Superannuation processes are continuing to cause headaches for the Australian Taxation Office(ATO), according to a report issued by the Australian National Audit Office(ANAO).
The ANAO report, dealing with the financial statements of Commonwealth Government agencies, detailed superannuation quality reviews as posing a moderate risk for the ATO.
It said the superannuation quality risk reviews involved selecting samples of finalised casework performed at ATO sites and having them reviewed by a panel against internal benchmarks.
It said during the ANAO review deficiencies were identified in the application of the statistical sampling methodology, including the selection and completeness of items in the population and the extrapolation of errors.
The audit report said there were also issues over the objectivity of panel members reviewing their own areas of work and errors being raised based on the application of procedures that were either not yet published or were out of date.
“The weaknesses identified increased the risk that conclusions drawn from the superannuation quality assurance process may not be appropriate and representative, therefore reducing the level of assurance provided to the ATO executive,” it said.
Looking at outstanding moderate risk issues from previous years, the ANAO also referred to the ATO’s management of the Superannuation Holding Account Special Account.
It said priority needed to be given to investigating the reason for discrepancies that the ATO was still yet to resolve with respect to at least two issues relating to superannuation, which were first raised with it a year ago.
