Victorian Auditor-General's Office

2 Results of audits

In this Part, we comment on the results of our financial report audits of Victoria's 87 public hospitals and the financial outcomes for 2015–16.

We also comment on the internal control and financial reporting matters we found, and provide an update on matters raised in previous audits.

2.1 Conclusion

We issued clear audit opinions on all 87 public hospital financial reports for the financial year ended 30 June 2016. Parliament and the Victorian community can have confidence in those reports.

1 Context

1.1 Victoria's public hospital sector

Victoria's public hospital sector is made up of 87 public hospitals and 22 controlled entities. The financial results of the controlled entities are consolidated into their parent entities' financial statements, and we do not discuss them separately in this report.

Audit overview

In this report, we comment on the matters arising from the 2015–16 financial report audits of the 87 public hospitals in the public hospital sector. We also assess the sector's financial performance during 2015–16 and its sustainability risks as at 30 June 2016.

We comment on key matters that arose during our audits and analyse the information in public hospitals' financial reports. This is one of a set of Parliamentary reports on the results of our 2015–16 financial audits.

Appendix A. Audit Act 1994 section 16—submissions and comments

Introduction

In accordance with section 16(3) of the Audit Act 1994, a copy of this report was provided to the Department of Treasury & Finance, the Department of Economic Development, Jobs, Transport & Resources, the Department of Health & Human Services, Public Transport Victoria, VicRoads, Monash Health, the Royal Victorian Eye and Ear Hospital and the Royal Children's Hospital Melbourne. We also provided a copy of the report to the Department of Premier & Cabinet.

2 Addressing past HVHR audit recommendations

This is our third audit report focusing on the effectiveness of the government's 'high value high risk project assurance framework and budget process' (the HVHR process).

This Part examines whether recommendations from our 2014 and 2015 HVHR audits have been effectively addressed by Department of Treasury & Finance (DTF) and Department of Economic Development, Jobs, Transport & Resources (DEDJTR).

1 Audit context

1.1 Introduction

This is our third audit focusing on the effectiveness of the government's 'high value high risk project assurance framework and budget process' (the HVHR process). The goal of the HVHR process is to achieve more certainty about the deliverability of infrastructure projects, including their intended benefits and ability to meet planned costs and time lines.

Audit overview

Victoria’s total estimated investment in new and existing capital projects in the 2016–17 Budget Papers is $57.7 billion. In June 2016 the total estimated investment (TEI) of high value high risk (HVHR) projects was around $40 billion.

A project is classified as HVHR if:

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