Each year, we audit the annual financial report that the state government prepares under section 24 of the Financial Management Act 1994. Section 16A of the Audit Act 1994 requires that we report to Parliament on our audit.
This report satisfies our obligation. In it, we discuss the results of our audit and we analyse the financial performance and position of the State of Victoria.
The 2015–16 Annual Financial Report of the State of Victoria (AFR) was tabled in Parliament by the Treasurer on 13 October 2016. The AFR includes the financial statements of the State of Victoria and the general government sector.
This report provides Parliament with information about matters arising from our 2015−16 financial audit of the AFR. It also provides our assessment of the financial sustainability of the State of Victoria at 30 June 2016.
Ordered to be published
VICTORIAN GOVERNMENT PRINTER November 2016
PP No 220, Session 2014–16
Dear Presiding Officers
In accordance with section 16(3) of the Audit Act 1994, a copy of this report was provided to the Department of Treasury & Finance, the Department of Economic Development, Jobs, Transport & Resources, the Department of Health & Human Services, Public Transport Victoria, VicRoads, Monash Health, the Royal Victorian Eye and Ear Hospital and the Royal Children's Hospital Melbourne. We also provided a copy of the report to the Department of Premier & Cabinet.
In this Part we examine the Department of Treasury & Finance's (DTF) role during the delivery stage of the 'high value high risk project assurance and budget process' (the HVHR process). We assessed DTF's approach to monitoring and overseeing project risks, focusing on five HVHR projects that were in the delivery stage during the audit.
This is our third audit report focusing on the effectiveness of the government's 'high value high risk project assurance framework and budget process' (the HVHR process).
This Part examines whether recommendations from our 2014 and 2015 HVHR audits have been effectively addressed by Department of Treasury & Finance (DTF) and Department of Economic Development, Jobs, Transport & Resources (DEDJTR).
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