Audits in progress
The following audits are in progress:
Government Advertising and Communication
Government departments and agencies employ advertising and
communication as key tools to provide information about taxpayer
funded policies, legislation and programs. Government advertising
and communication activities aim to improve public awareness of
government services, obligations under law and regulation, and
commercial and employment opportunities in the public sector.
The Victorian Government has spent in excess of $100 million
annually on advertising and communication activities since 2002,
and is one of the top ten advertisers in Australia. The objective
of the audit is to determine whether government advertising and
communication activities comply with relevant guidelines,
directions and policy documents.
The report is expected to be tabled by end of February
2012.
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Public Transport Performance
An effective public transport system is critical for the state’s
economic prosperity and liveability. Metropolitan train, tram and
bus services, and regional town bus services are provided through
contracts with private operators. Regional rail and long distance
coach services are delivered by a statutory authority, V/Line,
under a similar contractual arrangement with the Department of
Transport.
The Department of Transport aims to provide a safe and
reliable transport system that contributes to a prosperous,
inclusive and environmentally responsible state. It is responsible
for overseeing the delivery of the high quality, sustainable and
cost-effective public transport services needed if it is to achieve
this aim.
This audit will include the Department of Transport and V/Line
and will examine the performance of public bus, tram and train
services across Victoria. It will also examine the effectiveness of
the state’s public transport services by:
- assessing the adequacy and drivers of past
performance
- determining whether the department’s
planning and oversight of the current arrangements are likely to
deliver adequate future performance.
The report is expected to be tabled by end of February 2012.
Casual Relief Teacher Arrangements
Student learning outcomes are highly dependent on teacher
quality and consistency and it is therefore important that schools
maintain teaching continuity in the face of planned and unplanned
teacher absences. Casual relief teachers (CRT) are the key strategy
to ensure continuity in these situations.
Schools operate within the legal framework of the Education
and Training Reform Act 2006, the Education and Training
Reform Regulations 2007 (ETRA) and relevant Orders. Under the
ETRA the school council has power to employ CRTs for a fixed term
or on a casual basis of up to 30 days. CRTs are also employed by
private employment agencies that provide CRT staff to schools
As at June 2010 there were 113 022 registered teachers in
Victoria with 73 per cent in ongoing employment in government and
non-government schools. Of the remaining 27 per cent, it
is estimated that around 14 000 are working as CRTs.
The audit will assess whether the use of CRTs in government
schools is contributing effectively to student outcomes and
teaching quality. The audit will include the Department of
Education and Early Childhood Developments’ central and regional
offices, a representative selection of government schools and
casual relief teachers.
The report is expected to be tabled by end of March
2012.
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Melbourne Markets Redevelopment Project
The state-owned Melbourne Wholesale Fruit and Vegetable Market
and the National Flower Centre are an important part of the state’s
economic infrastructure, with an annual turnover in excess of $1.6
billion.
The market operations are to be relocated from their current
site in Footscray Road to a new site in Epping and are expected to
be fully operational in 2013. The intention is to locate the new
market within a modern, innovative and efficient fresh produce
trading and distribution precinct. The audit will evaluate whether
the redevelopment was effectively planned, procured and managed. It
will also assess whether the redevelopment has been planned and
managed to achieve the policy objectives for the operation of the
new market and will outline the risks associated with completing
the project.
The report is expected to be tabled by end of February 2012.
Agricultural Food Safety
Victoria's agricultural industries produce food valued at around
$9 billion per year, contributing 26 per cent to the national value
of agricultural production. Over half of Victoria’s contribution is
from the dairy, beef and horticulture industries with the state's
largest export earner, the dairy industry, providing around 13 per
cent of dairy products traded globally.
Victoria’s success in delivering premium-quality, safe food to
consumers in domestic and international markets depends on the
government and industry assurance arrangements for managing the
health risks throughout food production and supply chains. These
arrangements are important for managing health risks to
consumers.
Primary production and processing are important parts of the
food supply chain, and managing associated food safety risks—or
agricultural food safety—is essential. This is particularly so
given Victoria’s agricultural food industry is a significant
contributor to the state and national economy, and relies on
assuring domestic and international markets of compliance with food
safety standards.
This audit will examine how effectively agricultural food safety
is regulated in Victoria and how well the overall assurance
framework for food safety in Victoria addresses food safety in
primary production and processing.
The report is expected to be tabled by end of March 2012.
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Personal Expenses Reimbursement, Travel Expenses and Corporate
Credit Cards
Public sector agencies pay the reasonable business expenses
necessarily incurred by their employees in carrying out their
official duties, including costs associated with business travel,
such as airfares, accommodation, meals and out-of-pocket expenses,
as well as the purchase of other work-related goods and
services.
Corporate credit cards are often a convenient and efficient
method of payment, especially for low value transactions. For this
reason, these credit cards may be issued to public sector employees
for payment of their personal expenses, or to purchase goods and
services for the agency. During 2010–11, $61.6 million was charged
to credit cards issued under this contract.
Expenditure by public sector employees on personal expenses,
business travel, hospitality and other goods and services, whether
by corporate credit cards or other means, is significant,
especially once the costs of processing these expenses and
reimbursing employees are included. Such expenditure is of interest
to the community because of the potential for fraud and
inappropriate or inefficient use.
The audit will provide assurance about whether public sector
agencies are effectively and efficiently managing this expenditure
and its reimbursement. The audit will examine the propriety and
appropriateness of expenses incurred by employees and their
reimbursement.
The report is expected to be tabled by end of March 2012.
Freedom of Information
The Freedom of Information Act 1982 (the Act), which
came to full operation in 1984, provides members of the public with
the right to access documentary information from government
departments, councils and prescribed authorities.
Many requests for information were not satisfied in full. Under
the Act, there are exemptions to the release of information,
including Cabinet documents and personal information.
Freedom of information is a fundamental tenet of
well-functioning democracies. It provides members of the public
with a right to access to information held by government agencies.
Granting the public access to information better informs them of
government activities and can provide assurance that the public
sector and government’s actions are subject to scrutiny.
The last comprehensive review of the Act was in 2006
with Ombudsman Victoria’s Review of the Freedom of Information
Act. Issues identified in this review include a lack of timely
responses, inconsistencies in the application of the Act, refusal
to provide access to information, and lost or non-existent
documents. These findings indicated that some agencies were not
committed to the legislative requirements nor the object or
‘spirit’ of the Act.
This audit will determine the extent to which:
- departments and agencies comply with the Act and FOI
guidelines
- FOI is administered effectively and efficiently in selected
departments.
The report is expected to be tabled by end of April 2012.
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Performance Reporting by Local
Government
The objective of the audit is to assess
the effectiveness of existing local government performance
reporting arrangements, and the adequacy of statewide initiatives
to reform local government performance reporting. It will examine
progress since 2008, and consider the issues impeding effective
performance reporting in councils. It will also identify common
performance challenges of councils, and the factors that influence
them based on further analysis of relevant findings arising from
recent local government performance audits. The audit will also
consider the adequacy of recent statewide initiatives to improve
local government performance reporting, and assess the relative
merits of alternative performance reporting models for the
Victorian local government sector.
The audit will be conducted in 10
councils, the Department of Planning and Community Development and
the Essential Services Commission.
The report is expected to be tabled by
end of April 2012.
Access to Public Housing
Safe, secure housing is essential for
good health, employment, education and community wellbeing. Without
access to affordable housing, some people risk homelessness or
struggle to meet utility, food and other basic living costs.
Victoria is experiencing a shortage of
affordable housing as population growth exceeds housing supply,
intensifying demand, and costs, in the private rental market.
Public housing is government owned or leased, and managed, and is
the main source of social housing in Victoria. At June 2011,
there were 82 927 social housing dwellings in Victoria, 65 352
(78.8 per cent) of which were public housing.
The audit will examine how effectively
the Department of Human Services plans for, and provides access to,
public housing.
The report is expected to be tabled by end of
April 2012.
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Effectiveness of Justice Strategies in Preventing and Reducing
Alcohol-Related Harm
Restoring the balance—Victoria’s Alcohol Action Plan
2008–13 (the VAAP) included initiatives and actions aimed at
preventing and reducing harm associated with alcohol misuse, and
combating the consequences of excessive alcohol consumption. The
Liquor Control Reform Act 1998 is the primary legislation
regulating liquor supply and consumption.
Recent amendments to the Act are intended to enhance the way
that agencies monitor and enforce licensees’ obligations to
encourage responsible and appropriate drinking. There has been a
greater focus on strengthening law and order by targeting sources
of violent and aggressive behaviour around licensed venues.
The issue of public drunkenness is complex and involves various
entities working in close cooperation to address the impacts. As
the VAAP is in the process of being replaced by a new strategy, it
is an opportune time to review the success of activities undertaken
to date.
The audit will assess the effectiveness of the government’s
initiatives and actions in enforcing controls on the sale and
marketing of alcohol, and in preventing and reducing the impact of
alcohol-related harm on the community. The audit will also examine
the strategies designed to reduce risky drinking and improve public
safety in and around licensed premises.
The report is expected to be tabled by end of May 2012.
Obsolescence of Frontline ICT
Information and Communications
Technology (ICT) asset management involves the acquisition, use and
disposal of ICT assets to maximise service delivery, while also
managing risks and costs over the technology lifecycle.
Frontline ICT assets include hardware
and software, network infrastructure, and supporting processes and
tools that help agencies achieve organisational objectives and
deliver services to the public.
The objective of this audit is to assess
whether obsolescence of frontline ICT equipment and software is
managed effectively and efficiently throughout the technology
lifecycle.
The report is expected to be tabled by
end of May 2012.
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Management of Trust Funds in the Justice
Portfolio
The Department of Justice and agencies
within the Justice portfolio manage a significant amount of money
held in trust funds. The audit will examine two trust funds: the
Victorian Property Fund and the Public Purpose Fund.
The Victoria Property Fund is managed by
Consumer Affairs Victoria. The main sources of income for this Fund
are interest on funds held in real-estate agents' trust accounts
and interest from investment of the Fund. The Public Purpose Fund
is managed by the Legal Services Board. The main sources of income
for this Fund are interest on legal practitioners' trust accounts
and interest from investment of the Fund. The funds are used for a
range of purposes, including industry regulation and the provision
of grants. At 30 June 2011 the combined balance of the two funds
was $881 million.
The audit will examine whether Consumer
Affairs Victoria and the Legal Services Board are managing the
Victorian Property Fund and the Public Purpose Fund effectively, in
the interests of stakeholders and consistently with
legislation.
The report is expected to be tabled by
end of May 2012.
Science and Maths Participation Rates and Initiatives
Mathematical and scientific literacy are
part of the necessary skill set required by all citizens to
function well in a society underpinned by science and technology.
High quality education outcomes in science and mathematics are also
important in ensuring growth in new fields of science, technology
and innovation, all of which contribute to Victoria’s economic,
social and environmental goals.
The audit objective is to assess the
extent to which Department of Education and Early Childhood
Development’s (DEECD) initiatives to improve student participation
and achievement in mathematics and science have been effective.
The audit will examine selected
mathematics and science initiatives implemented by DEECD central
and regional offices, and Victorian schools.
The report is expected to be tabled by
end of May 2012.
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Fraud Prevention Strategies in Local Government
Municipal councils manage billions of
dollars in community resources. Recent surveys indicate that the
incidence and cost of fraud remains a significant concern for all
organisations, including councils. To protect their resources from
fraud, each council needs a robust control framework to effectively
manage and respond to fraud risks and incidents.
The 2008 VAGO report on the results of
audits in the local government sector identified a number of
weaknesses in council internal control frameworks critical for
managing the risk of fraud. The 2008 audit conducted a high level
review of fraud management practices and found that around
one-third of all councils did not have a robust fraud control
system in place.
This audit will assess the effectiveness
of fraud prevention strategies within selected councils.
This will involve examining the internal
control environment, including mechanisms for preventing, detecting
and responding to incidents of fraud.
The report is expected to be tabled by
end of June 2012.
Visiting Medical Officer Payments in Rural and Regional Public
Hospitals
Visiting Medical Officers (VMOs) in
regional and rural health services are engaged on a fee for service
or sessional basis with payment reflecting each medical service
provided to public patients. VMOs can also receive a ‘standard’
payment for participation in teaching, governance or on-call roster
activities.
In 2009–10 public hospitals paid in
excess of $130 million to VMOs.
Health services have a variety of
systems in place for paying VMO claims, and previous audits have
identified concerns around the rigour of internal controls relating
to VMO payments. There are substantial and ongoing public interest
issues in how regional and rural public hospitals manage VMO
arrangements.
This audit will review the
appropriateness and transparency of rural and regional health
service payments to VMOs.
The report is expected to be tabled by
end of June 2012.
Investment Attraction
The Department of Business and
Innovation is responsible for promoting Victoria as a world class
investment location. It provides investment and facilitation
services to attract new international or interstate investment, and
to encourage additional investment by businesses operating within
the state. The principal objectives in investment attraction are to
build the state’s business base and to assist local businesses to
grow and increase their exports.
Initiatives include facilitation
services that provide labour market information, planning advice,
access to industry networks and site location, as well as ‘in-kind’
assistance such as rate relief, land or other infrastructure
development, and direct cash payments.
The audit will evaluate the
effectiveness of investment attraction and facilitation programs in
achieving their stated objectives, and the adequacy of performance
monitoring and evaluation processes to determine program
effectiveness.
The report is expected to be tabled by
end of June 2012.
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