Performance reporting by Departments
Overview
The audit examined the adequacy of the performance reporting framework and the relevance, appropriateness and fair representation of departmental performance indicators.
The audit found that Victoria's performance reporting framework developed by the Department of Treasury and Finance compared unfavourably to better practice. The absence of a requirement for departments to report on outcomes is a major deficiency. This means that departments are not able to demonstrate the extent to which their activities have effectively contributed to achieving either departmental objectives or whole of government outcomes. This is despite a number of reports from this office and the Public Accounts and Estimates Committee of Parliament identifying this deficiency.
Under the Standing Directions of the Minister for Finance, departments are required to develop performance indicators for their objectives but there is no requirement to report publicly on the results. While there were a small number of departments who had developed appropriate and relevant performance indicators, there was high levels of non-compliance with the Standing Directions.
Of the 322 performance indicators reviewed, approximately 30 per cent were relevant to departmental objectives and provided appropriate information such as comparative data. Nearly half of the state's allocated expenditure in 2007–08 and 2008–09, or around $31 billion, related to departments with no or limited performance indicators that were relevant to the achievement of their objectives.