Australia's National Audit Office says the country's international aid agency, AusAID, is afflicted with problems of transparency, accountability and poor communication.
High staff turnover within the agency is another concern that may hinder its responses to programmes.
The National Audit Office says the agency, which has an annual budget of nearly three billion US dollars, faces considerable management challenges while it grows quickly.
The agency promotes greater transparency and accountability through its good governance programmes, but the audit shows it struggles to apply the same lessons itself.
It says the agency is not following conventional practice and this reduces the transparency of its aid programme expenditure.
It also shows that communication was a significant issue, with the agency not achieving what it called effective internal collaboration.
