ANAO funding not keeping pace with growing audit workload, Centre for Public Integrity says

Anti-corruption think tank the Centre for Public Integrity is pushing for an independent funding model separate from the federal government's yearly budget cycles, warning oversight agencies, such as the Australian National Audit Office, should not be left "scared to bite the hand that feeds them".

It follows alarm bells raised in December, which revealed the Auditor-General was "at risk" of failing to deliver a promised 42 performance audits during 2022-23.

The 2023 federal budget delivered the office an extra $14.4 million over four years from 2023-24 on Tuesday to deliver 45 audits in the coming financial year and 48 in the years ahead.

From 2027-28, it will receive $3.9 million each year to complete 48 performance audits.

But the think tank says it's still not enough.

The centre's budget analysis, released on Thursday, shows the amount of funding had increased by $2 million between the 2011-12 and 2023-24 budgets.

The real departmental appropriations over the period, however, has decreased by 0.3 per cent.

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Its research director Catherine Williams said the audit office's funding needed to keep pace with its growing workload.

"The audit office has held government to account on sports rorts, car park rorts and many others. If it is to continue to provide this crucial scrutiny, its funding must reflect changes to its jurisdiction," Dr Williams said.

"Funding for the ANAO and other accountability agencies is threatened by political budget cycles and should be made independent.

"Agencies cannot operate properly if they are scared to bite the hand that feeds them."

The Centre for Publicity Integrity has previously called for an independent funding model to be considered for watchdogs, suggesting it could work similarly to the government's independent wage regulator, the Remuneration Tribunal.

Of the 48 audits planned for the 2022-23 financial year, 20 have been completed.

The audit office previously received an $8 million boost in the Albanese government's October federal budget with its staffing level also being bumped up by 53 to 379.

Staffing levels have again been boosted in the May budget, growing to 398.

An answered question on notice to ACT independent senator David Pocock revealed in December, however, the last cash injection didn't improve the situation.

The Auditor-General outlined in his response reasons the office could not keep up with work, such as the training of new auditors and a series of unexpected absences, particularly at the audit manager level, further delaying work.

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