Reviews and evaluations

The department’s programs and administration are reviewed and evaluated at various levels—from internal reviews to performance and financial auditing by the ANAO. Departmental practices and program delivery are amended in response to the findings of reviews and evaluations.

This section outlines significant reviews by consultants or agencies other than the ANAO completed during 2008–09, in progress at 30 June 2009, or planned for 2009–10.

ANAO audits, judicial inquiries, commissions of inquiry and inquiries by parliamentary committees are dealt with under ‘External scrutiny’ on pages 180–86.
There were no formal evaluations of the Australian Bureau of Agricultural and Resource Economics in 2008–09, and none are planned for 2009–10.

Completed

Output 1.1: National Agriculture and Climate Change Action Plan 2006–2009 mid-term review

The mid-term review of the National Agriculture and Climate Change Action Plan 2006–2009 was completed in July 2008. The review assessed the effectiveness of the plan in generating specific actions to address the challenges of climate change. This was an internal desktop study incorporating stakeholder views from members of the Climate Change in Agriculture and Natural Resource Management Working Group and other research organisations.

The review concluded that the plan has increased awareness of climate change issues in primary industries, and identified more than 300 activities that had contributed to the plan’s implementation. However, it identified ongoing needs for:

• better coordination of actions across jurisdictions
• a more strategic approach to targeting research efforts
• improved communication with the agriculture sector about the potential impacts of climate change.

Members of the Working Group have endorsed the review and agreed that the plan should be updated to reflect changes in government policy since its introduction, with a view to an extension beyond 2009.

Output 1.1: Review/evaluation of EMS Pathways to Sustainable Agriculture Program

The EMS (Environmental Management Systems) Pathways to Sustainable Agriculture Program was developed in February 2007 to facilitate partnerships with industry, regions and research organisations to increase the adoption of self-sustaining, profitable and sustainable farming practices; enhance sustainable agricultural and environmental outcomes; and enable producers to demonstrate environmental credentials to domestic and international markets.

A final review conducted by the program managers, Hassall & Associates Pty Ltd, was completed in May 2009. The review analysed the success of the program in achieving its objectives. It included an overview of individual EMS Pathways projects.

The review found that the program had achieved its objectives by strengthening the capacity of the 15 industry bodies and eight natural resource management regional bodies it engaged with to implement EMS approaches. Its analysis of project outcomes indicated that the EMS approach had provided common ground between organisations, assisting the growth of partnerships and shared capacity, and had also created a strong foundation for responding to emerging pressures and opportunities. However, it saw EMS as one of a suite of approaches that can be used to promote the adoption of sustainable and profitable practices at farm level, where the adoption of any particular practice will be influenced by specific drivers and barriers.

Observations from the EMS Pathways program were considered in developing priorities for investment in Caring for our Country in its transitional year, 2008–09.

Output 1.1: Evaluation of Defeating the Weed Menace program

ABARE completed its report on the final review of the Defeating the Weed Menace program in July 2008. The review focused on an agreed performance evaluation framework that centred on program appropriateness and effectiveness and the quality of program delivery.

ABARE found that the program had addressed a clear need for a nationally driven initiative. The program had complemented other weed-related initiatives and addressed the cross-jurisdictional inconsistencies in weeds management associated with them. Its ability to target priority weed species from a national perspective had been a particular success, and had addressed a central element of the weeds problem.

The review found that the program had been flexible and able to address most aspects of weeds management, coordination, research and development, communications and on-ground activities. It had also succeeded in attracting matching funding from project proponents.

Findings from the review will be considered in the future development of policy direction on invasive plant species.

Output 1.2: Review of the buyback of fishing concessions in the Bass Strait Central Zone Scallop Fishery

As part of the government’s election commitment, Ernst & Young was engaged to conduct an independent audit into the administration of the buyback of fishing concessions, with a particular focus on the buyback of Bass Strait Central Zone Scallop Fishery concessions, as part of the Securing our Fishing Future package. The report is now available on the department’s website.

Ernst & Young found that the buyback in the fishery had been conducted in accordance with the tender rules and strict probity requirements. The company noted that its review did not identify any matters in which this fishery was affected by the buyback to a greater extent than any other fishery involved.

The report made six findings regarding the evaluation of tenders. These have since been addressed by the department.

Output 1.2: Rural Financial Counselling Service performance audits

During 2009, WalterTurnbull conducted performance audits of two service providers delivering the Rural Financial Counselling Service program under the 2008–11 grant funding round. One service was audited as a follow-up to the 2007 WalterTurnbull performance audit. The other was audited as an organisation that had not previously been funded under the program.

The follow-up audit found that the actions taken by the service provider to address the critical findings in its 2007 performance audit were reasonable and effective. However, WalterTurnbull noted a small number of areas where further action was still required.

The audit of the new service provider found it to be a medium-performing organisation.

Output 1.2: Farm Help longitudinal study

The South Australian Centre for Economic Studies completed a five‑year (2004 to 2008) longitudinal study involving surveys of farmers and former farmers who have participated in Farm Help. The aim was to measure medium- to longer-term outcomes.

The fifth and final wave of the survey was completed in December 2008. It found that Farm Help was successful in prompting farmers to undertake the actions required to strengthen their and their families’ long-term financial positions.

The Pathways Planning approach taken by Farm Help proved to be effective in ensuring farmers set goals and directions aimed at improving their financial security, and in prompting them to take actions necessary for better financial viability. Pathways Planning also encouraged many farmers to continue preparing business plans after they exited Farm Help.

Most former participants believed that their involvement in Farm Help had continued to benefit their farms and/or families some years afterwards. As well as preparing Pathways Plans, they had accessed and acted on professional advice, made operational changes to their farms, undertaken study or training, and found ways to earn off-farm income. Many farmers continued to pursue and self-fund these activities for some years after exiting Farm Help.

Recommendations from each wave of the longitudinal study were used in planning and developing other grants programs.

The results of the study are available on the department’s website.

Output 1.2 Drought policy review

In 2008–09 the department supported the Australian Government’s national review of drought policy. The government is undertaking this review in recognition that the current Exceptional Circumstances arrangements may no longer be the most appropriate in the context of a changing climate.

The review comprises three separate assessments of the climatic, social and economic aspects of drought and drought assistance. The climatic assessment—examining the effects of climate change on the likely nature and frequency of exceptional climatic events—was undertaken by the Bureau of Meteorology and CSIRO. It found that drought conditions are likely to occur more often and be more severe in key agricultural production areas. The final report on this assessment was published on 6 July 2008 and is available on the department’s website.

The social assessment was undertaken by an expert social panel appointed by the government, to which the department provided secretariat services. It involved 25 public forums across Australia, attended by more than 1000 people, and more than 250 written submissions. This assessment highlighted the broad effects of drought across rural communities, which often exacerbate underlying socio-demographic decline in some rural populations. The final report was released on 23 October 2009 and is available on the department’s website.

The economic assessment was undertaken by the Productivity Commission. The commission found that governments should redirect funding for drought assistance programs to help farmers better manage risks. The final report was tabled in parliament on 12 May 2009 and is available on the Productivity Commission’s website.

The department is supporting government consideration of all recommendations from the review and the extensive feedback from public consultations.

Output 1.4: Review/evaluation of Quarantine Matters!
Phase III advertising activity

The department commissioned Open Mind Research to conduct market-tracking research on awareness, attitudes and behaviours relating to quarantine among the specified target audiences of the Quarantine Matters! ‘Big Bugs’ advertising campaign. The review was completed in November 2008. When it is completed the report will evaluate the effectiveness of the campaign and highlight new opportunities for reaching specific target audiences.

This type of research is conducted during each phase of advertising activity.

Output 1.4: Importing authority audits

In 2008–09, the AQIS Export Meat Program was audited by the US Food Safety and Inspection Service; the Majelis Ulama Indonesia; the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China; and the Federal Agency of Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) of the Russian Federation.

These audits were done to assess the compliance of Australia’s system with importing country requirements. They included assessments of 40 export-registered operations, AQIS-approved laboratories and Islamic certifying organisations. Some of the final audit reports had not been received at 30 June 2009. The department is analysing and addressing the findings identified in those we have received.

In progress

Output 1.1: Native Vegetation Regional Pilot Projects evaluation

The Bureau of Rural Sciences is monitoring and evaluating outcomes from the $2 million Native Vegetation Regional Pilot Projects program under the Natural Heritage Trust. This review was expected to be completed by June 2008, but will now be finalised in early 2009–10 after all the pilot projects have been completed.

We expect the review’s findings and recommendations to help inform future national programs for improving the management of Australia’s natural resources.

Output 1.2: Assessment of the Commonwealth fisheries merits review systems

In August 2007–08 the law firm Minter Ellison reviewed the efficacy and efficiency of mechanisms for fishing operators to appeal the merits of administrative decisions made under the Fisheries Management Act 1991 and subordinate legislation. The review focused on decisions under section 165(1) of the Act and decisions to make a provisional allocation of statutory fishing rights other than by way of auction or tender under section 23.

The assessment involved an extensive literature survey, interviews with and input from government stakeholders, detailed fisheries case analysis, and an examination of alternative merits review models.

The review is now complete and the department is considering final comments from government stakeholders. We expect to release the report to external stakeholders for review and comment in the second half of 2009. Following that process, final recommendations will be presented to the minister for consideration.

The findings will inform the evaluation of merits review processes for fisheries allocation decisions made under the Torres Strait Fisheries Act 1984.

Cancelled

Output 1.2: Review of appeals mechanisms under the Torres Strait Fisheries Act 1984

Rather than commission a separate independent evaluation of the merits review processes for fisheries allocation decisions under the Torres Strait Fisheries Act 1984, the department will consider the findings of the similar review undertaken for the Fisheries Management Act as they apply to decisions under the Torres Strait Fisheries Act (see ‘In progress’ above).

Planned

Output 1.1: Review of Australia’s Farming Future

In 2009–10 the department will commission a review of the Australia’s Farming Future initiative. This will evaluate the initiative against its objective of equipping primary producers to adapt and adjust to the impacts of climate change.

We will also commission a review of Australia’s Farming Future’s Climate Change Research Program. This will evaluate the delivery of the program to date and the appropriateness of approved projects.

Output 1.1: Review of the strategic management plans for 13 Weeds of National Significance

The Australian Weeds Committee, a subcommittee of the National Biosecurity Committee comprising Australian Government and state and territory representatives, will review the national management strategies for 13 Weeds of National Significance.

The review will aim to evaluate progress in achieving the goals of the strategy for each of the 13 species. We anticipate that this will be finalised in 2010.

Financial performance summary

Overall the financial performance of the department remains strong despite significant financial challenges during the year.

Departmental revenue of $625.6 million was received in 2008–09, which was significantly less than expected (3%). This was a reduction of $21.7 million from 2007–08. The impact of the global financial crisis on throughput for some of the largest cost-recovered elements of the department was the main factor behind the decrease in expected revenues.

The department has recorded an operating deficit of $17.4 million (incurring $655.4 million in expenses) for the year ended 30 June 2009, compared with a small surplus ($0.7 million) in 2007–08. The deficit is mainly due to the lower than expected revenues received in AQIS import and export programs as a result of reduced activity stemming from the impacts of the global financial crisis.

The composition of total resourcing for the department in 2007–08 and 2008–09 is shown in the agency resource statement at Appendix 10.

Administered expenses were 3% under budget, which was a strong result given the demand-driven nature of some of our major programs.

Administered expenses total $1.701 billion, a reduction of $1.12 billion from 2007–08. The decrease was due to reductions in expenses incurred in demand-driven programs and the transfer of responsibility for the delivery of payments to the states and territories to the Treasury in January 2009.

The 2008–09 financial statements were signed by the Auditor-General without qualification or significant finding.

The agency resource statement at Appendix 10 outlines the allocation of resources in 2008–09 under the department’s revised output structure adopted in the 2008–09 Portfolio Budget Statements.

The agency resource statement also provides information on the average staffing level for 2008–09, which have remained in line with budget forecasts.

The next financial year will see further financial challenges for the department as the economy continues to change and resourcing from government and through recoverable operations continues to be tight, but the department is confident that the strength of its financial position and existing frameworks will set the platform for sustainable results into the future.

Biosecurity Australia

Biosecurity Australia generated an operating surplus of $0.06 million in 2008–09 ($0.10 million in 2007–08), which represented 0.3% of agency appropriation revenue. The surplus was mainly attributable to lower expenditure on suppliers, including consultancies and IT and communications.

The composition of total resourcing for Biosecurity Australia in 2007–08 and 2008–09 is shown in Appendix 10. The appendix also provides information on the average staffing level for 2008–09.

The solvency of the agency remained sound, with a reported ratio of 1 to 5 in 2008–09 (1 to 5 in 2007–08).

The 2008–09 financial statements were signed by the Auditor-General without qualification. The results of the audit again reflected the sound financial management framework in place in Biosecurity Australia.

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