Foreword

It is not easy amalgamating government departments and at the same time continuing the delivery of services.

This performance audit assessed whether amalgamations delivered benefits in cost savings and improved coordination of services.

We found that these benefits are more likely to be achieved when agencies have common industries, customers, activities and locations. One of the audit’s two case studies was more successful because there were more synergies.

In relation to the Department of Primary Industries, early commitment to planning the amalgamation, supported by quick action in implementing it was another success factor. This focus helped make the most of the available synergies.

Governments need to make amalgamations as clear as possible. And the new executive team must quickly translate the objectives and purpose into solid plans and be accountable against them.

The audit found that the savings targets for the two amalgamations were substantially met.

Produced in parallel with the audit is a better practice guide for managing the implementation of an amalgamation. It incorporates lessons learned in the audit’s two case studies and a review of literature on the topic. There are currently no handy references available for those charged with implementing an amalgamation and the guide is designed to fill this gap.

Peter Achterstraat

Auditor-General

March 2008