Conclusion

Departments responded quickly and flexibly to COVID-19 and continue to do so. Departments’ BCM processes, structures and strategies have helped them quickly set up teams, make decisions and communicate to staff. 

However, departments were not sufficiently prepared for a complex disruption. This meant they had to invest resources into developing documents, streamlining processes, upgrading technology and transitioning to remote working during the early stages of the pandemic. 

Conclusion

The VPS was not adequately prepared for the COVID-19 pandemic. 

The VPS had limited central oversight and leadership on business continuity. This meant that it was not able to harness lessons learnt across all departments, and departments did not have a clear understanding of whole of government business continuity priorities in a large-scale disruption. 

The Victorian Government delivers a wide range of services that are important to Victorians’ economic, financial and social wellbeing—from managing state finances to child protection, transport and criminal justice. 

Disruptions to these services can have a significant negative impact on communities, businesses and industries. Effective business continuity strategies ensure that departments can respond quickly to disruptions and continue to deliver prioritised services to the community.

Click the link below to download a PDF copy of our results of material entity audits.

Click the link below to download a PDF copy of Appendix C. Audit opinion on the AFR.

About this report

The Auditor-General provides this report to the Parliament of Victoria as required under section 57 of the Audit Act 1994. It contains matters we judge as significant and which arise from the audit and pertain to either the effective and efficient management of public resources or the keeping of proper accounts and records.

Click the link below to download a PDF copy of Appendix A. Submissions and comments.

Conclusion

DTF implemented effective internal controls to support the preparation of a complete and accurate AFR.

The internal control framework of VicTrack was not adequate. The internal control frameworks of the other material entities were generally adequate to support their preparation of complete and accurate financial reports. However, some entities need to strengthen some internal controls to ensure their financial reports remain reliable. 

Conclusion

The financial performance and position of the state deteriorated significantly in 2020–21.

This year the state made an operating loss of $18.3 billion (compared to $9.0 billion in 2019–20) and had net operating cash outflows of $9.3 billion ($375 million net inflows in 2019–20). This was largely a result of increased costs incurred by the GGS responding to the COVID-19 pandemic.