods. The committee also considered the continued growth in the use of AI and other emerging technologies across the public sector. While the committee did not investigate the use of AI across the public sector in depth, it will continue to monitor whether governance frameworks are keeping pace with the rate of adoption and the range of emerging use cases.

One recommendation made by the committee was that the ANAO tables at least annually a report that examines public sector entities use and preparedness for emerging digital technologies. I want to acknowledge and thank Senator Matt O'Sullivan for his service as deputy chair until March 2026 and thank the current deputy chair, the Hon. Scott Buchholz MP, for his help, commitment and support.

I thank all committee members for their contributions to this inquiry, and I commend that report to the House. I am also pleased to present Report 517: Annual report 2025-26—I've already given it to the clerks. Under the Public Accounts and Audit Committee Act 1951, the committee is required to report annually to the parliament on the work it has undertaken.

The committee's work includes reviewing Australian National Audit Office reports and conducting inquiries where it identifies issues needing further examination. The committee determines the audit priorities of the parliament and makes recommendations to the government on the budget estimates of the Australian National Audit Office and the Parliamentary Budget Office.

The committee can request a post-election review of the PBO's operations and did so following the 2025 election. In 2025-26, the committee held 27 meetings, including seven public hearings. The committee commenced eight inquiries, tabled three reports, undertook a range of non-inquiry activities in line with legislative responsibilities and met with delegations from Kiribati and Cambodia, both highly successful.

We completed inquiries in 2025-26, including into the effectiveness of Australia's National Anti-Doping Scheme and the procurement processes for supporting services for victims of child sexual abuse. Again, I thank the deputy chair and all of the committee members, and I also want to pay a special tribute to the secretariat, who are outstanding public servants and serve the committee with distinction.

I commend the report to the House. I ask leave of the House to present executive minutes on reports of the Joint Committee of Public Accounts and Audit, if that's possible. Leave granted.

Mr BURNS: I present the executive minutes on reports 463, 472, 477, 479, 485, 486, 488, 491, 492, 498, 502, 504, 509, 511, 512, 514 and 515 of the Joint Committee of Public Accounts and Audit.