The High Value High Risk (HVHR) process was introduced to provide more certainty that expected outcomes and benefits for projects would be delivered. This would occur by strengthening the Department of Treasury and Finance's (DTF) support for and scrutiny of projects classified as HVHR.
Effectively managing the High Value High Risk (HVHR) process involves establishing a review capacity, applying clear policies and procedures to guide and record reviews, applying rigorous quality assurance, clearly communicating with stakeholders and monitoring and reporting on the process and its outcomes.
Effective planning and delivery of major infrastructure projects is critical for governments to achieve their policy objectives. In Victoria, the total value of public sector capital investments underway or commencing in 2014–15 is around $72 billion.
The 2014–15 Budget commits up to $27 billion in new infrastructure including:
 John Doyle Auditor-General |
Audit team Ray Winn—Sector Director Tony Brown—Team Leader Michelle Tolliday—Manager |
Ordered to be printed
VICTORIAN GOVERNMENT PRINTER June 2014
PP No 333, Session 2010–14
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, Department of Justice, Department of Education and Early Childhood Development, Department of Environment and Primary Industries, and Victorian Government Purchasing Board.
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.
Figure A1 shows how the Department of Treasury and Finance changed Financial Reporting Direction 22 to increase the consultancy reporting requirements and clarify the definitions of 'consultant' and 'contractor'.
Figure A1
Changes to Financial Reporting Direction (FRD) 22
FRD 22B—applied July 2007 to June 2011 |
FRD 22C—applied July 2011 to June 2013 |
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This part examines department-wide and whole-of-government oversight and reporting, how procurement reform has the potential to improve departments' performance and what departments need to do to realise this potential.
Demonstrating process integrity and value for money of advisory engagements requires evidence that engagements are well planned, effectively procured, well managed and comprehensively evaluated.