Annual Report 2024–25

VAGO's role

The Auditor-General is an independent officer of the Victorian Parliament, appointed on behalf of Victorians to scrutinise how well the government spends public money. 

The Constitution Act 1975 establishes the Auditor-General’s role and gives the Auditor-General complete discretion in how they perform and exercise their functions and powers.

The Audit Act 1994 establishes the Auditor-General’s mandate and the Victorian Auditor-General’s Office (VAGO), outlining our responsibilities and providing the legal basis for our powers.

Vision, goals and values

Our vision is better lives for Victorians.

Our goals are a more accountable and transparent public sector and better public services. 

We use our legislated powers, systems and resources as well as the skills, knowledge and experience of our people to achieve our goals and vision.

Our work is underpinned by 4 key values.

Our function

We provide assurance to Parliament and the Victorian community that public service agencies are effectively and efficiently delivering services and using public money. We achieve this through an annual program of audits and reviews. This program comprises performance engagements and attest engagements.

Our performance engagements assess the effectiveness, efficiency, economy and compliance of government agencies, programs and services. With our follow-the-dollar powers, we can audit non-government organisations that provide services under government contracts.

Our attest engagements involve auditing the financial reports and performance statements public sector agencies prepare and assessing if they fairly present their results in line with relevant standards and legislation. 

The agencies we audit include government departments, statutory bodies, educational institutions, public hospitals, water corporations, insurers and local government councils.

Our role in Victoria's integrity system

We are a key part of Victoria’s integrity system alongside the Independent Broad-based Anti-Corruption Commission, the Victorian Ombudsman and Integrity Oversight Victoria (IOV).

We protect the public interest by helping Parliament and the public to hold the government accountable.

We achieve this by:

• providing independent assurance that public funds are accounted for accurately and transparently, and government programs and services are being delivered effectively, efficiently, economically and in compliance with relevant laws
• supporting transparency and accountability. Our reports are tabled in Parliament and encourage scrutiny
• gaining system-wide insights. VAGO takes a whole-of-system view, identifying systemic issues and recommending improvements across sectors.

Our role is complementary to those of the other integrity agencies. VAGO does not investigate corruption or misconduct – that is the role of bodies like the Independent Broad-based Anti-Corruption Commission or the Victorian Ombudsman.

Instead, we complement them by:

• providing audit evidence that may highlight systemic risks or weaknesses
• referring matters of concern (for example, potential fraud or corruption) to relevant integrity bodies
• auditing the integrity bodies themselves, ensuring they are also accountable.

Our structure

Our office is structured across 4 business units: 

• The Office of the Auditor-General, led by the Auditor-General, is responsible for overseeing and delivering audit quality, strategy, governance, risk and strategic communications. 
• Corporate Services, led by the Deputy Auditor-General, is responsible for delivering finance, human resources, information technology (IT) services and data analytics and systems assurance.
• Financial Audit (FA), led by the Assistant Auditor-General Financial Audit, delivers our attest engagement program.
• Parliamentary Reports and Services (PRS), led by the Assistant Auditor-General Parliamentary Reports and Services, delivers our performance audit and assurance review program.

Figure 1: Our leadership structure

Source: VAGO.
Note: SMG stands for strategic management group, OMG stands for operational management group.

Governance groups and committees 

Our strategic management group is responsible for setting and monitoring VAGO’s strategy, overseeing good cultural governance and our performance from an outcomes and sustainability perspective and ensuring we have strong executive leadership.

Figure 2: Our strategic management group

Source: VAGO.

Our operational management group oversees and enhances the efficiency, effectiveness and integrity of our operations and is responsible for monitoring performance, managing risks, ensuring compliance with policies and regulations and driving continuous improvement in operational practices. The group oversees strategic workforce management, technology and infrastructure development and crisis response, while fostering a culture of accountability, innovation and collaboration.

Our audit and risk committee reports to the Auditor-General and independently reviews and assesses the effectiveness of our systems and controls for financial management, performance and sustainability and risk management.

Our workforce

On 30 June 2025, VAGO employed 209 people, comprising:

• 87 in FA  
• 71 in PRS  
• 51 in audit support, including:
  • 13 in the Office of the Auditor-General
  • 38 in Corporate Services.

Of our total workforce:

• 57 per cent identified as women (women made up 89 per cent of our part-time workers and 36 per cent of our executives)
• 2 per cent identified as a person with disability.

There is currently one staff member who has disclosed they are Aboriginal or Torres Strait Islander. 

See Appendix B for a detailed profile of the VAGO workforce.

Strategic Plan 2022–25

The Strategic Plan 2022–25 encompassed and was supported by each audit and corporate division’s business plan and was built around our desired outcomes for:

• a more accountable and transparent public sector
• better public services
• an enriched experience for our people. 

Under the Strategic Plan 2022–25 we established 6 key strategic objectives and 10 strategies that underpinned our work during this 4-year period.

During the period of the current strategic plan, we have undertaken more than 170 projects and a significant number of additional actions to support the implementation of the 6 strategic objectives that align to our primary goals. An assessment of our progress overall shows we achieved many of the things we set out to do but have some things left to complete. These have been considered in preparing our new strategic plan.

Figure 4: Strategic plan achievements 2022–25

Source: VAGO.

We detail our progress against these objectives in this final year of operating under this plan in Chapter 5.

The next 4 years

Our new Strategic Plan 2025–29 covering the next 4-year period, building on and continuing work set out in our current plan, will remain focused on achieving more open and accountable government, a modern fit-for-purpose audit office, and a future-ready agile workforce. It is underpinned by 9 strategic objectives that sit under 3 pillars: influence, innovate and inspire.

The Strategic Plan 2025–29 can be found on our website (audit.vic.gov.au).

How we stay accountable

We maintain our accountability through: 

• oversight by the Public Accounts and Estimates Committee (PAEC), including consulting with it on our budget, annual plans, and audit specifications 
• external audits by independent auditors PAEC selects. This includes annual audits of our financial and performance statements and a performance audit every 4 years, which examines and reports on the quality of our financial and performance reporting and resource management 
• publishing our performance measures and targets in Budget Paper No. 3: Service Delivery (BP3) and our annual reports
• oversight by IOV, including providing an attestation every 6 months on how we have used our coercive powers 
• monitoring and publishing gifts and benefits and the Auditor-General’s expenses
• voluntarily publishing a transparency report.

PAEC

Throughout the year we engaged with PAEC on annual planning and topic selection. This relationship provided valuable feedback and insights on our forward audit program, including ideas about potential engagements.

2023–24 performance audit

MartinJenkins was appointed by PAEC to undertake a performance audit on us. Its report, tabled in Parliament on 30 July 2024, identified several strengths, including our:

• policies and processes for defining and ensuring independence
• contribution to an effective and efficient public service
• staff professionalism
• contemporary methodology, tools and techniques
• focus on quality and continuous improvement
• focus on staff wellbeing and development.

The report also made 19 recommendations to us to:

• resolve issues affecting people, culture and organisational development
• improve the efficiency and effectiveness of our performance audits
• improve the value and impact of our audits
• realise opportunities for improving our organisational efficiency and effectiveness.

See our website for a copy of the performance audit report. The next performance audit is scheduled for 2027–28.

2019–20 performance audit

Allen + Clark Consulting’s report, tabled in Parliament by PAEC on 4 August 2020, concluded that:

‘The Auditor-General and VAGO are operating in compliance with all relevant Acts of Parliament. Moreover, the Auditor-General and VAGO are, in all material respects, operating effectively, economically and efficiently and achieving their objectives in compliance under the Act’. 

Oversight by IOV

IOV receives and assesses complaints made about us and examines our use of coercive powers. It also monitors our compliance with the Audit Act 1994. 

We did not exercise our coercive powers in 2024–25 and IOV has advised it has not received any complaints in relation to VAGO during the past financial year.

System of quality management

As reported previously, in November 2023 we replaced our quality control framework with a new system of quality management to enhance the robustness of our approach to quality. This has served to embed audit quality in all aspects of our business and supports our ongoing desire for continuous improvement. 

This year, the annual evaluation of the system was undertaken by our internal auditors. They found VAGO had established a comprehensive framework for managing audit quality, successfully incorporating governance structures and risk assessment processes that assist ongoing monitoring mechanisms supporting compliance with relevant professional standards.

They further noted the system of quality management provides a strong foundation to support audit quality, with clear leadership accountability, documented methodologies across key business areas, and established processes for engagement quality review and oversight. 

An evaluation of our system of quality management as part of our Transparency Report 2024 also provides reasonable assurance our objectives for the 2023–24 year were achieved.

You can learn more about our system of quality management and the results of our evaluations in our annual transparency report.

Transparency report

Our Transparency Report 2024 is our fifth report in this series and outlines: 

• our investment in audit quality
• our legal structure, governance and finances
• our system of quality management and how it aligns with the Australian Auditing Standards, relevant ethical requirements and applicable legal and regulatory requirements
• external reviews and audits of us.

The transparency report expands on and is an adjunct to our annual report. We produce it to help stakeholders understand how we support our auditors to undertake high-quality audits. 

While we are not required to produce a transparency report, we choose to adopt the requirements of the Corporations Act 2001 to the extent they are relevant and appropriate to us, exemplifying our desire to be fully transparent about our operations.

See our website for a copy of the Transparency Report 2024.

Monitoring and publishing our expenses

We publish information on our gifts, benefits and hospitality policy and register on our website as required by the Standing Directions 2018 under the Financial Management Act 1994. 

Our audit and risk committee monitor the Auditor-General’s expenses. We also publish these expenses on our website for improved scrutiny and transparency. In 2024–25 this amounted to $13,465.52 to support attendance at professional conferences, an increase of $2,510.61 on the previous year due to flight costs.

Our legislative function

Our legislated function is to undertake and report on reasonable and limited assurance engagements to determine if public sector bodies are complying with legislation while effectively, economically and efficiently achieving their objectives, providing their services and performing their activities.

Within this defined scope, we:

• undertake performance engagements (audits and reviews) of public sector entities – for and on behalf of Parliament – to assess if government agencies, programs and services are effectively meeting their performance objectives, using resources economically and efficiently, and complying with legislation.
• provide financial audit services, also referred to as our attest engagements, to help maintain accountability, transparency and effective financial administration within the Victorian public sector. Our audit opinions provide Parliament and the community with confidence that financial reports and performance statements are reliable for informed decision-making.  

The focus of our attest engagements

As detailed in our Annual Plan 2024–25, our program of delivering attest services to public sector agencies is mandated under the Audit Act 1994. We: 

• express an audit opinion on all state and local government entities’ financial and, where relevant, performance statements
• express a review opinion on Budget Paper No. 5: Statement of Finances, Chapter 1 – Estimated financial statements for the general government sector (otherwise known as the state Budget)
• express an audit opinion on the Annual Financial Report of the State of Victoria (AFR)
• review grant acquittal certificates.

Financial reports

When we audit an entity’s financial report, we assess if it fairly presents the entity’s financial results in line with relevant standards and legislation.

In this way, we provide Parliament and others who rely on Victorian public sector financial reports with independent assurance that the information in those reports is reliable. This means they can use the reports with confidence.

We then provide an independent opinion on the financial report that confirms the reliability of the published financial information.

In this regard, we help keep the Victorian public sector transparent and accountable to Parliament and the community for its financial management.

Performance statements

We also audit some entities’ performance statements and provide an audit opinion on their reliability and completeness in the following sectors:

• local government
• technical and further education (TAFE)
• water.

Performance statements contain an entity’s target and actual results against mandatory performance indicators. Entities establish these indicators through the relevant minister’s direction.

Our assurance confirms the reliability of each entity’s published performance information.

Review opinion of the state Budget

Each year, the government prepares estimated financial statements as part of its budget as required by the Financial Management Act 1994. This is often referred to as the state Budget.

The purpose of these statements is to set out the projected financial results for the general government sector based on the government’s stated and expected financial policies and assumptions.

Under the Audit Act 1994, we review the estimated financial statements to confirm they have been prepared consistently with relevant accounting policies, targets and policy strategies and objectives.

Our opinion is included in Chapter 1 of Budget Paper No. 5: Statement of Finances and is also published on our website.

The audit of the state’s AFR

The Auditor-General’s audit opinion on the AFR is a significant piece of assurance we provide Parliament and the Victorian community.

The AFR consolidates over 271 state-controlled entities’ financial results. While we audit and provide opinions on these entities’ individual financial reports, we also audit and provide an opinion on the consolidated AFR.

Our opinion on the AFR provides assurance that the State of Victoria’s published financial outcomes, and the general government sector within it, are reliable. This means users can confidently rely on the information to inform decisions.

Grant acquittals

Some public sector entities are given grants to provide specific services to the community. Entities must use these funds appropriately and meet the terms and conditions of the grant agreement. Part of our work is understanding and testing the use of grants to provide confidence that public funds are used as agreed.

Results of audits reports to Parliament

We must table, by 24 November each year, a report on our audit of the Annual Financial Report of State of Victoria.

We also table other results of audit reports which analyse local government, TAFEs and university sectors' financial outcomes and risks to their financial sustainability. We highlight common internal control and financial reporting issues and make recommendations for improvement. We aim to table these reports within 5 months of the relevant sector's financial year end.

We also produce a dashboard as a companion product to each report, including the Auditor-General’s report on the AFR. These dashboards allow users to explore the individual financial outcomes of entities as well as gaining an overall sector perspective.

What we assess

Parliament also funds us to determine if public sector bodies are complying with legislation while effectively, economically and efficiently:

• achieving their objectives
• providing their services
• performing their activities.

Our follow-the-dollar powers

We can use our follow-the-dollar powers during our performance engagements, which allow us to evaluate the way government funds are used by private entities, including:

• community sector and for-profit organisations contracted to provide government services 
• government grant recipients.

What we choose to audit

Each year we deliver around 20 performance engagements, dependent on a range of factors, including: 

• the complexity and/or breadth of each proposed engagement 
• ability of auditees to provide data and information in a timely way 
• our internal resources. 

We select engagement topics from a breadth of areas, including those suggested to us by members of Parliament (MPs) and members of the public, to inform an annual work program that delivers credible and authoritative reports that are relevant, timely and informative.

These topics are outlined in our annual plan, which sets the direction for the next 3 years.

Level of assurance

The level of assurance refers to the measure of the confidence we have in our conclusions.

This confidence depends on the source, quality and quantity of evidence we obtain.

While a performance audit engagement gives the highest level of assurance, a limited assurance review (where we obtain a lower standard of evidence from agencies) can help us examine and report relatively quickly and cost effectively.

We generally use these limited assurance reviews to promote transparency and to consider issues of waste, probity and compliance. We can also use them to assess economy, efficiency and effectiveness. A limited assurance review often has a narrower scope and looks at:

• a specific activity or set of transactions
• a single issue of significant public interest.

We design our work program with MPs’ information needs in mind considering the nature of an issue and required level of assurance.

Our attest program for 2024–25 

In 2024–25 we issued 540 audit opinions on financial reports prepared by 536 public sector agencies.

We also issued 110 audit opinions on the performance statements of local councils, water agencies and TAFEs, meeting our target, and 292 grant acquittals for local councils and departments.

2024–25 parliamentary reporting program

Our reports to Parliament reflect the issues that we judge matter most to Victorians and parliamentarians – whether it is government services for vulnerable communities, adapting to climate change and managing growth, or the transparency and accountability of government.

During 2024–25 we tabled 5 fewer reports than planned, largely due to unanticipated staff turnover and unplanned leave. 

Reports still in progress

As of 30 June 2025, 9 reports to Parliament from previous annual plans were still in progress.

Three of these, including Financial Management of Local Councils, which was carried over from 2023–24, are planned to be tabled prior to the tabling of this annual report. 

Another engagement, Maintaining the condition of state-managed roads, originally due to be tabled in 2024–25, has been moved to our 2025–26 program.

Appendix A contains a detailed reconciliation of our 2024–25 parliamentary reports program.

The focus of performance engagements

Our 2024–25 performance engagement reports covered a diverse range of topics highlighting governance issues and monitoring and reporting challenges. We also noted good practices, reporting on these to set a better example for others to follow.

Building a Capable and High-performing Public Service Workforce

A capable and high-performing workforce is essential to providing high-quality services, avoiding waste and maintaining public confidence in the Victorian public service. We found the Department of Families, Fairness and Housing, the Department of Transport and Planning and the Victorian Public Sector Commission have policies, plans, strategies and practices in place throughout the employee lifecycle to support capable and high-performing workforces. Most of their policies and supporting materials align to the guidance the Victorian Public Sector Commission gives all agencies.

These agencies have also established processes and practices that encourage managers to set clear job expectations and promote continuous learning and improvement. The Victorian Public Sector Commission does not have a systematic development or review process to ensure its guidance reflects better practice.

Quality of Victoria's Critical Data Assets

Data quality issues are a recurring theme in our audits. The government needs trusted, high-quality data to make decisions confidently, develop informed policy and deliver services well. 

We found government agencies are not assuring the quality of their critical data assets in line with the Data Quality Information Management Framework standard:

• Most agencies do not have clearly defined approaches for identifying their critical data assets. 
• Data management governance arrangements in place do not clearly focus on maintaining and improving critical data assets’ quality.
• None of the agencies completed the required data quality management plan and data quality statement for each critical data asset. 

Without a consistent approach to assuring critical data assets’ quality, agencies risk giving advice and making decisions based on unreliable information.

Contractors and Consultants: Management

Government departments use contractors and consultants to help them achieve their priorities. But consistently outsourcing work that public servants have traditionally done can deskill the Victorian public service. 

We conducted this audit to see if the Victorian public service gets value for money when it uses contractors and consultants. We examined all 10 departments and looked at 3 departments in more detail.

We found all departments' processes to procure and report on contractors and consultants comply with requirements. But, because they do not have to report how much they spend on contractors, there is a lack of transparency about how they use these public funds.

Auditor-General's Report on the Annual Financial Report of the State of Victoria 2023–24

This report shares outcomes of our audit on the state's financial report and our independent perspective on the state's financial outcomes and risks to fiscal sustainability. 

We found the 2023–24 AFR is free from material error, and we issued an unmodified (clear) audit opinion on it. 

However, the report also highlights several structural and emerging fiscal risks, including:

• rising interest costs and continued high levels of debt
• growing employee expenses, now a major portion of total operating costs
• inflationary pressures and intensified service demand
• limited capacity to generate new revenue, paired with cost overruns on infrastructure projects.

The report also outlines our continuing concerns over persistent weaknesses in control environments, especially related to IT controls and the quality of financial information submitted by material entities. Issues include delays, errors in classifications, and staff turnover impacting reporting reliability. We also observed that prior recommendations – especially around data quality and IT deficiencies – remain largely unresolved and are reiterated in this report.

We also made 4 recommendations this year:

• that the Department of Treasury and Finance (DTF):
  • develop and publicly report a long-term financial plan to anchor decisions and manage risks
  • enhance reporting on progress against savings and efficiency targets
• that the Department of Premier and Cabinet conduct a post-implementation review of the 2022 machinery of government changes
• that material entity chief financial officers (CFOs) strengthen quality assurance processes and ensure documentation and training for financial submissions.

Responses to Performance Engagement Recommendations: Annual Status Update 2024

We conduct performance engagements to assess if Victorian public sector agencies and their programs and services are operating effectively, economically, efficiently and in compliance with relevant Acts. 

Our performance engagements include findings and recommendations to agencies about how they can improve their performance, which agencies may accept in full, in part, in principle, or not at all, and provide a target date for completing them.

We tabled 87 reports between 1 July 2019 and 30 June 2024 that made 1,260 recommendations to 84 agencies, of which 96 per cent were accepted. Of the accepted recommendations, 991 (82 per cent) had been completed.

During this review we also found of the 1,207 accepted recommendations, only 216 (18 per cent) remain unresolved with progress made on all but 14 of the outstanding recommendations. 

Fair Presentation of Service Delivery Performance 2024

All government departments publish a performance statement each year. It is important departments fairly present information in performance statements so the Parliament and the community can easily understand their responsibilities and performance. 

We assessed if DTF’s performance statement helps users understand its service delivery responsibilities and performance. 

In each of the last 3 years we have found much of the output performance information reported by departments is not relevant or reliable.

We continue to find systemic issues with the Resource Management Framework’s requirements and how departments apply them. This means Parliament and the community cannot:

• properly assess performance
• fully hold government to account for its performance.

To be relevant and reliable, output-based service performance measures must allow the Parliament and the community to: 

• understand what services the department provides 
• meaningfully assess the department’s performance in providing these services 
• accurately and reliably assess performance results. 

Reporting on Local Government Performance: Follow-up

Effective performance reporting is essential for councils to stay accountable to their communities and improve services. Our 2019 audit reviewed how effectively councils used the Local Government Performance Reporting Framework to report performance and improve services. We examined Local Government Victoria (LGV) and 5 councils. 

This report assesses LGV and councils’ progress in implementing their agreed actions in response to our 2019 recommendations. We found that LGV and audited councils have made significant progress in implementing their agreed actions.

LGV completed 4 of its 5 agreed actions. Of the 5 audited councils, 3 have completed their agreed actions. No council set targets for all the Framework’s performance indicators, so their agreed actions only partially address that recommendation. Only LGV and 2 councils set target dates for their agreed actions.

Result of 2023–24 Audits: Local Government

The Victorian local government sector consists of 104 agencies, including 79 councils. Each council prepares a financial report and a performance statement, both of which we audit. 

The local government sector generated a lower surplus in 2023–24 because councils did not receive any financial assistance grants in advance. Expenses increased by 4.4 per cent while revenue and income decreased by 2.4 per cent. Cash reserves declined but are still sufficient to meet short-term obligations. Assets grew due to revaluations and higher capital works, but the sector continues to underspend.

This report found councils’ financial reports and performance statements are reliable and we issued clear audit opinions on all financial reports and performance statements finalised for the 2023–24 financial year. Nonetheless, some councils can strengthen their reporting processes and improve the timeliness of their reporting. We made 7 recommendations in this report suggesting ways to support this goal.

Protecting the Biosecurity of Agricultural Plant Species

If plant pests or diseases enter Victoria, this can damage Victoria's agriculture industry, economy and environment, and Victorian producers could lose access to domestic and international markets. We examined if Agriculture Victoria effectively prepares for, prevents, manages and responds to plant pests and diseases in Victoria.

We found it is mostly effective at doing this, but it is not meeting all its surveillance and compliance targets and could improve how it documents its risk-based rationale to prioritise prevention activities. Capability gaps also mean Agriculture Victoria may not have enough trained and technical staff to respond to future plant pest emergencies.

Recycling Resources from Waste

Victoria produces over 14 million tonnes of waste each year. We examined if Victoria is on track to meet the 3 recycling and waste diversion targets in the government’s circular economy policy and action plan, Recycling Victoria: A new economy.

We found the Department of Energy, Environment and Climate Action and other responsible agencies have built Victoria’s capacity to recover and reprocess waste. However, they are only on track to deliver one of the 3 recycling targets:

• They are on track for every Victorian household to have access to a food organics and garden organics waste service by 2030.
• They are not on track to divert 80 per cent of waste going to landfill by 2030.
• It is not clear if they are on track to halve the amount of organic material that goes to landfill. 

The department needs to collect better data about waste flows, especially the types of waste in landfill, to measure its progress more accurately and make its future projections more reliable.

Developing Fishermans Bend

The Fishermans Bend precinct is Australia’s largest urban renewal project. In 2018, the Victorian Government released the Fishermans Bend Framework to guide its transformation to 2050. 

We found public agencies are not on track to deliver all projects and outcomes outlined in the framework as originally intended. While short-term projects have been delivered, many medium and long-term projects are deferred or delayed. 

While some of the key planning documents that were meant to be completed in 2019 have been developed, many are undrafted or still to be finalised. Public reporting about progress is limited. Work has begun to develop an evaluation methodology for monitoring progress against the framework. The framework’s delivery has been extended by at least 5 years to 2055.

State Trustees’ Financial Administration Services

Victorians who cannot manage their own money due to disability, dementia or mental illness rely on State Trustees if they have no-one else.  We found that State Trustees' financial administration services do support the rights and interests of its clients.

State Trustees has updated its procedures and operations since the changes to the Guardianship and Administration Act came into effect in 2020. These changes require State Trustees to find out its clients' will and preferences and follow them as far as possible, unless there is a risk of serious harm. Following a funding boost in 2022 it also visited more clients and strengthened its complaints processes. However, it is not always clear to us how State Trustees’ reasons for declining clients’ requests for extra money match the Act’s requirements.

The Orange Door: Follow-up

Family violence remains a significant issue in Victoria. In a 2020 audit we examined if support and safety hubs, now known as The Orange Door, and operating nationwide, provided effective and efficient support for families and those affected by family violence. 

In this follow-up review, we examined if the Department of Families, Fairness and Housing has implemented the action plan it developed in response to our 2020 report.

We found the department has fully completed 4 of its 9 actions and partially completed 5. It still has outstanding work, including to:

• deliver its full-service model, including after-hours services and integration with related service systems
• update and develop key documents
• roll out a statewide tool for child wellbeing and risk assessments
• finish reviewing governance arrangements.

HealthShare Victoria Procurement

HealthShare Victoria is an independent statutory authority that manages procurement and logistics for Victoria’s public health system. It negotiates collective agreements that health services must use where relevant.

We found HealthShare Victoria cannot show that its collective agreements deliver measurable cost savings and benefits to health services. While HealthShare Victoria reports estimated savings, it does not track or validate if they are achieved. HealthShare Victoria’s approach to benchmarking the price of goods and services in its collective agreements has significant gaps. It does not have a formal process for assessing how competitive its collective agreements are. While there is a compliance framework to make sure health services use collective agreements, there are gaps in how spending is managed outside of these agreements. HealthShare Victoria has begun work to address this.

Major Projects Performance Reporting 2024

Major projects are specialised and complex. Changes to a project's cost, time and scope can impact originally intended project benefits.

We found public entities in scope do not consistently and transparently report major projects' performance information in a way that is useful to the Parliament or the public.

Internal analysis by both entities and DTF is often high quality and meaningful, but it is not typically publicly reported. Entities also are not systematically assessing the impact of material changes to a project's originally approved parameters, and their project benefits measurement systems are often immature, with unclear roles and responsibilities. These weaknesses can be addressed through strengthened guidance from DTF.

Managing Disruptions Affecting Victoria’s Public Transport Network

An estimated 1 million people use Victoria’s public transport network every day to get to school, work, healthcare and to connect with their community. 

We found transport bodies and public transport operators have a sound framework for managing unplanned disruptions and emergencies. But there are some inconsistencies for the Department of Transport and Planning. 

While operators have effectively responded to unplanned disruptions and emergencies, the Department of Transport and Planning has not always provided support in line with its obligations. Despite a steady increase in planned disruptions during the audit period, the Department of Transport and Planning, the Victorian Infrastructure Delivery Authority and public transport operators minimised the impact on passengers through effective scheduling and management.

Domestic Building Insurance

Domestic building insurance compensates homeowners for losses relating to incomplete or defective domestic building work. We did this review to examine how well domestic building insurance is being managed to protect homeowners. 

We found the way domestic building insurance arrangements are managed has improved, but there are still gaps. The Victorian Managed Insurance Authority has policies to manage its domestic building insurance effectively, but it could be more transparent with homeowners about its claims processes and timelines and how it reaches its claims decisions. Not having key performance indicators for the claims process limits its ability to track and improve its performance.

The Victorian Building Authority does not make sure building surveyors have verified if a valid domestic building insurance policy is in place before it issues a building permit number to them.

Staff Wellbeing in Fire Rescue Victoria

Every workplace is responsible for protecting, promoting and supporting its workers’ mental health and wellbeing. Emergency services organisations, such as Fire Rescue Victoria (FRV), have a heightened responsibility to support staff who are regularly exposed to or impacted by fires, medical emergencies and rescue situations.

We found FRV is supporting its staff to maintain their mental health. But it has gaps to address, including in how it identifies, monitors and manages mental health and wellbeing risks. 

Work-related Violence in Government Schools

School staff have a right to be safe at work. Work-related violence resulting from student behaviour ranges from verbal abuse to physical assaults.

We found the Department of Education takes reasonable steps to provide a safe work environment, but it does not record or report incident numbers completely. This means it does not have a clear overall picture of work-related violence resulting from student behaviour. The department does not:

• comprehensively review its policies to manage work-related violence incidents
• systematically collect lessons learned from how it responds to incidents.

These gaps limit the department’s ability to take reasonable steps to maintain a workplace that is safe from work-related violence resulting from student behaviour.

Results of 2023 Audits: Technical and Further Education Institutes

This report, tabled on 31 July 2024, presents the results of our 2023 financial audits, shares our independent insights on the sector's financial outcomes and highlights common issues.

We issued clear audit opinions for all TAFE financial reports and TAFE performance statements, consistent with the previous year. 

The TAFE sector generated a net surplus largely due to one-off government grants. However, spending is increasing for some, faster than their revenue growth. If the declining net deficit trend continues for these TAFEs, without effective management of expenditure or own-source revenue growth, their long-term financial sustainability is at risk.

This report was tabled late due to extended audit work across the education sector’s 31 December 2023 year end.

Results of 2024 Audits: TAFEs and Universities

This report presents the results of our 2024 financial audits, shares our independent insights on the sectors' financial outcomes and highlights common issues. This report also combined both sectors, TAFE and university, into a single hybrid report for the first time.

We issued clear audit opinions for all TAFE and university financial reports and TAFE performance statements. Both sectors produced good-quality reports and met legislated reporting timelines.

The TAFE sector generated a net surplus largely because of one-off grants. Its revenue grew from training and own-source revenue, and it managed costs. TAFEs met their short-term financial obligations, but emerging financial pressures exist.

The university sector delivered improved financial results from strong investment returns and higher domestic student enrolment. Most universities ended 2024 with strong balance sheets. But to remain financially resilient, they need to plan for potential government policy changes.

Parliamentary committees

The Parliament of Victoria has 2 houses:

• the Legislative Assembly, which has 88 members and 88 districts (one member per district)
• the Legislative Council, which has 40 members and 8 regions (5 members per region).

There are different parliamentary committees, including: 

• legislative council committees
• legislative assembly committees
• joint committees, which are formed by members from both houses.

Some of our performance audits received attention from these committees in 2024–25. These are discussed below.

Inquiry into fraud and corruption control in local government: a follow up of two Auditor-General reports

On 11 November 2024, PAEC resolved to conduct a follow-up inquiry into the Victorian Auditor-General’s reports number 40: Fraud and Corruption Control—Local Government, tabled on 19 June 2019, and number 316: Fraud Control Over Local Government Grants tabled on 11 May 2022.

After seeking submissions, the committee held an initial day-long public hearing at the end of March 2025 where the actions taken by Victorian integrity and government agencies to address the issues raised in the findings and recommendations of the 2 audits were among matters examined. Staff from the Auditor-General's office appeared as witnesses.

A number of local councils from across metropolitan and regional Victoria also appeared before PAEC, which plans to table its report no later than 20 November 2025.

Inquiry into local government funding and services

The Legislative Council Economy and Infrastructure Committee tabled its final report on 28 November 2024.

The wide-ranging probe, announced in May 2023, considered cost-shifting from state and federal governments, rate capping and the sustainability of current revenue structures, and the strain rapid population growth is putting on budgets and asset management, specifically in the outer suburbs.

It concluded rising costs of infrastructure and service delivery are outpacing grant funding, forcing councils to reduce or eliminate services. The report urges reviews of the rating system and rate cap formula, streamlined applications for higher rate caps, growth and climate resilience funds for struggling councils, more untied funding, and programs supporting asset renewal and maintenance.

The committee found the Auditor-General’s annual report on local government financial position forms a valuable baseline for local government viability and cited both the 2022–23 report and the associated dashboard. Reference was also made to our 2014 report Shared Services in Local Government.

Inquiry into the 2026 Commonwealth Games bid

In August 2023, the Victorian Legislative Council directed a select committee of 9 members be appointed to inquire into, consider and report on the 2026 Commonwealth Games and the progress of the regional infrastructure build. The final report was tabled on 1 April 2025.

The committee drew on the Auditor-General's audit, Withdrawal from 2026 Commonwealth Games, which was tabled on 20 March 2024, to inform its recommendations. It suggested the Auditor-General's findings align with the issues it observed in the Commonwealth Games bid, particularly regarding:

• early-stage feasibility
• business case development
• cost estimation
• governance arrangements.

The committee aligned its recommendations with issues raised in the Auditor-General's report, particularly in calling for:

• stronger central oversight
• improved risk management frameworks
• enhanced transparency in project decision-making.

Importance of the cost of audits

Measuring the cost of producing an audit is a valuable performance measure because it provides insight into the efficiency of resource management of our audit processes. It also enables benchmarking over time and across similar audits, supporting our efforts to identify opportunities for improved productivity without compromising audit quality.

Our financial audit costs

Under the Audit Act 1994, we are required to recover all reasonable expenses associated with conducting our attest audits. The average cost of audit opinions represents the typical audit fee we charge our clients.

The current mechanism for setting this target each year, which establishes the increase in our annual targets, is based on an indexation percentage. Our actual costs have, however, continued to increase above the set indexation over time and we have been seeking an increase to our target to more accurately reflect expected costs for several years.

In 2024–25 the average cost per financial report audit opinion was $62,000. This includes the cost of auditing the state, university and local government sectors. While this is 13.8 per cent above our target of $54,500, it remains consistent with our results for the past 6 years, reflecting the impact of the disparity in our actual costs versus the targeted costs required of us by the budget process.

The Minister for Finance has approved a rebase for 2025–26 to a more realistic target of $64,500, which better aligns with the average audit fee we charge our clients.

The rise in average audit fee in the 2024–25 year reflects: 

• increased audit effort required to complete audits by both our internal audit teams and external audit service providers, to address complex accounting issues 
• additional costs relating to our continued investment in transformational projects, specifically to enhance our data analytics capabilities, upgrading our audit toolset software and upskilling staff to adapt to an evolving financial auditing profession 
• increased workforce costs 
• indexation of our 2024 cycle audit fees by 4 per cent in line with the Australian Bureau of Statistics wage price index. 

Figure 8: Financial audit costs

Source: VAGO.

Benchmarking financial audit costs

VAGO is affiliated with the Australasian Council of Auditors-General (ACAG), an organisation established more than 60 years ago to support the sharing of information and intelligence between audit offices across Australasia.

We evaluate our performance against the national average of other state and territory audit offices.

In 2024–25, when benchmarked with our peers our average cost compared favourably to the ACAG average.

Figure 9: VAGO opinion types compared to ACAG averages

Note: ACAG averages are calculated by dividing the number of opinions issued into the actual costs for a financial year. Our BP3 target in Figure 16 is the average of the actual lifecycle costs for an audit, noting that a financial audit typically spans 2 financial years. Both are useful measures.
Source: VAGO.

Average cost of audit opinions issued on performance statements

In 2024–25 the average cost for audit opinions issued on performance statements was $5,600. This is below our target of $5,900 and consistent with our results of the last 5 years.

Figure 10: Average cost of opinions on performance statements

Source: VAGO.

Our parliamentary reporting costs

In 2024–25 the average cost of the 21 parliamentary reports we tabled was $525,800.

This is 8.4 per cent below our target of $574,100, due largely to the proportionally higher number of lower-average-cost limited assurance reviews tabled this year. It is also below the long-run average cost of $530,000 over the past 6 years.

Figure 11: Parliamentary report costs 

Note: Average cost varies for different types of engagement.
Source: VAGO.

Figure 12: Cost of different types of parliamentary reports in 2024–25

Note: *Reasonable assurance audit **Limited assurance review.
Source: VAGO.

Importance of timeliness in auditing

Legislation, such as the Financial Management Act 1994 and the Local Government Act 2020, requires public sector agencies to prepare financial reports and performance statements within set timelines. The Audit Act 1994 sets the statutory deadlines for auditing these reports and issuing our audit opinion.

Measuring the time taken to produce a parliamentary report is an important performance measure because it reflects how effectively we deliver value to stakeholders when it matters most. Timely audits ensure findings and recommendations are relevant and can inform decision-making while issues are still current.

Timeliness of issuing our audit opinions

In 2024–25 we issued 98.5 per cent of audit opinions within the statutory deadline, exceeding our target to deliver 98 per cent of opinions within the deadline. This is a further improvement on 2023–24 when we issued 98.4 per cent of audit opinions within the statutory deadline.

Figure 13: Percentage of audit opinions issued within the statutory deadline from 2019–20 to 2024–25

Source: VAGO.

Timeliness of management letters

Part of our financial audit process is to send management letters to agencies highlighting internal control weaknesses and financial reporting matters we identify during our audits with recommendations on how to resolve them. Agencies respond to these letters with their intended actions.

In 2024–25 we issued 96.5 per cent of management letters within agreed timelines, exceeding our target of 90 per cent. This is a significant improvement in the timeliness of final management letters in 2023–24 when we issued 85.8 per cent of management letters in the agreed timelines and did not reach our target. 

The improvement in this year's results reflects our strong focus on getting back on track to meet our audit deliverable timelines, given the post-pandemic impacts have largely been resolved. 

Figure 14: Percentage of management letters issued within established timeframes from 2019–20 to 2024–25

Source: VAGO.

Time taken to complete a performance engagement

We undertake 2 types of performance engagements: performance audits and performance reviews. Reviews provide limited assurance and are typically delivered in less time than an audit, which provides reasonable assurance, which is a higher standard. 

It took an average of 10.2 months (10 months in 2023–24) to produce all our performance engagements, which is above our target of 9 months. This includes:

• average duration to produce performance audit parliamentary reports: 12.0 months (10.9 months in 2023–24) 
• average duration to produce assurance review parliamentary reports: 7.6 months (6.4 months in 2023–24).

Figure 15: Time taken for performance engagement reports

Note: As with average cost, average duration also varies for different types of engagement.
Source: VAGO.

Five audits were carried over from 2023–24 largely due to unanticipated staff turnover and unplanned leave. For these audits, we also gave auditees additional time to review the report or provide additional data to ensure fair and accurate reporting. We also deferred tabling one audit to enable one department to finalise a related statutory process.

Four of these 5 audits were tabled in 2024–25, the remaining audit will be tabled in 2025–26. This increased the average duration to produce performance audit parliamentary reports compared to our target for the year.

If we exclude these 4 reports and focus on those we started in 2024–25, the average duration for performance engagements tabled during the year was 8.6 months (9.7 months for audits and 7.6 months for assurance reviews). This significant improvement reflects the changes we made to our methodology and our planning processes over the past 18 months.

Following the finalisation of our review into our methodology and planning, and in response to matters raised in a review of PRS culture during the year, we initiated a ‘PRS Sustainable Delivery Review’ in March 2025. This will consider the resourcing, workload and process for performance audits and reviews. We expect this will help us streamline our processes with the potential to further improve our timeliness.

Average time taken to produce financial audit parliamentary reports

The average time taken to produce financial audit parliamentary reports after the relevant financial year end balance date was 6.6 months (6.3 months in 2023–24) missing our target of 5 months.

Figure 16: The average time to produce financial audit parliamentary reports after the balance date

Source: VAGO.

We tabled the Auditor-General’s Report on the Annual Financial Report of the State of Victoria: 2023–24 within 4.8 months, ahead of our target. This is the only report we are required to present to Parliament under section 57(1) of the Audit Act 1994. Its timely completion was made possible by the financial reporting timelines set by DTF, which requires the significant entities we audit to finalise their financial reports within defined timeframes. These timelines enable the efficient conduct of audits for both the individual entities and the AFR. In addition to this, substantial audit effort by our internal audit teams and audit service providers is essential to meet the reporting deadline. 

Three reports missed their target dates:  

• Results of 2023–24 Audits: Local Government took 9.1 months to complete, primarily due to a delayed start caused by late financial reporting across the sector. Of the 79 councils, 48 submitted draft financial and performance statements to audit after the agreed deadlines. As a result, only 27 had received audit opinions by 30 September, increasing to 51 per cent by 31 October 2024. One council remained outstanding on 31 March 2025. This delay meant report production, which is contingent on analysis and drafting following the completion of audits, could not start until late October to early November 2025. The extended timeline impacted staff availability, slowing report completion.
• Results of 2023 Audits: Technical and Further Education Institutes. This report was tabled on the 31 July 2024, 2 months after the target date. This was due to extended audit work across the education sector’s 31 December 2023 year-end. The TAFE and university audit teams prioritised completing these audits first, as parliamentary reporting can only proceed once audits are finalised. 
• Results of 2024 Audits: TAFEs and Universities. Following a decision to combine both sectors into a single hybrid report for the first time for the 31 December year-end, our Results of 2024 Audits: TAFEs and Universities report was delayed ensuring content was appropriately integrated and the report was clear and consistent. Although delivery took slightly longer, the delay was less than a month.

Changes to our performance measures 

As we concluded in our report Fair Presentation of Service Delivery Performance: 2024, tabled on 27 November 2024, and consistent with our previous reviews on this topic, we have found much of the output performance information reported by Victorian Government entities is not relevant or reliable. 

We were successful this year in requesting changes to our own performance measures for next year onwards. These changes increase transparency by separately disclosing measures for each service line we provide and that improve accountability for our outputs by consistently calculating comparable measures for each service line. We also removed measures which we report publicly elsewhere such as in our transparency report. These changes out outlined in detail below.

Cost and timeliness by parliamentary report type  

In 2025–26 we will report on disaggregated cost and timeliness measures for our parliamentary reports program in our performance statement. These changes reflect the differing scopes and resource requirements for the 3 different types of reports.

The overall average cost of parliamentary reports will be discontinued and replaced with separate average appropriation applied measures for 3 types of performance engagement parliamentary reports:

• for performance audit engagements, the target will be $650,000 
• for performance assurance reviews, the target will be $300,000 
• for financial audit reports, the target will be $275,000.

Similarly, the average duration to produce performance engagement reports will be replaced by 2 separate measures: 

• for performance audit engagements, the target will be 10 months or less
• for performance assurance reviews, the target will be 7 months or less.  

The financial audit report timeliness measure remains unchanged at 5 months or less.

Quality measures by parliamentary report type

In line with the changes to the timeliness and cost measures outlined above, 3 new measures will report the percentage of recommendations accepted and subsequently implemented by audited agencies for each type of performance engagement, improving accountability and transparency without changing target levels. All will have a target of 80 per cent.

Increased total output cost target

The total output cost target for our reports to parliament in 2025–26 will increase to $20.8 million (up from $20.1 million in 2024–25). This reflects indexation based on the wage price index, as it has in previous years.

Changes to BP3 measures for parliamentary reports at a glance

Figure 17: Changes to VAGO’s performance measures (BP3 targets) for 2025–26 reports to Parliament

Source: VAGO.

Fees for financial audits 

The ‘average cost of audit opinions issued on the performance statements of agencies' will be renamed ‘average fee of audit opinions issued on the performance statements of agencies', and the target will increase to $6,100 (from $5,900 in 2024–25).

Similarly, ‘average cost of audit opinions issued on the financial statements of agencies’ will be renamed to ‘average fee of audit opinions issued on the financial statements of agencies’, and the target will increase to $64,500 (up from $54,500 in 2024–25).

The revised 2025–26 targets reflect the requirement under section 13 of the Audit Act 1994 that we recover all reasonable expenses associated with conducting financial statement audits, noting our costs have increased substantially due to labour market conditions and substantial increases in the price we pay our audit service providers, who we engage under open tenders.

Increased costs are also being driven by the increased time and specialist and senior expertise required for audits due to the increasing complexity of agency operations, and more contentious auditing and accounting issues related to accounting for major projects, mergers, machinery of government changes, and to more material transactions with complex structures.

Quality measures for our attest program

The measure of external and peer reviews identifying no material departures from professional and regulatory standards will be discontinued, as it is a process quality measure rather than an output quality measure.

While it remains relevant to our work program, the auditing standard ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements (ASQM 1) requires us to conduct an annual evaluation of our quality management system, and we already publicly report on this. This is done through our transparency report which is available on our website and includes results from our engagement quality inspection program.

Total output cost for our attest program

The target for total output cost for our attest program 2025–26 will also increase to $40.9 million (up from $31.0 million in 2024–25), reflecting a change in the measurement basis of this target, reflecting our budgeted total output costs to break even. 

This target has historically been escalated based on indexation in accordance with DTF guidance. As our actual results over time demonstrate, this target needed to be remeasured to reflect our expected cost in delivering our attest audit services. 

The increase in total output cost for delivering audit opinions on financial and performance statements has also been driven by our investment in transformational projects aimed at adapting to the evolving financial auditing profession. This includes enhancing our data analytics capabilities, upskilling staff and addressing the challenges of a hybrid working environment. 

Changes to BP3 measures for financial audits at a glance

Figure 18: Changes to VAGO’s financial and service performance measures (BP3 targets) for 2025–26 reports to Parliament

Note: N/A stands for not applicable.
Source: VAGO.

Our parliamentary survey

Each year we survey parliamentarians to understand how well we are serving them. 

Among those who responded to our latest survey, there is high awareness of the reports and services provided by the Auditor-General and general satisfaction with the accessibility of our products and services, including our online offerings and briefings.

The Auditor-General’s Report on the Annual Financial Report of the State of Victoria: 2023–24 was the most referenced report. 

What MPs told us

While generally satisfied with the Auditor-General’s reports and services, the current year results reflect parliamentarians’ views the performance audits and assurance reviews addressed issues of significance and parliamentarian key areas of interest less than previous years. We recently established a parliamentary engagement framework and are making changes to the way we engage with parliamentarians to understand this shift.  

That said, feedback on our performance more generally remained positive:

• 94 per cent of respondents agreed our reports provide valuable information on public sector performance (up from 92 per cent in 2023–24)
• 90 per cent felt reports and services helped improve public sector administration (up from 83 per cent in 2023–24)
• 87 per cent felt issues were communicated clearly (consistent with 87 percent in 2023–24) 
• 79 per cent felt reports and services assisted parliamentarians with their roles (up from 71 per cent in 2023–24).

The overall satisfaction rating of 79 per cent was down on the 90 per cent achieved in 2023 and below our target of 85 per cent.

Figure 19: Percentage of MPs satisfied with our work from 2019–20 to 2024–25 

Note: There was no survey in 2022–23.
Source: VAGO.

We note these results were from a relatively small sample size of 33 parliamentarians representing a 26 per cent response rate, on a par with 2023-24, when 36 responses were received. 

We continue to work with MPs and their offices to enhance our products and services and to make them more accessible, readable and relevant.

This year we developed and implemented a communication and engagement framework to support this work. We also commissioned research to support the continuous improvement of our reports and dashboards to better support the needs of Parliamentarians and their offices. In response to this engagement with Parliamentarians, we are focusing on creating a unified and cohesive approach to VAGO dashboards which will also be in a central hub for ease of transparency and engagement. 

What our public sector auditees have told us about our performance reports

To understand if our clients value our work, we ask auditees a series of questions after we table a performance engagement report. We ask about how satisfied they were with the audit process, their view on the final report and the value of the report to the organisation.

In 2024–25, of our performance engagement auditees who responded, 71 per cent agreed our performance engagement will help them improve the audited activity:

• 80 per cent were happy with the process (up from 72 per cent in 2023–24)
• 74 per cent were happy with our reporting (up from 70 per cent in 2023–24)
• 62 per cent were happy with the value provided (down from 71 per cent in 2023–24). 

In 2025–26 we will be working to better understand the drivers of agency value to improve this rating.

Figure 20: Percentage of auditees happy with process, reporting and value provided

Source: VAGO.

Client feedback on our financial parliamentary reports

Each year, we conduct 2 rounds of surveys to gather feedback from financial audit clients. The surveys target key stakeholders, made up of audit committee chairs and CFOs. The first round focuses on financial year-end clients (30 June), while the second round focuses on calendar year-end clients (31 December).

In 2024–25, audit committee chairs were asked for their views on the clarity and usefulness of our most recent reports to Parliament on financial audit results:

• 100 per cent of those who responded agreed the reports were easy to understand 
• 87 per cent agreed the reports communicated significant issues and their implications clearly. 
• 84 per cent indicated the reports provided a balanced perspective. 

Figure 21: Audit committee chair views on our financial audit parliamentary reports.

Source: VAGO.
Note: The totals reflect a weighted average based on sample size.

Of the CFOs who responded, 94 per cent agreed reports communicated significant issues and their implications clearly (same as 2023–24) and provided a balanced perspective (up from 90.6 per cent in 2023–24).

Figure 22: CFO views on our financial audit parliamentary reports.

Source: VAGO.
Note: The totals reflect a weighted average based on sample size.

Client satisfaction with management letters and recommendations from our financial audits

We provide an audit management letter at the conclusion of a financial audit outlining findings related to internal controls, operational inefficiencies and financial practices. We also offer recommendations for improvement. This letter is distinct from the auditor's opinion on the financial statements, focusing instead on process enhancements and risk mitigation.

Regarding our management letters, of the 219 responses from CFOs to our survey:

• 94 per cent agreed the letters clearly communicated findings and issues, matching the 
  2023–24 result (94 per cent)
• 94 per cent also agreed the management letters were balanced and fair (91 per cent in 
  2023–24).

Figure 23: CFOs’ satisfaction with our management letters from 2019–20 to 2024–25

Source: VAGO.

In 2024–25, 93 per cent of CFOs and 96 per cent of the 158 audit committee chairs also either agreed or strongly agreed our recommendations will improve their organisation's financial management and internal controls. This compares to 94 per cent and 91 per cent respectively in 2023–24.

Our audit impact

When we audit the performance of public sector agencies, we often identify opportunities to improve how they work. We make recommendations to help them address the risks and root causes of any poor performance.

Similarly, part of our financial audit process includes sending management letters highlighting internal control weakness and other matters we identify during our audits with recommendations to resolve them. Agencies respond to these letters with their intended actions. We also provide recommendations in our results of financial audit parliamentary reports to drive change across the public sector.

Performance engagement recommendations

The agencies we audit are not legislatively required to accept, complete or publicly report on our recommendations. Consequently, we conduct an annual review to monitor how agencies have addressed our findings. 

In 2024–25, 81 per cent of audited agencies accepted our recommendations, which is above our target of 80 per cent. It is also a further improvement on 2023–24 (77.6 per cent). 

On a broader scale, of the 1,260 recommendations from reports we tabled between 1 July 2019 and 30 June 2024, agencies:

• accepted 1,207 (96 per cent), which is the same as 2023–24
• completed 991 (82 per cent) of accepted recommendations (down from 85 per cent in 
  2023–24)
• have taken a median of 11 months to complete them (compared to 13 months in 2023–24).

There are 216 accepted recommendations (18 per cent) that are unresolved, plus 25 from before July 2019. These largely relate to disaster recovery planning, protecting Victoria's coastal assets and managing public sector records. This compares to 15 per cent in 2023–24.

The 2025 findings can be found in our Responses to Performance Engagement Recommendations: Annual Status Update 2025 report on our website.

Responses to tabled reports

While not obliged to implement our recommendations, it is generally acknowledged they provide opportunity to improve the way organisations and departments do their work. Some examples of recommendations made and implemented during 2024–25 are described below. 

The Orange Door: Follow-up

In the community services arena, we followed up on one of the state’s most important social reforms – the network of family violence support hubs, known as The Orange Door. Created after Victoria’s Royal Commission into Family Violence, it aims to provide a single-entry point for family violence victims to access support. Advocacy groups for family violence survivors acknowledged the expansions and improvements but echoed the need for 24/7 services and better integration, as highlighted in our report. 

Following the audit, the Department of Families, Fairness and Housing announced it would fast-track the rollout of after-hours support and finalise The Orange Door governance review within 2025.

Work-related Violence in Government Schools

Stakeholders welcomed our recommendations to the Department of Education to improve incident reporting completeness, regularly evaluate the effectiveness of response strategies and to update polices based on incident learnings to keep teachers and staff safe from violent or aggressive student behaviour. The teachers’ union and principal associations reiterated violence is not ‘just part of the job’ and pressed for more support and training in line with our report.  

As a result of our audit, the Department of Education agreed to bolster its incident reporting systems to capture all incidents, including near misses and to strengthen oversight of schools’ risk controls.

Staff Wellbeing in Fire Rescue Victoria

Prompted by recognition that first responders face high-stress and traumatic incidents regularly, our Staff Wellbeing in Fire Rescue Victoria audit, which identified several gaps in FRV’s approach, drew interest from firefighter associations and occupational health experts. 

The United Firefighters Union welcomed VAGO’s findings and urged FRV to implement a formal mental health plan, citing the intense pressures on members. FRV’s management agreed to all recommendations outlined in the audit giving additional momentum to ongoing initiatives such as FRV’s move to introduce mandatory mental health checks and resilience training.

Financial audit recommendations 

As part of our financial audit program, we issue management letters to agencies outlining internal control weaknesses and other matters identified during our audits. These letters set out practical, risk‑rated recommendations, and agencies provide formal management responses detailing the actions they will take and the timeframes for implementation. 

In addition, our reports to Parliament include recommendations, often focused on strengthening financial management and governance, to drive system‑wide improvement and support effective oversight. We monitor agencies’ progress and may follow up in subsequent audits and reports.

Prior-period issues 

Following our advice last year for TAFEs, universities and local government to increase focus on closing out long-standing issues, we saw an improvement in 2024–25 on the percentage of internal control issues entities resolved from prior years.

For TAFEs in 2024, there were 10 open prior-period issues across 7 TAFEs, compared to 14 across 6 TAFEs in 2023, and a reduction in IT-related issues from 9 in 2023 to 4 in 2024. While a positive result for legacy issues, we also found 15 new internal control and financial reporting issues for TAFEs, a threefold increase on those noted in 2023.

For universities, only one prior-period issue remained outstanding for 2024, compared to 3 unresolved issues from 2 universities the previous year. While the open issue does relate to IT systems, this shows universities have worked to address our concerns raised in our 2023 report about long-outstanding IT issues, with only a single university still addressing a prior-period issue.

Unresolved issues among local government entities increased to 103 in 2023–24 from 96 in 2022–23. This has been a trend year-on-year over the past 3 years and shows councils are not addressing issues within the recommended timeframe.

IT issues remain the key challenge for all sectors.

We continued to find significant weaknesses in IT system controls of material entities as reported in our Auditor-General’s Report on the Annual Financial Report of the State of Victoria: 2023–24 with 37 prior-period IT control deficiencies remaining unresolved, along with 65 new issues identified, reflecting ongoing weaknesses in their control environments.

Other references and use of our work

Examples of ways our work has been referenced or used during the 2024–25 year include:

• The Department of Families, Fairness and Housing has published the findings and recommendations from VAGO's Planning Social Housing audit on its website, along with an action plan. 
• In its 2023–24 annual report, the Victorian Building Authority notes the presentation of a consolidated report to their board as recommended by VAGO, following allegations of bullying and harassment and cultural issues. This report has been absorbed into the responsibilities of the CEO.
• The website of Local Government Finance Professionals, the association that supports and represents local government finance professionals in Victoria, links to VAGO publications and advice including ongoing and planned performance audit engagements. In 2024–25 it specifically referenced Responses to Performance Engagement Recommendations: Annual Status Update 2024 and Protecting the Biosecurity of Agricultural Plant Species. 
• Local Government Victoria references VAGO and its work specifically in its Local Government Better Practice Guide: Preparing Council's Annual Report: 2024–25 Edition. 
• In 2024, as part of a report into the Australian Government Commitment to the Melbourne Suburban Rail Loop East Project, the Australian National Audit Office referenced a 2022 VAGO report into the Quality of Major Transport Infrastructure Business Cases.
• Two entities have also made updates to their BP3 measures based on VAGO’s recommendations through our series of reports on the Fair Presentation of Service Delivery Performance. Both the Department of Energy, Environment and Climate Action and Department of Justice and Community Safety have modified and discontinued measures. These updates are captured in the Response to Recommendations: Annual Status Update 2025 report.

Outlook

We recognise that when we communicate successfully, parliamentarians and the Victorian public understand what we do and what we are saying. This means they are better informed about how the Victorian public sector is performing, which supports them to effectively scrutinise and improve it. They can also engage with us easily, share their ideas for audits, or partner with us to act on our insights, realising the full value and importance of our work.

During 2024–25 we have continued to meet with key stakeholders, sharing our findings directly and via our website, but we also recognise there is still more work to do in this space. 

With methods of communication continuing to evolve and the way people prefer to receive and engage with information changing, to ensure we maximise the opportunities to reach those we want to influence, a priority going forward lies in reviewing the way we communicate our findings to further enhance engagement with key stakeholders and the public to better reach those we want to influence. 

Enhancing our stakeholder engagement and increasing our outreach is one of the key pillars of our new Strategic Plan 2025–29. The key objective underpinning this goal is to build more productive relationships with Parliament, media and the public to better respond to their evolving information needs.

This will be achieved by modernising our digital presence and embracing a proactive communications posture supported by the development of an organisation-wide communications and engagement strategy during 2025–26.

We currently use routine assessment measures to evaluate how our work contributes to improved outcomes for citizens and how it is perceived by key stakeholders. When it comes to accurately measuring impact, we also recognise additional indicators are needed to better assess, document and communicate the effect that our work has on public administration in Victoria. 

We will also continue to evolve our reporting on, and visualisation of, public sector performance and leverage technology to implement the best format and content of public reporting to support increased scrutiny and transparency of those we audit by the public generally.

Measuring performance

In this chapter, we report on our progress this year in delivering on the final year of our 4-year Strategic Plan 2022–25, showing how operational activities, improvements to our systems, processes and methodologies, and stakeholder engagement have collectively driven us toward our objectives. It outlines key deliverables achieved, challenges addressed and next steps as we continue to build value across our core priorities:

• A transparent and accountable public sector: our goal is to continue to be a source of credible, authoritative assurance about the performance of the public sector.
• Better public services: we ensure we strengthen our role to continue to help the public sector understand and ameliorate risks to efficient and effective service delivery.
• An enriched experience for our people: we aspire to be an organisation that supports our staff to develop and to be highly productive and positively engaged. 

Our goals and progress

Parliamentary accountability is a cornerstone of effective government. Publicly reporting the results of our work to Parliament and all Victorians means they are both better informed and better able to hold the government accountable. 

We want to be a source of credible, authoritative assurance about the public sector’s performance and deliver reports that are well regarded, balanced and fair. 

Our goal is to build on our success in contributing to a more transparent and accountable public sector by promoting: 

• greater awareness and use of our work
• greater transparency.

2024–25 achievements

During the past year:

• We continued to use and enhance dashboards to support our parliamentary reports across performance audits, the reports of financial audits, and our report on the AFR to promote transparency and accountability by visualising report data and findings, making them more understandable and accessible.
• We focused on writer and reviewer learning pathways to ensure our reports remain easy to read and engage with. We also ensured our timelines allowed us to develop a suite of supporting products to increase understanding of our reports. 
• We developed and implemented a framework to guide engagement with parliamentarians, with work to develop a comprehensive communications and engagement strategy currently underway. 
• We initiated direct outreach to the parliamentary press gallery to increase its understanding of our role and products and how it can engage with us. 
• We overhauled our approach to correspondence and referrals – improving the experience for MPs and the public when they engage with us.  
• We invested in our digital channels and a strategy to support them, allowing us to communicate directly with our audience in ways they like to consume our products.

Improved parliamentary products and performance audit methodology

In 2024–25 we continued to refine and evolve our parliamentary products and associated web content to support our vision for an integrated suite of digital content that is more accessible, understandable and usable while maintaining our strongly held values of reliability, relevance and timeliness.

We also delivered a significant uplift in our performance audit methodology by:

• reinforcing a risk-based approach to engagement planning, ensuring reports are targeted and deliver impact
• developing key guidance documents to support the practical application of the Australian Standards on Assurance Engagements in VAGO’s performance audits and assurance reviews
• developing new manuals and tools to drive effective professional practice across the engagement cycle
• streamlining our products for auditees, enabling clear communication of our findings to stakeholders and a ‘no surprises’ approach. 

These updates will support staff and enhance our engagement process from planning to reporting. New methodology and templates were embedded at the end of 2024.

A refreshed annual planning process

In 2024–25, we refreshed our continuous planning process, recognising the importance of using regularly updated, high-quality information to guide our work. This enhanced approach enables more agile and informed decision-making, ensuring our planning activities remain aligned with current risks, opportunities and stakeholder priorities across the public sector.

A key component of this new process was the creation of 19 knowledge banks – centralised information hubs designed to store, monitor and maintain accurate, timely and relevant data on public sector performance. These knowledge banks provide a solid foundation for evidence-based planning and reporting.

Together with strengthened strategic analysis and stakeholder engagement, the new planning framework supported the development of our Annual Plan 2025–26. This plan, tabled on 18 June 2025 in Parliament, marks a significant milestone as the first 3-year plan produced since 2021–22, setting a clear, longer-term direction for our audit program and reinforcing our commitment to continuous improvement and transparency. 

Engaging with parliamentarians

In 2024–25 we continued to engage with parliamentarians with the aim of better understanding their needs and developing opportunities for MPs to input into, and receive insights from, our work. This year we developed and implemented a communication and engagement strategy to support this work. We also commissioned research to support the continuous improvement of our reports and dashboards to better support the needs of parliamentarians and their offices. In response to the engagement with dashboards, we are focusing on creating a unified and cohesive approach to our dashboards, which will also be in a central hub for ease of transparency and engagement. 

We continue to offer online or in-person briefing sessions for MPs about tabled reports. These briefings provide parliamentarians and their staff with an overview of our audit findings and the opportunity for questions.

In 2024–25 we briefed numerous MPs or their staff on several of our reports including:

• Auditor-General's Report on the Annual Financial Report of the State of Victoria: 2023–24
• Recycling Resources from Waste
• Managing Disruptions Affecting Victoria's Public Transport Network
• Fair Presentation of Service Delivery Performance: 2024
• Domestic Building Insurance 
• State Trustees' Financial Administration Services
• The Orange Door: Follow-up
• Results of 2023–24 Audits: Local Government 
• Results of 2023 Audits: Technical and Further Education Institutes
• Results of 2024 Audits: TAFEs and Universities.

Responding to enquiries

In 2024–25 we received 372 pieces of correspondence from parliamentarians, other public sector organisations, and members of the public, which was a significant increase on the 265 received the previous year, which was also a 50 per cent increase on the year prior. 

This included:

• 311 from the public (249 in 2023–24)
• 21 from MPs and local government councillors (16 in 2023–24)
• 24 from the public sector
• 16 from PAEC.

On average, we took 11.7 days to finalise a response to MPs, easily meeting our target of 20 days or less, and an average of 19 days responding to all other correspondence received, well ahead of our target of 28 days or less.

Audit topics from MPs and the public

When developing our annual plan, we consult with the agencies we audit and encourage MPs and the public to suggest audit topics to ensure our work program reflects relevant issues. Also, throughout the year we engaged with PAEC on annual planning and topic selection. This relationship provided valuable feedback and insights on our forward audit program, including ideas about potential engagements.

Three audits tabled in 2024–25 related to issues raised in referrals from MPs and the public. They are: 

• Recycling Resources from Waste
• Domestic Building Insurance
• Managing Disruptions Affecting Victoria's Public Transport Network.

Of the correspondence we received in 2024–25:

• 126 items were referred to the relevant sector directors for consideration in our annual planning process
• 62 were added to our continuous planning pipeline
• 9 informed the topics below selected for our Annual Plan 2025–26:
  • Maintaining the condition of state-managed roads
  • Managing Victoria’s firefighting fleet
  • Government support for major events
  • Supporting the transition out of native forest logging
  • Delivering school infrastructure projects
  • Out-of-home care services
  • Upgrading the fines management system
  • Victorian Energy Upgrades program.

Dashboard reporting

Our dashboard and data visualisation products allow easier analysis and deeper exploration of the information presented compared with static tables of information. This in turn increases scrutiny and improves public services.

During this financial year we designed and issued additional user-focused dashboards that track relevant data providing a visual snapshot of our findings. 

In 2024–25 we again updated our report on the AFR dashboard to include state Budget information, sharing this update the same day the Budget was released to make it easier for Victorians to digest the information.  

Figure 24: Snapshot of the state’s finances dashboard updated for the 2025–26 Budget. 

Source: VAGO.

We also published the following dashboards in 2024–25: 

• Results of 2023 Audits: TAFEs
• Results of 2023–24 Audits: Local Government
• Results of 2024 Audits: TAFEs and Universities
• Major Projects Performance Reporting 2024
• Departments’ Reported Consultant Spend: 2017–18 to 2023–24
• Responses to Performance Engagement Recommendations: Annual Status Update 2024

View our dashboards on our website (audit.vic.gov.au).

Public sector advocacy programs

We play a leadership role in influencing and shaping how well the public sector reports its performance by making information publicly available that is reliable, meaningful and timely. We also use our knowledge and expertise to support change that will lead to improvements in processes and outcomes.

During 2024–25 we have helped shape many of the frameworks we, and our clients, are operating within.

This includes:

• simplification of public sector reporting
• fair value in the public sector
• public sector performance reporting. 

Simplified reporting

Aligning with our strategic goal to improve public sector reporting, we successfully influenced the adoption of simplified financial reporting across government, and performance reporting layouts across local government sectors. We continue to work with local government, the university sector and our clients to support and improve their financial reporting. 

We support the underlying objective to provide useful information in a simple and concise manner, which is also a key focus area for our office. We have shared our observations and feedback with DTF.  We sought consideration of impacts based on the timing of transition, and the preparation of model financial statements to help organisations interpret the new requirements.

We are also leading by example by simplifying and streamlining our own internal financial reporting, reducing content and page count and enhancing simplicity and clarity. We continue to advocate to the Australian Accounting Standards Board (AASB) to prioritise the Public Sector Financial Reporting Framework project and maintain strong focus and action on public sector–specific reporting reforms.

Fair value in the public sector

During this period, we responded to the AASB’s proposed amendments to fair-value measurement and began addressing implementation challenges, working also with regulators to understand their approach to assessing the impact of these requirements, which took effect 31 December 2024.

The valuation of non-financial assets and the applicability of these amendments will be a key focus area for us in 2025–26. 

We will continue to help shape the public sector narrative by challenging the broader appropriateness and applicability of fair-value measurement.

Preparedness for climate accountability

We initiated a project in 2022 to proactively research, advocate and prepare for anticipated climate-related reporting and assurance requirements. While this is largely contingent on developments outside VAGO's control, we continue to monitor, build understanding and prepare for changes likely to impact the public sector reporting and scope of our audit mandate.

We continue to engage with key stakeholders, including AASB, the Auditing and Assurance Standards Board, DTF and LGV. These interactions allow us to share our experiences and learn about other jurisdictions’ progress and plans while also collaborating with other audit offices to co-design audit methodology and identify training needs.

Communicating our work

Effective communication is crucial in achieving our strategic objectives. 

We are committed to producing and sharing products that can be accessed and used by the public. This means continuing to improve the readability of our reports by:

• writing in plain English
• applying information-mapping to structure our reports
• using more graphic elements.

We continue to proactively share content across multiple channels, including our website, YouTube and social media channels. 

We structure our reports in line with audience-focused plain language and clear communication principles and include report snapshots with clear infographics to aid audience engagement. Reports are available on our website as PDFs and in HTML and are supported by additional digital content including summary videos and interactive dashboards.

Presentations and engagement

Representatives from our office hosted, presented and engaged with other key stakeholders throughout 2024–25:

• We presented to the Local Government Finance Professions twice during the year.
• We presented to the Department of Justice and Community Safety's audit and risk committee and briefing the chair of DTF’s audit and risk committee on the findings of our Fair Presentation of Service Delivery Performance: 2024 report.
• We presented to the audit and risk committees of the Department of Premier and Cabinet, the Department of Justice and Community Safety, and the Country Fire Authority on our Managing State-significant Risks report.
• The Auditor-General presented to the Australia and New Zealand School of Government’s Executive Master of Public Administration program on the topic of analysing fiscal sustainability using trend analysis and spoke about financial sustainability challenges at the conference of Local Government Finance Professionals.  
• We hosted 2 forums for the chairs and members of our clients’ audit committees, where we explored the latest and emerging public-sector trends and insights.
• Our FA directors actively participated in a range of forums during the audit planning phase, sharing key insights and risks for the upcoming audit cycle. This included presentations at departmental and portfolio agency CFO forums, as well as to industry bodies such as the Water Industry Sector Interest Group.
• We regularly attended and presented at all our clients’ audit committees. 

Our goals

We play a key role in helping the public sector understand and mitigate risks to efficient and effective service delivery. 

By better leveraging the information we hold, we have a unique opportunity to maximise the value and impact of work. We continue to seek opportunities to evolve our product offerings and provide insights about the public sector and how it delivers services. 

Our goal is to enhance our ability to contribute to better public services by:

• making better diagnostic use of the financial and non-financial data we will continue to accumulate and store in our audit system, and
• improving how we engage and communicate with the public sector with a focus on sharing the better practice approaches we observe.

2024–25 achievements 

• We developed and published a high-level data science strategy and our Information Technology and Digital Strategy 2024–26. These informed how we have adopted modern digital technologies, platforms and data-driven practices to:
  • best support our strategic objectives
  • improve outcomes for staff and clients.
• In our engagements we not only look for areas of improvement, but also what is working well, and in 2024-25 have placed a greater emphasis on highlighting good audit practice in our reports to support agencies and departments to learn and grow from each other.

Identifying what is working well

Sharing our observations of what is working well allows other public agencies to learn from and adopt good practices. This is an important part of our commitment to better public services for Victorians. 

Some examples of things we have identified and highlighted where auditees are 'doing it well’ include:

• central coordination teams overseeing performance reporting and encouraging better practice 
• increased emphasis on value for money in contractor and consultant management, and compliance with procurement and service guidelines. This, along with guidance to staff specifically around verifying completed actions, is a positive step to help business areas implement audit actions transparently
• evidence of effective value management approaches being applied on major projects to mitigate scope and cost challenges.

Our goals 

Our people are central to us achieving our purpose and delivering quality outcomes. We aim to attract and retain talented and committed people by: 

• providing professional development and career growth 
• equipping them with technology, methodology and accessible workspaces 
• supporting them to be highly productive and positively engaged. 

Our goal is to foster an enquiring and capable workforce, willing to embrace technology and with a thirst for knowledge and growth. We will do this by continuing to build on our achievements in workforce experience and engagement by:

• providing professional development and career growth
• enabling our people with workspace, technology and methodology.

2024–25 achievements

• Better Normal is one of our greatest strengths and much of our focus has been on embedding this in our organisation through our ways of working and providing staff with access to high-quality physical and digital workspaces that support flexible, collaborative and effective work. 
• We have also delivered a complete update of our performance engagement methodology, including the tools and guidance to support staff and transition of our in-house audits to a new cloud-based financial audit toolset. 
• Our People Matter Survey results have shown a steady uplift in employee engagement across the board during the period of this strategic plan, and we are now tracking well ahead of comparison agencies – particularly in the pride staff take in working for VAGO, satisfaction and sense of belonging gained in working with us.
• Capability has also remained a huge focus for VAGO.

Capability frameworks

We continue to embed capability in our performance and development processes.

After launching capability frameworks in 2023–24, to support our people in their daily work, in 2024–25 we began integrating these into our professional development plan process for our audit staff, further enhancing professional development and career growth opportunities.

For our financial auditors, we aligned the goals in our cloud-based management platform to the FA capability framework, ensuring they are supported and aligned to individual roles and organisational strategy. 

While there is more work to be done, including expanding these resources to support non-audit staff, we acknowledge the progress made to date and commit to continue to invest and mature our frameworks to support our staff to progress and develop in their roles. This work is captured in our human resources plan.

Learning and development

As part of a structured learning and development curriculum for FA endorsed in August 2024, we partnered with RMIT University to deliver an accredited 'Foundations of IT’ course to enhance systems assurance capabilities. We are also working with LinkedIn Learning to provide a wide range of professional development content mapped to the curriculum.

More than 130 learning pieces have already been uploaded to our in-house learning platform, with 23 new modules in development and a total of 870 learning modules planned over the next 2 to 4 years.

During 2024–25 we also:

• delivered leadership development to all people leaders in FA and directors in PRS
• scheduled leadership development for all other people leaders at VAGO
• delivered personal leadership sessions for FA team members
• launched an enterprise-wide learning platform, with the aim of aggregating all learning from across VAGO and external sources to one area
• uplifted talent acquisition capabilities and processes through recruitment of a senior manager as well as improving our recruitment processes
• successfully delivered graduate attraction, recruitment and development processes in-house
• designed and endorsed a VAGO succession management framework
• progressively launched contemporary tools, processes and documents.

Growth and retention

Our priority is to support growth from within.

This includes supporting various flexible work arrangements to promote work-life balance along with secondment opportunities.

As part of our sourcing strategy for learning content we continue to collaborate with universities, Chartered Accountants Australia and New Zealand and CPA Australia to strengthen our talent pipeline.

Recognising the audit industry and public sector continue to evolve, we have also begun early workforce planning and exploring co-sourcing opportunities to align with anticipated audit scope expansion. This has included a redesign of our recruitment processes to target skills and qualifications beyond traditional accounting, specifically with relevance to environmental, social, governance, and sustainability reporting.

Additionally, during 2024–25, we conducted research into barriers to progression, with recommendations to improve retention to be considered in 2025–26, and finalised our approach to managing peak workflow periods with manager guidelines and supplier options within FA.

We have also in-sourced the recruitment for our graduate intake and modernised our graduate program, which will be rolled out to support our 2026 intake.

Our IT and digital strategy

We recognise technology as a critical enabler and have continued to invest and pioneer the use of new and emerging technologies aimed at improving efficiency, service delivery and engagement.

Our aspiration, captured in our Information Technology and Digital Strategy 2024–26, is to harness new technologies and new ways of working that best support our strategic objectives and improve operational capabilities and efficiency.

This year, alongside leveraging the Microsoft suite and continuing to streamline our back-office practices and processes, we have also put more investment into our audit products and data analytics capability and continued to progress our key transformational projects.

Caseware

Legacy tools were identified in the previous strategic plan period as a significant challenge for FA. In response, we launched the Audit Software Replacement Toolset project, which led to the adoption of a native cloud-based solution designed to provide full visibility across all audit files.

During 2024–25, we continued to transition our in-house audits to this new cloud-based financial audit toolset. As of the end of this financial year, 84 per cent of in-house audits are now using Caseware, with the remainder transitioning in the 2025–26 audit cycle. 

Looking ahead, the next phase will focus on onboarding our extended workforce – our audit service providers – to further enhance the value provided to our clients.

Empower

In July 2024, we completed our launch of Empower 2.0 – an advanced version of our in-house analytics platform initially introduced in November 2019. The rebuilt platform provides better data protection, faster performance, and a smoother user experience.

In the past year, it has supported audits of financial reports for 54 clients, managing around 21 billion records and providing auditors with direct access to raw data, interactive visualisations and practical tools to simplify audit planning and execution.

A key focus this year has been exploring opportunities to gain assurance from data extraction and automation. 

We have also begun exploring the next phase of Empower’s development to incorporate testing capabilities for general IT and information processing controls.

Leveraging the power of our rebuilt in-house analytics platform, Empower, within the audit toolset has also enabled us to deliver a more data-driven approach, ensuring our audits meet public-sector audit best practices.

By providing auditors the raw data and pre-constructed analysis to conduct audits more efficiently and effectively, they can focus more on high-value activities that require professional judgement and critical thinking, which can lead to greater job satisfaction and a stronger sense of purpose in their work. Exposing our staff to modern tools and analytics also contributes to upskilling and professional growth.

Ways of working

We have continued to refine and embed our ways of working.

A range of initiatives are now in place to encourage staff participation and engagement, including Values Awards at business unit and enterprise levels, our Better Normal principles and use of Microsoft Teams. Social events and groups keep people connected.

Our approach combines the best of office-based, client-site and virtual work while being purposeful when we come together. Recognising, however, remote working poses challenges for social learning, a key element of our 70/20/10 learning model, we are consciously working to improve the quality of in-person and hybrid interactions.

During 2024–25 we undertook extensive consultation internally to support an update to our Better Normal principles with a renewed focus on together-together days, learning and development experiences and peer networks. We have also created structures for incidental interactions that are vital for social and on-the-job-learning.

A highlight on our calendar is the all-staff forum where employees from across the organisation can meaningfully connect outside the workplace, hear from leadership, offer feedback and share ideas. Run by staff for staff, the forum fosters collaboration and supports a stronger organisational culture. This is also one of 2 opportunities each year to celebrate our people with the presentation of our Values Awards for employees who contribute to influencing organisational culture and enhanced wellbeing and happiness in the workplace. 

Business units facilitate connection and collaboration with divisional forums that complement the annual all-staff forum.

Celebrating and enabling diversity

We recognise an organisation performs at its best when it understands, respects and celebrates the diverse qualities of its people. 

Since endorsing Our Diversity, Inclusion & Belonging Plan 2022–25, we have continued to mature our capability as an organisation with diversity working groups helping foster a sense of belonging, and inclusion and diversity champions supporting diversity initiatives.

Since the plan’s implementation we have reviewed existing recruitment processes and advertising templates, including a statement of reasonable adjustments, through the lens of the social model of disability to reduce barriers to employment for candidates and staff with disabilities.

We have also delivered mandatory cultural awareness training for all employees and continued to inform and educate employees in cross‑cultural attitudes, practices, norms, behaviours and communications. We provide respectful workplace refresher training, include diversity statements in our job advertisements, and have built our diversity calendar with days of cultural significance and celebrations for diversity groups.

In 2024–25 we:

• updated the existing appropriate behaviour policies and resources to reinforce constructive behaviour, language and interactions in the workplace 
• leveraged data from the People Matter Survey to better understand and improve the experiences of culturally diverse staff, including introducing culturally inclusive workforce initiatives and practices
• supported staff to list characteristics such as cultural identify and faith to measure success against future diversity initiatives 
• provided a leadership program for FA designed to create a more inclusive, engaging and productive workplace.

We also recognised cultural and diversity events such as NAIDOC Week, Diwali, Lunar New Year, International Day for the Elimination of Racial Discrimination, Eid, Harmony Day, Wear it Purple Day, and International Day Against Homophobia, Biphobia and Transphobia, to name a few. These celebrations help us recognise the diversity of our workplace and encourage our employees to learn more about other cultures and groups.

Disability inclusion and accessibility

We aim to be an employer of choice where meaningful employment opportunities are equally accessible and where we embrace unique skills and abilities.

During 2024–25 we:

• continued to raise awareness and increase visibility of people with disability by sharing stories and data on days of significance and in standard communications, including this annual report
• promoted and implemented the Victorian Public Sector Commission’s accessibility guidelines to support accessible and inclusive work practices
• leveraged data from the People Matter Survey to better understand and improve the experiences of staff with disability in the workplace
• increased knowledge of accessibility features across our suite of digital applications.

Gender diversity remains strong

We remain committed to:

• supporting the growth and development of talented women
• eliminating gender discrimination
• removing barriers to equal participation. 

This year, the number of women as a percentage of our total full‑time equivalent workforce was 58 per cent, consistent with last year. The representation of women in middle management was 65 per cent, compared with 66 per cent last year. The percentage of women in senior and executive management roles decreased to 47 per cent, compared to 53 per cent in 2023–24.

In 2024–25 the average gender pay gap was 10.9 per cent in favour of men (6.7 per cent in 2023–24) and the median was 4.1 per cent in favour of men (1.4 per cent in 2023–24).

Some of our achievements this year included: 

• providing leadership development work to achieve greater gender equality at senior levels in FA
• continuing to include pay gap data by business unit in our annual report, to provide greater transparency and help identify where disparities are most pronounced  
• providing career support and encouraging flexible work arrangements for all employees, including those on long-term leave
• revising, consulting on and updating our Better Normal principles, enabling all employees to participate fully in the workforce, advance their careers and share opportunities on equal terms.

LGBTQIA+ inclusion

Sexuality and gender identity are major parts of who we are as people, and we aim to create a visibly inclusive and safe workplace where employees can be their authentic selves.

In 2024–25 we:

• continued to develop connections with the VPS Pride Network to remain up to date on contemporary and best-practice LGBTQIA+ inclusion. We also have our own Pride Network within VAGO to provide a safe space for LGBTQIA+ employees to network and connect
• supported staff to list their pronouns in their email signatures and Microsoft Teams profiles.

Reconciliation

Our vision for reconciliation is to work in partnership with Victorian Aboriginal and Torres Strait Islander communities, embedding their voice in our work.

In 2024–25 we:

• began a review of cultural learning needs within our organisation
• began development of a cultural learning strategy, anti-discrimination policy, and data sovereignty document including protocols for collection and use of data from Aboriginal and Torres Strait Islander organisations, communities and individuals to safeguard their rights
• provided opportunity for leaders to participate in formal and structured cultural learning.

Our Diversity, Inclusion & Belonging Plan 2022–2025

Our Diversity, Inclusion & Belonging Plan 2022–2025 outlined bold objectives and ambitious strategies, some of which, due to resourcing issues, are still in train. These include improving our collection of LGBTQIA+ data and investigating opportunities for procurement of goods and services from Aboriginal and Torres Strait Islander businesses.

We remain committed to the delivery of our plan and outstanding actions will be revisited as part a refresh in 2025–26 and development of future engagement plans.

Challenges

During 2024–25, after experiencing increased staff turnover and disengagement within PRS, we commissioned an independent review, which identified issues around leadership, communication styles and workloads.

We have moved quickly to address these, implementing all the recommendations from the review, including establishing a staff advisory team, developing an organisational change proposal, initiating a review of workloads and milestones, and uplift of training across both technical and behavioural skills.

We also recommitted to our core values, and implemented monthly surveys to gauge staff sentiment, monitor issues or concerns, and identify opportunities for improvement.

While work is ongoing, in 2024–25 we saw a positive uplift in our People Matter Survey results. 

Specifically, for PRS, compared to the previous year, the 2025 results represented a significant improvement across staff wellbeing (55 per cent fewer reported negative work emotions), engagement (up 21 per cent), inclusion (44 per cent improvement), and leadership indicators (improvements of 78 per cent for managers and 46 per cent for senior leaders).

We will continue in 2025–26 to consolidate and improve on these results with a particular focus on leadership and safety climate.   

Outlook

Because we recognise our future success depends critically on engaging and developing our people, they have been given prominence again in our new strategic plan for 2025–29. Much of our effort over the coming years will be directed at investing in our workforce and equipping them with knowledge, skills and tools to be future ready.

To support our aim to foster a culture where we celebrate our differences and an environment where employees feel safe and empowered to bring their authentic selves to work and feel they truly belong, in the period ahead we will also be:

• reviewing and updating Our Diversity, Inclusion & Belonging Plan 2022–2025, along with our approach to engagement plans
• focusing on leadership development to better support future leaders to transition into more senior roles, recognising our need for diverse and gender-equitable representation at these levels
• embedding VAGO's values in the employee lifecycle and flow of work.