As a rural research and development corporation AWI is funded by industry levels and payments from the Australian Government through SFAs, and therefore must effectively comply with the agreement.

AWI Chairman Jock Laurie has welcomed the Australian National Audit Office (ANAO) report, which also found AWI's management and governance arrangements are largely fit-for-purpose, it is largely effective in applying the performance principles under the SFA and its arrangements for the management of funds are largely effective.

"AWI is proud of the research, development and marketing work it undertakes on behalf of Australian woolgrowers in accordance with the Statutory Funding Agreement," Laurie wrote in response to the draft audit in May.

"We note that the audit coincided with the implementation of new frameworks and programs to improve our performance and measurement systems.

"Our sole purpose is to invest in both R&D and marketing projects which will enhance the profitability, international competitiveness and sustainability of the Australian wool industry.

"We aim to increase value, demand and market access for Australian wool through collaboration and consultation with stakeholders, investment in research, development, extension and marketing initiatives whilst collaborating and consulting with stakeholders."

AWI agreed to implement all recommendations presented in the report, which include:

• board performance reviews
• the development and maintenance of a balanced portfolio
• measurement and reporting on improvements in administrative efficiency
• arrangements to determine eligible research and development (R&D) processes for preparing matching payment claims
• and risk management.

The full ANAO report can be found at: https://www.anao.gov.au/work/performance-audit/australian-wool-innovation