Audit finds $8.74 million Meals on Wheels program was undercooked

Posted on 17 Jun 2025

By Matthew Schulz, journalist, SmartyGrants

Meals On Wheels stock

The Australian Government’s $8.74 million Future Fit Program – established to prepare Meals on Wheels (MoW) Australia for major aged care reform – was mismanaged and failed to meet its objectives, according to the national grants watchdog.

The Department of Health, Disability and Ageing created the program to help MoW-affiliated services transition from the Commonwealth Home Support Programme (CHSP) to the new Support at Home model, due to begin after 1 July 2027.

In 2023–24, the government distributed $3.1 billion to 1,264 CHSP providers, making it one of the Australian Government’s largest grants programs. According to the May 2025 audit, MoW services receive $45.4 million in CHSP funding annually – representing 40% of all meals services under the program.

The Australian National Audit Office (ANAO) found that the department’s administration of the program was “ineffective”, citing inadequate governance, poor risk and stakeholder management, and a failure to evaluate whether the program achieved its aims.

Caralee McLeish
Australian Auditor-General Caralee McLeish

According to the findings, the department:

  • did not establish sound governance arrangements to support the delivery of the Future Fit Program
  • did not maintain appropriate oversight of the project
  • did not appropriately identify and manage project risk
  • did not engage with stakeholders in accordance with its engagement framework
  • did not measure the achievement of Future Fit outcomes.

Despite relying on a sole provider – Miles Morgan Australia – across three procurements between 2021 and 2024, the department failed to justify the use of non-competitive grants or manage contracts in line with Commonwealth procurement rules.

For example, Meals on Wheels Australia was originally listed as a delivery partner but was removed from the program’s governance arrangements in late 2022 at the contractor’s recommendation – without the knowledge of MoWA or ministerial approval.

A key deliverable – the transition of a central customer relationship management (CRM) system to a local provider – was also not finalised. The audit found there was no clear evidence the system was implemented or assessed.

In addition, a pilot in the Whitehorse local government area in Melbourne, launched under the third procurement round after the council ceased service delivery, was not evaluated.

Broader stakeholders, including Meals on Wheels Victoria, reported being excluded from the program’s design and rollout.

The department has agreed to implement eight recommendations relating to its failings in the report. The report cost the ANAO $570,000 to produce.

In its synthesis of key messages, the ANAO said that other agencies should take note of the report’s findings on good practice, including ensuring that procurement and grant arrangements are “underpinned by analysis and a strong policy rationale”, and that entities “maintain appropriate oversight of project delivery when outsourcing project management services”.

The report stressed: “Accountable authorities and senior executives should set an appropriate tone from the top to encourage a culture of ethical behaviour within their entities and promote procurement practices that achieve value for money for the Australian Government and the taxpayer.”

Read the report in full

More news