The Australian National Audit Office (ANAO) on Thur 12.6.2014, released Audit Report No 39 Compliance Effectiveness Methodology. The review examined the application of the ATO’s Compliance Effectiveness Methodology (CEM) in evaluating the effectiveness of key compliance activities and in shaping the development of strategies to promote voluntary compliance.
The review found the ATO applied generally sound project management practices and administrative frameworks in developing the CEM and preparing for its implementation within the 8 BSLs (Business and Service Lines) of the Compliance Group. However, it stated that in implementing the CEM as an ongoing business process from 1 July 2009, there has been a lack of strategic focus and direction on its application and outcomes, and on fully embedding the methodology into the ATO’s core processes, including risk management. As a consequence, it stated the full benefits to be gained from the CEM as a means of improving the ATO’s compliance strategies and treatments, resource allocation and external accountability have not been realised.
The ANAO made 2 recommendations with the aim of the ATO taking a more strategic approach to selecting the compliance risks to be evaluated, and improving the conduct of compliance effectiveness evaluations and reporting of their results. The ATO has agreed to the recommendations.
[LTN 111, 12/6/14]