Internal audit is intended to be an independent, objective assurance and consulting activity designed to add value and improve an agency's operations. It can be an important part of the internal control framework and help an agency accomplish its objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, internal controls and governance processes.
| ANAO | Australian National Audit Office |
| CAE | Chief audit executive |
| CFO | Chief financial officer |
| DEDJTR | Department of Economic Development, Jobs, Transport and Resources |
| DELWP | Department of Environment, Land, Water and Planning |
| DET | Department of Education and Training |
| DHHS |
Ordered to be printed
VICTORIAN GOVERNMENT PRINTER August 2017
PP No 257, Session 2014–17
Dear Presiding Officers
An effective system of performance measurement and reporting is critical if government is to achieve its policy goals in a way that is transparent and accountable.
In Victoria, the performance measurement and reporting system aims to:
VAGO undertakes performance audits into the economy, efficiency and effectiveness of public sector agencies and their operations to provide assurance to Parliament and drive public sector improvement. We aim to achieve this by identifying issues and making recommendations to agencies about how to address them. However, our recommendations cannot result in improvements unless they are accepted and enacted by public sector agencies.
Audit committees play a key accountability role in the governance framework of Victorian public sector agencies. While management retains ultimate accountability for operations, audit committees independently review and assess the effectiveness of key aspects of an agency's operations.
The East West Link (EWL) was to be an 18 kilometre cross city road connecting the Eastern Freeway at Hoddle Street to CityLink, the Port of Melbourne precinct and on to the Western Ring Road at Sunshine West, with a range of associated works. It would have been one of the largest transport infrastructure projects ever undertaken in Australia, and significant in terms of its impact, complexity and cost.
The effective planning and delivery of major capital projects is critical to governments achieving their policy objectives. If delivered well, infrastructure enhances services to the public and improves productivity. Poor management diminishes the benefits of these projects, potentially delays delivery and creates additional costs for taxpayers.
A 2010 industry report estimated the Victorian Government's information and communications technology (ICT) expenditure at $1–$1.5 billion per year. This audit revealed that the actual overall spend is significantly greater.
Despite this significant expenditure, information on the status and outcomes of public sector ICT initiatives is currently difficult to obtain. Most agencies and entities provide little, if any, public information specifying these details.
Citizens and consumers are increasingly accessing services via digital devices, including smart phones, tablets and laptops. The Victorian Government ICT Strategy (ICT Strategy), as the overarching strategy, was released in February 2013 and updated in March 2014. It was intended to drive the migration of government services online via digital devices and provided high-level direction on the design and use of information and communication technology (ICT) to deliver better government services.