Audits in progress

The following audits are in progress:

Maintaining the integrity and confidentiality of personal data

Victorian public sector agencies collect, create, use, hold and distribute a wide range of information, including personal information about individual members of the public, to perform their functions. Personal data used and stored by agencies can range from ‘identifying information’ such as names, birth dates and addresses, to sensitive or highly confidential data such as details of a person’s health status, or criminal record.

The audit will determine whether the integrity and confidentiality of personal information held by a selection of agencies, is maintained.

The report is expected to be tabled in Parliament by the end of December 2009.

Advanced metering infrastructure deployment

In 2006 the deployment of advanced metering infrastructure to electricity consumers using less than 160 MWh per year—generally small businesses and residential customers—was approved. Advanced metering infrastructure enables remote reading and connection of meters and two way communications. The rollout was to commence at the end of 2008 and be completed over four years. The project is being managed by the Department of Primary Industries (DPI) and delivered by the private sector electricity distributors.

The audit will examine whether the economic value of the rollout was adequately analysed and justified, and the effectiveness of DPI’s stakeholder and project management.

The report is expected to be tabled in Parliament by the end of December 2009.

Community support fund

The Community Support Fund (CSF) is a trust fund established by the Gaming Machine Control Act 1991 and is administered by the Department of Planning and Community Development (DPCD). CSF funds are allocated to departments who in turn distribute these funds through grant programs to a range of community based agencies and councils to deliver services/initiatives to the community consistent with the purposes of the legislation. With annual revenues of the order of $100 million per year, the CSF continues to be a major community asset and it is in the public interest that its funds are managed and spent well.

The objective of the audit is to determine the effectiveness of the management framework operated by the DPCD, whether CSF grants have been made in compliance with the Act, and whether the funds provided to beneficiaries are being spent for the purposes approved.

The report is expected to be tabled in Parliament by the end of December 2009.

Construction of new police stations and courthouses

Since 2003–04 more than $330 million has been committed to building and upgrading police stations and courthouses, to provide a safer community and more efficient justice services. The Department of Justice and Victoria Police are working together to consider opportunities for police to co-locate with courts and other emergency services.

The audit will examine implementation of the Department of Justice and Victoria Police's asset investment programs. It will assess how well strategic and operational priorities for building and upgrading have been determined, and whether individual projects have been adequately justified and delivered on time and on budget.

The report is expected to be tabled in Parliament by the end of December 2009.

Vehicle fleet management (formerly Local government vehicle fleet management)

Inner budget agencies operate around 8 800 passenger and light commercial vehicles with an estimated value of $215 million. Local councils also operate vehicle fleets in their own right. Good fleet management should result in the optimal use of public resources to minimise fleet life-cycle costs.

The audit will examine whether the public sector passenger fleets and those of a selection of councils are operationally justified and well managed. This will include examining the adequacy of control over fleet full life cycle costs and the environmental impact of fleets.

The report is expected to be tabled in Parliament by the end of December 2009.

Utilisation of development contributions by local government

Development contributions are payments or works-in-kind provided by developers towards the supply of infrastructure to support new land developments. Obligations for development contributions are created under the Planning and Environment Act 1987 (the Act) and councils can seek contributions through development contribution plans, planning and building permit processes, and voluntary agreements with developers. The Act sets out procedures and responsibilities for councils for collecting and administering development contributions (infrastructure levies). The value of development contributions collected across all Victorian councils was approximately $600 million in 2007–08, a decrease of around 9 per cent from 2006–07 ($659 million).

The audit will examine the development contributions levied by selected councils and whether these contributions are being used appropriately.

The report is expected to be tabled in Parliament by the end of December 2009.

Compliance with Community Corrections Orders

Community Corrections Orders (CCOs) are a non-custodial sentencing option for offenders, enabling them to stay in the community where their chance of rehabilitation is greater. Corrections Victoria manages offenders subject to CCOs. In the context of a prisoner population that has increased by nearly 60 per cent in the decade to 30 June 2007, CCOs are a significantly cheaper alternative: the annual cost of managing an offender on a CCO is around $7 000 compared with around $80 000 for a prisoner. However, cost is not the only consideration—it is important that the courts have confidence in CCOs as a viable sentencing option.

The audit will examine Corrections Victoria’s management of CCOs. It will assess whether the program is achieving its objectives, including the extent of offender compliance, and the effectiveness of the actions taken to address non-compliance.

The report is expected to be tabled in Parliament by the end of December 2009.

Effectiveness of student welfare services

The link between self-esteem and educational achievement is well documented. A long-standing challenge for schools is to provide an environment that addresses the learning needs and wellbeing of each student. The Department of Education and Early Childhood Development guides and supports schools in improving student wellbeing through student welfare services. Support provided to students includes: Student Support Services Officers, such as speech therapists and psychologists; school nurses; the School Focused Youth Strategy, in conjunction with the Department of Human Services; and the Program for Students with a Disability.

The audit will examine whether school student welfare services have resulted in improved student wellbeing.

The report is expected to be tabled in Parliament by the end of December 2009.

Capacity of police and emergency services to respond to people with mental health issues

Each year nineteen per cent of Victorians experience mental illness. This taken together with the de-institutionalisation of mental health services, means police and emergency services personnel increasingly have to deal with people with mental health issues. For the wellbeing of all involved, and to minimise the potential for harmful outcomes, it is imperative that police and emergency services can respond effectively to such situations.

The audit will examine the appropriateness of the response by police and emergency services to incidents involving people with mental health issues.

The report is expected to be tabled in Parliament by the end of December 2009.

Public transport access for persons with disabilities

The Department of Transport estimates that around 6 percent of Victorians experience a disability that affects how they use the public transport system. Many older Victorians also need public transport that is more convenient and easier to access. This demand will increase with the ageing of the population—one in four Victorians will be over 60 by 2021. Historically, the design of Victoria’s public transport system has made it difficult for persons with disabilities and the frail to enjoy the same access as the fully fit or unencumbered. The Department of Transport has developed and is implementing the Accessible Public Transport Action Plan 2006–2012.

The audit will examine the Department of Transport’s plans to make the public transport system more accessible to all Victorians, their implementation, and whether initiatives completed have improved accessibility for persons with disabilities.

The report is expected to be tabled in Parliament by the end of December 2009.

Auditor-General’s Report on the Annual Financial Report of the State of Victoria, 2008–2009

This report details the results of the audit of the consolidated financial statements for the State of Victoria. Areas covered include the results of the audits, the State’s financial result, significant events and other items of interest.

The report is expected to be tabled in Parliament by the end of December 2009.

Results of Financial Statement Audits for Entities with 30 June 2009 Balance Dates – core entities

Outlined in this report are results and commentary about the financial statement audits not already included in specific sector reports. This covers all Departments and other government entities with 30 June balance dates not included in the Human Services and Water reports outlined below.

Areas of note to be covered include the results of the audits, effectiveness of internal control, financial management, focus on each of the major government Departments and commentary on the financial framework.

The report is expected to be tabled by the end of December 2009.

Human Services: Results of the 2008-09 Financial Audits

This report outlines the results of financial statement audits of selected entities in the human services sector. Areas of focus include an overview of the results of audits, commentary on effectiveness of internal control and timeliness of reporting, and public hospital investment management and financial sustainability.

Entities subject to our audit in the sector include public hospitals and associated companies, trusts and joint ventures.

The report is expected to be tabled in December 2009.

Water: Results of the 2008-09 Financial Audits

The results of financial statement audits in the water sector are detailed in this report. There is a sector overview and analysis and commentary on the effectiveness of internal control, financial sustainability, performance reporting and sector developments.

There are 19 water entities with direct responsibility for the provision of water and sewerage services and two other entities with functions directly related to the water industry in Victoria. The 19 water entities comprise a metropolitan wholesale water corporation, three metropolitan retail water companies, thirteen regional water corporations and two rural water corporations.

The report is expected to be tabled by the end of December 2009.

Local Government: Results of the 2008-09 Financial Audits

This report provides analysis and commentary on the results of financial statement audits for all local government entities in Victoria. That is 79 Councils, nine related entities and 12 regional libraries.

The report will also provide a sector overview and commentary on the quality of reporting, effectiveness of internal control, financial sustainability and impacts from the bush fires earlier this year.

The report is expected to be tabled by the end of December 2009.

Irrigation efficiency programs

The 2004 Our Water, Our Future policy aims to contribute to improving the efficiency of Victorian irrigation systems by 25 per cent by 2020. A number of irrigation renewal projects have now been completed or are underway. In June 2007, the next stage of the policy announced a further $2 billion to be spent over five years upgrading irrigation channels in the ‘foodbowl’ in northern Victoria, to capture lost water, and $750 million to pipe one third of the saved water to the Sugarloaf Reservoir.

The audit will examine the management of irrigation renewal projects by the Department of Sustainability and Environment and water authorities, including whether intended outcomes have been achieved. It will also examine the case to proceed with the foodbowl upgrade and the Sugarloaf pipeline, including estimates of costs and water savings.

The report is expected to be tabled in Parliament by the end of March 2010.

Environmental management in Victorian parks

Victoria has around four million hectares of wilderness, national, state or regional parks and reserves. This equates to around 17 per cent of the state’s land. Parks perform a crucial role in protecting biodiversity and ecosystem processes, providing clean air and water, regulating climate, maintaining healthy waterways and preventing soil erosion. Parks also provide a significant public benefit, contributing around $960 million annually to Victoria’s economy through tourism, employment and management expenditure. Pest plants are a major cause of biodiversity loss—threatening natural ecosystems, invading native plant communities and resulting in a reduction of plant diversity and loss of habitat for native fauna. Pest plants can also impact on the economic value of adjacent land and damage cultural values and park assets. Pest animals threaten the survival of a range of native fauna and have caused local species extinctions through a combination of habitat modification and predation. They can also have environmental impacts, including degraded water quality, soil stability and vegetation cover due to burrowing and grazing.

The audit will examine the effectiveness of weed and pest programs in protecting Victoria’s parks.

The report is expected to be tabled in Parliament by the end of June 2010.

Tendering in local government

Local government spends more than $2.7 billion on goods and services annually.

Major areas of local government expenditure include roads and associated infrastructure, construction and maintenance, waste management and plant and equipment. Effective tendering and contracting are central to the delivery of many projects and services, and are critical to councils achieving their objectives including delivering value for money to ratepayers. In 2008 a local government procurement strategy was released to drive efficiencies in council procurement practices and to improve service delivery. The strategy outlines a range of initiatives to improve the sector’s procurement capability. Enhanced procurement practices have the potential to deliver annual savings of $180–350 million. Projects underway in 2009 include initiatives to improve collaborative procurement arrangements, sector-wide training, and development of best practice guidelines for procurement capability.

The audit will examine the adequacy and application of policies, guidelines and procedures for tendering and contracting in local government. It will assess the extent of legislative compliance, adherence to probity standards and effectiveness of tendering practices in minimising waste and misuse of public resources, for a selection of major procurements.

The report is expected to be tabled in Parliament by the end of June 2010.

Teacher performance

Teacher performance critically influences student learning outcomes. Schools manage teacher performance and development under the School Accountability and Improvement Framework which is overseen by the Department of Education and Early Childhood Development. The School Accountability and Improvement Framework articulates three outcomes that government schools strive to achieve, i.e., improved student learning, enhanced student engagement and wellbeing, and successful transitions and pathways.

This audit is important given our audit of Literacy and Numeracy Achievement tabled in

January 2009. It will examine the application of the teacher performance and development process in government primary and secondary schools, including the extent to which it has facilitated high standards of teacher quality and improved education outcomes.

The report is expected to be tabled in Parliament by the end of June 2010.

Biotechnology development (replaces Bio21 and Synchrotron project)

Victoria has been at the forefront of Australia’s biotechnology-based industry for over

80 years. Biotechnology has been the focus of sustained funding, policy, programs and projects in Victoria since 2000. The Department of Innovation Industry and Regional

Development reports that the value of biotechnology deals signed from 2004 to 2007 exceeded its target of $1 billion by at least $3 billion, and estimates that the biotechnology sector is worth $21 billion to the state’s economy.

The audit will examine the transparency, accountability and value for money of outcomes delivered by public sector investment in the biotechnology sector. It will include an examination of whether investments in the Bio21 biotechnology precinct and the Synchrotron project have delivered intended outcomes.

The report is expected to be tabled in Parliament by the end of June 2010.

VicForests

Following the release of the 2002 Our Forests, Our Future policy, a new commercial entity, VicForests, was established as a means of separating commercial functions from policy and regulatory functions and to enable management of the state’s commercial interface with industry. VicForests commenced operations in 2004. Its key responsibilities include the sale and supply of timber resources in Victorian state forests, developing and managing an open and competitive sales system for timber resources, and pursuing other commercial activities as agreed by the Treasurer and responsible minister.

The audit will examine the organisational efficiency and effectiveness of VicForests in meeting its legislative objectives.

The report is expected to be tabled in Parliament by the end of June 2010.

Hazardous waste management

Hazardous wastes are by products of producing everyday goods and services, like the manufacture of motor vehicles and plastics, or the dry cleaning of clothes. These wastes, also referred to as prescribed wastes, require a high level of control with the Environment Protection Act 1970 (the Act) regulating their management. The Environment Protection Authority (EPA) enforces the Act and uses a range of strategies to promote compliance.

The audit will examine the effectiveness of the EPA’s enforcement of the Environment Protection Act 1970 and the Environment Protection (Prescribed Waste) Regulations 1998.

The report is expected to be tabled in Parliament by the end of June 2010.

Water demand and supply management

A number of programs designed to curb the demand for, and boost the supply of, water have been developed and implemented in response to the ongoing drought and the state’s growing population. As rainfall has remained low, the community has been encouraged to increase water recycling. Industries, hospitals, parks and sports grounds use recycled water, and for certain urban centres, recycling forms a critical component of their water supply. In 2007–08, Melbourne recycled 23 per cent of its wastewater. The upgraded Eastern Treatment Plant, scheduled for completion in 2012, expects to provide around 135 000 megalitres of recycled water per year. Greater attention has also been given to using groundwater to support a significant amount of Victorian agriculture and provide water supplies to urban centres, such as Geelong. Licensing arrangements established under the Water Act 1989 regulate groundwater allocation for commercial and irrigation purposes.

The audit will examine how well the demand and supply of Victoria’s recycled and ground water is being managed by the Department of Sustainability and Environment and water authorities. It will include the extent to which planning takes into account future needs, and whether compliance with licensing arrangements is monitored and enforced.

The report is expected to be tabled in Parliament by the end of June 2010.

Irrigation Water Stores: Lake Mokoan and Tarago Reservoir

Lake Mokoan

The area occupied by Lake Mokoan was originally a wetland system. In 1971 the lake was created building a dam and flooding the wetland. It was to serve the Murray and Goulburn irrigation areas however the required infrastructure was not built due to water quality and blue-green algae outbreaks. Lake Mokoan is one of the two main storages on the Broken River System that allow water to be for release on demand from water users. Lake Mokoan has been described as inefficient because it is large with a full capacity of 362,450 ML, shallow and exposed, loosing about 50,000 ML each year by evaporation. This is about 13% of its full capacity.

The decision to decommission Lake Mokoan in 2009 was announced in the white paper Securing Our Water Future Together 2004. This will deliver: ‘44,000 megalitres in water savings annually to improve environmental flows for the Snowy and Murray Rivers whilst maintaining irrigator’s reliability of supply and delivering increased efficiencies for water supply by undertaking a range of works’ The full decommissioning has been delayed until 2010 due to the additional time required to respond to the alternatives proposed by Justice for Broken Valley, a stakeholder group representing irrigators, and to negotiate the purchasing of water entitlements with irrigators.

Lake Tarago

Tarago Reservoir was constructed in 1969 to supply several towns near Neerim South and the Mornington Peninsula and Westernport regions. It has a total capacity of 37.5 billion litres, making the sixth largest of Melbourne’s ten reservoirs.It supplied water to Gippsland Water customers and some irrigators, as well as Melbourne. Melbourne Water stopped using untreated water from the Tarago Reservoir in 1994 when it became unsuitable for drinking, and accessed supplies from its other storages.

In June 2005, the Victorian Minister for Water announced that Tarago Reservoir would be reconnected to Melbourne Water’s supply network. In order to do this Melbourne Water has built a Water Treatment Plant. It will provide about 15 billion litres more water a year.

The audit will examine the effectiveness of managing the decommissioning of Lake Mokoan and the recommissioning of the Tarago Reservoir. In particular the audit will examine the extent to which:

  • there were sound governance frameworks
  • the advice to Government regarding the case to proceed was well founded
  • effective consultation and communication occurred with the community and stakeholders.

The report is expected to be tabled in Parliament by the end of June 2010.