Annual Report 2022–23

Our workforce

On 30 June 2023, VAGO employed 196 people, comprising:

• 54 in the Performance Audit (PA) division (since renamed to Parliamentary Reports and Services)
• 81 in Financial Audit (FA)
• 61 in audit support:
  • 37 in the Office of the Auditor-General (OAG)
  • 24 in Corporate Services (CS)

Of our total workforce:

• 58 per cent of our workforce were women (women made up 82 per cent of our part-time workers and 54 per cent of our executives)
• 3 per cent identified as a person with disability.

There are currently no staff who identify as Aboriginal or Torres Strait Islander. 

See Appendix A for a detailed profile of the VAGO workforce. 

Workplace health and safety

We aim to be an exemplar in safety and wellbeing in the public sector by providing a safe, supportive and respectful workplace.

For more information see Appendix B.

Our legislated function

Our sole legislated function is to report on reasonable and limited assurance engagements. Within this defined scope, we undertake:

• performance engagements (audits and reviews) of public sector entities for and on behalf of the Parliament
• attest engagements for the public sector on the financial and non-financial reports they prepare.

What we assess

Parliament funds us to determine whether public bodies are achieving their objectives and performing their services and activities effectively, economically, efficiently whilst complying with legislation. 

Our ‘follow-the-dollar’ powers

Performance engagements may involve using our ‘follow-the-dollar’ powers, which allow us to audit:

• community sector and for-profit organisations contracted to provide government services
• how government grant recipients use their funds.

Level of assurance

‘Level of assurance’ refers to the measure of the confidence we have in our conclusions. This confidence depends on the source, quality and quantity of evidence we obtain.

How we select an assurance type

While a performance audit engagement gives the highest level of assurance, a limited assurance review (where we obtain less evidence from agencies) helps us examine and report relatively quickly and cost effectively.

Section 20 of the Audit Act 1994 gives us the power to undertake these reviews, which we generally use to focus on waste, probity and compliance. We can also assess economy, efficiency and effectiveness.

A limited assurance review often has a narrower scope, looking at:

• a specific activity or set of transactions
• a single issue of significant public interest.

We design our work program with the information needs of parliamentarians in mind, taking into account the nature of an issue and level of assurance required.

How we are engaged

Under the Audit Act 1994 (Audit Act) we must: 

• audit all state and local government entities’ annual financial reports and express an audit opinion on them 
• where required, audit and express an opinion on local governments’, water authorities’ and TAFEs’ performance reports 
• review and express an opinion on the general government sector’s estimated financial reports. 

For Parliament, we also prepare sector-based reports on results of audits summarising the outcomes of our financial audits.

Level of assurance

The cost and practicality of achieving absolute assurance is generally not feasible. 

The level of assurance that we are able to provide, which is a measure of the confidence we have in our conclusions, depends on the source, quality and quantity of evidence we obtain.

We design our work programs with the information needs of our report users in mind. We consider if we need to provide them with reasonable assurance or if a lower level of assurance may be appropriate, based on:

• reliability
• relevance 
• fair presentation
• compliance with the Australian Accounting Standards and relevant legislation.

Attest engagements

For attest engagements, the public sector entity that prepares the financial information is the engaging party and pays for the audit. Each entity’s responsible officer certifies (or attests) that the entity’s financial report is prepared properly and is reliable.

Public entities’ financial reporting frameworks are set by law, while our audit objectives, scope and criteria are set by the Australian Auditing Standards, which we are required to comply with under the Audit Act 1994.

We provide our audit opinion on each attest engagement to the responsible party.

Results of audit reports

Our results of audits reports inform Parliament on the outcome of our financial audits of the local government, TAFE and university sectors. Each report analyses the sector’s financial outcomes and risks to financial sustainability. 

The reports also inform Parliament about common control and financial reporting weaknesses in the sector and include recommendations for improvement. 

Financial review and acquittals

Financial reviews provide limited assurance that no material modifications need to be made to an entity’s financial report for it to conform with the Australian Accounting Standards and relevant legislation.

Each year, we conduct an assurance review of the estimated financial statements contained in the state Budget. We provide our review opinion to the Treasurer to include in the Budget papers.

We may also be required or invited to provide audit opinions on grant acquittals or controls reports that agencies submit to grant funding bodies.

External audits of our office

The Audit Act 1994 requires us to be independently audited at least once every 4 years to determine whether the Auditor-General and VAGO are achieving their objectives effectively, economically and efficiently, and in compliance with relevant Acts.

In 2019–20, PAEC appointed Allen and Clark Consulting to conduct this audit. Allen and Clark Consulting tabled its report in Parliament on 4 August 2020, concluding that:

The Auditor-General and VAGO are operating in compliance with all relevant Acts of Parliament. Moreover, the Auditor-General and VAGO are, in all material respects, operating effectively, economically and efficiently and achieving their objectives in compliance under the Act.

We monitor our progress in implementing the report’s 31 recommendations through:

• periodic updates to our Operational Management Group and Audit and Risk Committee
• twice-yearly updates to PAEC.

Reporting our performance

Every year, we report against performance measures and targets agreed with the Assistant Treasurer. The Department of Treasury and Finance publishes our measures and targets each year in Budget Paper 3: Service Delivery, available on the Victorian State Budget website.

Our 2022–23 performance against these measures is covered in the following sections:

• Section 2: A transparent and accountable public sector
• Section 3: Better public services
• Section 5: Performance statement.

Oversight by the Victorian Inspectorate

The Victorian Inspectorate (VI) is an oversight body within Victoria’s integrity system, with the power to scrutinise our activities.

It receives and assesses complaints made about us and examines our use of coercive powers. The VI also monitors our compliance with the Audit Act 1994.

We have worked with the VI to develop a self-reporting tool about the exercise of our coercive powers. We did not exercise these powers during the past financial year.

We understand that the VI received no complaints about VAGO in 2022–23.

Monitoring and publishing our expenses

The Standing Directions 2018 under the Financial Management Act 1994 require us to publish our Gifts, Benefits and Hospitality Policy and register on our website.

Our Audit and Risk Committee monitors the Auditor-General’s expenses. To further enhance transparency and accountability, we also voluntarily publish this information on our website.

Transparency report

In January 2023 we released our 2021–22 Transparency Report.

We are not required by law to produce transparency reports. However, we choose to adopt the requirements of the Corporations Act 2001 (to the extent they are relevant and appropriate) and further expand on our annual report disclosures.

Our transparency report details how our quality control system supports our auditors to perform high-quality financial and performance engagements, as well as:

• our investment in audit quality
• our legal structure, governance and finances
• how VAGO’s internal quality control system aligns with the Australian Auditing Standards, relevant ethical requirements and applicable legal and regulatory requirements
• external reviews and audits of VAGO.

Our transparency report is available at www.audit.vic.gov.au/corporate-publications

Focus areas

This year, our engagements focused on effectiveness. We have identified ‘using the full breadth of our mandate’ as an area for improvement.

Overview

The tables in this section detail our program and status by category for 2022–23 and 2023–2024.

We tabled 16 of our planned 21 reports, with 5 delayed and now tabling in the 2023–24 period. In addition, we:

• added one engagement to our work program after tabling our annual plan
• tabled 3 reports from the prior period.

This represents a significant improvement on the previous year, where the impact of the COVID-19 pandemic on both our office and the public sector saw delays across our program.

Aligning to parliamentary committees

The Parliament of Victoria is a bicameral system, meaning it has 2 houses:

• the Legislative Assembly (LA), with 88 members and 88 districts (one member per district)
• the Legislative Council (LC), with 40 members and 8 regions (5 members per region).

Committees formed by members from one house are either an LA or LC committee. Committees formed by members from both houses are joint committees.

We have organised our Parliamentary Reports and Services division to align with the 3 main LA and LC committees (Economy and Infrastructure, Environment and Planning, and Legal and Social Issues). We have also introduced the local and whole-of-government category for our work that extends beyond the standard parliamentary committee responsibility boundaries.

Machinery of government changes

For some of our audits and reviews, the departments we examined were impacted by machinery of government (MoG) changes.

Central government departments showing MoG changes

Note: * This change occurred on 1 February 2021.
Source: VAGO.

Quality of Major Transport Infrastructure Project Business Cases

We looked at whether business cases for major transport infrastructure projects support informed investment decisions.

Transport infrastructure projects make up around 70 per cent of the state’s planned capital expenditure.

What we concluded

Business cases for 3 of the 4 projects we reviewed do not support fully informed investment decisions.

The audited agencies’ business case development and oversight processes for the projects were usually consistent with DTF and agency requirements. However, 3 business cases lacked sufficient analysis of alternative project options, and 2 lacked an assessment of the value for money the projects could provide under different scenarios. Agencies provided other advice but did not finalise these 3 business cases until after the government made significant financial commitments to them.

Without a comprehensive business case, decision-makers do not know whether the investments they make will maximise benefits to Victorian communities.

Link to full report

Maintaining Railway Assets Across Metropolitan Melbourne

We looked at whether Melbourne’s metropolitan railway assets are maintained to deliver safe, reliable and punctual train services, and to optimise asset cost and performance.

Melbourne’s trains rely on a range of supporting infrastructure and technology. DTP pays private operator Metro Trains Melbourne (Metro) $2.7 billion to maintain and renew these supporting assets over a 7-year franchise agreement.

What we concluded

Metro is maintaining Melbourne’s metropolitan railway infrastructure and technology to support reliable and punctual train services and keep passengers safe. However, DTP has not assessed whether Metro is optimising asset costs, and if the current maintenance and renewal approach will sustain asset performance in the long-term.

DTP does not have a long-term strategy for its railway infrastructure and technology assets. It also does not have an effective way to measure asset performance and assess Metro’s work. DTP needs this information to ensure the current agreement and any future contracts deliver value for money.

Link to full report

Effectiveness of Rail Freight Support Programs

We looked at whether 2 programs to encourage more freight on rail have been effective: the Mode Shift Incentive Scheme and the Port Rail Shuttle Network.

The 2018 Delivering the Goods – Victorian Freight Plan confirmed the government’s intention to increase the share of freight moved by rail rather than road. Despite this, the share of rail freight going in and out of the Port of Melbourne by rail is now less than half its 2013–14 peak.

What we concluded

The department’s 2 programs have not yet fully realised the government’s intention to move more freight by rail.

Although the Mode Shift Incentive Scheme has kept some containers on trains that would have likely gone to trucks, it has not increased rail’s share of container freight in regional areas.

Delays in delivering the Port Rail Shuttle Network facilities and services mean the social, economic and environmental benefits from diverting metropolitan containers from road to rail are also delayed.

Link to full report

Collecting State-based Tax Revenue

We looked at whether DTF and the State Revenue Office (SRO) are optimising how they collect state-based tax revenue.

The government uses these taxes to fund essential public services, such as education, healthcare, infrastructure, police and public transport. It is therefore essential that SRO collects tax effectively and efficiently.

What we concluded

Despite many positive initiatives in recent years to better meet taxpayer needs, SRO and DTF cannot show that SRO has optimised how it collects tax.

SRO reliably collects the tax it knows about and the amount it collects has increased over the last 5 years. However, there is a very high likelihood that SRO could collect more tax by better analysing how effectively it is reducing the tax gap, which is the difference between the tax people and businesses owe and what they actually pay.

SRO does not do enough analysis to determine if it is collecting taxes efficiently. DTF and SRO's public performance measures do not give a clear picture of SRO's performance. DTF's governance of SRO's performance also requires clarification.

Link to full report

Supporting Students with Disability

We looked at whether DE’s Disability Inclusion (DI) program is set up to provide reasonable adjustments that allow students with disability to access and participate in education on the same basis as students without disability.

About one quarter of all Victorian students receive reasonable adjustments at school due to disability.

What we concluded

The department’s DI program is designed to provide reasonable adjustments that allow students with disability and diverse learning needs to access and participate in education on the same basis as students without disability. However, some regions and areas are not implementing the program as effectively as others. In these cases, schools are less likely to take up all DI elements and put them into practice as the department intended.

The department's oversight of the program rollout means it is addressing barriers to implementation and continually improving DI for schools. Building on its program oversight and monitoring in the regions will help improve access and participation in education for students with a disability and diverse learning needs.

Link to full report

Principal Health and Wellbeing

We looked at whether DE is protecting the health and wellbeing of its school principals.

As their employer, the department is responsible for protecting the health and wellbeing of all government school employees, including school principals, so far as is reasonably practicable. Principals experience worse health and wellbeing outcomes than the general population, especially relating to stress, burnout and sleeping troubles. They also experience mental injury more often than other school staff.

What we concluded

The department is not effectively protecting the health and wellbeing of its school principals.

The department has identified the key challenges that principals face. It has developed numerous strategies and initiatives to address them. Many principals use and appreciate these services. However, they have not improved principals' health and wellbeing.

The department needs to do more to reduce principal workload if it is to achieve better outcomes. The department also needs to better monitor, evaluate and report on those outcomes. It will then better understand principals’ health and wellbeing and whether its initiatives are leading to desired outcomes.

Link to full report

Major Projects Performance Reporting 2022

We looked at whether the public sector transparently reports the performance of major projects against cost, time, scope and benefits.

As of May 2022, Victoria had committed to investing $184 billion in capital projects. This is a net increase of $40 billion from the same time last year. When the government spends public money on a major project, Parliament and the community deserve a clear explanation of the project’s progress and outcomes.

What we concluded

DTF and public sector entities do not consistently report on major projects’ performance in a transparent way. Without this information, Parliament and the community cannot hold responsible entities accountable.

We published a data analytics dashboard with this report. It shows how DTF could help Parliament and the community better understand how entities are managing Victoria's major projects.

Link to full report

Fair Presentation of Service Delivery Performance 2022

We looked at whether the public sector fairly presents its service delivery performance information.

The government spends public money to deliver goods and services to Victorians. Parliament and the community require accurate and fair reporting of the performance of those services.

What we concluded

Service delivery performance is not clearly visible to Parliament and the community. Departments do not fully follow the requirements of DTF’s Resource Management Framework (RMF), and DTF’s Budget Paper No. 3: Service Delivery (BP3) includes too much information that is not relevant to output budgeting. This extra information detracts from the primary purpose of BP3 and makes it harder to discern how well departments are delivering services.

Nothing came to our attention to indicate that departments’ performance information is not accurate and reliable.

Link to full report

Regulating Victoria’s Native Forests

We looked at whether the Office of the Conservation Regulator (OCR) effectively regulates timber harvesting operations.

Victoria’s native forests are precious natural assets, providing environmental, health and wellbeing, cultural and socio-economic benefits. Effective regulation of timber harvesting is crucial to ensure this resource is protected for future generations. The government established the OCR in 2019 to improve timber harvesting regulation and ensure harvesting does not adversely affect other forest values.

What we concluded

The OCR has made progress in improving timber harvesting regulation. However, it has further work to do to address the weaknesses in its systems, processes and reporting. This will support strong regulatory outcomes and improve its effectiveness in regulating timber harvesting in Victoria’s native forests.

Link to full report

Follow-up of Protecting Victoria’s Coastal Assets

We looked at whether DELWP (now DEECA) has effectively responded to the recommendations from our 2018 audit Protecting Victoria’s Coastal Assets.

DEECA has oversight of over 1,500 coastal protection assets (CPAs), with a total value of approximately $1.13 billion. With climate change increasing the frequency and severity of erosion and inundation, it is timely to review the department’ progress in addressing our 2018 audit.

What we concluded

Based on the evidence we obtained, nothing has come to our attention that the department has not addressed our recommendations for collection and management of CPA data and coastal hazard and risk assessment. It has also improved its asset management practices.

While DELWP has made progress, it is yet to complete addressing our recommendations relating to oversight and support for coastal managers and developing a sustainable funding model.

Link to full report

Understanding Victoria’s Contaminated Land

We looked at whether data on contaminated land published by DEECA and the Environment Protection Authority (EPA) is accurate, current and fit for purpose.

The government and community need to know if a site is contaminated so they can manage risks and plan how to use and develop the land. In 2019, DEECA and the EPA launched Victoria Unearthed to create and maintain a database of potentially contaminated sites.

What we concluded

Victoria Unearthed (VU) fulfils a 2016 inquiry recommendation to create a statewide database of potentially contaminated sites. However, it is not meeting its full potential to provide accurate, current and fit-for-purpose data about contaminated land. This is because DEECA and EPA have not evaluated if VU continues to meet users' needs, and VU has not kept all of its datasets complete and up to date.

Link to full report

The Effectiveness of Victoria Police’s Staff Allocation

We looked at whether Victoria Police understands its frontline staffing needs and uses this information to make resourcing decisions aligned to its strategic objectives.

Victoria Police plays a critical role in ensuring a safe and secure society and the government invests significant money in its staffing. Victoria Police uses most of this funding for sworn officers.

What we concluded

Victoria Police’s staffing needs are not clear because it does not have a strategic workforce plan. It does not have any modelling or forecasting to understand or plan for its staffing requirements – both current and long-term. Without knowing its future staffing needs, Victoria Police continues to rely on what it receives from the government, rather than providing evidence-based advice.

Victoria Police also cannot assure itself or the community that the 2,729 additional police officers it received as part of the $2 billion Community Safety Statement (CSS) program delivered community safety outcomes. This is because the CSS program only had a short-form business case which was inadequate for the size of the investment. This diminishes transparency and information for decision makers. Victoria Police has not since attempted to assess the incremental benefits realised from the investment.

Link to full report

Quality of Child Protection Data

We looked at whether DFFH has adequate controls to ensure that data in its Client Relationship Information System (CRIS) is reliable.

CRIS is central to how the department delivers child protection services. DFFH needs to ensure CRIS data is high quality so it can fulfil its obligations to vulnerable children and support its policies and decisions.

What we concluded

DFFH does not have adequate controls to ensure its child protection data is high quality.

We found examples of incomplete, inaccurate and inconsistent data. This means that DFFH may not have easy access to reliable data to help it make decisions about vulnerable children. These data quality issues may also prevent DFFH from using the data to monitor children's progress in out of home care.

Factors that contribute to poor quality data include that DFFH's child protection data does not comply with government data quality standards, CRIS is not fit for its intended purpose, and CRIS’s data quality controls do not always work. Also, the workloads of CRIS users limit their capacity to correctly record information about children in a timely way.

DFFH told us that it is aware of these issues and is working on a plan to address them.

Link to full report

Victoria's Alcohol and Other Drug Treatment Data

We looked at whether the DH’s Victorian Alcohol and Drug Collection (VADC) dataset is high quality and achieving its intended benefits.

In 2020–21, over 40,000 Victorians accessed alcohol and other drug services through DH-funded providers. DH needs accurate data to make sure these services are effectively helping Victorians.

What we concluded

Data in the VADC does not accurately represent what service providers are doing for their clients.

DH is responsible for the quality of VADC data and is working to improve it. However, there is a risk that DH's improvement program will not address all the root causes of the data quality issues, including service providers' limited data capabilities and capacities, and variation in the information technology systems they use to collect data.

Poor-quality data limits DH’s ability to use it to plan services and manage providers' performance. It also means that service providers need to incur significant costs to address data quality issues.

Link to full report

Supporting Sexual and Reproductive Health

We looked at whether Victorian women can readily access sexual and reproductive health (SRH) information and services to support their health and wellbeing.

Women need access to SRH services to stay well and make critical choices about their lives, including if and when to have children. Since 2017, the government has set up 1800 My Options (a phone line and website) and 11 hubs (clinics). Victorians need to know if these programs are improving access to information and services, particularly for those in identified priority groups.

What we concluded

There are areas in Victoria where women cannot readily access SRH services.

While the 1800 My Options service allows Victorian women to readily access SRH information, the department does not know if its hubs are improving women and priority groups' access to SRH services. This is because it does not have a full understanding of service gaps and demand across the state or performance measures to monitor the hubs' ability to improve service access.

Link to full report

Correctional Services for People with Intellectual Disability or an Acquired Brain Injury

We looked at whether the corrections system meets the needs of people with intellectual disability or an acquired brain injury.

These prisoners are overrepresented in the corrections system and have history of returning to prison more often. It is important they get support to be safe in prison and to prepare them for life back in the community.

What we concluded

The corrections system does not fully meet the needs of people with intellectual disability or an acquired brain injury.

DJCS does not know how many prisoners have intellectual disability or an acquired brain injury and, of these, how many require specialised support. Both DJCS and DFFH have long waiting lists for programs and not enough specialised beds. So some prisoners will continue to miss out on services that could reduce their risk of reoffending.

Link to full report

Follow-up of Maintaining the Mental Health of Child Protection Practitioners

We looked at whether DFFH effectively responded to the recommendations from our 2018 audit Maintaining the Mental Health of Child Protection Practitioners.

Our 2018 audit found that unreasonable workloads had created workplace stressors that were harming the mental health of Child Protection Practitioners (CPPs). This undermined the effectiveness of their crucial and challenging frontline work.

What we concluded

Nothing has come to our attention that DFFH has not satisfactorily addressed our recommendations to: assess the effectiveness of current support tools, deliver specialised support services, and promote awareness of available support services and processes for raising mental health concerns.

While DFFH has made progress, it has more work to do to acquit our recommendations to advise government about risks and resources needed, improve demand forecasting, monitor CPP mental health more holistically, and improve CPPs' experiences in the court environment.

As a result, despite positive intent and action, the CPP workforce remains under-resourced, under supervised, and under pressure.

Link to full report

Regulating Private Pool and Spa Safety

We looked at whether councils effectively implement private pool and spa safety barrier regulations.

Safety barriers can prevent young children drowning. Regulations require owners to register their pools and spas with their local council and certify their barriers comply with safety standards.

What we concluded

Councils cannot be sure they have found and minimised all potential safety risks associated with private pools and spas in their municipalities. This is because not all owners have registered their pools and spas and/or had certified their safety barriers by the due date.

The backlog of outstanding registrations and certifications will also make it difficult for councils to manage future certification deadlines.

Link to full report

Regulating Food Safety

We looked at whether councils are complying with their legislative responsibilities for food safety to protect public health.

Robust food safety regulation and enforcement is necessary to prevent illness, hospitalisation and death caused by foodborne illness.

What we concluded

Audited councils are not complying with all their legislative responsibilities for food safety to protect public health. Not all audited councils are assessing or inspecting all food premises, systematically identifying unregistered food premises, meeting food sampling targets or reporting data to DH. Also, not all audited councils are reinspecting 3 months before registration renewal for all noncompliant food premises or those with complaints.

Link to full report

PAEC follow-up inquiries

Through follow-up inquiries, PAEC examines the progress that has been made implementing audit recommendations, identifies any issues with implementation, and investigates new issues that may have arisen since the report was tabled.

In April 2023 PAEC resolved to conduct a follow up inquiry into our:

• 2019 Follow up of Regulating Gambling and Liquor report
• 2021 Reducing the Harm Caused by Gambling report.

PAEC conducted hearings for this inquiry in July 2023.

Our follow-up reviews

We also conduct our own follow-up reviews of selected reports.

In 2022–23 we conducted 2 limited assurance follow-up reviews:

• Follow-up of our 2018 audit Maintaining the Mental Health of Child Protection Practitioners
• Follow-up of our 2018 audit Protecting Victoria’s Coastal Assets.

In 2023–24 we plan to conduct a follow-up review of our 2020 audit Management of the Student Resource Package.

Our digital media goals

Our digital media engagement goals are to:

• continue finessing the way we identify and engage with our audience across multiple channels
• promote and share our work to increase the reach and impact of our products
• become an employer of choice and deliver improved recruitment and talent acquisition outcomes.

Uplifting digital engagement

This year we continued to uplift our digital engagement, marketing activities and social media presence. This included:

• updating the way we present our reports on our website, improving the experience for our audience
• refining the messaging in our video summaries (shared on YouTube with links from our website, subscriber emails and other social media), to provide the most relevant information to our often time-poor audience
• transitioning to a new email platform for our external communications, both to improve the reader experience and to give us a better understanding of recipient engagement (parliamentarians and subscribers).

Our key platforms

We proactively share content across multiple channels; our website, YouTube and social media channels. 

The table below summarises engagement levels across our 3 main platforms: our website, YouTube and LinkedIn.

The popularity of some of our older videos indicates that interest in our work extends long after we table a report in Parliament.

Other online platforms

This year, we increased activity on Facebook, Instagram and X (previously named Twitter).

These platforms promote VAGO and our work to members of the public and the media.

Engaging with PAEC

We engaged with PAEC throughout the year, including on annual planning and audit topic selection. PAEC provided valuable feedback on our forward audit program, including ideas about potential areas of audit interest.

Briefing ministers and parliamentarians

This year, we made changes to the way we brief parliamentarians on tabled reports. This was due in part to parliamentarians missing briefings due to their workload and schedules.

Instead of running one briefing on the day a report is tabled, we now offer individual briefings to parliamentarians and their staff, either online or in person at a time that suits them. These briefings outline our audit findings and give an MP the opportunity to ask questions on areas of interest.

Moving to this tailored approach has seen an increase in engagement. 

Responding to enquiries

We also responded to enquiries from parliamentarians throughout the year. On average, we took 26.3 days to finalise a response, missing our target of 20 days or fewer.

Survey of parliamentarians

We did not survey parliamentarians this year given the timing of the 2022 election and parliament sitting dates recommencing in February 2023.

Instead, we worked with the parliamentary members services team to deliver a dedicated ‘lunch and learn’ session for new and returning members of parliament in May 2023.

The Strategic Management Group presented a briefing to parliamentarians and their staff on our office’s powers and functions, our recently tabled reports and our planned future program.

We will continue to work with members of parliament to enhance our products and services, and to make them more accessible, readable and relevant.

Survey of audited agencies (performance audits)

After each performance engagement, we ask the agencies involved how they rate our processes, reporting and value. Overall satisfaction for 2022–23 tabled audits was 77 per cent, meeting our target of 75 per cent and an improvement on last year’s result of 72 per cent.

Overall satisfaction for performance auditees for 2022–23

Source: VAGO.

Scores across the dimensions of process (80 per cent) and reporting (79 per cent) are both higher than 2021–22, exceeding our target of 75 per cent. Improvement could still be made on the level of satisfaction with the value of our work, with 72 per cent satisfaction compared with 68 per cent last year.

Satisfaction of performance auditees by dimension

Source: VAGO.

Sourcing engagement topics from stakeholders

In developing our annual plan of engagement topics, we consult with the agencies we audit and a wide range of Victorian stakeholders.

To ensure our audit topics reflect issues of concern to parliamentarians and the public, our continuing aim is to increase the number of our audits originating from these sources. 

This year, we received 175 requests and comments from the public and parliamentarians. 

The correspondence comprised: 

• 164 requests and comments from the general public 
• 11 requests from parliamentarians.

Some of our 2023–24 planned audits relate to issues raised in these referrals, including: 

• Delivering Victoria’s Big Housing Build
• Domestic building oversight part 1: regulation
• Domestic building oversight part 2: dispute resolution
• Withdrawal from Commonwealth Games 2026.

Community health and aged care sector forum

In July 2022 we hosted a forum dedicated to our relatively new auditees in Victoria’s registered community health centre and aged care sector entities.

The forum was attended by the sector’s CFOs, CEOs, audit committee and board members.

Forums like this give us a better understanding of the auditee journey and allow us to build greater awareness and knowledge of our financial audit mandate.

Integrity Matters webinar

In November 2022 we joined IBAC and VO in the Integrity Matters webinar. The session reached more than 800 attendees, predominantly employees from the Victorian local government and public sector.

IBAC Commissioner The Honourable Robert Redlich AM, KC, Victorian Ombudsman Deborah Glass OBE and Victorian Auditor-General Andrew Greaves came together to discuss and share their collective experience and insights on matters of integrity and why integrity matters.

Institute of Internal Auditor’s Local Government Assurance Conference

In November 2022 we presented to the Institute of Internal Auditor’s Local Government Assurance Conference.

We shared:

• highlights from our Fraud Control Over Local Government Grants performance engagement
• highlights from our financial audits
• categorisation of all recent performance engagement recommendations, irrespective of which councils were involved in our audits.

Audit committee forums

Our audit committee chair forums are important events that allows chairs and members to network with their peers and learn more about sector-wide topics and areas of interest. These forums provide direct access to the Auditor-General, VAGO and topic experts.

This year, we held forums on 8 July 2022 and 18 November 2022.

Joint paper with IBAC and the Victorian Ombudsman

In October 2022, we collaborated with IBAC and the Victorian Ombudsman to prepare and release a joint paper, Budget Independence for Victoria’s Independent Officers of Parliament.

We led the development of the paper, which discussed the current approach of other jurisdictions and set out a case to further strengthen the independence of Victoria’s key integrity agencies.

Link to paper

VPSC updates to officer and executive guide

Also in October 2022 the VPSC updated its officer and executive guide for informing and advising ministers.

As part of the VPSC’s release it acknowledged that much of the update was in response to our 2021 Implementing a New Infringements Management System performance engagement that recommended the Victorian Public Sector Commission in consultation with Department of Premier and Cabinet:

• strengthen leadership training and development to focus on, and facilitate conversations about, public servants’:
  • role in providing advice to the government
  • expectations for full and frank advice
• develop guidance for public servants on how to meaningfully engage with ministerial offices to appropriately convey risks and mitigation options for major projects and strategic activities.

Attending public sector forums and conferences

Our staff regularly attend and present at forums and conferences for professionals across sectors. We attended the following events:

• Victorian Local Governance Association Connect webinars
• FinPro conference presentations, regional meetings and question-and-answer panel sessions
• Chartered Accountants Australia and New Zealand: Finance Business Tech Conference and events
• Certified Practising Accountant Australia (CPA Australia): Public Sector and Not-for-profit Committee events
• CPA Australia: Virtual Congress
• Australasian Council of Auditors General (ACAG): committees, events and webinars
• Departmental CFO forums and industry forums.

Professional and peer organisations

Throughout the year we engaged with our peers from other audit offices through ACAG. We were involved in role-based subgroups focused on promoting and strengthening public sector auditing, including:

• Heads of Performance Audit (HOPA)
• Heads of Financial Audit (HOFA)
• Data Analytics
• Systems Assurance
• Financial Reporting and Advisory Committee (FRAC)
• Corporate Services.

We also engaged with the:

• Australian Accounting Standards Board
• Australian Auditing and Assurance Standards Board.

Our sector-based approach

Our financial auditing division is organised by sector.

Audit opinions issued

We issued 547 audit opinions on financial reports prepared by 501 agencies. We carried over 7 of these opinions from previous reporting periods.

We also issued 109 audit opinions on the performance statements of local councils, water agencies and TAFEs, and 120 acquittals for local councils and departments.

Parliamentary reporting on financial audits

Under the Act, we must report to Parliament the results of our audit of the state’s financial report, which is prepared by the Treasurer.

We also report separately on the results of our audits for:

• local governments
• TAFEs
• universities.

Although not mandatory, the size and impact of these sectors make more detailed reporting a valuable tool for Parliament and the community.

Survey of audited agencies (financial audits)

We survey clients to better understand how we are performing.

We received 250 responses across two rounds to our survey of audited agencies for financial audits this year, relating to their 2021-22 audits.

We explore how satisfied they are with our people, and whether our auditors:

• conducted themselves professionally during the audit
• had the right professional skills and knowledge
• demonstrated an adequate understanding of their organisation.

Financial auditees’ average satisfaction with our people

Source: VAGO.

We explore how satisfied our clients are with our outputs, and whether:

• they value our recommendations to improve the financial management and internal controls of their organisation
• they value the assurance obtained from the audit of statutory financial statements
• our management letters were balanced and fair
• our management letters clearly communicated audit findings and issues.

Financial auditees average satisfaction with our outputs

Source: VAGO

We were challenged last year by an elevated turnover of financial audit staff post-COVID-19, and we needed to use an expanded contingent workforce to deliver our audits within the shortened timeframes in the lead-up to the last state election. This led to a lack of continuity of audit staff on a number of audits, which affected our clients' views of our understanding of their operations.

We will improve these outcomes by rebalancing our workload and improving the employee experience through learning and development and retention strategies.

Transparent service performance

As part of our strategy to reform and enhance the reporting of service performance by the public sector, we again published a service performance data analytics dashboard on our website as part of our yearly audits on measuring and reporting on service delivery.

This dashboard allows users to:

• compare departmental performance
• drill down to examine performance trends for individual measures
• download raw data on output performance measures and conduct their own analysis.

We also publish a data analytics dashboard on our annual report webpage. This complements the audited performance statement in our annual report and provides a visual representation of our performance.

Sharing our public datasets

Where possible, we also share our public datasets to assist government sectors and industry associations further their advocacy work.

An example is the published financial data of local governments we shared with the Municipal Association of Victoria.

Engaging with the public sector

This year, our Financial Reporting Advisory (FRA) team published one financial reporting alert on 3 February 2023.

Significant accounting developments covered:

• key accounting and other developments relevant to 2022–23 financial statements
• Australian Accounting Standards Board (AASB) post-implementation reviews (PIRs): ITC 49, 50 and 51.

Content included a summary of significant amendments and the likely impact for affected Victorian public sector entities.

By sharing knowledge in this way, we aim to create awareness in the Victorian public sector, helping agencies respond to financial reporting developments in a timely fashion.

Engaging with the Australian Accounting Standards Board

The FRA team continue to engage regularly with the AASB to discuss how accounting standards are applied in the public sector.

Team members attended staff liaison meetings, provided feedback on AASB consultation documents, and participated in AASB project advisory panels (including the Fair Value project advisory panel and Not for Profit project advisory panel).

Engaging with the Australian Auditing and Assurance Standards Board

Our Audit Quality (AQ) team continue to engage with the Auditing and Assurance Standards Board (AUASB) to discuss auditing standards and potential implementation issues in the public sector.

The team gave feedback to the AUASB on the guidance standard GS23 Special Considerations – Public Sector Engagements. The team also provides feedback to the AUASB on other projects via ACAG and the project advisory group network.

Engaging with the Department of Treasury and Finance

This year, FRA continued to work closely with the accounting policy team at the Department of Treasury and Finance (DTF) on technical accounting matters.

Our FRA Director presented at the DTF a workshop, ‘What’s new for 30 June 2023 year-end reporting’, for senior financial reporting personnel within the public sector involved in the preparation of departmental and agency annual reports.

Dashboards and data visualisation

Our data analytics dashboards create better impact than static tables. We continue to receive positive feedback from our stakeholders and the community.

Dashboards published in 2022–23

Notes:
* Companion product for Contractors and consultants in the Victorian public service: spending audit, which we will table in 2023.
** Uses data submitted by councils under the Local Government Performance Reporting Framework and published by Local Government Victoria (LGV).
Source: VAGO.

Examples of high-impact dashboards

By bringing together information from multiple sources, we can make publicly available information more accessible and meaningful to members of parliament and the public.

Our work can make information that is sometimes difficult to find and compare more accessible.

www.audit.vic.gov.au/dashboards/reporting-local-government-performance

www.audit.vic.gov.au/dashboards/departments-reported-consultant-spend-2017-18-2021-22

Agency responses for performance engagements

Our performance engagements identify opportunities for public agencies to improve how they work. We do this by uncovering risks, weaknesses and poor performance, as well as by sharing examples of better practice. We then make recommendations to agencies to address areas for improvement.

We conduct an annual review to monitor how the agencies we audit address our findings. This makes agencies’ responses to our recommendations more transparent to Parliament and the community.

*Year report tabled.
We tabled our 2023 annual status update on 30 August 2023.

Measuring completion

We measure the percentage of accepted performance audit recommendations that agencies report as completed across a 2-year period.

The 2022–23 result of 77 per cent remained slightly below our target.

Results of our review of outstanding performance audit recommendations

Source: VAGO.

Completion by agency

As part of our review, we look at the completion rate for individual agencies.

Agencies continue to complete actions in response to our recommendations. The median time taken to complete a recommendation after the audit tabled was 12 months.

Median number of months to complete a recommendation, by department

Notes: The Department of Government Services (DGS), established on 1 January 2023, is excluded. Acronyms used are for the Department of Education (DE), Department of Energy, Environment and Climate Action (DEECA), Department of Families, Fairness and Housing (DFFH), Department of Health (DH), Department of Justice and Community Safety (DJCS), Department of Jobs, Skills, Industry and Regions (DJSIR), Department of Premier and Cabinet (DPC), Department of Treasury and Finance (DTF), Department of Transport and Planning (DTP).
Source: VAGO.

Agency responses for financial audit

Our financial audits continue to make a measurable impact on internal controls.

We issue management letters to agencies:

• highlighting issues related to internal control weakness and other matters we find
• making recommendations to resolve these issues.

Agencies respond to these letters with their intended actions.

Percentage of issues raised by financial audit that have been resolved

Source: VAGO.

Overview

Every year, we report against a set of performance measures and targets that we agree with the Assistant Treasurer. We report these measures and targets in our performance statement in this report. In addition, we also report our performance against cost and time measures.

Average cost of our parliamentary reports

The average cost of our parliamentary reports in 2022–23 was $438,360.

This is less than the 2021–22 average ($683,636), and 18.1 per cent less than our 2022–23 target ($535,400).

The lower average cost of our reports reflects the actual mix of audit engagements that we delivered, primarily in terms of scope and timeliness. This year, we tabled 2 additional results of financial audit reports from last year due to delays resulting from the pandemic. We also tabled 4 assurance reviews, both of which cost significantly less than the average.

Our performance statement details our performance measures further.

Delivering performance audit reports

This year our average time to complete performance audits (from initiation to tabling) was 10.1 months.

This is 3.2 months less than last year and 1.1 month more than our target of 9 months.

The average time to table our reports increased during the pandemic due to staff turnover, unplanned leave and client delays in providing information or responses to our draft reports. Reduced disruption since the pandemic, and improved project management in 2022–23, brought our result significantly closer to our target.

Delivering financial audit reports

The average time to produce our parliamentary reports on results of our financial audits after the balance date in 2022–23 was 6 months.

This is above our result last year and above our target of 5 months.

We tabled 6 financial audit parliamentary reports during 2022–23, 2 of which we carried over from 2021–22 and tabled in early-July 2022:

1. 1. Results of 2021 Audits: Technical and Further Education Institutes
   Delivered over target at 6.2 months.
2. 2. Results of 2021 Audits: Universities
   Delivered over target at 6.2 months.
3. 3. Auditor-General’s Report on the Annual Financial Report of the State of Victoria: 2021–22
   Delivered within 3.9 months and within our target of 5 months as required by the Act.
4. 4. Results of 2021–22 Audits: Local Government
   Delivered over target at 7.8 months.
5. 5. Results of 2022 Audits: Technical and Further Education Institutes
   Delivered over target at 5.9 months.
6. 6. Results of 2022 Audits: Universities
   Delivered over target at 5.9 months.

Average cost and timely delivery of audit opinions

The public sector agencies we audit pay us for the financial audit work we perform.

The Act allows us to recover reasonable costs only, so it is important that we continuously monitor and benchmark our service costs.

The average cost of the audit opinions we issued on financial statements during 2022–23 was $55,189, above both our 2021–22 result and our target.

Average cost to deliver audit opinions in 2022–23

Source: VAGO.

Delivering audit opinions

The average cost of audit opinions for both financial reports and performance statements again exceeds our target, which is capped by the Australian Bureau of Statistics Wage Index. Actual costs to complete audit opinions were above the index because we:

• experienced challenges with competitive labour market conditions and staff availability across the accounting industry, increasing internal staff costs and that of our audit service providers
• engaged a contingent workforce to help get our audit delivery back on track post-pandemic
• responded to the introduction of the updates to the Auditing Standard ASA 315 Identifying and Assessing the Risks of Material Misstatement, which required us to reconsider our knowledge and risk assessment of IT systems for all our audit clients, and used additional staff and outsourced IT expertise.

Meeting statutory timeframes

Agencies have statutory timeframes in which to complete their annual financial reports, and table their annual reports. This means our work must be timely.

Although we missed our target for issuing audit opinions, we met our target for final management letters, and our performance improved on our prior-year results.

Enhancing performance audit through data science

Performance audits are bespoke and qualitative, presenting unique opportunities for data analytics. We have therefore integrated the use of data analytics into our performance audit methodology.

We aim to perform annual planning supported by data analytics for annual planning, and to increase the data analytics capability of our staff.

While this opportunity will take time to realise, embedding data scientists within performance audit teams is already making an impact—on the way we plan for, gather and analyse evidence, and on the way we communicate our findings.

We see the impact of the data science team’s work in our engagement statistics, such as the data analytics dashboards on our website. It has also been gratifying to be recognised by our peer audit offices, winning the Australasian Council of Auditors-General (ACAG) Innovation Award for the third year in a row:

• 2023: Received Innovation Award for analytics on Police Body Worn Cameras audit
• 2022: Received Innovation Award for Major Projects Performance data analytics dashboard
• 2021: Received Innovation Award for Accessibility of Tram Services audit.

Engagements with data science input

These examples from our 2022–23 program demonstrate how our data scientists drive outcomes on performance engagements.

Audit solutions and toolsets

In 2023 we performed a post-implementation review of our strategic audit planning process. We will implement actions resulting from our review as part of an update to our performance audit methodology. This update aims to:

• further integrate strategic audit planning into our performance engagements
• streamline our performance methods and approaches to focus on the key areas of risk and materiality
• replace our legacy audit toolsets with cloud-based solutions that facilitate more efficient and effective audits and reviews.

We will progressively implement these updates during 2023–24.

Empowering financial auditors with data analytics

We used Empower, our in-house data analytics platform, to support financial audits for 53 clients. We developed 96 data analytics dashboards, which we updated periodically for our auditors.

The benefits of these dashboards include:

• providing our auditors with source data
• assisting with planning analytics
• assisting with sampling
• enabling auditors to run computer-assisted audit techniques over data
• assisting with more traditional substantive testing, such as fully recalculating material classes of revenue.

Our EPIC financial audit methodology

We continue to refine our Engage, Plan, Implement and Conclude (EPIC) methodology, and develop training and guidance to support our auditors.

We are well progressed with a project to replace our existing legacy audit toolset with a modern solution. Our project team has evaluated the market and is currently working with a single vendor on a potential replacement toolset.

Outcomes and achievements in 2022–23

This section sets out the last year’s initiatives, achievements and outcomes organised by our four values. This demonstrates our ongoing leadership commitment as a values-driven organisation.

In this section

This section includes updates on:

• Audit quality systems, models and methodologies
• Capability framework
• Risk management and security
• Gender pay gap, including reporting
• Workforce productivity and outcomes

Updating audit quality management systems

Effective 15 December 2022 the AUASB released its new quality standards:

• ASQM1 Quality Management for Firms that Perform Audits or Review of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements 
• ASQM2 Engagement Quality Reviews
• ASA 220 Quality Management for an Audit of a Financial Report and Other Historical Financial Information.

Responding to these new requirements, we developed a framework for our system of quality management (SQM) underpinned by an assessment of audit quality objectives and risks. The SQM comprises our policies and procedures that we designed and implemented to mitigate quality risks. The launch of our SQM will occur in the fourth quarter of 2023, along with SQM awareness training for all staff. We will undertake an annual evaluation of our SQM and report the results of the evaluation in our next transparency report.

Enhancing financial audit capability

In response to extensive staff consultation on the current employee experience, we know that our financial auditors want:

• opportunities to learn, develop and grow
• a well-designed capability framework
• an aligned learning and development curriculum
• clear succession pathways. 

This year we commenced the Enhancing FA’s Capability project that will deliver a new structured capability framework, with a supporting learning and development curriculum and succession pathway. We have prepared a draft framework and transitional plan, and we expect to launch it next year.

Zero-trust security

This year we continued our investment in strong and secure IT systems, adopting a zero-trust plan, based on Microsoft’s zero-trust security model. Zero trust is a modern security strategy based on the principle: never trust, always verify.

Key features of our plan include:

• identity and access management
• device trust
• conditional access policies
• data protection
• threat protection
• analytics and monitoring
• information governance.

This plan further mitigates the risk of unauthorised access and data breaches.

Results

This year, our gender pay gap was 3 per cent in favour of men, compared to 0.3 per cent in 2021–22.

As of 30 June 2023, 59 per cent of our workforce identified as women, with:

• 115 women
• 77 men
• 2 self-described
• 2 who preferred not to say.

Women as a proportion of part-time workers and executive

This year, the proportion of executive roles filled by women dropped slightly.

The proportion of part-time workers represented by women did not change in 2022–23. However, the proportional shift since before the pandemic indicates that more people are taking advantage of flexible working arrangements.

Proportion of part-time workers and executive roles held by women

Source: VAGO.

Comparison with national and Victorian results

While there is room for us to improve, our gender pay gap is significantly lower than the:

• national gap, which is 13.3 per cent 
• Victorian gap, which is 13.4 per cent.

Source: Workplace Gender Equality Agency based on ABS survey data, February 2023.

Broadening our pay gap reporting

In the past, we have routinely calculated our gender pay gap using the mean (average) salaries of men and women. However, in 2022–23, we also assessed the pay gap via their median (middle) salaries.

We introduced this extra calculation ahead of changes in our reporting obligations to WGEA for the 2023–24 reporting year.

Going forward, WGEA will require employers to report their median gender pay gap and CEO salaries (which would typically skew the mean gender pay gap). The median pay gap is less influenced by staff who have high or low salaries, so gives a better indication of the pay gap for most of our small workforce.

For more information about our workforce profile (including gender, age ranges, VPS classification) and the gender pay gap at VAGO, see Appendix A.

Gender Equality Action Plan 2022–25

Our Gender Equality Action Plan 2022–25 outlines a range of strategies we are implementing as part of our journey towards full gender equality.

In accordance with the Gender Equality Act 2020, we will prepare a report of our progress for the Victorian Commission for Gender Equality in the Public Sector in 2024.

Our plan is available at www.audit.vic.gov.au/corporate-publications.

How we measure workforce production

We measure our workforce production as the total percentage of available paid staff hours that are charged to our 3 outputs:

• parliamentary reports and services
• audit opinions on financial and performance statements
• audit support services.

Staff are able to monitor their contribution to production targets and that of their direct reports using real-time data analytics dashboards.

Overall production effort

Our overall production effort this year was 54.5 per cent, slightly lower than our 2021–22 result of 55.4 per cent and our target of 60 per cent. We attribute this mostly to a lower-than-budgeted staff full-time equivalent (FTE) in our Performance Audit division.

In this section

This section includes updates on the following:

• Embedding Better Normal in our workplace
• Knowledge sharing
• Professional collaborations
• Our office community

Promoting flexibility and work–life balance

To be an employer of choice, we need to provide our staff the most contemporary work practices possible. Work flexibility is central to achieving this.

To guide this, we designed and introduced our Better Normal principles in 2021. These do not prevent us from working ‘together, together’ with our peers, teams, or clients.

We come together when we believe being in-person will provide high-impact and high-value collaboration. This may include audit work, learning and development, team-building experiences or managing client-related matters.

In line with our Better Normal principles, we consider team preferences, value, impact and business needs when deciding how and when we connect with each other.

Synchronous and asynchronous working modes

Our Better Normal principles are inspired by Gartner’s 'Intentional collaboration in a hybrid world' model.

They encompass 4 modes of working, balancing high-value engagement with opportunities for deep focus.

The 4 modes of working

Source: VAGO, based on work published by Gartner.

Supplying home office equipment

Most of our staff choose to work from home for at least some of the time.

To support this, while ensuring their comfort, safety and best working experience, we continue to supply all team members with a sit–stand desk, ergonomic chair, monitors and other equipment such as laptop risers and chair mats.

Staff can also choose to work from our office at 35 Collins Street, Melbourne.

Software for virtual workshops

We delivered several IT initiatives this year that supported effective, efficient, secure and collaborative work practices. For example, we implemented a collaborative platform to optimise virtual workshops.

Our teams are now better able to collaborate through mindmapping, project planning, and storyboarding online.

Data and Analytics (DASA)

The Data Analytics and Systems Assurance (DASA) team is responsible for our Empower software, a product that allows our financial auditors to leverage information and improve audit quality and efficiency.

DASA provides formal and informal training, coaching and weekly ‘tips and tricks’ posts, which help our auditors embed digital knowledge in their work.

Lunch ‘n’ Learn sessions

Our regular Lunch ‘n’ Learn sessions supplement formal training offerings. Our more experienced staff share their knowledge and experience, lifting their colleagues’ practical skills and capabilities.

Topics included audit appropriations and performance reporting, understanding audit toolsets, and strategic writing skills.

Live-streamed briefings and catch-ups

Each fortnight we come together for a stand-up briefing hosted by one of the 4 members of our Strategic Management Group. We record these events for those unable to attend the live event.

Maintaining professional networks

We support staff to attend industry conferences to maintain professional networks and currency in their profession. 

This year a delegation of 11 staff attended the International Meeting of Performance Audit Critical Thinkers (IMPACT 2023) conference hosted by the Australian National Audit Office in Canberra.

Pacific Association of Supreme Audit Institutions: www.pasai.org

Assistance animal in the office

In 2022 staff in our Collins St office enjoyed the company of a 4-legged friend named Gunner, a Guide-Dog-in-training.

Our office gave Gunner the chance to learn to be calm and relaxed in a work environment, recognise obstacles, cross busy roads, move through large crowds with ease and board public transport .We were proud to hear he had passed his official assessment and has since been matched with someone special to provide them with confidence, companionship and greater independence.

Fundraising

The VAGO Social Club ran events and campaigns throughout this year to encourage our people to donate to charities, including:

• CARE Australia Pakistan Flood Relief Appeal, to support those in Pakistan impacted by floods
• Breast Cancer Network Australia
• World’s Greatest Shave to help beat blood cancer
• Fight Cancer Foundation.

In this section

This section includes updates on the following:

• Continuous improvement through internal audit
• Enhancing our financial audit capability uplift
• Professional development

Internal audit

We delivered another 5 internal audit reviews this year. Our internal audit program examines operational internal control systems, including administrative and financial information systems, to evaluate the extent that:

• information is accurate and reliable
• internal policies and external laws and regulations are followed
• resources are employed efficiently and effectively
• financial assets and information are safeguarded.

Reviews completed this year were:

• ERP System Implementation Phase 2
• ASP management and supervision
• risk management framework review
• financial management compliance framework
• management reporting effectiveness.

Internal audit recommendation ratings, 2022–23

Financial audit technical training

Our Financial Reporting Advisory (FRA) team and Audit Quality (AQ) team conducted a 2-day training program in November 2022 for all financial audit staff. Its purpose was to enhance the technical knowledge and awareness of changes to the auditing standards to support staff in performing technically compliant audits and improve audit quality.

The FRA and AQ teams conducted this training face to face and all financial auditors collaborated on scenario-based case studies to reinforce the concepts learnt.

This training also covered the public sector framework to help new starters understand the strategic context.

Data literacy

We continued to focus on data literacy this year. Staff led projects to lift capability in data visualisation and communication, and data engineering.

One project delivered was the data visualisation ‘book club’, which fostered a culture of storytelling with data. Our Dataviz Champions developed eLearning modules on how to use data to tell a story for our target audience. Our new infographic library is important for supporting staff to present complex data visually.

Staff also stretched their data science skills in 2022–23, creating and implementing a comprehensive global audit database. This centralises audit findings and best practices to facilitate informed decision-making in our Performance Audit division.

Jobs and Skills Exchange short courses

This year, our staff had access to updated short courses and micro-credentials through the Jobs and Skills Exchange (JSE), available to all Victorian Public Service employees.

Learning and development opportunities include public sector-focused courses on:

• data analytics
• agile project management
• coaching and leadership skills.

Formal training programs

We continued to deliver formal training for our staff, including:

• technical training for financial audits and performance engagements
• fundamentals of management
• Aboriginal and Torres Strait Islander cultural awareness training
• training about working effectively, including appropriate behaviour, time management and assertiveness skills.

New for this year, we added:

• procurement processes
• data visualisation.

Access to tertiary courses

We also support our staff to undertake university or equivalent studies, ensuring they have the opportunity to acquire the essential skills required to perform their role to a high standard.

This year, 12 staff accessed study assistance through VAGO.

In this section

This section includes updates on the following:

• Diversity, inclusion and belonging
• Employee benefits and assistance
• Celebrating our people
• Listening to our people

A plan for a truly inclusive workplace

In June 2023 we published our Diversity, Inclusion and Belonging Plan 2022–2025, which comprises the following plans:

• Cultural Inclusion Action Plan
• Disability Inclusion and Accessibility Plan
• Gender Equality Action Plan
• LGBTQIA+ Inclusion Action Plan
• Reconciliation Action Plan 

We delayed publication of our overall plan to recalibrate it in response to feedback, which indicated we had overcommitted on what was achievable. We worked diligently to refine our overall plan and incorporate actions into existing projects. As a result, it is better suited to our evolving needs as an organisation.

Our overall plan is available on the Corporate publications page of our website.

Reconciliation Action Plan

Our Reconciliation Action Plan (RAP) is an important roadmap that helps us on our journey towards reconciliation with First Nations Australians. The RAP process is made up of 4 steps –Reflect, Innovate, Stretch and Elevate (or RISE).

We engaged 2 Aboriginal advisors to guide us in our journey and ensure that implementation of our RAP includes the voices of First Nations Australians.

This year we took the second step in this journey, with our Innovate RAP being conditionally endorsed by Reconciliation Australia.

We also:

• organised a film screening and facilitated discussion for staff to celebrate National Reconciliation Week
• renewed our platinum partnership with Kinaway, the Victorian Aboriginal Chamber of Commerce, and encouraged staff to attend its cultural training programs.

Pride at VAGO

In June 2023, during Pride Month, we launched Pride at VAGO – a peer-support network for LGBTQIA+ staff and allies.

Pride at VAGO’s mission is to create and maintain a visible presence and channels of communication and advocacy for LGBTQIA+ staff.

The network organises social events and works alongside senior leaders, HR and other internal groups to provide guidance, education and support in how to be a good ally.

Other diversity, inclusion and belonging initiatives

We also:

• introduced a flexible public holiday procedure to allow staff to substitute certain public holidays to an alternative day in accordance with their faith
• regularly communicated to staff about days of significance for diversity and inclusion
• worked on embedding diversity, inclusion and belonging as a leadership mindset and behaviour through our capability frameworks.

Volunteer leave

Our staff can access 2 days of paid leave each year to participate in a chosen volunteer program with a registered charity or not-for-profit organisation.

We offer this program over and above other leave entitlements in our enterprise agreement.

VPS Flood Policy

Following the floods across Victoria in October 2022, the governent developed a public sector-wide floods policy to support directly affected staff. This temporary policy remained in place until April 2023. 

Under the policy, eligible employees could access additional support and assistance, including:

• up to 30 days paid leave
• up to 8 weeks salary paid in advance.

We made the flood policy available in addition to our Better Normal principles, where staff can choose alternative working arrangements to suit their individual circumstances.

All-staff forum and Values Awards

In March 2023, we held our first annual all-staff forum and Values Awards since the pandemic.

This all-day event included an interactive panel discussion with our Strategic Management Group, an audit client-focused scavenger hunt in Melbourne’s CBD and a collaborative painting activity. We finished the day with an awards ceremony recognising staff who exemplify our values of accountability, collaboration innovation and respect.

International Women’s Day Gala Dinner

As a proud supporter of the Institute of Public Administration Australia’s Victorian division’s annual gala dinner for International Women’s Day, on 8 March we once again hosted 2 tables to demonstrate our commitment towards an inclusive and diverse public sector. This year's event featured a treaty and truth-telling discussion with esteemed First Nations Elders and leaders.

VAGO Social Club

Our Social Club continued to organise activities to help staff connect with colleagues and develop networks.

Activities this year included a picnic in the park, book and movie clubs, board game evenings and events for Christmas, Halloween and the end of financial year.

People matter survey

Each year, the Victorian Public Sector Commission invites employees to provide feedback on their workplace by participating in the People Matter survey.

The 2023 People matter survey ran for 4 weeks from 29 May to 26 June and 81 per cent of VAGO employees took part – an increase from 75 per cent the previous year. Each year we analyse our results and take actions based on the feedback of our staff. Since 2019 we have also published our survey results on our website.

Our results are available at www.audit.vic.gov.au/how-we-are-accountable.