The Financial Management Act 1994 (FMA) governs the financial administration, accountability and reporting of the Victorian public sector. It requires the annual preparation of a consolidated financial report of the state, known as the Annual Financial Report of the State of Victoria (AFR).
At 30 June 2013 the State of Victoria controlled net assets of $123 632 million and during 2012–13 collected revenue of $54 203 million. Public accountability for the collection, spending and management of the state's resources is fundamental to good government. In Victoria the legislative framework requires the government to report on the state's finances, and the Auditor-General to audit that report.
Ordered to be printed
VICTORIAN GOVERNMENT PRINTER November 2013
PP No 279, Session 2010–13
In accordance with section 16(3) of the Audit Act 1994 a copy of this report was provided to the Department of Treasury and Finance and the Victorian Managed Insurance Authority.
The submissions and comments provided are not subject to audit nor the evidentiary standards required to reach an audit conclusion. Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.
Responses were received as follows:
Over the past seven years VAGO has reported on how well agencies are managing the following risks:
This Part of the report focuses on interagency and statewide risks because these represent critical vulnerabilities for Victoria's public sector. The earlier parts of the report have shown the significant gaps in the current Victorian Government Risk Management Framework and line agencies practices in relation to these risks.
This Part assesses whether our sample of six line agencies are acquitting their responsibilities under the Victorian Government Risk Management Framework (the Framework) and applying practices that mean they are effectively managing the risks they face.
Agencies are largely, but not fully, compliant with the Framework's requirements. However, VAGO is not assured that agencies' practices have matured to the point that they are effectively managing risks.
This Part examines how well the Department of Treasury and Finance (DTF) and the Victorian Managed Insurance Authority (VMIA) have supported agencies and also, how they have informed government about agencies' performance and areas for improvement.
The purpose of the Victorian Government Risk Management Framework (the Framework) is to provide a minimum common risk management approach for public sector agencies.
This Part of the report examines whether the Framework is sound and provides clear and comprehensive instructions to support good risk management practices.