The Australian War Memorial has been criticised by the National Audit Office for not keeping ministers informed about decisions in its current huge $550 million project.
"Steps were taken to avoid seeking ministerial approval for the entering into contracts on two occasions," the report by the government's official auditor of public spending says.
"Minister's briefs were insufficiently detailed to support the minister to meet their obligations under section 71 of the Public Governance, Performance and Accountability Act 2013."
The Audit Office is also critical of the Memorial for not documenting enough of its decisions in the huge project.
"Value for money assessments were not adequately documented," the report says.
"Engagement with the external probity advisor was insufficient for the scale and risk of the procurements. Conflicts of interest were not adequately documented and declared or known conflicts were not adequately managed.
"Incumbency risks related to the procurement for ongoing project management services were not adequately managed."
Despite those conclusions, the National Audit Office finds: "The Memorial's management of the Development Project was largely effective. Shortcomings in the management of probity risks would have been improved with full implementation of internal policies and procedures."
It also concludes: "Largely effective contract management arrangements have been established."
The Audit Office made a series of recommendations, including to:
- strengthen controls;
- update its records management policies;
- strengthens the ethical conduct of its procurement activity;
- ensure that appropriate records are created and maintained that clearly document how value for money has been considered and will be achieved;
- The Development Project contracts include clearly documented requirements. There are appropriate systems to monitor contractor performance and performance has been managed largely effectively to achieve value for money and deliver the Development Project objectives.
The War Memorial accepted the recommendations and welcomed what the chairman of its ruling council, Kim Beazley, called "the overall positive findings on our performance".
"The positive findings of this report illustrate the significant achievements particularly across critical matters involving probity and transparency while procuring goods and services within 221 contracts to build the Memorial's Development Project," the Memorial's director, Matt Anderson, said.
"I am proud of the way the Memorial has continued to deliver this project of national significance during the added challenge of keeping the Memorial open to the public as the centre of national commemoration, while adapting simultaneously to the impacts of COVID and record high construction inflation," Mr Anderson said.
The huge revamping of the War Memorial is to be completed in 2028.
One of the first milestones, the new parade ground in front of the building looking down Anzac Parade, is to have its construction fencing removed in the next few days so that it can be used on Anzac Day for the veterans' march.
