The Australian Government provides financial assistance to state governments through the Disaster Recovery Funding Arrangements (DRFA). This financial assistance is for expenditure on certain types of disaster relief and recovery measures. The Disaster Recovery Funding Arrangements 2018 ministerial determination (DRFA determination) is made under the Intergovernmental Agreement on Federal Financial Relations.

The Australian Government estimates $6.5 billion will be paid to state and territory governments through the DRFA from 2022–23 to 2025–26. This audit will provide assurance to Parliament on the effectiveness of the agencies’ administration of the DRFA. The audit was identified by the Joint Committee of Public Accounts and Audit as an audit priority of the Parliament.

Key finding:

• The agencies’ administration of DRFA processes and assurance activities has been largely effective. Administration activities, including assurance and claim approvals, are consistent with the DRFA determination. The agencies have not effectively monitored or reported on DRFA performance.