Senate Finance and Public Administration Legislation Committee [Part 2], , 2:15:10 to 2:20:59
The ANAO discusses the revised costings for Snowy 2.0, which increased from $6.1 billion to $12 billion, and the status of future performance audits.
Topics: Snowy Hydro, Renewable energy
Speakers: Senator Susan McDonald, Dr Caralee McLiesh, Carla Jago, Lisa Croswell, Unknown Speaker
>> Right. Okay. In justifying this year's audit of Snowy 2.0, the ANAO said Snowy 2.0 is the largest committed renewable energy project in Australia in 2026. What projects and programs has the ANO identified as the next tier of government investments in renewable
>> Um I think in my response to your letter Senator I uh outlined the performance audits that are underway uh in the uh in the portfolio. So we have an audit underway on management of rewiring the nation uh investments uh and then also um uh an audit on management of Commonwealth National Parks. Um so those are the two priorities that we're currently um pursuing.
>> Their priorities and specific projects underneath that or is it the entire
>> uh for management of rewiring the nation investments that is the whole program?
>> It's the effectiveness of the management of the program. Um so looking at the clean energy finance corporation's
Okay. In June, the ANAO brought down its order in relation to Snowy 2.0. The cost of which, according to that report, have gone from 6.1 billion to 12 billion by the second half of 2027, will and is the ANAO continuing to audit these revised costings and timelines
Um I'll hand to um Lisa Crazwell to answer our involvement on the financial statement audits.
>> Um so we do audit um the financial statements of Snowy Hydro and as part of that as the um project rolls out and there's cost attributed to it and they become part of the financial statement, we would audit
would be a decision for the auditor general um in the future balanced against the priorities of the office.
So in the 202425 federal budget the ANAO audit confirmed uh that there was an additional funding of 7.1 billion over four years to Snowy Hydro to support continued construction of Snowy 2.0.3. Given the failings the ANO has identified, uh why wouldn't that was in the management of that project, why wouldn't the ANO continue its audit or has the government satisfied you that the deficiencies in management have been
>> We've uh just completed the audit of the delivery of um Snowy 2.0. We uh would not normally conduct a follow-up audit um for a number of years. Uh it's possible we may do so in in the future, but there are no plans at this stage given that we've just completed that
okay. But the audit stated that Snowy 2.0 O has not effectively held the contractors to account for delivery, has not effectively implemented measures that were intended to manage project risks and does not have access to quality data that would allow it to appropriately monitor the project. Unless you have been satisfied um that the ANO has been made aware that the government has addressed these specific findings to your satisfaction, it would not be unreasonable to expect you'll be back auditing this project again in the very near future.
Uh the audit did as you highlight identify a number of uh deficiencies in governance and risk management um and monitoring of the uh of the project and that is why we made we made five recommendations u to improve uh governance oversight management performance measurement um development of regular public reporting. Uh Snowy Hydro did accept four uh recommendations in full and one in part. The one that related to uh public reporting on uh on progress. Uh Snowy Hydro is now accountable for implementation of uh those those recommendations. We will track um their self-reporting on progress on those uh recommendations and in due course we'll consider whether or not to take on a follow a follow-up audit. Um but um at at this point in time um the accountability is for Snowy to implement the recommendations and we have no plans for a follow-up order.
>> Okay. >> Senator, I might also just mention the joint committee of public accounts and audit has commenced an inquiry into this report and so through that inquiry they will likely follow up on Snowy Hydro's progress in addressing those recommendations.
>> I'm sorry. Who will follow?
>> The joint committee of public accounts and audit right >> have started the inquiry.
>> Okay. Because I mean two of the audit deficiencies that you found were Snowy Hydro does not have a robust understanding of the forecast costs to complete the project and Snowy Hydro does not have adequate arrangements to monitor the impact of adjustments on value for money. [laughter] They're pretty significant, aren't they? Um all right, we look forward to following up on that. Thank you very much.
>> Thank you. >> Thank you. We'll go to Senator Kim.