Summary

SAI Australia conducted a performance audit of the National Reconstruction Fund Corporation*. The purpose of the audit was to assess the effectiveness of the Corporation and its structure designed to increase financial flows to the priority sectors and areas of Australia's economic development, such as: - value-add in resources; - value-add in agriculture, forestry and fisheries; - transport; - medical science; - renewables and low emission technologies; - defence capability; - enabling capabilities. SAI concluded that the structure of the Corporation was effective, and the establishment of the Corporation was partially effective in terms of managing the fund’s resources for the development of priority industries. The auditors also noted that the Corporation should develop a financial strategy and strengthen control over reporting on its performance. SAI called for strengthening control over the implementation of investment agreements and reporting on them. SAI Australia therefore made seven recommendations. * The Corporation was established on 18 September 2023 to facilitate increased flows of finance into priority areas of the Australian economy. The project to establish the Corporation was led by the Department of Industry, Science and Resources together with the Department of Finance.