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AWEX EMI 1157 -6
Micron 17 1762 -23
Micron 18 1565 -37
Micron 19 1413 +10
Micron 20 1330 +4
Micron 21 1319 -
Micron 22 1307 +9
Micron 25 723 -9
Micron 26 535 -17
Micron 28 360 -
Micron 30 334 -1
Micron 32 309 +2
MCar 729 +3

ANAO Recommendations

Australian Wool Innovation (AWI) has welcomed the Australian National Audit Office (ANAO) report on whether AWI is largely complying with the Statutory Funding Agreement (SFA) with the Australian Government.

Australian Wool Innovation (AWI) Chairman Jock Laurie has welcomed the Australian National Audit Office (ANAO) report on whether AWI is largely complying with the Statutory Funding Agreement (SFA) with the Australian Government.

The report found:

  • AWI is largely effective in meeting the requirements of the SFA.
  • AWI’s management and governance arrangements are largely fit-for-purpose.
  • AWI is largely effective in applying the performance principles under the SFA.
  • AWI’s arrangements for the management of funds are largely effective.

There were six recommendations to AWI aimed at improving:

  • board performance reviews;
  • the development and maintenance of a balanced portfolio;
  • measurement and reporting on improvements in administrative efficiency;
  • arrangements to determine eligible research and development (R&D) processes for preparing matching payment claims;
  • and risk management.

AWI has agreed to implement all recommendations.

 

RECOMMENDATION 1

Australian Wool Innovation update its polices, board performance review processes and reporting to include all skills listed in the Statutory Funding Agreement.

ACTION PLAN ACTIONS SO FAR PROGRESS
The 2023 Board Performance review will include all the skills in accordance with the SFA and cross referenced to previous reviews and ASX principles. The annual Board performance review process has been completed and includes assignment against all the relevant skills. The results of the 2022/23 review have been included in the Annual Report.
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RECOMMENDATION 2

Australian Wool Innovation develop, implement and maintain a balanced portfolio by:

  1. establishing an investment profile, which outlines a target proportion of projects against AWI, government and industry priorities and for each risk and return category; and

  2. monitoring investments and the balance of the portfolio against these targets.

ACTION PLAN ACTIONS SO FAR PROGRESS
  1. In preparing the 2023/24 Annual Operating Plan, Management will prepare Investment profiles aligned with the 4 criteria specified.
    This information will also be included in the Annual Performance Report for 2022/23 based primarily on information already collected.
  2. This will then be reported to the Board on a half yearly basis

The Annual Operating Plan for 2023/24 includes: -

  1. Investment profile targets against the following plans/frameworks:
    1. AWI Strategic Plan
    2. Wool2030 Plan
    3. Sheep Sustainability Framework
    4. Government Science & Research Priorities
    5. Government Innovation Priorities

These have also all been reported against in the 2022/23 Annual Report.

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RECOMMENDATION 3

Australian Wool Innovation establish performance indicators to measure and report on improvements in administrative efficiency.

ACTION PLAN ACTIONS SO FAR PROGRESS
AWI will report on efficiencies achieved during 2022/23 in the Annual Performance Report and include targets in the 2023/24 Annual Operating Plan.

The Annual Operating Plan for 2023/24 includes Admin efficiency targets for 2023/24.

There is also commentary in the 2022/23 Annual Report on efficiencies achieved during the year.

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RECOMMENDATION 4

Australian Wool Innovation improve its arrangements for determining eligible R&D by:

  1. updating its policies and processes to align with the 2020–2030 Statutory Funding Agreement; and

  2. establishing methodology outlining how to consistently determine and review the proportion of eligible R&D assigned to projects.

ACTION PLAN ACTIONS SO FAR PROGRESS

a&b) Cost Allocation Policy will be updated to include all allocations along with the detailed methodology on how we assign the eligible R&D proportions.

The Cost Allocation Policy has been reviewed and updated. This now includes a detailed methodology on how eligible R&D will be assigned.

The project management system has been updated to include the capture of the eligible R&D justification for each individual project.
100%

 

RECOMMENDATION 5

Australian Wool Innovation improve its processes for preparing matching payment claims by:

  1. using consistent terminology that aligns with the terminology used by the Department of Agriculture, Fisheries and Forestry; and

  2. accurately calculating and recording excess R&D in accordance with the Statutory Funding Agreement 2020–2030 and the Wool Services Privatisation Act 2000.

ACTION PLAN ACTIONS SO FAR PROGRESS
  1. The claim for the 2022/23 matching funds will be updated to reflect the terminology used in the current SFA.
  2. Management will obtain from the Levies Department the recorded excess R&D in their systems and use this value going forward.

The 2022/23 Claim was updated to align with the terminology used by the Department of Agriculture, Fisheries and Forestry.

A reconciliation of the brought forward excess R&D expenditure has been conducted and systems have been updated to ensure consistency going forward.
100%

 

RECOMMENDATION 6

Australian Wool Innovation consistently apply the processes and requirements for project risk management outlined in its Risk Management Framework.

ACTION PLAN ACTIONS SO FAR PROGRESS

The recent changes made to the Risk Management recording and reporting will be further enhanced to ensure all high value projects comply with and are managed in accordance with the Risk Management Framework.

AWI have implemented a new risk management capture and reporting tool; enhanced workflows have been added to the system.

There are further enhancements in progress.
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