Management of concessions by the Department of Human Services
Overview
Concessions help eligible people access essential services such as electricity, gas and water through discounts on standard fees and charges and cost the state more than $1 billion each year. This funding provides concessions to more than 700 000 households and more than 1.3 million Victorians.
The audit examined the Department of Human Services (DHS) performance in administering around 27 per cent of all state concessions costing $329 million in 2008–09. The concessions examined in the audit are provided either by third parties such as energy companies, water authorities and councils, or by DHS directly. DHS also has a role in monitoring the overall concessions system.
The report found that:
- Controls over the granting of concessions and hardship assistance need to be further strengthened. Individuals and households receive concessions when they are not eligible. The incidence of ineligible people accessing concessions should be reduced by the more frequent eligibility verification processes initiated in 2009.
- The provision of concessions by energy retailers, water authorities and local government has not been adequately monitored by DHS.
- The transparency and accountability of the concessions program should be improved because reporting is not timely and it is difficult to determine how effectively concessions are performing against relevant government objectives.
- The concessions budget will come under severe pressure due to increasing numbers of people eligible for concessions and rising prices for relevant services.
The report made 10 recommendations aimed at improving how DHS monitors, controls, evaluates and reports on the concessions system.