Purpose and scope
The Australian Government’s Assurance Framework for Digital and ICT Investments (the Assurance Framework) ensures a robust assurance regime is achieved and maintained for in-scope investments.
While assurance is not in itself responsible for delivering outcomes, effective risk management and assurance are critical to good governance and ensuring investments deliver expected outcomes.
Scope
Even if this framework does not apply to your agency or to your investment, you are encouraged to follow the 5 Key Principles for Good Assurance and apply the framework to the extent it is relevant to your circumstances.
Applicability
The Assurance Framework must be adhered to where both of the following apply:
- your agency is a Non-Corporate Commonwealth Entity
- your agency’s proposed investment meets the definition for a digital investment.
Definition of a digital investment
The Digital Transformation Agency (DTA) determines whether your investment meets the definition of a digital investment. As a guiding principle, a digital investment is an investment which uses technology as the primary lever for achieving expected outcomes and benefits.
This includes investments which are:
- transforming the way people and businesses interact with the Australian Government
- improving the efficiency and effectiveness of Australian Government operations, including through automation.
If you are unsure whether your investment meets this definition, please contact investment@dta.gov.au.
Global learnings and experience
Independent assurance, such as gateway reviews, can provide vital challenge and support for key decisions and progress points across the project life. To work well, independent assurance should be planned in advance … [and] should be co-ordinated.
— Principles for a digital future: Lessons learned from public sector ICT projects
Audit Scotland
Background
From 1 July 2021, the DTA was given whole-of-government responsibility for managing strategic coordination and oversight functions for digital and ICT investments, including during the delivery phase.
In delivering its mandate, the DTA is required to provide Ministers, the Secretaries Digital and Data Committee and other key stakeholders with confidence that digital investments are being well designed, are optimised to deliver value for the APS Enterprise as well as for individual agencies and, if funded, will achieve their investment objectives.
The Assurance Framework draws on global experience and learnings. It aims to maximise the value of assurance and support the successful delivery of digital investments. Importantly, the framework does not dilute accountability for delivery, which remains with agencies leading delivery. The framework aims to:
- deliver carefully planned, targeted and fit for purpose assurance for all in-scope investments, with assurance information applied effectively to improve the quality of decisions by Senior Responsible Officials (SROs) and governance boards
- maximise the value of assurance in supporting successful delivery, including through ensuring agreed recommendations are implemented in a timely manner
- use clear escalation processes which help agencies take decisive early action to recover investments at higher risk of not delivering expected benefits
- achieve a steady flow of reliable information on the condition of major investments for central agencies, supporting reporting and analysis for Cabinet and Ministers on the investment portfolio.
Learn more about the DTA’s broader digital and ICT investment oversight role.
Global learnings and experience
"Assurance provides information to those who finance, sponsor, govern and manage a project. It informs decisions that can reduce project failure, promote conditions for success and increase the chance of delivering the required outcome cost- effectively."
National Audit Office (United Kingdom)
Assurance Fee
The DTA’s role overseeing assurance for digital projects is funded through a fee applied to eligible digital projects funded by the Australian Government. The assurance fee enables the DTA to provide agencies and SROs with the right support to effectively use assurance to support successful delivery. Guidance on whether this fee will apply to your investment will be provided by your Agency Advice Unit (AAU) at the Department of Finance and by the DTA’s investment advisers.
Definition of assurance
Assurance is defined as independent and objective assessments and evaluations undertaken by people and entities separate to the delivery team and SRO to support decision-making. The words ‘independent and objective’ above are very important. Assurance received from sources also providing advisory or delivery services to your investment will not meet this definition. The framework focusses on ensuring assurance is sourced from suitably independent and objective sources.
Once in place, assurance should:
- ensure a steady flow of reliable information on the condition of your investment is available to support reporting and analysis
- support your SRO and governance board to make evidence-based decisions
- provide a clear view on whether your investment is on track to deliver on its expected outcomes and benefits.
Independent assurance activities that likely meet this definition
Health check
An independent, lightweight assessment of how the investment is tracking against its benefits by an external specialist assurer or your agency’s EPMO.
SRO adviser
An independent advisor to the SRO with experience in similar investments.
Integrated assurance
An independent assurance team which has an ongoing presence within the investment to provide confidence in delivery.
Gateway Reviews
Commissioned by the government and coordinated by the Department of Finance for high-risk and high-value investments.
Go-live assessment
An independent review to provide additional confidence prior to a go-live decision being made.
Independent board member
An independent, experienced board member who helps the board keep the investment on track.
Targeted review
A review of key areas of risk or an area critical to successful delivery by a specialist independent external team.
Internal audit
A review by the internal audit function of an agency, usually for high-risk investments or investments expected to make a key contribution to the achievement of the agency’s mission.
Assessing independence and objectivity
The DTA assesses independence and objectivity from the position that, for assurance advice and information to be relied on, the source needs to feel truly free to openly reflect on the investment they have been asked to assess or evaluate.
Assurance source independence and objectivity
The DTA will assess the independence and objectivity of assurance sources through several lenses, including whether the source of assurance has:
- any prior advisory or delivery involvement in the investment
- any other actual, or perceived conflicts of interest.
Assurance reports from internal teams
The DTA will consider accepting assurance reports from internal teams, such as your agency’s Enterprise Portfolio Management Office (EPMO), where the function:
- is independent from the delivery team
- has the necessary capability to conduct assurance activities.
Assurance Framework overview
The DTA is responsible for providing Ministers and other key stakeholders with confidence that assurance is being applied effectively to support successful delivery of digital investments.
The Assurance Framework helps us do this by:
- ensuring agencies plan for assurance, by requiring investments brought forward for decision by government apply the 5 Key Principles for Good Assurance and meet minimum requirements
- overseeing assurance arrangements during delivery, including ensuring agencies continue to adhere to the 5 Key Principles for Good Assurance and their approved Assurance Plans
- supporting funding release decisions, by ensuring reliable assurance information is available at the right moments for Ministers and agencies
- triggering escalation protocols to support remediation efforts when an investment’s delivery confidence falls below certain levels.
If your agency is bringing forward an in-scope investment, you must follow the steps below.
Step 1: Confirm the applicable investment tier
Proposed investments are assigned a tier rating under the Assurance Framework. This ensures the most strategically important, valuable and risky investments have the greatest support to apply the 5 Key Principles for Good Assurance. The tier of an investment is determined by the DTA through an assessment of several factors, including the strategic significance of the investment, agency delivery history, the availability of required skills, and the maturity of the agency’s oversight arrangements.
Step 2: Plan for assurance
Agencies are required to plan for assurance. You must apply the 5 Key Principles for Good Assurance and meet minimum assurance requirements applicable to the tier of your investment. The resultant Assurance Plan agreed with the DTA may be submitted to Cabinet for approval as part of the proposed investment.
Step 3: Use assurance effectively during delivery
Throughout the delivery of your investment, you must continue to use assurance effectively. This means you must deliver according to your approved Assurance Plan, continue to apply the 5 Key Principles for Good Assurance and meet ongoing assurance reporting and engagement requirements.
Step 4: If required, follow the escalation protocols
Investments which encounter difficulty during delivery receive additional oversight and support. This can include assistance in preparing an evidence-based remediation plan, undertaking an independent health check and/or expert-led investment review. Depending on the strategic value and delivery challenges experienced by an investment, different escalation protocols may apply. The DTA will support agencies in understanding the requirements applicable to their investments.