Figure F1
Risk assessment tool action types and timeframes

The following charts summarise the responses to our survey of organisations that DHHS funds through service agreements. It includes quantifiable responses to our survey questions and excludes open-text responses.

The following charts summarise the responses to our survey of DHHS service agreement staff, including quantifiable responses to our survey questions. Open-text responses are excluded.

We sent our DHHS survey to 513 staff that either currently or have previously managed service agreements. This included staff that manage service agreements as a core part of their role, as well as staff whose role has less of a focus on managing service agreements. We received 200 responses, equating to a response rate of 39 per cent.

DHHS established five outcomes in its 2017 strategic plan. This audit focused on one of these—'Victorian Health and Human Services are person-centred and sustainable'. Figure C1 outlines the DHHS service system outcomes and key results under this direction.

Figure C1
DHHS service system outcomes and key results

Figure B1
Performance standards established in DHHS service agreements

We have consulted with DHHS, and we considered its views when reaching our audit conclusions. As required by section 16(3) of the Audit Act 1994, we gave a draft copy of this report to DHHS and asked for its submission and comments. We also provided a copy of the report to the Department of Premier and Cabinet.

Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.

DHHS's response is included below.

RESPONSE provided by Secretary, DHHS

The aim of contract management is to ensure that all parties meet their obligations. All contracts—including service agreements—require active management throughout their life to ensure that the goods and services are delivered to the agreed standards and timeframes.

In line with the ANAO's better practice guide, monitoring and managing service agreement performance involves:

DHHS service agreement staff need to strike a balance between managing funded organisations' performance in accordance with contractual requirements and partnering with them so that they are best placed to provide quality services to clients. The varied and often competing priorities of service agreement staff reinforce the need for DHHS to clearly define their roles, including key skills and capabilities. DHHS also needs to provide all staff with sufficient opportunities to acquire and develop key skills and capabilities over time.

In this part, we assess:

With $2.8 billion spent annually on service agreements across 1 927 funded organisations, DHHS needs sufficient assurance that clients are receiving quality services in a proper, timely and efficient manner. This requires that service agreements:

• contain clearly defined performance standards, deliverables and review mechanisms
• impose requirements on funded organisations that are proportionate to their risk profiles.

In this part, we assessed whether DHHS service agreements are fit-for-purpose, focusing on these two areas.

DHHS is responsible for policies, programs and services to support and enhance the health and wellbeing of all Victorians.

DHHS's service responsibilities are vast and include:

• health services—acute health care, aged and home care, primary and dental health, mental health and drug services
• human services—child protection and family services, housing assistance, community participation and disability services.

DHHS plays multiple roles in delivering health and human services as shown in Figure 1A.