This is our third audit focusing on the effectiveness of the government's 'high value high risk project assurance framework and budget process' (the HVHR process). The goal of the HVHR process is to achieve more certainty about the deliverability of infrastructure projects, including their intended benefits and ability to meet planned costs and time lines.
Victoria’s total estimated investment in new and existing capital projects in the 2016–17 Budget Papers is $57.7 billion. In June 2016 the total estimated investment (TEI) of high value high risk (HVHR) projects was around $40 billion.
A project is classified as HVHR if:
Ordered to be published
VICTORIAN GOVERNMENT PRINTER October 2016
PP No 216, Session 2014–16
Dear Presiding Officers
In accordance with section 16(3) of the Audit Act 1994, a copy of this report, or part of this report, was provided to the Department of Economic Development, Jobs, Transport & Resources, the Department of Education & Training, the Department of Environment, Land, Water & Planning, the Department of Health & Human Services, the Department of Justice & Regulation, the Department of Premier & Cabinet, the Department of Treasury & Finance and Victoria Police.
Figure A1
Key 2003 and 2016 Standing Directions requirements for audit committees
Category |
2003 Standing Directions |
2016 Standing Directions |
|---|---|---|
Role |
Where significant risks have been identified through audits and agencies have committed to addressing those risks through proposed actions, it is important that actions are completed in a timely manner and in a way that fully addresses the underlying issues. If not, the agency could be exposed to risk.
Audit committees have a key role in monitoring agencies' implementation of agreed actions agreed in response to internal and external audits.
For an audit committee, the internal audit function is a major source of information and assurance about the agency's performance and risk management activities. The audit committee has a key role in directing and reviewing internal audit.
One of the primary tasks of an audit committee is to provide independent oversight of and advice on the agency's risk management framework.
To maximise the effectiveness of the audit committee, it must have appropriate membership, access to information and operational support, and be subject to regular performance reviews.