Public sector agencies engage external resources to advise them on how best to realise government policy and to help them implement these decisions. The Department of Treasury and Finance's (DTF) June 2013 definition of a consultancy is the provision of advice to facilitate decision-making, whereas a contractor helps implement decisions.
This audit examined how effectively selected government departments are managing advisory engagements that help them make decisions.
VAGO undertakes performance audits into the economy, efficiency and effectiveness of public sector agencies and their operations to provide assurance to Parliament and drive public sector improvement. We aim to achieve this by identifying issues and making recommendations to agencies about how to address them. However, our recommendations cannot result in improvements unless they are accepted and enacted by public sector agencies.
This report informs Parliament about the results of our audit of the Annual Financial Report of the State of Victoria, 2014–15 (the AFR), transmitted to Parliament by the Treasurer on 4 November 2015.
The report reviews the financial outcomes and performance of the State of Victoria (SoV), and assesses the general government sector (GGS).
Audit committees play a key accountability role in the governance framework of Victorian public sector agencies. While management retains ultimate accountability for operations, audit committees independently review and assess the effectiveness of key aspects of an agency's operations.
In Victoria, the total value of public sector capital investments underway or commencing in 2014–15 is around $72 billion, including projects delivered as public private partnerships. This includes a commitment made in the 2014–15 Budget of up to $27 billion to build new road and rail infrastructure such as the $8 billion to $10 billion stage 2 of the East West Link and the $8.5 billion to $11 billion Melbourne Rail Link.
Effective infrastructure planning and delivery are critical to the state's future prosperity and liveability. Government introduced the High Value High Risk (HVHR) process to address systemic weaknesses undermining agencies' performance in developing and investing in major projects.
The East West Link (EWL) was to be an 18 kilometre cross city road connecting the Eastern Freeway at Hoddle Street to CityLink, the Port of Melbourne precinct and on to the Western Ring Road at Sunshine West, with a range of associated works. It would have been one of the largest transport infrastructure projects ever undertaken in Australia, and significant in terms of its impact, complexity and cost.
The effective planning and delivery of major capital projects is critical to governments achieving their policy objectives. If delivered well, infrastructure enhances services to the public and improves productivity. Poor management diminishes the benefits of these projects, potentially delays delivery and creates additional costs for taxpayers.
Telecommunications services, in particular fixed voice and mobile phones, are essential to support the delivery of government services.
In 2004, the state executed contracts for the Telecommunications Purchasing and Management Strategy (TPAMS), comprising Telecommunications Carriage Services (TCS) agreements with approved providers. The agreements aim to deliver best value to agencies for fixed voice, mobile and data carriage services.
A 2010 industry report estimated the Victorian Government's information and communications technology (ICT) expenditure at $1–$1.5 billion per year. This audit revealed that the actual overall spend is significantly greater.
Despite this significant expenditure, information on the status and outcomes of public sector ICT initiatives is currently difficult to obtain. Most agencies and entities provide little, if any, public information specifying these details.