Government Response to the
Auditor-General’s Reports
issued during 2011-12
Presented by the Minister for Finance
June 2013
Contents
Overview................................................................................................................................................... 1
Access to Public Housing .......................................................................................................................... 3
Agricultural Food Safety ........................................................................................................................... 7
Auditor-General’s Report on the Annual Financial Report of the State of Victoria, 2010–11 ............... 12
Biotechnology in Victoria: The Public Sector’s Investment .................................................................... 14
Business Planning for Major Capital Works and Recurrent Services in Local Government ................... 17
Casual Relief Teacher Arrangements ..................................................................................................... 20
Compliance with Building Permits.......................................................................................................... 23
Developing Cycling as a Safe and Appealing Mode of Transport ........................................................... 30
Effectiveness of Justice Strategies in Preventing and Reducing Alcohol Related Harm ........................ 34
Fraud Prevention Strategies in Local Government ................................................................................ 42
Freedom of Information ......................................................................................................................... 47
Government Advertising and Communications ..................................................................................... 61
Individualised Funding for Disability Services ........................................................................................ 69
Local Government: Results of the 2010–11 Audits ................................................................................ 74
Management of Road Bridges ................................................................................................................ 80
Management of Trust Funds in the Justice Portfolio ............................................................................. 84
Managing Contaminated Sites ............................................................................................................... 88
Maternity Services: Capacity .................................................................................................................. 92
Melbourne Markets Redevelopment ..................................................................................................... 96
Obsolescence of Frontline ICT: Police and Schools .............................................................................. 101
Payments to Visiting Medical Officers in Rural and Regional Hospitals ............................................... 106
Performance Reporting by Local Government ..................................................................................... 109
Personal Expense Reimbursement, Travel Expenses and Corporate Credit Cards .............................. 112
Portfolio Departments and Associated Entities: Results of the 2010–11 Audits ................................. 124
Procurement Practices in the Health Sector ........................................................................................ 139
Public Hospitals: Results of the 2010–11 Audits .................................................................................. 144
Public Transport Performance.............................................................................................................. 147
Road Safety Camera Program............................................................................................................... 150
Science and Mathematics Participation Rates and Initiatives ............................................................. 155
State Trustees Limited: Management of Represented Persons ........................................................... 159
Supporting Changes in Farming Practices: Sustainable Irrigation ........................................................ 163
TAFE Governance ................................................................................................................................. 165
Tertiary Education and Other Entities: Results of the 2011 Audits...................................................... 169
i
Victorian Institute of Teaching ............................................................................................................. 175
Water Entities: Results of the 2010–11 Audits .................................................................................... 177
Departmental index.............................................................................................................................. 184
ii
Foreword
The tabling of the Government Response to the Auditor-General’s Reports issued during 2011-12 demonstrates the
Government’s commitment to transparency, and accountability and promoting sound financial and
resource management in Victoria.
The Auditor-General’s audit reports are an important source of independent advice to Parliament on the
adequacy of accountability and resource management practices in the Victorian public sector. The reports
are also valuable to the Government in identifying ways to improve the efficiency and effectiveness of the
public sector.
This response provides an opportunity for departments to inform Parliament and the public on issues and
actions taken in respect to recommendations made by the Auditor-General in audit reports tabled during
the 2011-12 financial year.
I wish to acknowledge the valuable input from departments in providing the responses to the
recommendations made in the Auditor-General’s reports, in cooperation with the Department of Treasury
and Finance.
ROBERT CLARK MP
Minister for Finance
Foreword
iii
Overview
During the 2011-12 financial year, the Victorian
Auditor-General tabled in Parliament 29
performance audit reports and six financial audit
reports. These audit reports provide the
community and Parliament with independent
assurance on the adequacy of accountability and
performance across the Victorian public sector.
The performance audit reports tabled by the
Auditor-General during 2011-12 assessed the
efficiency and effectiveness of government
programs and activity across various public
sector organisations. The financial audit reports
tabled by the Auditor-General in 2011-12
considered the effectiveness of internal controls,
timeliness of financial reporting, financial
sustainability and financial reporting
developments. These include the report on the
Annual Financial Report of the State of Victoria and
separate reports on the results of financial audits
specific to sectors, such as health, portfolio
departments, tertiary education and water.
Throughout the audit of more than 550 public
sector organisations, a total of 233 audit
recommendations were made by the
Auditor-General during 2011-12. Audit findings
addressed ways to improve governance
accountability, efficiency, effectiveness, probity,
risk management, quality assurance and
transparency across government.
The Government response to the
Auditor-General’s recommendations highlights
improvements that are being made in a number
of areas, including clearer direction in planning,
evidenced based decision-making, improving
regulatory effectiveness, strengthened oversight,
more meaningful reporting of performance,
probity in procurement, financial sustainability
and the security of systems and information.
Response structure
A summary of each individual audit is provided
that includes the background to each audit and
the Auditor-General’s recommendations, using
descriptions extracted from the
Auditor-General’s website and approved by the
Victorian Auditor-General’s Office.
The Government’s response provides a headline
response in the form of ‘Support’, ‘Not support’
or ‘Under review’. A more detailed explanation is
provided in support of each response.
Machinery of government changes
The Victorian Premier announced machinery of
government changes on 9 April 2013 that come
into effect from 1 July 2013.
The responses to the Auditor-General’s reports
were sought from departments before these
machinery of government changes. Accordingly,
the responses were provided by the former
departments of:

Business and Innovation;

Planning and Community Development;

Primary Industries;

Sustainability and Environment; and

Transport.
The machinery of government changes resulted
in the following new departments:

Department of State Development, Business
and Innovation;

Department of Transport, Planning and
Local Infrastructure; and

Department of Environment and Primary
Industries.
Overview
1
Concluding comment
The Government welcomes the
Auditor-General’s reports and his
recommendations. Table 1.1 summarises the
departmental responses to 2011-12 audit reports.
The majority of the Auditor-General’s
recommendations are supported by departments.
The departmental responses to each audit report
are detailed in this publication.
Table 1.1:
Summary of departmental responses to audit reports
Department
Business and Innovation
Education and Early Childhood Development
Health
Human Services
Justice
Planning and Community Development
Premier and Cabinet
Primary Industries
Sustainability and Environment
Transport
Treasury and Finance
Total
2
The considered adoption of audit
recommendations reflects the Government’s
commitment to focus on improving productivity
and management in the public sector, delivering
services more efficiently and effectively, and
identifying and implementing new and
innovative ways to prioritise community needs.
Total
25
50
53
37
48
63
22
29
36
34
48
445
Government Response to the Auditor-General’s Reports
issued during 2011-12
Support
24
47
47
36
39
36
21
23
35
34
42
384
Under
review
–
3
3
–
8
–
–
1
1
–
2
18
Do not
support
1
–
3
1
1
1
1
4
–
–
3
15
Not
applicable
–
–
–
–
–
26
–
1
–
–
1
28
Access to Public Housing
Background
This report was tabled in Parliament on
28 March 2012 and examined how effectively the
Department of Human Services plans for and
maintains public housing assets to support
current and future access for eligible tenants.
Findings of the Auditor-General
The audit found the situation for public housing
is critical, as the operating model and asset
management approach places the long-term
provision of this service at risk.
The operating model, with costs increasingly
exceeding revenues, is unsustainable. The
Department of Human Services has not
implemented long-term strategies to address this,
instead using short-term approaches such as
reducing acquisitions and preventative
maintenance. The Department now has an
estimated 10 000 properties, 14 per cent of the
portfolio, nearing obsolescence and a significant
maintenance liability.
There is no current asset management strategy
for the public housing portfolio and past
strategies do not meet Department of Treasury
and Finance guidelines or established asset
management practices. The Department of
Human Services lacks basic information, such as
accurate property condition data, to inform
strategic asset decisions.
The Department of Human Services is
developing a new housing framework and has
commenced financial modelling of new
approaches and an update of property data. As
cost and demand pressures are unlikely to abate
and the current model is not working, change is
necessary. New directions must innovate so that
access to public housing can be better managed
and is sustainable into the future.
Recommendation
That the Department of Human Services should develop and apply options to overcome the
unsustainable operating model.
Recommendation 1, page 14
Response by department
Human Services
Support
The Department of Human Services is currently
developing the Victorian Social Housing
Framework which will provide a vision for the
long-term future and sustainability of social
housing in Victoria.
Access to Public Housing
3
Recommendation
That the Department of Human Services should assess its operational efficiency and role in public
housing.
Recommendation 2, page 14
Response by department
Human Services
Support
The Department of Human Services has
undertaken a detailed budget analysis to identify
areas requiring immediate and medium-term
focus to ensure financial sustainability and
development of a sustainable operating model.
Recommendation
That the Department of Human Services should develop a long-term plan for public housing with
clear objectives.
Recommendation 3, page 14
Response by department
Human Services
Support
This is part of the framework mentioned in the
response to Recommendation 1.
Recommendation
That the Department of Human Services should develop a comprehensive asset management
strategy and vigorously monitor performance.
Recommendation 4, page 25
4
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Human Services
Support
The Department of Human Services
implemented a new organisational structure in
December 2012 which enables a strengthened
approach to asset management and investment
decision making.
Last year, the Department finalised an asset
management strategy for 2012–13 to 2013–14.
A long-term asset management strategy will be
finalised following the completion of the
Property Condition Review, informed by the
assessment of Department-owned properties
mentioned in the response to
Recommendation 6.
The Capital Committee, a sub-committee of the
Department’s management Board, commenced
in January 2013 comprising senior executives
and representation from central groups and
service delivery divisions to develop overall
directions for assets and to oversee and monitor
performance.
Recommendation
That the Department of Human Services should, at the regional level, capture local knowledge and
communicate investment criteria.
Recommendation 5, page 25
Response by department
Human Services
Support
The new departmental structure allows for a
strengthened approach to asset management and
investment decision making.
Recommendation
That the Department of Human Services should update and strengthen property condition data
across the portfolio.
Recommendation 6, page 25
Access to Public Housing
5
Response by department
Human Services
Support
Assessment of the condition of property owned
by the Department of Human Services is being
undertaken. Its purpose is to review and update
data on over 70 000 properties to inform
development of future asset strategies.
Recommendation
That the Department of Human Services should apply relevant data and medium and longer-term
forecasts to asset management strategies.
Recommendation 7, page 25
Response by department
Human Services
Support
Refer to the responses provided to
Recommendations 4 and 6.
6
Government Response to the Auditor-General’s Reports
issued during 2011-12
Agricultural Food Safety
Background
This report was tabled in Parliament on
14 March 2012 and examined how effectively
agricultural food safety is regulated in Victoria.
The audit examined how well the overall
assurance framework for food safety in Victoria
addresses food safety in primary production and
processing, and how effectively compliance with
the legislation was regulated.
Findings of the Auditor-General
The Auditor-General found that agricultural
food safety is being effectively managed,
supported by the three regulators-the
Department of Primary Industries, Dairy Food
Safety Victoria and PrimeSafe-actively
monitoring and enforcing compliance with
regulations and food safety standards.
Regulators apply policies and procedures
consistently and have sound controls in place for
managing the quality of this work.
Importantly, there are opportunities for
regulators to demonstrate more clearly the
effectiveness of regulatory activities.
Across the three regulators, assurance about the
effectiveness and impact of their activities is
incomplete because they do not have clear
performance measures or benchmarks defining
what they expect effective performance to
achieve. This limits their ability to attribute their
regulatory work to positive food safety outcomes
in Victoria. This is also the case for the
performance of the food safety system.
Recommendation
That the Department of Primary Industries should strengthen its risk-based rationale for monitoring
chemical use compliance and how it analyses results and uses this to improve compliance.
Recommendation 1, page 24
Response by department
Primary Industries
Support
The Department of Primary Industries has
developed a risk matrix and enforcement
strategy that aligns with the Department’s
Enforcement Policy to provide a risk-based
rationale for implementing enforcement and
compliance action in relation to chemical use. To
ensure consistency, further work in this area will
be amalgamated into the broader Departmental
approach to enforcement taken in response to
the Auditor-General’s audit of the effectiveness
of compliance activities under environment,
natural resources and primary industries
legislation.
Agricultural Food Safety
7
Recommendation
That the Department of Health should develop a food safety incident response plan that describes
how its policies and procedures link together, supported by policies and procedures that are specific
about what the criteria for action are, what needs to be done and who is responsible.
Recommendation 2, page 24
Response by department
Health
Support
The Department of Health has broken up this
task into four components:
1. An overarching food safety incident
response plan which is integrated with
Health Protection Branch investigation and
response plans (e.g. regarding communicable
diseases and water).
2. Integrated data reporting through the Public
Health Events Surveillance System which
will include food safety and human illness
data notified to the Department – enabling
improved surveillance and response.
3. Public information about the role of the
Department of Health in food safety
incident response.
4. Detailed departmental standard operating
procedures for food safety incident
responses.
The Department’s target is to have components
one to three completed by 30 June 2013, with
the detailed standard operating procedures to be
compiled into a revised operations manual by
30 June 2014.
Recommendation
The Department of Primary Industries, Dairy Food Safety Victoria and PrimeSafe should include more
comprehensive performance data in their public reports, with clear links between objectives,
performance measures and performance data.
Recommendation 3, page 25
Response by department
Primary Industries
Support
The Department of Primary Industries agrees
that the system would benefit from the
development of a framework for publicly
reporting on performance. Dairy Food Safety
Victoria and PrimeSafe have both included
additional information on performance in their
annual reports.
Their reports have incorporated reporting on
performance against the Minister for Agriculture
and Food Security’s Statement of Expectations.
8
Government Response to the Auditor-General’s Reports
issued during 2011-12
The reports are tabled in Parliament and are
available on their websites. The Department’s
public reporting does not include performance
reporting at the level that would identify food
safety performance, given food safety is a
relatively small component of the Department’s
activity. However, the Department is considering
whether food safety performance could be
reported on as a contribution to broader
activities such as market access.
Recommendation
The Committee of Food Regulators should develop a performance reporting framework for Victoria’s
food safety system, identifying the performance measures, data and public reporting that will
provide assurance of food safety outcomes and the performance of the system.
Recommendation 4, page 25
Response by department
Health and Primary Industries
Do not support
The Committee of Food Regulators (the
Committee) is a forum for information sharing
and collaboration among the various food
regulatory agencies which operate under
different legislative frameworks and report to
different Ministers. It does not have a food
safety system governance role and cannot direct
the participating agencies. This observation was
made in the Department of Health’s written
comments on the audit report and during the
Auditor-General’s inquiry.
The Committee of Food Regulators was initially
established for two years, with a review to
inform decisions on its future. After
the review, the Ministers for Health and
Agriculture agreed that the Committee should
continue to operate in a less formal capacity as
a forum for discussion, information sharing,
collaboration and practical resolution of
boundary issues between the food safety
regulatory regimes.
All committee members have agreed to link
Victorian food safety data and communicable
disease data that is published under the various
Acts on the web, to make it easier for
stakeholders to access all of the data that is
available.
Recommendation
The Department of Primary Industries should clarify its role in regulating and managing agricultural
food safety and integrate this work more strongly into the broader food safety system.
Recommendation 5, page 25
Response by department
Primary Industries
Support
The Department of Primary Industries has
worked across its divisions and with the
Department of Health and local government to
articulate the Department’s changing role in
food safety associated with new responsibilities
regulating food safety in the egg industry. The
Department’s role and relationship with other
food safety regulators will be formally
documented through amendments to the
Memorandum of Understanding that
incorporates Victoria’s food regulators. This
document is publicly available on the
Department’s website.
Agricultural Food Safety
9
Recommendation
When reviewing its operations and effectiveness in 2012, the Committee of Food Regulators should
definitively assign accountability for the success of the strategic plan and for agency-specific actions
to support the strategic plan.
Recommendation 6, page 25
Response by department
Health
Primary Industries
Do not support
Do not support
Refer to the responses to Recommendations 4
and 8.
This Committee is a forum for information
sharing and collaboration among the various
food regulatory agencies which operate under
different legislative frameworks and report to
different Ministers. It does not have a food
safety system governance role and cannot direct
the participating agencies.
Recommendation
The Committee of Food Regulators should expand the strategic plan to:

include a common strategic direction for food safety outcomes across the food supply chain from
agricultural production to consumer;

identify state-wide objectives, desired outcomes, performance indicators and targets for food
safety, in addition to the regulatory goals already included;

be based on a clear program logic for how actions will contribute to achieving regulatory goals
and food safety outcomes;

assign responsibilities and resources for delivering the actions required to achieve the objectives;
and

encompass all food safety agencies, including the Department of Primary Industries.
Recommendation 7, page 25
Response by department
Health
Primary Industries
Do not support
Do not support
Refer to the responses to Recommendations 4
and 8.
Refer to the response to Recommendation 6.
10
Government Response to the Auditor-General’s Reports
issued during 2011-12
Recommendation
Victoria’s overall food safety system should include a framework for reviewing and prioritising risks
across all food sectors and agencies, selecting the best approaches for managing the significant risks,
and allocating regulatory, advisory and surveillance efforts.
Recommendation 8, page 25
Response by department
Health and Primary Industries
Under review
Given the agreement between the Minister for
Health and the Minister for Agriculture and
Food Security that the Committee of Food
Regulators is to be a collaboration and
information sharing mechanism, the Department
of Primary Industries and the Department of
Health are discussing how best to achieve this
outcome.
Some initiatives include:

collaboration on food safety research to
assist in identifying and prioritising risks and
risk management measures; and

joint actions to review and prioritise food
safety risks identified through data
surveillance (e.g. Victoria planned and
hosted the national salmonella summit held
in October 2012).
Agricultural Food Safety
11
Auditor-General’s Report on the Annual Financial
Report of the State of Victoria, 2010–11
Background
This report was tabled in Parliament on
9 November 2011 and informs Parliament about
the results of the audit of the Annual Financial
Report of the State of Victoria, 2010-11.
Findings of the Auditor-General
The audit concluded that Parliament can have
confidence in the Annual Financial Report and
the reported financial position of the State as at
30 June 2011.
A clear audit opinion was issued on the Annual
Financial Report on 10 October 2011. The
independent audit opinion adds credibility to the
financial report by providing assurance that the
information is reliable.
Recommendation
That the Department of Treasury and Finance review its Annual Financial Report processes to
improve quality assurance over the material produced and to introduce a realistic timetable for
delivery of quality drafts to audit in order to reduce delays and inefficiencies in financial reporting.
Recommendation 1, page 8
Response by department
Treasury and Finance
Support
All audit drafts are now preceded by an internal
Department of Treasury and Finance quality
assurance process.
12
Government Response to the Auditor-General’s Reports
issued during 2011-12
Recommendation
That the Department of Treasury and Finance require material entities to align their reporting time
frames to meet Annual Financial Report milestones.
Recommendation 2, page 8
Response by department
Treasury and Finance
Support
The Auditor-General’s report noted an
improvement in meeting reporting timelines for
the 2011-12 Annual Financial Report. The
Department of Treasury and Finance will
continue to engage with material entities to
improve their compliance with the Annual
Financial Report timetable, including the
synchronisation of audit committee meetings
with the timetable.
Recommendation
That the Department of Treasury and Finance prepare and seek approval of the Appropriation
Certification earlier so that all material entities can achieve the Annual Financial Report milestones.
Recommendation 3, page 8
Response by department
Treasury and Finance
Support
The Department of Treasury and Finance has
implemented this recommendation. For the
2011-12 Annual Financial Report, the
Department of Treasury and Finance required
material entities to have their audited financial
statements signed by 20 August 2012 and made
the signed revenue certification available to them
by 13 August, which is consistent with the
Annual Financial Report timetable.
Auditor General’s Report on the Annual Financial Report
of the State of Victoria, 2010–11
13
Biotechnology in Victoria: The Public Sector’s
Investment
Background
This report was tabled in Parliament on
17 August 2011 and examined the efficiency and
effectiveness of the Victorian public sector’s
investments in the biotechnology sector. The
audit examined the application of the
Biotechnology Strategic Development Plan for Victoria
as well as program design, program governance,
investment evaluations, business case reviews,
progress reporting and benefits assessments.
However, the audit found there are
shortcomings in the Department’s approach to
investment targeting, and gaps in its benefits
measurement and monitoring approaches.
Findings of the Auditor-General
The Department’s administrative focus for the
sector is also mainly on grant and contract
compliance. Though useful in its own right, this
focus does not produce performance data about
whether the strategic aims of the public sector’s
investment in the biotechnology sector are being
delivered.
The audit found that the Department of
Business and Innovation, in its role as the public
sector agency responsible for administering the
bulk of public investment in biotechnology, has
delivered a range of world-class facilities and
technology platforms for the biotechnology and
broader life sciences sector.
As a result, after more than 10 years of active
investment and ‘market intervention’ in the
biotechnology sector, the Department is not yet
able to objectively demonstrate the development
of a cause and effect relationship between its
investments in the biotechnology sector and the
results achieved in that sector.
The Department has publicly reported that of
the 16 high-level strategic goals and targets that
the Government set for the biotechnology
sector over the past decade, 10 have been met
and adequate progress has been made for targets
that have not been fully met.
Recommendation
The Department of Business and Innovation should develop an overarching biotechnology
strategy to:

guide whole of government activities and investments in the sector;

link the various funding programs to optimise investments’ contribution to the agreed goals and
targets for the sector; and

set cause and effect measurement criteria that will allow for progressively more objective
assessment of the achievement of goals and strategies.
Recommendation 1, page 17
14
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Business and Innovation
Support
The Department of Business and Innovation has
delivered the following specific actions on
biotechnology industry development strategy
and program design:

launched Victoria’s Technology Plan for the
Future – Biotechnology (the plan) in
October 2011, which outlines the
Government’s strategies, performance
measures and investments for the
biotechnology sector;

sought independent advice from KPMG on
the design of targets including impact and
outcome measurements;

based on the KPMG advice, developed two
sets of targets for the plan in line with
current international best practice for
innovation performance monitoring:

targets directly measuring the impact of
government investment; and

targets providing an indication of the
status of the wider framework
conditions;

developed a Biotechnology Strategic Funding
Principles Guide to help assess potential
investments under the plan. It includes clear
guidelines for assessing the potential of
projects to deliver the plan’s goals and
strategies;

currently completing an annual review for
public release of the plan, including
performance against the defined targets; and

committed to undertaking a final review for
public release of the plan including
performance against the defined targets.
The Department of Business and Innovation has
continued to work with other public sector
agencies and the Organisation for Economic
Co-operation and Development to collectively
improve innovation measurement.
Recommendation
The Department of Business and Innovation should adapt an investment portfolio allocation model to
determine whether there is alignment of investments in the biotechnology sector with the
Department of Business and Innovation’s desired risk and return profile.
Recommendation 2, page 32
Biotechnology in Victoria:
The Public Sector’s Investment
15
Response by department
Business and Innovation
Do not support
At the request of the Minister for Technology,
the Department of Business and Innovation also
discussed this issue with the Victorian
Biotechnology Advisory Council (the peak body
in Victoria with regard to biotechnological
research) which also did not support this
recommendation. Consistent with the views of
the Department, the Council noted that a
portfolio allocation model is inappropriate
given the policy framework and objectives
(i.e. creating the right environment) for
Government intervention.
Also, as noted above, the Department has
developed a Biotechnology Strategic Funding Principles
Guide to help the Department assess the
potential of strategic investments under Victoria’s
Technology Plan for the Future – Biotechnology.
Recommendation
The Department of Business and Innovation should further develop its grant management processes
for biotechnology investments by:

setting, for each of the investments that it funds, performance targets that relate to strategic
objectives;

validating information provided by grant recipients; and

embedding benefits planning in the funding approval process.
Recommendation 3, page 32
Response by department
Business and Innovation
Support
The Department of Business and Innovation
takes into account the type and size of the
biotechnology investment to determine the most
cost effective and appropriate approach to grant
management. All biotechnology investments
adhere to the Department’s grant and contract
management policies.
16
Government Response to the Auditor-General’s Reports
issued during 2011-12
As per the Department of Treasury and
Finance’s Investment Management Standard,
Victoria’s Technology Plan for the Future –
Biotechnology has a corresponding benefits
management plan under which framework
Biotechnology Strategic Funding Principles were
developed (as noted above). Proposed
biotechnology investments require rigorous
assessment of benefits under this approval
process.
Business Planning for Major Capital Works and
Recurrent Services in Local Government
Background
This report was tabled in Parliament on
14 September 2011 and examined Glen Eira City
Council, City of Whittlesea, South Gippsland
Shire Council and Hepburn Shire Council as a
representative selection of councils to determine
whether they had effectively integrated their
planning and budgeting, considered the
long-term sustainability of selected investments
and produced accurate and reliable budgets and
forecasts.
Findings of the Auditor-General
The audit found that the councils focused on
acquitting their minimum statutory obligations
have developed plans and budgets, without
paying sufficient attention to whether they are
either effectively integrated or whether they
contain useful and appropriate information that
supports effective decision making.
Until they integrate and improve the quality of
their planning and budgeting, councils will find it
difficult to justify annual rate increases and
effectively negotiate for equitable grant and
other funding arrangements.
Recommendation
Councils should:

consult with, and engage, their communities on their ability and willingness to pay for desired
services and assets when developing their initial council plans;

better integrate their planning and budgeting practices to support sound decision making;

develop strategic and supporting divisional business plans for all major services, with measurable
objectives clearly aligned to their council plans; and

review their asset management frameworks to assure their asset policies, strategies and plans
are up-to-date, cover all major asset classes, and adequately inform future investment decisions.
Recommendation 1, page 18
Business Planning for Major Capital Works and
Recurrent Services in Local Government
17
Response by department
Planning and Community
Development
Not applicable
This recommendation is for the individual
councils to implement.
During 2011-12, two major grant programs were
funded by the Commonwealth Government.
These were the:

Local Government Sustainability Project;
and

Regional Asset Management Project.
The Local Government Sustainability Project
was made available to all councils across the
State. The focus of this project was to assess
existing business practices against the Local
Government Sustainability Framework, which in
turn was assessed against the emerging National
Asset Management Assessment Framework
(NAMAF).
The focus of the Regional Asset Management
Project was on building local capacity and
wherever possible the development of regional
solutions and standards. This project was
available to the 48 regional and rural councils.
Both helped determine the current state of asset
management frameworks in Victorian councils,
highlighting that much work remains for
Victorian councils to reach a core level of asset
management maturity across all NAMAF
practice areas.
Local Government Victoria continues to work
with the sector to seek improvements in asset
management and in early 2013 have again
surveyed councils with an asset management
performance measures survey which provides
important data on key asset management
measures.
Recommendation
Local Government Victoria should:

systematically review the adequacy of council planning and budgeting and, in consultation with
stakeholders, provide better targeted support and assistance to councils to address identified
weaknesses; and

monitor the impact of these support initiatives to inform its future continuous development
efforts.
Recommendation 2, page 18
Response by department
Planning and Community
Development
Support
Local Government Victoria has updated the
guidance document Local Government Planning and
Reporting Better Practice Guide to assist councils
meet their statutory obligations under the Local
Government Act 1989 as it relates to the
preparation of key documents in the planning
18
Government Response to the Auditor-General’s Reports
issued during 2011-12
and accountability framework. The updated
guidance reinforces the Auditor-General’s
recommendations in relation to the preparation
of the council plan, annual report and
performance statement.
Recommendation
Councils should:

develop business cases for proposed investments in major capital works to demonstrate they
are soundly based and that they support the achievement of the council’s service delivery
objectives; and

rigorously analyse service need, value-for-money, cost, and financial sustainability against
defined standards consistent with the Best Value Principles to inform investments in recurrent
services.
Recommendation 3, page 26
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils. Refer to the response to
Recommendation 2.
Business Planning for Major Capital Works and
Recurrent Services in Local Government
19
Casual Relief Teacher Arrangements
Background
This report was tabled in Parliament on 18 April
2012 and examined whether the use of casual
relief teachers (CRTs) in government schools has
contributed effectively to student outcomes and
teaching quality. CRTs are professionally
qualified teachers who can be engaged by
schools for up to 30 continuous days at a time.
They provide continuity of learning for students
during normal teacher absences and enable
permanent teachers to access extended
professional development opportunities. CRTs
represent about 12 per cent of the teacher
workforce.
Findings of the Auditor-General
The audit found that the Department of
Education and Early Childhood Development
has not developed an approach to understand
the location, availability and skills of the CRT
workforce. Without this knowledge it is not well
placed to develop evidence-based policy and
make informed strategic decisions about the
CRT workforce.
There is also a lack of assignment of
responsibility for monitoring and supporting
CRTs. This means that the impact of the CRT
workforce on student outcomes and teaching
quality is not being managed. As casual teaching
is clearly a statewide issue, the Department needs
to work more closely with the Victorian Institute
of Teaching and other agencies to understand
the CRT workforce and make sure that action is
taken when needed to address inequity and make
sure that skilled and experienced CRTs are
available when and where they are needed.
Recommendation
The Department of Education and Early Childhood Development should assign responsibility for
capturing and analysing more accurate information about casual relief teacher (CRT) use, the
availability of skilled and experienced CRTs, and demand for CRTs across the State.
Recommendation 1, page 18
Response by department
Education and Early Childhood
Development
Support
The Department of Education and Early
Childhood Development supports each
recommendation in the audit report. The
Department’s acceptance of this
recommendation is subject to resource
availability and consideration of the current
20
Government Response to the Auditor-General’s Reports
issued during 2011-12
reforms which increase the local decision making
power of principals and allow schools greater
autonomy. No action has been taken in relation
to these recommendations at this time.
Recommendation
The Department of Education and Early Childhood Development should monitor the casual relief
teacher workforce and act promptly to address inequities so that schools can access a suitably skilled
and experienced workforce when required regardless of location.
Recommendation 2, page 18
Response by department
Education and Early Childhood
Development
Support
Refer to the response to Recommendation 1.
Recommendation
The Department of Education and Early Childhood Development should identify opportunities at a
regional level for casual relief teachers to participate in school-based professional development
activities.
Recommendation 3, page 26
Response by department
Education and Early Childhood
Development
Support
The Department of Education and Early
Childhood Development is developing strategies
to encourage equitable access to professional
learning that involve allocating funding to school
networks for casual relief teacher development.
Recommendation
The Department of Education and Early Childhood Development should review the Professional
Learning Support Initiative to better target funding and improve casual relief teacher quality.
Recommendation 4, page 26
Casual Relief Teacher Arrangements
21
Response by department
Education and Early Childhood
Development
Support
Refer to the response to Recommendation 3.
Recommendation
The Department of Education and Early Childhood Development should further reinforce with
schools that they should provide access to Edumail and the Ultranet for frequently employed casual
relief teachers.
Recommendation 5, page 26
Response by department
Education and Early Childhood
Development
Support
Refer to the response to Recommendation 3.
22
Government Response to the Auditor-General’s Reports
issued during 2011-12
Compliance with Building Permits
Background
This report was tabled in Parliament on
7 December 2011 and examined the
effectiveness of the building permit system in
assuring that approved works meet requisite
building and safety standards. It examined how
effectively the commission regulates the
activities of municipal and private building
surveyors, and how effectively councils enforce
compliance with the Building Act 1993 (the Act).
It also analysed a sample of building permits
issued by private and municipal building
surveyors to determine if they complied with
the Act, the regulations and the Building Code
of Australia.
Findings of the Auditor-General
The audit found the Building Commission
cannot demonstrate that the building permit
system is working effectively or that building
surveyors are effectively discharging their role to
uphold and enforce minimum building and
safety standards.
Ninety-six per cent of permits examined did not
comply with minimum statutory building and
safety standards. Instead, the audit results
revealed a system marked by confusion and
inadequate practice, including lack of
transparency and accountability for decisions
made.
In the absence of leadership, guidance and
rigorous scrutiny from the commission, councils
have adopted a largely reactive approach to
enforcing the Act that offers little assurance of
compliance in their municipalities.
Consequently, there is little assurance that
surveyors are carrying out their work
competently, that the Act is being complied
with, and the risk of injury or damage to any
person is being minimised.
Recommendation
The Building Commission should:

expedite development of its monitoring and evaluation framework and clarify the targets,
standards and arrangements for assessing the building permit system’s effectiveness, and the
impact of related monitoring and enforcement efforts.
Recommendation 1 (dot point 1), page 20
Compliance with Building Permits
23
Response by department
Planning and Community
Development
Support
The Building Commission in conjunction with
the Department of Planning and Community
Development has developed an integrated
monitoring and evaluation framework that
reflects best practice regulatory principles
(adopted September 2012).
The framework is being progressively
implemented through the Program Design and
Implementation project and will include the
development of key performance indicators for
each regulatory function of the Building
Commission and relevant building surveyor.
Recommendation
The Building Commission should:

conduct a fundamental review of the building permit system’s effectiveness to identify and
resolve the longstanding and other system-wide performance issues;

develop guidance for building surveyors on the process for determining and documenting the
value of building works and thus for accurately estimating the levy payable to the Building
Commission;

implement controls to prevent building surveyors from using levies collected as their working
capital; and

systematically audit surveyors’ estimates of the value of building works to gain assurance they
are soundly based and that it is mitigating financial losses arising from any incorrect valuations.
Recommendation 1 (dot points 2 to 5), page 20
Response by department
Planning and Community
Development
Support
The Building Commission has worked with the
Department of Planning and Community
Development in conducting a review of the
building permit system.
24
Government Response to the Auditor-General’s Reports
issued during 2011-12
The Building Commission has implemented a
number of changes to the building permit system
to improve monitoring and evaluation, and with
the Department has identified changes to the
building permit system to enable tracking and
managing of permits and levy payments
throughout the building permit lifecycle.
Recommendation
The Building Commission should:

develop and implement a strategy, in consultation with the local government sector, to enable
more effective coordination with councils to monitor the performance of the building permit
system and of building surveyors; and

clarify councils’ responsibilities for monitoring and enforcing the Building Act 1993 relating to
private building surveyors in consultation with the Department of Planning and Community
Development and relevant stakeholders.
Recommendation 1 (dot points 6 and 7), page 20
Response by department
Planning and Community
Development
Support
The Building Commission in conjunction with
the Department of Planning and Community
Development has established a working group
that consists of the Victorian Municipal Building
Surveyor Group and the Municipal Association
of Victoria. A draft Strategy, Implementation
Plan and Local Government Guide has been
developed and is being reviewed to enable more
effective coordination with councils.
Recommendation
Councils should review and, where relevant, strengthen their monitoring and enforcement strategies
to assure:

they are risk based, targeted and sufficiently informed by reliable data on the performance of the
local building permit system and of the surveyors operating within it; and

that building works and associated permits comply with the Building Act 1993, the Building
Regulations 2006 and the Building Code of Australia within their municipal districts.
Recommendation 2, page 20
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils. Refer to the response to
Recommendation 1 (dot point 6).
Compliance with Building Permits
25
Recommendation
The Building Commission, in consultation with stakeholders should:

develop standard templates and procedures to require building surveyors to adequately
document their assessment approach and basis of their decisions; and

require building surveyors to demonstrate, using these templates and procedures, their
consideration and acquittal of mandatory safety and technical requirements.
Recommendation 3, page 33
Response by department
Planning and Community
Development
Support
The Building Commission has reviewed all
current Practice Notes and Minister’s Guidelines
and identified an initial suite of standard
templates for building surveyors for consultation
with the working group (refer to the response to
Recommendation 1 (dot point 6)).
Recommendation
The Building Commission should strengthen its performance audit program to assure:

it meets its legislative remit to provide assurance that the work carried out by a registered
practitioner has been competently carried out, does not pose any risk of injury or damage to any
person, and to assure that the Building Act 1993 and the Building Regulations 2006 have been
complied with;

it is informed by rigorous analysis of reliable risk-based data on the performance of building
surveyors;

it includes a clear rationale and annual targets for ongoing comprehensive technical audits of
both municipal and private building surveyors performed by qualified practitioners;

it offers reliable information on whether building surveyors operating in both the domestic and
non-domestic sectors effectively discharge their obligations to enforce compliance with the
Building Act 1993 and the Building Regulations 2006; and

it regularly undertakes and clearly documents reviews of both the program’s and individual
audit’s effectiveness against defined quality standards.
Recommendation 4, page 50
26
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Planning and Community
Development
Support
The Building Commission has designed, trialled
and subsequently implemented its new risk based
Building Audit Program and Policy. This is
supported by an interim in house audit team
(pending recruitment of ongoing staff) and a
database designed to collect audit data for
analysis. An external audit panel has been
appointed. The first wave of building surveyor
audits under the new system commenced in
February 2013 and will be complete by
mid 2013.
Recommendation
The Building Commission should comprehensively assess, clearly document, and target via audit all
identified major risks related to surveyors administration of the building permit system.
Recommendation 5, page 50
Response by department
Planning and Community
Development
Support
Refer to the response to Recommendation 4.
Recommendation
The Building Commission should strengthen its complaints handling and investigation processes to
assure:

complaints are systematically prioritised according to the risk of non-compliance with safety and
technical building standards, and that this is clearly documented;

they are governed by clear standards of effectiveness and efficiency, and that adherence to these
requirements is regularly reviewed and monitored by senior management;

investigators receive sufficient training to enable them to form appropriate judgments about
technical building matters; and

clear quality assurance standards and effective controls are established for technical reports
sourced from the Building Commission’s external panel to assure they have been competently
prepared.
Recommendation 6, page 50
Compliance with Building Permits
27
Response by department
Planning and Community
Development
Support
The Building Commission has developed and
implemented a complaints matrix, complaints
handling guidelines, quality assurance procedures
and a risk based assessment triage process for
complaints management.
Enhancements have also been made to the
Building Commission’s website and phone
system including the release of new procedures
for receiving and reporting all calls, and
monitoring and evaluating call data. Future
enhancements will include the development of
an integrated customer enquiries management
process.
The Building Commission has implemented the
first stage of the Capacity Building Training
Program for investigators and is developing a
second stage to enable investigators to make
appropriate judgments in respect of technical
building matters.
The Building Commission has released an
expression of interest for external technical
advisors to ensure external panel members
possess appropriate skills and competencies.
Selected external panel members will be
provided with additional training in respect of
technical reports before starting. The Building
Commission’s internal procedures for technical
reports are being reviewed as part of the
Program Design and Implementation project.
Recommendation
The Building Practitioners Board should:

develop criteria and guidelines for evaluating the competency of applicants to be registered as
building surveyors and clearly document the basis of all of its related decisions; and

systematically verify a sample of the character declarations supplied by applicants for registration
to gain reasonable assurance they are reliable.
Recommendation 7, page 55
Response by department
Planning and Community
Development
Support
The Building Practitioners Board has reviewed
and updated its corporate governance manual to
include panel constitution and recognition of
interests for consumers. It has also reviewed and
updated its registration policy to include
character sample checking. Both have been
formally adopted by the Board.
28
Government Response to the Auditor-General’s Reports
issued during 2011-12
The Building Commission has established the
Practitioner Registration/Licensing
Improvement Program that is reviewing the end
to end registration process for all practitioners to
deliver improved content and an integrated
computer based practitioner assessment system
while working with training providers to enhance
the quality of training provided to practitioners.
Recommendation
The Department of Planning and Community Development, in consultation with stakeholders,
should:

seek approval from the Minister for Planning to introduce a system of compulsory continuing
professional development for building surveyors; and

seek approval from the Minister for Planning to prepare an amendment to the Building Act 1993
to make registration renewal contingent on building surveyors satisfying minimum compulsory
continuing professional development requirements.
Recommendation 8, page 55
Response by department
Planning and Community
Development
Support
The Department of Planning and Community
Development commissioned Jaguar Consulting
to undertake an analysis of the expected costs
and benefits of mandatory continuing
professional development for the following
registered building practitioner categories:

draftpersons;

building designers;

quality surveyors; and

architects.

building surveyors;

engineers;
The report has now been received and the
Department is considering the report.
Compliance with Building Permits
29
Developing Cycling as a Safe and Appealing Mode of
Transport
Background
This report was tabled in Parliament on
17 August 2011 and assessed the effectiveness of
the Department of Transport and VicRoads in
developing cycling as a safe and appealing mode
of transport by examining their performance in
developing and implementing the 2009 Victorian
Cycling Strategy (the strategy) and achieving the
intended outcomes.
Findings of the Auditor-General
The Auditor-General considered the strategy a
first, important step for Victoria to significantly
raise the profile and role of cycling as part of a
more sustainable transport system. The strategy
created a logical framework for action and
formed the basis for increased investment in
cycling infrastructure. However, the audit found
serious limitations in its development and
implementation compromised its potential to
achieve its goal.
Recommendation
That the Department of Transport and VicRoads should complete implementation plans, when
developing future cycling strategies, that describe objectives, timelines, resources and
responsibilities and how a strategy will be managed, monitored and reported.
Recommendation 1, page 33
Response by department
Transport
Support
The Victorian Government released Cycling into
the Future 2013-23: Victoria’s Cycling Strategy (the
strategy) in December 2012. The Victorian Cycling
Action Plan 2013-2014 (the action plan), released
at the same time, sets out an overview of how
the strategy will be implemented in the first
two years.
The strategy and action plan set out processes
for coordinating, monitoring and reporting on
implementation, through the establishment of an
interdepartmental cycling committee and a
cycling reference group, to complement the
activities of the Victorian Trails Coordinating
Committee. The strategy includes measures and
indicators to be used to assess progress against
each of the strategic directions.
30
Government Response to the Auditor-General’s Reports
issued during 2011-12
The Department of Transport has prepared a
project plan template for use across departments
and agencies involved in delivering actions in the
Victorian Cycling Action Plan 2013-2014. Using this
template, plans are being developed for each
action, elaborating on the action plan. Progress
against these plans will be monitored by
members of the interdepartmental cycling
committee.
The Department of Transport and VicRoads will
develop implementation plans for the actions
that they deliver or coordinate in present and
future action plans.
Recommendation
That the Department of Transport and VicRoads should improve the quality of project plans so that
they consistently meet agencies’ internal requirements by creating better practice templates.
Recommendation 2, page 33
Response by department
Transport
Support
The Department of Transport has prepared a
project plan template for use across departments
and agencies involved in delivering actions in the
Victorian Cycling Action Plan 2013-2014. Using this
template, plans are being developed for each
action, elaborating on the responsibilities and
objectives set out in the action plan to detail
expected outcomes, key performance indicators,
milestones and outputs, governance, resources,
risk management and stakeholder engagement.
The project plan has been specifically designed
to address the action plan requirements,
including progress reporting.
VicRoads completed a review of all scope
approval reports for bicycle projects in early
2012. The review found that all reports met
VicRoads’ internal requirements as outlined in
the Project Management Guidelines (2008).
In 2013, VicRoads will continue to improve the
quality of scope approval reports for bicycle
projects. This will be achieved by clarifying
project objectives and outlining how each
project will be evaluated.
Recommendation
That the Department of Transport and VicRoads should finalise evaluation frameworks, when
developing future strategies, that describe outcomes, realistic targets, benchmark data and how
success will be measured and reported for component projects and for the overall strategy.
Recommendation 3, page 33
Response by department
Transport
Support
Cycling into the Future 2013-23 sets out six strategic
directions. It identifies measures and indicators
for each strategic direction to be used to
measure progress of the cycling strategy. These
indicators and measures help describe the
outcomes to be achieved and illustrate how
success will be measured. The Government has
committed in the initial Victorian Cycling Action
Plan 2013-2014 to assess progress on Cycling into
the Future 2013-23 using these measures and
indicators based on benchmark data.
Project plans for each of the actions identified in
the action plan will include key performance
indicators and track progress for each action.
Cycling into the Future 2013-23 sets out that the
interdepartmental cycling committee will report
on progress to the Government, key
stakeholders and the public.
Developing Cycling as a Safe and
Appealing Mode of Transport
31
Recommendation
That the Department of Transport and VicRoads should develop a sound basis for informing and
implementing government policy through an improved understanding of current and potential
cyclists, the journeys they make, the barriers to ‘growing’ cycling and how to best overcome these.
Recommendation 4, page 33
Response by department
Transport
Support
Cycling into the Future 2013-23 sets out a key
strategic direction dedicated to evidence
informed decisions. Current actions include
collecting, collating and analysing data on
cycling, developing a methodology for
understanding current and potential cycling
demand and undertaking an information needs
analysis to help prioritise future data
requirements.
The Department of Transport and VicRoads
reviewed existing information in developing
Cycling into the Future 2013-23, which was also
informed by workshops with local governments
and organisations representing cycling interests
to ensure information on barriers to growing
cycling was considered.
Recommendation
The Department of Transport and VicRoads should apply the mechanisms required to effectively
coordinate actions to ‘grow’ cycling and improve information sharing across government agencies
and non-government organisations involved in cycling.
Recommendation 5, page 33
Response by department
Transport
Support
The Department of Transport established a
working group of representatives across
Victorian Government departments and
agencies to help prepare Cycling into the Future
2013-23. An interdepartmental committee was
also established to coordinate input to the
development of the strategy across government
agencies.
An ongoing Interdepartmental Cycling
Committee (the Committee) has been
established as a result of Cycling into the
Future 2013-23 to coordinate and monitor
implementation of the strategy and
32
Government Response to the Auditor-General’s Reports
issued during 2011-12
Victorian Cycling Action Plan 2013-14 and share
information. The membership of the Committee
includes key agencies and authorities involved in
planning or delivering cycling infrastructure and
programs.
Key external stakeholders were consulted in the
development of the strategy and a cycling
reference group, consisting of these key external
stakeholders, will be established to aid
implementation.
Local government was consulted during the
development of the strategy and involved in
workshops, and information sharing will
continue during the implementation of the
strategy by involving representatives in the
cycling reference group. Other mechanisms and
opportunities for exchanging information such
as regional forums are being investigated.
Recommendation
The Department of Transport and VicRoads should in consultation with other managers, review and
update guidance on the construction, maintenance, auditing and retrofitting of shared bicycle paths
and agree on the maintenance arrangements for the finalised Principal Bicycle Network.
Recommendation 6, page 33
Response by department
Transport
Support
VicRoads completed a review of the
construction, maintenance, auditing and
retrofitting of shared bicycle paths in 2008.
As a result of this review, existing guidance on
the construction and maintenance of shared use
paths was considered satisfactory. Updated
guidance on the design standards for shared use
paths and audit guidelines for shared use paths
were prepared to assist land managers. This
additional guidance was added to the VicRoads
website in September 2012.
Cycling into the Future 2013-23 sets out to enhance
governance and streamline processes to assist
cycling projects, initiatives and events. The first
action plan includes reviewing processes for
delivering cycling infrastructure projects that
cross local government boundaries and have
multiple land managers, cutting red tape when
assessing and approving infrastructure projects,
and reviewing legislation for managing and
maintaining off-road paths.
Maintenance arrangements for the Principal
Bicycle Network are defined in the Road
Management Act 2004. The maintenance of shared
use paths is generally the responsibility of the
land owner.
Developing Cycling as a Safe and
Appealing Mode of Transport
33
Effectiveness of Justice Strategies in Preventing and
Reducing Alcohol Related Harm
Background
This report was tabled in Parliament on 20 June
2012 and assessed the effectiveness of the
Department of Justice, Victoria Police and the
Victorian Commission for Gambling and Liquor
Regulation in preventing and reducing the
impact of alcohol related harm on the
community.
Findings of the Auditor-General
The audit found the Department of Justice’s
initiatives to prevent and reduce alcohol related
harm were fragmented, superficial and reactive
instead of targeted, evidence-based,
complementary and well coordinated.
The liquor licensing regime is not effectively
minimising alcohol related harm. This is due to
a lack of transparency in decision making,
insufficient guidance on regulatory processes,
administrative errors, poor quality data and a
lack of engagement from councils.
There is no overarching whole of government
enforcement strategy to comprehensively
address unlawful supply, particularly service to
intoxicated patrons and minors, which is the
cause of much alcohol related harm. Inaccurate
and incomplete data is further hampering
enforcement efforts.
A fundamental change in approach to strategy
development, licensing and enforcement is
required before any noticeable impact on
reducing harm is likely.
Recommendation
The Department of Health should, as the coordinating department for the new alcohol and drug
strategy, lead the development of:

a coherent whole of government policy position on alcohol consumption and the liquor and
hospitality industry;

clear lines of accountability for alcohol policy implementation; and

a consolidated database to facilitate meaningful and accessible analysis of alcohol consumption
and harm.
Recommendation 1, page 22
34
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Health
Support
The Reducing the alcohol and drug toll: Victoria’s plan
2013 – 2017 (the Plan) sets out a coherent whole
of government policy position on alcohol and
drugs, including, but not limited to, the issues
identified in the Auditor-General’s
recommendation.
The Plan establishes clear lines of accountability
for alcohol and drug policy implementation, and
itself presents a meaningful, accessible analysis
of alcohol consumption and harm.
The most critical data on alcohol consumption
and harm is presented in the measures of
progress section of the Plan (page 56), and in the
more detailed discussion of alcohol throughout
the plan.
As set out in point 15 of the Plan, the Victorian
Government will establish effective oversight
and advisory arrangements to guide
collaboration to deliver measurable reductions in
the alcohol and drug toll. As part of this
commitment the Department of Health will lead
a number of improvements in the collection,
analysis and reporting of data concerning alcohol
consumption and harm.
Recommendation
The Department of Health should:

identify and apply the lessons learned from the development and implementation of Restoring
the Balance: Victoria’s Alcohol Action Plan 2008–13 to inform future strategy development; and

improve the quality of data it collects on alcohol consumption and harm.
Recommendation 2, page 22
Response by department
Health
Support
The Department of Health considered the
Auditor-General’s assessment of the lessons
learned from the development and
implementation of Restoring the Balance: Victoria’s
Alcohol Action Plan 2008–13 as part of its work in
developing Reducing the alcohol and drug toll:
Victoria’s plan 2013 – 2017. The Department also
considered a wide range of expert, stakeholder
and public views on the priority actions for the
Victorian Government to reduce the alcohol and
drug toll.
As set out in point 15 of the Reducing the alcohol
and drug toll: Victoria’s plan 2013 – 2017, the
Victorian Government will improve the quality
of data and research on alcohol and drugs. As
part of this commitment, the Department will
lead a number of improvements to the
collection, analysis and reporting of data
concerning alcohol consumption and harms.
Specifically, the Department will improve the
quality of data on alcohol that it collects through
the Victorian Population Health Survey.
Effectiveness of Justice Strategies in Preventing and
Reducing Alcohol Related Harm
35
Recommendation
The Department of Justice should pilot the collection and analysis of liquor sales data from
wholesalers to retailers.
Recommendation 3 (dot point 1), page 22
Response by department
Justice
Under review
The Government’s alcohol and drug strategy
Reducing the alcohol and drug toll: Victoria’s plan
2013 – 2017 (the Strategy), released in
January 2013, includes an action to
‘comprehensively scope the costs, feasibility,
benefits and limitations of collecting wholesale
alcohol sales data to support research and
policies aimed at reducing alcohol related harm’.
The Department of Justice has commenced this
scoping study and will consult key stakeholders
with a view to providing options to government
relating to this matter later this year.
Recommendation
The Department of Justice should improve communication with stakeholders in the development and
implementation of initiatives.
Recommendation 3 (dot point 2), page 22
Response by department
Justice
Support
The development of the strategy Reducing the
alcohol and drug toll: Victoria’s plan 2013 – 2017 was
guided by an expert advisory group comprising
representatives from health, education, justice,
business, local government and community
groups.
36
Government Response to the Auditor-General’s Reports
issued during 2011-12
Extensive community consultation through
meetings, forums and a public submissions
process also informed the Strategy.
The Department of Justice has recently
consulted stakeholders on the development of a
range of policy proposals, and will continue to
consult as necessary and appropriate.
Recommendation
The Department of Justice should, together with the Department of Planning and Community
Development and in consultation with local councils, overhaul the planning permit and liquor licence
application processes to:

better address community and health concerns;

improve efficiency;

clarify roles and responsibilities; and

incorporate an appropriate level of consultation and scrutiny.
Recommendation 4, page 34
Response by department
Justice
Under review
Several measures are in the process of being
implemented:


The Government’s alcohol and drug strategy
Reducing the alcohol and drug toll: Victoria’s plan
2013 – 2017 includes an action to encourage
local governments and communities to have
an effective say in liquor licensing and
alcohol related planning decisions. This will
include assisting councils to better
understand the liquor licence objections and
disciplinary processes, and providing
guidance on the role councils play in liquor
licensing. The Department of Justice is
developing this guidance to councils
together with the Victorian Commission for
Gaming and Liquor Regulation; and
The Department is also considering other
matters that could contribute to meeting this
recommendation, with the view to providing
options for consideration by government.
The Department will also liaise with the
Victorian Commission for Gambling and Liquor
Regulation and the Department of Planning and
Community Development to identify further
opportunities for improvements.
Planning and Community
Development
Support
The current duplication between the liquor
licence and planning permit processes creates
unnecessary regulatory burden and red tape.
Improving this inefficiency would clarify roles
and allow local councils to focus more on issues
related to community and health concerns.
Overhauling the planning permit and liquor
licence application processes will require a
formal review subject to Ministerial approval and
extensive consultation.
Recommendation
The Department of Planning and Community Development should create a model local planning
policy for licensed premises.
Recommendation 5 (dot point 1), page 34
Effectiveness of Justice Strategies in Preventing and
Reducing Alcohol Related Harm
37
Response by department
Planning and Community
Development
Support
A model local planning policy would encourage
a consistent good practice approach.
Recommendation
The Department of Planning and Community Development should require councils to adopt a local
planning policy for licensed premises where there is a particular need or concern.
Recommendation 5 (dot point 2), page 34
Response by department
Planning and Community
Development
Do not support
Requiring a council to adopt the local planning
policy is not supported because a council is best
placed to confirm whether a policy is needed.
This action will need to be implemented
following a review of the liquor licence and
planning permit processes.
Recommendation
The Victorian Commission for Gambling and Liquor Regulation should:

review its licensing administration practices;

improve its records management and data integrity;

exercise closer oversight over training providers to maintain standards and remove
inconsistencies; and

tailor the mandatory industry training to better meet attendees’ needs.
Recommendation 6, page 34
38
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Justice
Support
The Victorian Commission for Gambling and
Liquor Regulation (the Commission) continues
to work on procedural improvements in the
processing of liquor licences.
The Commission’s Liquor and Gambling
Information System Information Technology
(IT) project has commenced and the
Commission will use this enabling technology as
a vehicle for rethinking, refining and
streamlining licensing processes. This will
produce process reforms and support significant
improvements in records management capability
and data integrity.
The Commission is continually improving
information provided to applicants, local
councils and the community via its website. The
Commission will work with the Department of
Justice on developing additional information for
local councils on the operation of the liquor
licensing system.
The Commission has also commenced a series
of forums with local councils to assist the
sharing of information and knowledge regarding
liquor licensing. The Commission is working on
a range of initiatives to improve data sharing
with local councils.
The Commission recently reviewed the
operation of the Responsible Serving of Alcohol
training regime, taking into account the
Auditor-General’s recommendations and is
currently considering options to progress reform
including changed oversight arrangements for
training providers and the development of late
night venue training. The process for listing
accredited Responsible Serving of Alcohol
training providers on the Commission’s website
has also been improved.
Recommendation
The Victorian Commission for Gambling and Liquor Regulation and Victoria Police should:

develop a comprehensive and collaborative enforcement strategy to minimise harm more
effectively and efficiently; and

carry out more targeted and intelligence-led enforcement activities.
Recommendation 7, page 49
Response by department
Justice
Support
The Victorian Commission for Gambling and
Liquor Regulation (the Commission) has
committed to work closely with Victoria Police
on a coordinated and consistent enforcement
approach for liquor licensed premises. This
complements the Commission’s role in
educating licensees to improve industry
performance while taking appropriate
enforcement action against those who breach
liquor laws.
In support of this commitment, the Commission
and Victoria Police are working to evolve their
working relationship. There are linkages and
networks between the Commission and
Taskforce Razon (targeted enforcement)
focussing on intelligence led enforcement
activities on licensed premises which have
alcohol related harms. The Commission already
participates in joint operations/inspections with
Taskforce Razon as appropriate.
Effectiveness of Justice Strategies in Preventing and
Reducing Alcohol Related Harm
39
The Commission’s activities with Taskforce
Razon focus not only on breaches of the Liquor
Control Reform Act 1998, but also include industry
education, assistance and advice. In the broader
law enforcement context, regional Inspectors of
the Commission are also in close contact with
local Victoria Police regional liquor licensing
Inspectors.
The Commission has commenced work on a
Memorandum of Understanding with Victoria
Police to support further development of a
coordinated and consistent enforcement
approach. There are also further activities and
networking activities scheduled to further build
on the relationship between Victoria Police and
the Commission.
Recommendation
The Victorian Commission for Gambling and Liquor Regulation should implement robust, efficient
and, where appropriate, consistent practices across its compliance functions.
Recommendation 8, page 49
Response by department
Justice
Support
A project to harmonise the Victorian
Commission for Gambling and Liquor
Regulation’s compliance and audit function is
underway with expected completion in the first
quarter of 2013. This includes consideration of
metro, regional and rural compliance functions.
Some longer-term actions may continue to be
developed and implemented through 2013,
particularly as the enforcement strategy with
Victoria Police is further developed.
Recommendation
Victoria Police should:

develop stronger central leadership for alcohol enforcement policy and activities; and

improve the quality of the data it collects on alcohol related crime.
Recommendation 9, page 49
40
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Justice
Under review
Taskforce Razon has developed the Licensed
Premises Prevention and Enforcement Model
which has been ratified by command, and
distributed force-wide. Command has approved
the model as an enforcement tool.
Use of Interpose for Licensed Premises Incident
Reports includes a validation process by analysts
statewide is improving the quality of data on
alcohol related harms on or near licensed
premises.
Taskforce Razon has taken the lead with internal
training in relation to liquor, with the delivery of
the Licensing Inspectors’ Duties Course and
Policing the Liquor Industry Course in
conjunction with training material and ready
reckoners for operational police.
The reporting criterion for family violence also
includes alcohol as a contributing factor.
Recommendations to amend the current Law
Enforcement Assistance Program reporting
documents to better clarify sub-incident
locations is under consideration.
Recommendation
The Department of Justice should review the Liquor Control Reform Act 1998 to facilitate more
effective and efficient enforcement action.
Recommendation 10, page 49
Response by department
Justice
Support
Amending the Liquor Control Reform Act 1998 is a
matter for consideration by government.
Effectiveness of Justice Strategies in Preventing and
Reducing Alcohol Related Harm
41
Fraud Prevention Strategies in Local Government
Background
This report was tabled in Parliament on 6 June
2012 and assessed the effectiveness of fraud
prevention strategies at a selection of councils
including Maroondah City Council, Nillumbik
Shire Council, Moira Shire Council, Buloke Shire
Council and West Wimmera Shire Council.
Findings of the Auditor-General
The audit found that the examined councils do
not effectively manage their exposure to fraud
risk as none have developed a strategic and
coordinated approach to controlling fraud. This
is concerning given the significant value of the
public funds and assets they manage.
While each of the five councils has aspects of a
fraud control framework, critical elements are
either absent or poorly implemented. Risk-based
fraud control plans do not yet exist at all
councils. Coupled with inadequate monitoring of
the fraud control framework by management
and audit committees, this shows they are not
sufficiently vigilant nor effective in dealing with
the risk of fraud.
Recommendation
Councils should develop and maintain an up-to-date fraud control plan clearly documenting their
fraud prevention, detection and response initiatives and responsibilities.
Recommendation 1, page 19
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
The 2013 Local Government Procurement Best Practice
Guidelines detail the requirements and activities
necessary for councils to develop and maintain
an up-to-date fraud control plan clearly
documenting their fraud prevention, detection
and response initiatives and responsibilities.
Recommendation
Councils should conduct thorough, periodic fraud risk assessments to assure they identify and
effectively manage all major fraud risk exposures.
Recommendation 2, page 19
42
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
Local Government Victoria has advised councils
on a process of how to periodically assess fraud
risks, in the 2013 Local Government Procurement Best
Practice Guidelines.
Recommendation
Councils should provide induction and periodic fraud awareness training to all council staff, to assure
they understand their fraud control responsibilities.
Recommendation 3, page 19
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement. Refer to the
response to Recommendation 2.
Recommendation
Councils should systematically monitor and report on the effectiveness of their fraud control
strategies.
Recommendation 4, page 19
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
Local Government Victoria has advised councils
on a process of how to systematically monitor
fraud risks, in the 2013 Local Government
Procurement Best Practice Guidelines.
Fraud Prevention Strategies in Local Government
43
Recommendation
Councils should establish arrangements that assure effective ongoing scrutiny by executive
management, internal audit and audit committees, of the effectiveness of the fraud control
framework.
Recommendation 5, page 19
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
Local Government Victoria has advised councils
on a process of how to establish arrangements
that assure effective ongoing scrutiny by
executive management, internal audit and audit
committees, of the effectiveness of the fraud
control framework, in the 2013 Local Government
Procurement Best Practice Guidelines.
Recommendation
Councils should establish effective pre-employment screening processes that provide sufficient
assurance over the integrity, identity and credentials of all council staff.
Recommendation 6, page 27
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
Recommendation
Councils should make sure accounts payable systems have effective preventative and/or
compensating controls that adequately mitigate the risk of fraudulent purchases and/or payments.
Recommendation 7, page 27
44
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
Recommendation
Councils should maintain accurate and up-to-date asset registers that are regularly reviewed to
mitigate the misuse and/or misappropriation of assets.
Recommendation 8, page 27
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
During 2011-12 two major grant programs were
funded by the Commonwealth Government.
These were the:

Local Government Sustainability Project;
and

Regional Asset Management Project.
Both projects aided in determining the current
state of asset management frameworks in
Victorian councils, highlighting that much work
remains for Victorian councils to reach a core
level of asset management maturity across all
National Asset Management Assessment
Framework (NAMAF) practice areas.
One of the NAMAF practice areas relates to
data and systems. A continued focus on
Victorian councils achieving core maturity
against all NAMAF practice areas will therefore
contribute to the maintenance of accurate and
up-to-date asset registers to help mitigate the
misuse and misappropriation of assets.
Local Government Victoria continues to work
with the sector to seek improvements in asset
management and in early 2013 have again
surveyed councils with an Asset Management
Performance Measures Survey which provides
important data on key asset management
measures.
Fraud Prevention Strategies in Local Government
45
Recommendation
Councils should systematically review the operation and effectiveness of all their internal control
systems to assure they adequately prevent, deter and detect major frauds.
Recommendation 9, page 27
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
46
Government Response to the Auditor-General’s Reports
issued during 2011-12
Freedom of Information
Background
This report was tabled in Parliament on 18 April
2012 and examined the extent to which all
11 Victorian public sector departments and
Victoria Police meet the requirements of the
Freedom of Information Act 1982 (the Act) and
associated guidelines.
Findings of the Auditor-General
The audit found that since the Act was
introduced 30 years ago, Victoria has gone from
being at the forefront of freedom of information
(FOI) law and administration to one of the least
progressive jurisdictions in Australia. Over time,
apathy and resistance to scrutiny have adversely
affected the operation of the Act, restricting the
amount of information being released. As a
result, agencies are not meeting the object of the
Act, which is to extend as far as possible the
right of the community to access information.
Recommendation
The Department of Justice should provide stronger leadership in acquitting its statutory obligations
to Parliament by reviewing the Freedom of Information Act 1982 to improve its currency and to
champion the proactive release of information.
Recommendation 1 (dot point 1), page 19
Response by department
Justice
Under Review
Amending the Freedom of Information Act 1982 is a
matter for consideration by government.
Recommendation
The Department of Justice should provide stronger leadership in acquitting its statutory obligations
to Parliament by overhauling the content and frequency of current reporting requirements.
Recommendation 1 (dot point 2), page 19
Freedom of Information
47
Response by department
Justice
Support
Information relating to the sources of freedom
of information (FOI) requests and the
performance of the eleven departments and
Victoria Police was included in the Freedom of
Information Annual Report by the Minister responsible
for the Freedom of Information Act 1982, 2011-12
(FOI Annual Report).
Responsibility for the FOI Annual Report has
been transferred to the FOI Commissioner.
Recommendation
The Department of Justice should provide stronger leadership in acquitting its statutory obligations
to Parliament by providing detailed guidance on proactive disclosure for agencies.
Recommendation 1 (dot point 3), page 19
Response by department
Justice
Support
The Department of Justice issued Practice
Note 14: Part II Information Statements to provide
guidance on how all agencies can best meet the
requirements of Part II Statements. The
Department also published its own online Part II
Information Statement. Other agencies can
utilise the Department’s Information Statement
as a template or example for preparing their own
statements.
The freedom of information (FOI) leadership
role has transferred to the FOI Commissioner.
Leadership in proactive disclosure is exercised by
various agencies, as it is not exclusively an FOI
function. For example, the Government has
issued its DataVic Access Policy.
The Department is developing its own Proactive
Release and Publication Framework (the
Framework) and has established a project Board
for the Framework in the Department. A project
plan is being developed, with implementation of
the project scheduled for later in 2013.
The Framework will be shared with other
departments and Victoria Police in the future, as
an example of a proactive release framework.
Recommendation
The Department of Justice should provide stronger leadership in acquitting its statutory obligations
to Parliament by providing more comprehensive and tailored training.
Recommendation 1 (dot point 4), page 19
48
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Justice
Support
The Department of Justice issued Practice
Note 14: Part II Information Statements, as part of its
education role. The responsibility for education
and training of other agencies has since
transferred to the Freedom of Information
Commissioner.
A comprehensive training and education
program is being delivered across the
Department, including presentations for senior
staff that reinforce the importance of complying
with the spirit of the Freedom of Information
Act 1982 and the Department’s freedom of
information responsibilities.
Recommendation
Principal officers of agencies should diligently discharge their responsibilities under the Freedom of
Information Act 1982 by:

improving the transparency of their processes; and

maximising the information made available to the public through a proactive release framework.
Recommendation 2, page 19
Response by department
Business and Innovation
Support
The Department of Business and Innovation
continues to report regularly in accordance with
existing reporting requirements on its freedom
of information (FOI) processes.
The Department also provides a wide range of
information that is not required to be published
through its website and provides as much
information as possible outside of the formal
FOI process.
Education and Early Childhood
Development
Support
As part of the Department of Education and
Early Childhood Development’s Information
Management program of work, it is planned that
more information on FOI processes will be
made publicly available on the Department’s
website. An information security classification
policy and supporting guidelines will also be
incorporated into the development
of the Department’s information management
program of work. Once the Department has
developed a security classification policy and
accompanying guidelines, it is intended that
information will be made available to the public
through a proactive release framework.
Health
Support
The Department of Human Services provides a
shared FOI service to the Department of Health.
The Department of Health has assisted the
Department of Human Services to undertake an
end-to-end review of FOI processes to identify
opportunities to improve performance. The
outcomes from this review are being
implemented by the end of 2013. Proactive
release will be informed by a whole of
government release framework being developed
by the Department of Justice.
Freedom of Information
49
Human Services
Support
The Department of Human Services has
undertaken an end-to-end review of FOI
processes in consultation with the Department
of Health to identify opportunities to improve
performance. The outcomes from this review are
being implemented. Proactive release will be
informed by a whole of government release
framework being developed by the Department
of Justice.
In its 2011-12 Annual Report the Department of
Premier and Cabinet provided:
Justice
Primary Industries
Support
Support
The Department of Justice and Victoria Police
incorporate performance data into their
respective annual reports, which the Department
has suggested and encouraged. The Department
has also published its own online Part II
Information Statement and is implementing the
Government’s DataVic Access Policy.
The 2011-12 Department of Primary Industries
Annual Report includes timeliness data and
information relating to categories of FOI
applicants.
The Department is developing its own Proactive
Release and Publication Framework (the
Framework) and has established a project Board
for the Framework in the Department.

statistics on compliance with the Freedom of
Information Act 1982, including timeliness of
processing requests; and

information available on request outside the
FOI process, including details of
consultancies and contractors.
This practice will be adopted for future reports.
Sustainability and Environment
Support
The Department of Sustainability and
Environment supports this recommendation.
A project plan is being developed, with
implementation of the project scheduled for later
in 2013.
Information on timeliness and sources of FOI
requests was published in the 2011-12 Annual
Report in line with financial reporting guidelines.
Planning and Community
Development
Where possible, information is released outside
of the Freedom of Information Act 1982.
Support
Transport
The Department of Planning and Community
Development internet website hosts a range of
information relevant to agency decision making
affecting the public. The Department’s FOI
work unit aims to add to the website a statement
(setting out particulars of decision making
functions and categories of documents held) in
compliance with Part II of the Freedom of
Information Act 1982, by 30 June 2013.
Support
Premier and Cabinet
Support
The Secretary of the Department of Premier and
Cabinet established a dedicated FOI Unit
reporting directly to a senior executive.
50
Government Response to the Auditor-General’s Reports
issued during 2011-12
The Department of Transport has prepared and
published on its website a Part II Statement under
the Freedom of Information Act 1982 which links to
the other information sources in place.
The Department proposes to publish with its
Annual Report frequently requested information.
The Department has undertaken a significant
amount of work to improve its web accessibility
in the last 12 months to meet the Victorian
Government’s Web Accessibility Standard, in
compliance with the DataVic Access Policy and
as part of the Better Services Initiative.
The Department continues to improve access to
information, including information about
planning and its projects and legislative
developments online.
Treasury and Finance
Support
The Department of Treasury and Finance’s
internal FOI performance reporting is more
detailed than the current annual reporting
requirements.
The Department included a new section on FOI
compliance in its 2011-12 Annual Report.
The Department is contributing to the DataVic
Access Policy, which mandates that, where
possible, Victorian government datasets be made
available to the public. Work is underway to
identify suitable datasets for proactive release
under this Policy. This is in addition to the
Information and datasets already regularly
published on the Department’s website.
Recommendation
Principal officers should:

promote the appropriate ‘tone at the top’ with regard to the object of the Freedom of
Information Act 1982;

monitor their performance against the requirements of the Freedom of Information Act 1982, the
Attorney-General’s 2009 Guidelines on the Responsibilities and Obligations of Principal Officers
and Agencies and related policies and procedures, identify areas of underperformance or
non-compliance and remedy any shortcomings; and

review the support and guidance they provide to confirm their agency is meeting its obligations
under the Freedom of Information Act 1982.
Recommendation 3, page 32
Response by department
Business and Innovation
Support
Education and Early Childhood
Development
The Department of Business and Innovation will
continue to support its freedom of information
(FOI) Unit and all of its officers in the
promotion of compliance with the Freedom of
Information Act 1982 and to support officers in
meeting their obligations by resourcing ongoing
general and specialised FOI training for its entire
staff (including executives).
Support
Targets are set to ensure appropriate coverage
across the Department and to encourage
compliant behaviours at all levels.
Support
Training and specialised advice is provided
regularly and efficiently to support all staff.
The Deputy Secretary, People and Executive
Services Group reviews and monitors the status
of all FOI requests against the requirements
fortnightly.
Health
The Department of Health’s Secretary and
Executive are fully supportive of the end-to-end
review of FOI in the Department of Human
Services/Department of Health and actions to
improve performance in FOI. The Department
of Health’s Executive has considered and
discussed this during 2012.
Freedom of Information
51
The Department of Health executive has
endorsed all actions to promote ‘tone at the top’
including further engagement with leaders across
the Department to ensure appropriate priority
and actions occur in relation to FOI requests.
Presentations are planned for every divisional
executive.
Management reporting of performance is in
place and occurs quarterly.
Human Services
Support
The Department of Human Services has
improved FOI performance reporting to the
Department’s Board to identify and address
issues of underperformance and
non-compliance.
Executives have been reminded of their FOI
responsibilities and the object of the Freedom of
Information Act 1982 and a series of
communications to all staff have reminded them
of their FOI obligations.
Justice
Support
The Principal Officer held a best practice FOI
forum for the Department of Justice’s executive
officers and business unit heads.
The Principal Officer issued a direction from the
Secretary to all staff, emphasising the importance
of FOI and the responsibilities of all staff.
FOI is a standing item at weekly Justice
Executive Committee meetings.
Performance reporting has been enhanced,
tighter internal timelines have been put in place
and there is additional monitoring of the time
taken to complete each stage of the FOI process.
Performance reporting is also a regular item at
Justice Executive Committee meetings.
The Department collects performance data from
the departments and Victoria Police.
Performance reports for the Department and
Victoria Police are prepared on a monthly basis
and on at least a quarterly basis for the State
Coordination and Management Council.
52
Government Response to the Auditor-General’s Reports
issued during 2011-12
The Department has reviewed and reformed its
work practices and processes, which has
contributed to significantly enhanced
performance.
The Department also reviewed and restructured
the FOI Unit, including the introduction of a
new management structure and the appointment
of additional FOI managers.
The Principal Officer routinely releases
information upon completion of the five days
ministerial noting period provided by the
Attorney-General Guidelines. This has been
occurring since the audit was undertaken.
Planning and Community
Development
Support
The Department of Planning and Community
Development’s agency FOI performance is
reported quarterly to the executive management
team.
Outstanding document searches (an area of
focus) are reported to the FOI Team fortnightly.
The departmental Secretary met with the
inaugural FOI Commissioner on 24 January
2013.
The Department’s executive performance plans
now include specific goals in relation to FOI.
Premier and Cabinet
Support
The Secretary of the Department of Premier and
Cabinet established a dedicated FOI Unit
reporting directly to a senior executive.
The Department monitors its performance
against the Freedom of Information Act 1982
(the Act) in weekly reporting provided to a
senior executive and in monthly reporting
provided to the Department of Justice. The
Department has more than halved processing
time of FOI requests from 2011-12 to 2012-13
(to date).
The Department applies a continuous
improvement process to the guidance
documents which are used to ensure it continues
to meet its obligations under the Act.
Primary Industries
Support
The Department of Primary Industries
undertook a review of the freedom of
information (FOI) function in March 2012. As a
result, the following outcomes have been
implemented:

increase in FOI resources;

strengthened process for interaction with the
Department’s divisions to improve their
level of advice in relation to the documents;
and

increased communication with FOI
applicants where delays are occurring.
The Secretary has actively reinforced the
importance of FOI and staff roles and
responsibilities in the FOI process.
FOI performance is regularly monitored through
the provision of FOI performance reports to
senior management.
Sustainability and Environment
Support
The Department of Sustainability and
Environment supports this recommendation.
A ‘Message from the Secretary’ has recently been
drafted to inform all staff on FOI rules and
procedures.
The Department has systems in place to monitor
performance against FOI requirements and
obligations. For example, the Department’s
executive management team receives monthly
reports on FOI performance. This includes the
number of overdue requests. An exception
report is prepared if targets are not met.
The Department has also revised its Part II
Statement under the Freedom of Information
Act 1982 to better demonstrate how the
Department is making information readily
available to the public.
The Department recently revised the FOI
support and guidance material provided to all
staff. The FOI Business Rule was updated and
released in January 2013 to more accurately
reflect FOI responsibilities and procedures.
Statutory obligations training for all staff was
also updated in February 2013.
Transport
Support
The Department of Transport has always
adopted a culture of acceptance and compliance
with the objectives of the Freedom of Information
Act 1982.
FOI performance is monitored weekly by
departmental leadership.
The Department’s leadership supported the
engagement of an additional resource after a
strong surge in requests led to a significantly
higher workload.
Treasury and Finance
Support
The Department of Treasury and Finance’s FOI
performance was noted in the Auditor-General’s
report as one of four agencies with an average
response time under the 45 day time limit.
The Department is currently meeting its
obligations under the Freedom of Information Act
1982 with the exception of the publishing of a
Part II Statement. The Department of Justice has
provided guidance to Departments on how to
meet Part II obligations. The Department of
Treasury and Finance is currently assessing how
the Department of Justice’s guidance can be
incorporated into the Department’s FOI
practice.
Recommendation
Agencies should:

seek to continually improve their processes to comply with the 45 day statutory time limit for
processing freedom of information requests; and

routinely release information on day six of the ministerial noting period.
Recommendation 4, page 32
Freedom of Information
53
Response by department
Business and Innovation
Support
The Department of Business and Innovation
strives to meet the 45 day statutory time limit for
all of its active applications.
The Department routinely releases its FOI
applications on day six of the ministerial noting
period.
Education and Early Childhood
Development
Support
The information and knowledge management
branch responsible for processing FOI requests
is in the process of undertaking transitional
arrangements following organisational renewal.
Once all positions in the team have been filled it
is planned that continuous improvement
initiatives will be implemented. The Department
of Education and Early Childhood Development
has processes in place to ensure compliance with
the 45 day statutory time limit for processing
FOI requests and the routine release of
information on day six of the ministerial noting
period.
Health
Justice
Support
The Department of Justice has reformed its
work practices and processes, which has
contributed to significantly enhanced
performance.
The average time to finalise requests in the
financial year to date is 31.3 days. The
percentage of requests completed within 45 days
in the financial year to date is 87.3 per cent of
requests. This compares to 55.4 days and 54 per
cent in the 2011-12 financial year.
The Department is routinely releasing
information upon completion of the five-day
ministerial noting period provided by the
Attorney-General Guidelines.
Planning and Community
Development
Support
Support
The Department of Health supports a
continuous improvement approach to FOI.
Outcomes of the end-to-end review mentioned
in the response to recommendation two are
being implemented to improve performance
against statutory timeframes.
Human Services
Do not support
The Department of Human Services supports a
continuous improvement approach to FOI.
Outcomes of the end-to-end review mentioned
in the response to Recommendation 2 are being
implemented to improve performance against
statutory timeframes.
54
Routine release on day six of the ministerial
noting period is not in place, however the
Department is working to manage the process to
ensure no delays occur.
Government Response to the Auditor-General’s Reports
issued during 2011-12
Closer liaison with work units during initial
processing of FOI requests has helped to reduce
administrative burdens and improve timeliness.
The revised format for ministerial briefings
allows greater control of timing of the ministerial
noting period. The majority of requests are
finalised on day six.
Premier and Cabinet
Support
The Department of Premier and Cabinet has
reviewed its processes and improved its
timeliness. The Department is committed to
continuously improving processes and
complying with the 45 day time limit.
Primary Industries
Transport
Support
Support
The Auditor-General’s report acknowledged that
the Department of Primary Industries and the
Department of Education and Early Childhood
Development were the strongest performing
agencies over the last five years.
The significant changes to the Department of
Transport in the last 12 months with the
creation and establishment of Public Transport
Victoria have significantly changed the FOI
landscape.
The Auditor-General’s report noted that of the
audited agencies, the Department of Primary
Industries was one of the agencies that, on
average, adhered to the FOI Guidelines in terms
of the five day period for the Ministers’ Offices
to note planned FOI decisions.
Processes have been modified to improve
efficiency and statutory compliance with the
Freedom of Information Act 1982.
The Department continues to explore further
improvements on an ongoing basis.
Treasury and Finance
Sustainability and Environment
The Department of Treasury and Finance’s
freedom of information (FOI) team continually
reviews and improves its processes. The team
regularly conducts FOI awareness and records
management training across the Department.
Support
The Department continually reviews and seeks
to improve its FOI processes. New tracking
procedures have been implemented, together
with a revised business rule, fact sheets and
guidance material.
The Department routinely releases information
on day six of the noting period.
Support
Recommendation
The Department of Justice should drive continuous improvement by, in the longer-term, giving
consideration to adjusting the statutory time frame in line with other Australian jurisdictions.
Recommendation 5, page 32
Response by department
Justice
Under review
Amending the Freedom of Information Act 1982 is
a matter for consideration by government.
Freedom of Information
55
Recommendation
The Department of Human Services should:

improve its record management practices to minimise loss of documents and enhance access to
information;

cease its practice of using section 22(6) for clients who have little or no money and are seeking
their own records;

include community service organisations’ records when processing freedom of information
applications; and

improve its method of prioritising freedom of information requests.
Recommendation 6, page 42
Response by department
Human Services
Support
The Department of Human Services has
published its Ward Records Plan on its website
to address long-standing issues with the storage
and management of ward records.
The Department is developing and
implementing policy on freedom of information
(FOI) requests involving records held by funded
agencies.
The Department has ceased using section 22(6)
for clients who have little or no money and are
seeking their own records.
The Department has reviewed prioritisation of
FOI requests as part of the end-to-end review.
Recommendation
Agencies should review the findings relating to the Department of Human Services and apply lessons
where necessary in their own organisation.
Recommendation 7, page 42
Response by department
Business and Innovation
Support
With regard to the Auditor-General’s findings on
the Department of Human Services, the
Department of Business and Innovation:

56
adheres to charging freedom of information
(FOI) applicants legislated processing fees
and undertakes best efforts to provide
responses within processing time limits;
Government Response to the Auditor-General’s Reports
issued during 2011-12

adheres to appropriate records management
practices; and

undertakes FOI searches that provide for
appropriately scoped responses.
Education and Early Childhood
Development
Support
The Department of Education and Early
Childhood Development has reviewed the
findings relating to the Department of Human
Services and will apply learnings where
appropriate. A replacement system for the
current electronic documents and records
management system is planned for the
Department and will require significant change
management including the provision of records
management training for staff. Opportunities to
improve current record management practices in
the Department will be considered as part of this
process and the current Departmental Records
Management Policy will be revised as part of the
Department’s Information Management
program of work.
The Department has improved its method of
allocating FOI requests to officers for
processing, which has contributed to
significantly enhanced performance.
Health
Support
Support
The Department of Premier and Cabinet has
considered this finding and addressed it by
creating a dedicated and secure FOI folder type
within its records management system.
All recommendations relating to the Department
of Human Services have been reviewed by the
Department of Health.
The Department of Health is working with the
Department of Human Services in respect of
funded agencies and the ownership of their files
to finalise a policy position and procedure to
follow when agency files are ‘in scope of FOI
requests’.
Justice
Planning and Community
Development
Support
The Auditor-General criticised the use of s22(6)
of the Freedom of Information Act 1982 to waive
time limits. The Department of Planning and
Community Development does not use that
provision in that fashion.
Premier and Cabinet
Primary Industries
Support
The findings relating to the Department of
Human Services have been reviewed and
relevant adjustments have been made where
necessary.
Support
Sustainability and Environment
The Department of Justice is improving its
records management practices by implementing
best practice initiatives that enhance FOI
performance and outcomes, including the
Department’s Records Management Strategy
2011-2014.
Support
The Department has not engaged in the practice
of using section 22(6) for clients who have little
or no money and are seeking their own records.
The Department of Sustainability and
Environment has reviewed the findings relating
to the Department of Human Services.
However, the issues raised in relation to the
Department of Human Services do not apply to
the Department’s practices.
The Department requests relevant documents
from other organisations for processing, in
circumstances where the Department is in
constructive possession of documents.
Freedom of Information
57
Transport
Support
The recommendations for the Department of
Human Services and Victoria Police were
reviewed to ascertain whether these might be
applied to the Department of Transport. In
respect to Recommendation 6 (made to the
Department of Human Services):

the Department has not had issues with
record keeping and lost documents;

the Department never adopted such a
practice, as it does not have clients like the
Department of Human Services;

the Department considers documents it has
constructive possession of when processing
FOI requests; and

FOI requests are prioritised according to
their due date, the work involved and
consultation/liaison/notification required to
process requests in the shortest time
possible.
Treasury and Finance
Support
The findings relating to the Department of
Human Services are not relevant to the
Department of Treasury and Finance’s FOI
practices.
Recommendation
Victoria Police should:

improve its record management practices to minimise loss of documents and enhance access to
information;

improve its responsiveness by reviewing its work practices in the first instance, and then, if
necessary, considering the resources of its freedom of information unit;

appropriately scope freedom of information requests; and

inform freedom of information applicants of their review rights.
Recommendation 8, page 49
Response by department
Justice
Support
Victoria Police accepted the recommendations
of this report.
Since the release of the Freedom of Information
report, Victoria Police has reviewed and
reformed work practices and implemented a
number of solutions to assist it to meet its
regulatory responsibilities.
As at 31 December 2012, the backlog of
freedom of information requests at Victoria
Police had been eradicated.
Recommendation
Agencies should review the findings relating to Victoria Police and apply lessons where necessary in
their own organisation.
Recommendation 9, page 49
58
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Business and Innovation
Human Services
Support
Support
With regard to the Auditor-General’s findings on
Victoria Police, the Department of Business and
Innovation:
The Department of Human Services has
reviewed these findings and incorporated them
into the end-to-end review as appropriate.

adheres to charging freedom of information
(FOI) applicants legislated processing fees
and undertakes best efforts to provide
responses within processing time limits;
The Department actively informs applicants of
their review rights in FOI fact sheets and
correspondence relating to requests, deemed
refusals and decisions and internal reviews.

adheres to appropriate records management
practices; and
Justice

informs FOI applicants of their rights and
obligations as they are specified in the
Freedom of Information Act 1982.
Education and Early Childhood
Development
Support
The Department of Education and Early
Childhood Development has reviewed the
findings relating to Victoria Police and will apply
learnings where appropriate. The Department
has processes in place to ensure compliance with
the 45 day statutory time limit for processing
FOI requests and it is planned that work
practices will be reviewed in support of
continuous improvement. The proforma letter
used to correspond to applicants details the
applicants’ appeal rights and is being reviewed
with the introduction of the Office of the
Privacy and Data Protection Commissioner.
Refer also to the response to
Recommendation 6. Review of proforma letter
to applicants is expected by June 2013.
Health
Support
The Department of Health has reviewed these
findings and incorporated them into the
end-to-end review mentioned in the response to
Recommendation 2.
Support
The Department is improving its records
management practices by implementing best
practice initiatives that enhance FOI
performance and outcomes, including the
Department’s Records Management Strategy
2011-2014.
The Department has reformed its work practices
and processes, which has contributed to
significantly enhanced performance. The average
time to finalise requests in the financial year to
date is 31.3 days. The percentage of requests
completed within 45 days in the financial year to
date is 87.3 per cent of requests. This compares
to 55.4 days and 54 per cent in the 2011-12
financial year.
The Department has also reviewed and
restructured its FOI Unit, including the
introduction of a new management structure and
the appointment of additional FOI managers.
The Department continues to focus on
improving the initial scoping of FOI requests.
The skills of FOI officers are being developed
through their attendance at meetings with senior
staff, upon receipt of new requests.
The Department routinely informs FOI
applicants of their review rights. This is a
standard component in all of the Department’s
templates for decision letters. The Department’s
templates have been updated to incorporate
review and complaint rights.
Freedom of Information
59
Planning and Community
Development
Transport
Support
The Department of Transport has not had issues
with record keeping and lost documents.
The Department of Planning and Community
Development is mindful of appropriate scoping
of requests and of the need for thorough
searches to meet requested documents.
Premier and Cabinet
Support
The Department of Premier and Cabinet has
considered this finding and addressed it by
creating a dedicated and secure FOI folder type
within its records management system.
Primary Industries
Support
The findings relating to Victoria Police have
been reviewed and relevant adjustments have
been made, where necessary.
Sustainability and Environment
Support
The Department notes the recommendations
relating to Victoria Police and has undertaken a
review of its FOI processes and performance in
light of these findings.
The Department continually monitors internal
compliance issues. Where lack of compliance is
relevant, direct stakeholder management and
education is provided.
60
Government Response to the Auditor-General’s Reports
issued during 2011-12
Support
A new resource was engaged specifically to
enable refocusing of work practices. The
Department has adopted a model used by larger
FOI agencies such as Victoria Police and the
Department of Human Services to dedicate staff
to pre-assessment request management of
understanding and interpreting requests,
undertaking dialogue with applicants and making
inquiries within the Department and agencies.
The Department has always adopted a common
sense approach to FOI requests and not read
down requests or raised barriers to processing
requests around provisions of the Freedom of
Information Act 1982.
The Department has always advised applicants
of their review rights with access decisions.
However, applicants have not always been
reliably informed of their rights where requests
have not been processed within the 45 day time
period. This has been addressed.
Treasury and Finance
Support
The Department of Treasury and Finance
reviewed the findings relating to Victoria Police
and believes that its current practices already
meet the Auditor-General’s recommendations.
Government Advertising and Communications
Background
This report was tabled in Parliament on
29 February 2012 and examined whether, for the
period July 2006 to December 2010:

there are appropriate levels of accountability
in government advertising and
communications expenditure and processes;

selected advertising and communications
campaigns comply with relevant laws,
guidelines and policies; and

how the 2009 Victorian Government
Advertising and Communications Guidelines
(2009 Guidelines) compare with current
better practice.
Findings of the Auditor-General
The audit reported that at an estimated
$257 million for 2009-10, government spending
on advertising and communications is significant
and has grown consistently since 2002. Given
the political sensitivity and significance of this
annual expenditure, full and fair disclosure of all
advertising costs incurred is a critical
accountability issue. The audit found the level of
transparency and accountability for government
advertising and communications expenditure
continues to be inadequate.
Recommendation
The Department of Premier and Cabinet should make total advertising and communications
expenditure publicly available.
Recommendation 1 (dot point 1), page 23
Response by department
Premier and Cabinet
Support
The Department of Premier and Cabinet
publishes a government advertising expenditure
report on its website annually. The Government
has adopted a policy to publish the cost of all
advertising and communication campaigns with
media expenditure of $150 000 or more.
Recommendation
The Department of Premier and Cabinet should require an acquittal of campaign expenditure against
approved budgets.
Recommendation 1 (dot point 2), page 23
Government Advertising and Communications
61
Response by department
Premier and Cabinet
Support
The Department of Premier and Cabinet has
implemented this recommendation. New
government approval processes require that an
evaluation report be submitted on completion of
all campaigns with media expenditure over
$150 000, these reports include a budget
acquittal.
Recommendation
The Department of Premier and Cabinet should educate applicable parties on relevant guidelines,
and monitor compliance.
Recommendation 1 (dot point 3), page 23
Response by department
Premier and Cabinet
Support
The Department of Premier and Cabinet has
implemented this recommendation. New
Victorian Government Communication
guidelines were published in 2012. The
Department is running an implementation
program to support the introduction of the new
guidelines and approval processes.
Recommendation
The Department of Premier and Cabinet should improve its management of the Master Agency
Media Services contract.
Recommendation 1 (dot point 4), page 23
Response by department
Premier and Cabinet
Support
The Department of Premier and Cabinet has
implemented this recommendation.
Improvements to the management of the Master
Agency Media Services contract are continuing.
62
Government Response to the Auditor-General’s Reports
issued during 2011-12
An open tender was held in 2012 and new
contracts established on 1 September 2012.
New contract management processes have been
introduced to support the new contracts.
Recommendation
Departments and agencies should:

introduce rigorous business operations processes to enable consistent and accurate reporting of
advertising and communications expenditure;

publish details and costs of advertising campaigns and sponsorships provided and received; and

comply with all relevant advertising and communications policies and guidelines.
Recommendation 2, page 23
Response by department
Business and Innovation
Support
The Department of Business and Innovation has
consolidated all media and communications
roles and functions into a centrally managed
branch.
The Department’s Communication Management
Committee has developed and implemented
rigorous oversight and management processes to
ensure consistent and accurate reporting and
approval of communications and advertising
activity and expenditure.
The Department publishes the costs of
advertising campaigns and sponsorships in its
Annual Report.
Education and Early Childhood
Development
The Department will continue to comply with all
relevant advertising and communications
policies and guidelines.
Human Services
Support
The Department of Human Services has
strengthened its advertising and communications
approval processes and re-established an internal
governance group for approving departmental
advertising and communications. Templates for
approvals, monitoring and records have been
updated. These processes and templates have
been promoted to all departmental staff.
Justice
Support
Support
The Department of Education and Early
Childhood Development is developing a
business operations process to enable consistent
and accurate reporting of advertising
communications policies and guidelines.
Information about major advertising campaigns
and sponsorships will be published annually.
The Department of Justice complies with the
Victorian Government Communication
Guidelines 2012.
Health
Support
The Department of Health will support the
Department of Premier and Cabinet to improve
its management of the Master Agency Media
Services (MAMS) contract through Department
of Health participation in the MAMS user
reference group.
Planning and Community
Development
Support
The Department of Planning and Community
Development has introduced processes to
comply with the Auditor-General’s
recommendation. To enable consistent and
accurate reporting, the senior communication
officer has instructed State Government media
buying agencies not to process functional or
creative advertising unless they are centrally
Government Advertising and Communications
63
approved. This enables the establishment of a
central register of all functional and campaign
advertising approvals (including expenditure).
The Department has also improved processes to
streamline charge codes and added descriptors
to enhance accuracy of information.
Details and costs of advertising campaigns and
sponsorships are prepared annually and available
in the Department’s Annual Report. In addition,
all approved sponsorships are added to the
whole of Victorian Government Sponsorship
Register managed by the Department of Premier
and Cabinet. The Department has developed a
flowchart clarifying roles and responsibilities
with sponsorship assessment and compliance
with whole of Victorian Government policy.
This flowchart is published on the intranet and
promoted to staff.
Premier and Cabinet
Support
Government has adopted a policy to publish the
cost of all advertising and communication
campaigns with media expenditure of $150 000
or more.
Relevant advertising and communications
policies and guidelines are now published on the
Department of Premier and Cabinet’s website.
The Department monitors compliance with the
guidelines through the Government approval
process. Departments are responsible for
approving communication where media
expenditure is under $150 000.
Primary Industries
Support
On advice from the Department of Premier and
Cabinet, the Communication Branch has
published communications campaigns with
expenditure higher than $150 000 on its website,
alongside the Annual Report against the
following categories:

creative and campaign development;

media buy;

print and collateral;

research and evaluation; and

other campaign costs.
64
Government Response to the Auditor-General’s Reports
issued during 2011-12
This exercise will be completed annually, in line
with Annual Report timelines.
All sponsorships have been published on the
VPS Hub.
All communication campaigns continue to
comply with relevant government policy and
guidelines.
Sustainability and Environment
Support
The Department has recently implemented new
mandatory advertising and communication
charge codes to enable consistent and accurate
reporting of advertising and communications
expenditure.
Information on the Department’s advertising
campaigns and sponsorships was included in the
2012 Annual Report.
The Department has recently implemented a
new advertising approval process as well as
updated the sponsorship policy business rule.
Transport
Support
The Department of Transport has implemented
new processes to ensure a centralised approval
framework for campaign advertising across the
Transport portfolio. This is the first time a
whole of portfolio approach has been developed
for campaign material and expenditure.
The Department of Transport agrees to publish
its campaign advertising expenditure in the
Department’s Annual Report, as required under
the Victorian Government Communication
Guidelines 2012 and all directives from the
Department of Treasury and Finance.
The Department is adhering to the Victorian
Government Communication Guidelines 2012
issued by the Department of Premier and
Cabinet and its associated processes. The
Department has informed the other agencies in
the Transport portfolio of the new guidelines
and the requirement to comply.
Treasury and Finance
Support
Government has adopted a policy to publish the
cost of all advertising and communication
campaigns with media expenditure of $150 000
or more. Approval of sponsorship must be made
in line with the Victorian Government Sponsorship
Policy. All transactions must also be recorded in
the Department of Treasury and Finance’s
Sponsorship Policy Register.
The Department’s senior communication officer
is responsible for ensuring communication
activity complies with all relevant advertising and
communication policies for the Department and
for agencies excluding WorkSafe and the
Transport Accident Commission who report
directly to the Department of Premier and
Cabinet on advertising matters.
Whole of government advertising and
communication policies are communicated to
staff through a number of channels. Updates to
policies and guidelines are published internally
and communicated to the Department’s
agencies.
The Department of Treasury and Finance
internally records expenditure by the department
and its agencies (where expenditure is campaign
orientated and less than $150 000) on advertising
and communication. This excludes WorkSafe
and the Transport Accident Commission as
detailed above.
Recommendation
The Department of Premier and Cabinet should revise the 2009 Victorian Government Advertising
and Communications Guidelines in line with current better practice.
Recommendation 3 (dot point 1), page 35
Response by department
Premier and Cabinet
Support
The Department of Premier and Cabinet has
implemented this recommendation. The
Department has revised the Victorian Government
Communication Guidelines following consultation
with departmental communications directors.
These guidelines were published in 2012.
Recommendation
The Department of Premier and Cabinet should develop and annually revise a whole of government
communications strategy.
Recommendation 3 (dot point 2), page 35
Government Advertising and Communications
65
Response by department
Premier and Cabinet
Support
The Department of Premier and Cabinet
supports this recommendation in principle. Each
department is required to produce an annual
communications plan that aligns with
Government policies and programs and
identifies opportunities for cost savings. Whole
of Victorian Government Communication
Strategies are applied to significant and major
policy areas such as road safety and emergency
services.
The Department does not prepare a single,
whole of government communications strategy
because individual communication campaigns
are generally handled by line departments which
have expert knowledge of relevant policy
matters.
Recommendation
Departments and agencies should:

have their chief executive or responsible officer certify that their advertising campaigns were
developed independent of any intention to benefit a political party or minister, and that they
comply with relevant advertising and communications guidelines with objective evidence; and

have rigorous oversight processes for finalising advertising campaign materials to assure
compliance with the 2009 and subsequent guidelines, prior to publication.
Recommendation 4, page 35
Response by department
Business and Innovation
Support
Arrangements are in place that require the
incorporation of responsible officer certification.
The Department of Business and Innovation’s
Communication Management Committee is
mandated to approve all advertising and
communications activity and expenditure in
accordance with the Victorian Government
Communications Guidelines 2012.
66
Government Response to the Auditor-General’s Reports
issued during 2011-12
Education and Early Childhood
Development
Support
The Department of Education and Early
Childhood Development’s revised business
operations processes will include advertising
certification and oversight.
Health
Support
Planning and Community
Development
The Department of Health will:
Support

monitor all Victorian Government funded
health agency advertising proposals, budget
planning, creative development and
evaluation, and coordinate and review all
Advertising Communications Committee
submissions;

monitor the Department’s use of the
Marketing Services Panel and ensure
compliance with panel process and policies;

develop a Departmental sponsorship policy
and register and ensure compliance;

comply with all requirements for the
responsible officer to certify that advertising
campaigns comply with relevant advertising
and communications guidelines with
objective evidence; and
To meet the Department of Premier and
Cabinet’s guidelines (published December 2012),
the Department of Planning and Community
Development has implemented processes that
require the senior communication officer to
certify each approved advertising campaign is
independent, complies with relevant guidelines
and is formally evaluated. The central register is
maintained by the Corporate Communications
Unit. The Department has written to the
Department of Premier and Cabinet requesting a
change to the Master Agency Media Services
campaign booking form to clarify the role of
senior communication officer/chief executive
officer as the booking authority.

actively participate in the Advertising
Communications Committee process and
ensure advertising campaign materials
comply with appropriate guidelines.
Human Services
In addition, a checklist has been developed to
assess all campaigns prior to approval to ensure
compliance with the current Victorian
Government guidelines.
From January 2014, an annual audit of
campaigns for the previous calendar year will be
undertaken to measure the effectiveness of the
new oversight processes.
Support
Premier and Cabinet
The Department of Human Services has
introduced a template for responsible officer
sign-off, certifying that advertising or
communications comply with requirements and
implemented approvals and oversight as detailed
in the response to Recommendation 2.
Support
Justice
Support
The Department of Justice has procedures in
place to ensure compliance with the Victorian
Government Communication Guidelines 2012.
The Department of Premier and Cabinet has
taken measures to appropriately facilitate the
implementation of this recommendation. The
departmental communications directors must
endorse all campaigns and certify that the
campaign complies with Victorian Government
communication policies and guidelines. The
guidelines also state that communication must
not promote party political interests and must
seek to inform the public of Victorian programs,
services and policies.
Compliance with the guidelines is monitored
through review of annual communication plans
as part of the Government approval process.
Non-compliant campaigns are returned to the
applicants for revision. Departmental
endorsement of a campaign’s compliance with
guidelines is required with all applications. A
campaign will not be run by a service provider
unless an approval number has been provided.
Government Advertising and Communications
67
An independent Advertising Oversight
Committee (the Committee) has also been
established. The Committee will review major
campaigns to ensure they comply with the
guidelines and do not promote party political
interests.
Primary Industries
Support
The Department of Premier and Cabinet has
implemented a process whereby all senior
communication officers must certify that
campaigns meet the requirements of this
recommendation.
Additionally, all campaign collateral (print,
online or advertising) must be approved in
writing by the Strategic Communication Director
from the Department of Premier and Cabinet
prior to publishing.
Sustainability and Environment
Support
The Department and its portfolio agencies have
adopted the whole of Victorian Government
Creative and Campaign Advertising Approval
Process as developed by the Department of
Premier and Cabinet.
Transport
Support
The Secretary of the Department of Transport
will provide certification for campaign
advertising as required under annual report
directives from the Department of Treasury and
Finance and the Victorian Government
Communication Guidelines 2012.
The Department of Transport has implemented
new oversight processes to ensure a centralised
framework for finalising and approving
campaign material across the Transport
portfolio. This framework has been developed in
alignment with the Victorian Government
Communication Guidelines 2012 and its associated
processes.
68
Government Response to the Auditor-General’s Reports
issued during 2011-12
Treasury and Finance
Support
The Department of Treasury and Finance senior
communication officer endorses all campaigns
and certifies that they comply with Victorian
Government communication policies and
guidelines including a requirement that the
communication must not promote party political
interests. This excludes WorkSafe and the
Transport Accident Commission which report
directly to the Department of Premier and
Cabinet on advertising matters.
Agencies are also required to confirm the above
upon submitting their campaigns to the
Department of Treasury and Finance.
Compliance with the guidelines is monitored
through review of annual communication plans
as part of the Government approval process.
Non-compliant campaigns are returned to the
applicants for revision. A campaign will not be
run by a service provider unless an approval
number has been provided.
Individualised Funding for Disability Services
Background
This report was tabled in Parliament on
14 September 2011 and examined the
effectiveness of individualised funding for
disability services, including whether it:

meets client needs including choice and
control;

supports the provision of high quality
services; and

supports sector sustainability and capacity.
Disability services in Victoria have been
undergoing major reform since the early 1990s.
A significant reform has been the development
of Individual Support Packages (ISPs). People
with ISPs can manage the funds themselves and
choose the services and providers that best suit
them. At least 7 800 Victorians have an ISP,
accounting for 19 per cent of the Department of
Human Services’ disability funds.
Findings of the Auditor-General
The audit found evidence of good outcomes for
recipients and that all stakeholders are
enthusiastic about the results of ISPs and their
ongoing potential. However, benefits are not
consistently delivered. Application processes are
burdensome, allocation decisions can lack
consistency and transparency, and the
Department of Human Services needs greater
assurance that funds are spent appropriately. The
Department also needs to support and develop
the new marketplace in the disability services
sector. Current departmental activities and
forward planning align with these directions.
Recommendation
That the Department of Human Services develop a communication and engagement strategy to help
people understand, navigate and use the disability service system and their Individual Support
Package successfully.
Recommendation 1, page 13
Response by department
Human Services
Support
A communication and engagement strategy
outline has been developed and will be finalised
during 2013. Updated disability services register
guidelines and three new Individual Support
Package Guidelines practice advice sheets were
issued in 2011 and 2012. A peer support
guideline has been published and workshops for
individuals and families delivered in 2011-12 and
2012-13.
Individualised Funding for Disability Services
69
Recommendation
That the Department of Human Services improve, through training and guidance, staff consistency
and fairness in assessing Individual Support Package applications and allocating them and monitoring
performance.
Recommendation 2, page 13
Response by department
Human Services
Support
In addition to the work detailed in
Recommendation 1, staff training has occurred.
Monitoring of the implementation of the revised
disability services register guidelines was
undertaken in late 2011 and early 2012.
Recommendation
That the Department of Human Services investigate the causes of crises and better identify and
support people at risk of, or experiencing crisis.
Recommendation 3, page 13
Response by department
Human Services
Support
The Department of Human Services is working
to integrate its service systems through Services
Connect. Revised Disability Support Register
priority status criteria and a family violence crisis
response initiative have been released.
A practice advice regarding priority criteria and
the approval process for people in receipt of an
Individual Support Package who experience
crises will be developed as part of the review of
Individual Support Package Guidelines due for
completion this year.
Recommendation
That the Department of Human Services separate Individual Support Package facilitation from service
provision, and support it with consistent training, skill requirements and quality monitoring.
Recommendation 4, page 23
70
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Human Services
Support
A learning and development program for
facilitators was developed and implemented
during 2012 and early 2013.
Recommendation
That the Department of Human Services develop guidance on identifying, and planning with,
vulnerable people, and clarify roles and responsibilities.
Recommendation 5, page 23
Response by department
Human Services
Support
In addition to the training described in the
response to Recommendation 4, the Department
of Human Services is reviewing the Individual
Support Package Guidelines, practice advice, and
handbook for service users. These reviews are
scheduled for completion this year.
Recommendation
That the Department of Human Services define what is appropriately funded through Individual
support packages, train staff accordingly and monitor regularly.
Recommendation 6, page 23
Response by department
Human Services
Support
Additional practice advice was developed to
address inconsistencies with specific purchases
through Individual Support Packages.
Workshops to enhance consistency of
interpretation and decision making processes
were conducted during 2012.
Individualised Funding for Disability Services
71
Recommendation
That the Department of Human Services develop a risk-based audit system for Individual Support
Package users for all funding administration options.
Recommendation 7, page 23
Response by department
Human Services
Support
The monitoring framework for direct payments
was issued in August 2011. A revised and
updated Acquittal Business Practice Guide was
issued in August 2012. Finalisation of an
overarching accountability framework that
incorporates best practice accountability
appropriate to cost and administrative burden is
underway.
Recommendation
That the Department of Human Services more broadly engage disability service providers in sector
development and share learnings across the sector.
Recommendation 8, page 34
Response by department
Human Services
Support
The Department of Human Services
commissioned National Disability Services
Victoria to develop a plan to support disability
services to transition to individualised
approaches and the introduction of the
National Disability Insurance Scheme. Early
implementation projects of the plan have been
completed and related papers and resources are
available from http://www.nds.org.au.
Recommendation
That the Department of Human Services develop and implement suitable information technology
solutions for recording and tracking individualised funding.
Recommendation 9, page 34
72
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Human Services
Support
The Department of Human Services enhanced
the Regional Individual Support Package System in
2011-12 and the Service Agreement Monitoring
System 2 went live in August 2011. Further work
to address this recommendation is subject to
funding availability and will be considered in the
context of the National Disability Insurance Scheme
requirements.
Recommendation
That the Department of Human Services investigate any cost impact of individualised funding on
service delivery.
Recommendation 10, page 34
Response by department
Human Services
Support
Research on unit prices will be conducted in the
context of investigation of a national pricing
structure for the National Disability Insurance
Scheme.
Recommendation
That the Department of Human Services examine its role in managing the disability services market
and use a risk-based approach to monitor the sector.
Recommendation 11, page 34
Response by department
Human Services
Support
The National Disability Services Victoria
transition plan (referred to in the response to
Recommendation 8) incorporates initial
consideration of market development. Revised
departmental standards were implemented in
2012 that include a risk-based approach to
monitoring.
Individualised Funding for Disability Services
73
Local Government: Results of the 2010–11 Audits
Background
This report was tabled in Parliament on
23 November 2011 and covers the results of
financial audits of 105 entities within the
local government sector, comprising 79 councils,
12 regional library corporations and
14 companies, trusts and joint ventures. It
informs Parliament about significant issues
arising from the audits of financial, standard and
performance statements for 2010–11, and
augments the assurance provided through audit
opinions included in the entities’ annual reports.
Findings of the Auditor-General
Overall the audit found the financial
sustainability risk for councils was low.
However, councils face an ongoing challenge to
achieve sufficient levels of capital works and to
maintain existing assets.
The financial sustainability risk assessment for
regional library corporations is medium. Their
high dependence on council contributions and
grants however, means they have little or no
flexibility in their financial capacity and face
ongoing challenges to their financial
sustainability.
Councils have yet to fully embrace performance
reporting, and the non-financial indicators of
many have limited relevance to ratepayers and
residents. Councils continue to adopt a
compliance approach to performance reporting.
As a result, the performance reporting
framework has yet to deliver relevant and
appropriate information to the community on
the quality of services delivered and achievement
of outcomes by local councils.
Recommendation
That councils set performance targets and indicators for all key strategic activities in compliance with
the Local Government Act 1989.
Recommendation 1, page 13
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
Local Government Victoria has updated the
guidance document Local Government Planning and
Reporting Better Practice Guide to assist councils to
74
Government Response to the Auditor-General’s Reports
issued during 2011-12
meet their statutory obligations under the Local
Government Act 1989 as it relates to the
preparation of key documents in the planning
and accountability framework.
Recommendation
That councils critically review their performance measures and targets for relevance and
appropriateness against Council Plans and the Local Government Act 1989.
Recommendation 2, page 48
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
See the response to Recommendation 1.
Recommendation
That the Department of Planning and Community Development develop minimum standards for the
form and content of performance statements.
Recommendation 3, page 48
Response by department
Planning and Community
Development
Support
The Government has announced a commitment
to introducing a mandatory performance
reporting framework for local government.
The Department of Planning and Community
Development has commenced work to develop
a comparative performance reporting framework
and indicators.
The performance reporting framework will be
enabled by the making of new legislation
proposed to be undertaken in 2013-14 which will
prescribe the form and content of performance
statements in line with the objectives of the new
framework.
Recommendation
That councils establish an internal audit function and align their internal audit plan with the risk
register to focus effort on areas of significance.
Recommendation 4, page 62
Local Government: Results of the 2010-11 Audits
75
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.

an improved perception and understanding
of how internal audits add real benefit and
value to local government;
Local Government Victoria has worked directly
with a large group of councils to undertake an
internal audit on an agreed service. The project
has delivered councils, as a group and
individually, a completed audit report on the
selected service with suggested
recommendations and findings on improvement
strategies and best practice approaches.

analysis of the benefits of collaboration in
internal audits and comparisons across like
councils for communication to the broader
sector;

facilitating and coordinating the feedback
and knowledge sharing of project
experiences and outcomes across the
broader local government sector; and

engendering a greater acceptance that
internal audit can be applied to all aspects of
council activities and is not limited to issues
of compliance and probity.
Outcomes of this project included:

an improved understanding of the
contribution and costs to council of an
internal audit program and risk register;

findings on the effectiveness of delivering
internal audits on a regular basis;
Local Government Victoria aimed to strengthen
the alignment councils’ internal audit plans and
associated activities across the sector using this
project as a case study.
Recommendation
That councils review procurement policies annually as required by the Local Government Act 1989.
Recommendation 5, page 62
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
Local Government Victoria continuously
supports councils in their review of procurement
practices annually through the development
76
Government Response to the Auditor-General’s Reports
issued during 2011-12
and release of best practice materials – aimed to
increase efficiencies and savings across councils.
Example of best practice materials can be found
in the 2013 Local Government Best Practice
Procurement Guidelines.
Recommendation
That councils develop quality and cost standards and desired performance outcomes prior to major
procurement exercises.
Recommendation 6, page 62
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
Local Government Victoria has updated the
guidance document Local Government Planning
and Reporting Better Practice Guide to assist
councils to meet their statutory obligations under
the Local Government Act 1989 as it relates to the
preparation of key documents in the planning
and accountability framework. The updated
guidance reinforces the Auditor-General’s
recommendations in relation to the preparation
of the council plan, annual report and
performance statement.
Recommendation
That councils include milestones, key performance measures and timelines in all contracts.
Recommendation 7, page 62
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
Refer to the response to Recommendation 6.
Recommendation
That councils educate members of tender evaluation panels on managing conflicts of interests and
probity.
Recommendation 8, page 62
Local Government: Results of the 2010-11 Audits
77
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
These guidelines are supported by a training
package being delivered in partnership with local
government professionals.
The 2013 Local Government Best Practice Procurement
Guidelines, Section 5 Probity outlines a council’s
responsibility in regards to probity, conflicts of
interest and codes of conduct on tender
evaluations.
Recommendation
That councils require tender panel members to complete conflict of interests declarations prior to
evaluating tenders.
Recommendation 9, page 62
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
With advice from Maddocks Lawyers, Local
Government Victoria has developed templates
for councils’ use to declare conflicts of interest
prior to evaluating tenders. Templates can be
found in the 2013 Local Government Best Practice
Procurement Guidelines.
Recommendation
That councils review controls designed in place to determine the validity of purchases made outside
of the approved suppliers listing.
Recommendation 10, page 62
78
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
Local Government Victoria has prepared advice
(reviewed by the Victorian Government
Solicitor’s Office) that outlines the controls
required (and legal requirements) to ensure that
all purchases comply with legislation. This advice
can be found in the 2013 Local Government
Best Practice Procurement Guidelines.
Recommendation
That councils develop asset management strategies that identify future service delivery
requirements, the capacity of assets to meet those needs, maintenance and renewal schedules and
links with the overall strategic resource plan.
Recommendation 11, page 62
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
Local Government Victoria continues to work
with the sector to seek improvements in asset
management and in early 2013 has again
surveyed councils with an asset management
performance measures’ (AMPM) survey which
provides important data on key asset
management measures.
The 2013 AMPM survey reinforces the need for
councils to make sure asset maintenance and
renewal schedules link with the strategic resource
plan and builds upon the asset management data
held by Local Government Victoria from this
annual survey.
Local Government: Results of the 2010-11 Audits
79
Management of Road Bridges
Background
This report was tabled in Parliament on
7 December 2011 and assessed whether
VicRoads and selected councils are managing
road bridges and major culverts effectively.
Findings of the Auditor-General
The audit found that VicRoads is effectively
managing the structural safety of bridges and
culverts and prioritises annual funding to the
areas of greatest short-term need. However,
VicRoads has not formed detailed long-term
plans nor adequately measured, forecast and
reported on the levels of service experienced by
road users. Doing these things is a prerequisite
for VicRoads to adequately inform longer-term
resourcing decisions.
Recommendation
VicRoads should develop comprehensive, long-term plans to manage bridges and major culverts.
Recommendation 1, page 14
Response by department
Transport
Support
VicRoads is progressively populating a 10 year
program of priorities for bridge strengthening
and maintenance. Work to date has included:

six-year outlook for concrete and steel
structures (involving about 100 structures);

commencing monitoring of timber and
masonry arch structures, to be added to the
program when monitor inspections are
complete (two to three years); and

identification of key routes for high
productivity freight vehicles, where
structures need to carry higher axle loads,
and associated structure upgrades, to be
accounted for in the program subject to
funding allocation.
In addition to this forward programming, a
refreshed arterial structures strategy is to be
prepared during 2013 and 2014, taking a
longer-term, customer-driven view.
Recommendation
VicRoads should quantify the impact of past actions and forecast the likely impact of forward plans
on the levels of service, including the safety, speed, reliability, comfort and cost of travel.
Recommendation 2, page 14
80
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Transport
Support
A draft paper has been prepared identifying
levels of service related to bridge assets. It is
expected that these outcomes will be formalised
in a new structures strategy prepared over 2013
and 2014. It is possible that applying the strategy
to the forward program will influence the
prioritisation of the future program.
Bridge condition rating data of all bridges and
culverts has been analysed to understand the
trend over time. The result of this analysis is
used in preparing forward plans. Structures on
the monitoring program have been analysed to
understand the bridge strengthening
requirements and the results are used in
preparing forward plans.
Recommendation
VicRoads should complete a long-term maintenance strategy for the West Gate Bridge that measures
levels of service that reflect the outcomes experienced by those using the bridge.
Recommendation 3, page 14
Response by department
Transport
Support
A comprehensive West Gate Bridge
Management Strategy (the strategy) has been
completed including a 15-year maintenance
strategy and options to repair fatigue cracks.
Over this period, the strategy provides for:

inspection and monitoring requirements;

day to day unplanned minor repairs;

planned maintenance and refurbishment
including repainting the steel box girder;

ongoing fatigue crack management in an
orderly manner;

improvement of the bridge management
system and management resource strategy;

other tasks as detailed in the strategy; and

proposed funding for each of the above.
The following levels of services are being
monitored as per the strategy:
Levels of service
Peak hour lane closures during weekdays
Measure
Hours closed
Lane closures during the day (excluding
weekends and peak hours)
Days affected
Key performance indicators
Zero hours closed due to
maintenance works
12 days per year impacted due to
maintenance works
Management of Road Bridges
81
Recommendation
Councils should define bridge levels of service that capture the outcomes that are important to road
users and incorporate associated targets and measures in their plans.
Recommendation 4, page 25
Response by department
Planning and Community
Development
Not applicable
This recommendation is for the individual
councils to implement.
During 2011-12 two major grant programs were
funded by the Commonwealth Government.
These were the:

Local Government Sustainability Project;
and

Regional Asset Management Project.
The Local Government Sustainability Project
was made available to all councils across the
State. The focus of this project was to assess
existing business practices against the Local
Government Sustainability Framework, which in turn
was assessed against the emerging National Asset
Management Assessment Framework.
The focus of the Regional Asset Management
Project was on building local capacity and,
wherever possible, the development of regional
solutions and standards. This project was
available to the 48 regional and rural councils.
One outcome of these programs was a finding
that only 66 per cent of all councils have well
progressed or complete asset management plans
and an observation that community consultation
in respect of infrastructure and service levels was
not a common practice of councils generally.
Local Government Victoria continues to work
with the sector to seek improvements in asset
management and in early 2013 has again
surveyed councils with an Asset Management
Performance Measures Survey which provides
important data on key asset management
measures.
Recommendation
Councils should publish information that will allow the community to understand councils’
performance in terms of the past and forecast costs and service outcomes.
Recommendation 5, page 25
82
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Planning and Community
Development
Not applicable
This recommendation is for the individual
councils to implement.
The Government has announced a commitment
to introducing a mandatory performance
reporting framework for local government.
The Department of Planning and Community
Development has commenced work to develop
a comparative performance reporting framework
and indicators.
The performance reporting framework will be
enabled by the making of new legislation
proposed to be undertaken in 2013-14.
Recommendation
Councils should address the information and process weaknesses identified in this report.
Recommendation 6, page 25
Response by department
Planning and Community
Development
Not applicable
This recommendation is for the individual
councils to implement.
Refer to the response to Recommendation 5.
Management of Road Bridges
83
Management of Trust Funds in the Justice Portfolio
Background
This report was tabled in Parliament on
23 May 2012 and examined whether the
Victorian Property Fund and the Public Purpose
Fund are fulfilling the purposes for which they
were established and whether the management
of the funds is sound. The audit assessed the
oversight and management of investments, the
regulation of the use of trust accounts, the
management of grants from the two funds, and
the application of the Centralised Treasury and
Investment Policy.
Findings of the Auditor-General
The audit found that both funds are well
administered and support the purposes for
which they were established. Agencies, such as
Consumer Affairs Victoria and the Legal
Services Board, carry high prudential obligations
as a consequence of the significant sums of
public and private money under their
management. A clear policy and legislative
framework is required to guide the management
of these investments, however the framework
for managing public sector investment was
found to be fragmented and inconsistent.
Recommendation
Consumer Affairs Victoria should strengthen its oversight arrangements by:

improving the frequency and rigour of its Trust Fund Governance Committee’s supervision of,
and capacity to make investment decisions on, the Victorian Property Fund;

reviewing its external adviser arrangements;

planning for contingencies where investment risks cannot be fully mitigated;

setting targets and actively monitoring the timeliness of its consumer claims resolution; and

developing and annually reviewing a strategic framework for the Victorian Property Fund that
provides the basis for efficient investment, together with the Department of Treasury and
Finance.
Recommendation 1, page 14
84
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Justice
Support
The Department of Justice, on behalf of
Consumer Affairs Victoria, supported all of the
Auditor-General’s recommendations. An
implementation plan for the recommendations is
in place. Progress on the plan is being monitored
by Consumer Affairs Victoria’s Trust Fund
Governance Committee.
The implementation plan has a target
completion date of 30 June 2013 and is on track.
Progress on each of the recommendations is as
follows:


the Trust Fund Governance Committee now
meets more frequently and the rigour of its
conduct has been improved by the
appointment of an additional member with
experience in the management and
investment of trust funds;
Consumer Affairs Victoria has replaced its
external investment advisor. The new
advisor is Pitcher Partner Investment
Services, which has extensive experience in
the management and investment of trust
funds;

planning for contingencies is progressing.
This work includes the appointment of an
actuary to better value the potential liabilities
of the Victorian Property Fund (arising from
its function of providing compensation to
clients of licensed estate agents and
conveyancers who are impacted by a
defalcation of the licensee);

revised procedures for monitoring the
progress and resolution of consumer claims
are being developed. A major review of
claims on the Victorian Property Fund has
recently been completed; and

the strategic framework for the Victorian
Property Fund will be completed when the
actuarial report on the fund is received. In
the interim, commentary on the investment
of the fund has been included in the six
monthly ‘hypothecation’ report provided to
the Department of Treasury and Finance,
and in the brief to the Minister for
Consumer Affairs on the excess money
available in the fund for expenditure on
grants.
Recommendation
The Legal Services Board should more actively monitor the fees it pays to fund managers to confirm
that rates remain consistent with rates available in the wider market for fund management services.
Recommendation 2 (dot point 1), page 24
Response by department
Justice
Support
The Auditor-General’s report identified that the
Legal Services Board (the Board) could be more
active in confirming that it is receiving
value-for-money by actively reviewing fees being
paid to fund managers.
Since the release of the report, the Board seeks
regular confirmation through the Board’s
investment advisor that the fees it pays to fund
managers remain consistent with changes in the
investment market.
Management of Trust Funds in the Justice Portfolio
85
Recommendation
The Legal Services Board should strengthen its readiness to respond to serious financial risks by
undertaking contingency planning.
Recommendation 2 (dot point 2), page 24
Response by department
Justice
Support
The Legal Services Board (the Board) believes
that the 2008 global financial crisis and
subsequent market volatility provided a live
stress test opportunity and that in response, the
Public Purpose Fund has to date performed well.
In addition to regular monthly reports, the
Board’s Investment Manager (Mercer) performs
a major annual review of the Board’s investment
portfolio. This annual review – known as a
Health Check – now includes a report on results
of stress testing of the Board’s investment
strategy.
Based on the stress tests modelled, the Board
has developed contingency plans.
Recommendation
The Legal Services Board should actively monitor performance against targets for timely response to
consumer claims for compensation.
Recommendation 2 (dot point 3), page 24
Response by department
Justice
Support
The Legal Services Board (the Board) utilises the
following extant processes to measure
performance:

undertaken a review undertaken of
associated fidelity fund administration
processes to manage performance targets;
and

developed more regular (monthly) processes
to report on status of claims.
The Board has also instituted a process so that
when reporting outstanding claims to the
Fidelity Funds Advisory Committee, outstanding
claims of greater than nine months are
highlighted in the outstanding claims report with
a detailed explanation of the causes of delay as
well as proposed progression of the claim.
Recommendation
The Department of Treasury and Finance should prioritise developing advice to the government on
reforming the policy and legislative framework to strengthen treasury and investment arrangements.
Recommendation 3, page 31
86
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Treasury and Finance
Support
These issues are part of the Department of
Treasury and Finance’s ongoing core
responsibilities and the Department will
continue to provide advice as appropriate.
Recommendation
The Department of Treasury and Finance should, in the interim:

issue updated guidance on compliance with the Centralised Treasury and Investment Policy to
better clarify the responsibilities of agencies;

issue improved guidance on the factors considered in deciding exclusions from the policy; and

seek a sufficient level of assurance from agencies that are excluded from the policy on their
oversight and controls.
Recommendation 4 (dot points 1 to 3), Page 31
Response by department
Treasury and Finance
Support
The Department of Treasury and Finance is in
the process of reviewing the application of the
Centralised Treasury and Investment Policy.
Improved guidance of factors considered in
deciding exclusions will be included in the above
mentioned review.
Recommendation
The Department of Treasury and Finance should, in the interim provide information on the findings
of prudential reviews of the Victorian Funds Management Corporation and the credit quality of
Treasury Corporation of Victoria Investments to all agencies covered by the Centralised Treasury and
Investment Policy.
Recommendation 4 (dot point 4), page 31
Response by department
Treasury and Finance
Do not support
Prudential supervision of the Victorian Funds
Management Corporation and Treasury
Corporation of Victoria is primarily aimed at
ensuring there are policies and controls in place
to manage risk. This is a separate function to
that of the Centralised Treasury and Investment Policy.
Management of Trust Funds in the Justice Portfolio
87
Managing Contaminated Sites
Background
This report was tabled in Parliament on
7 December 2011 and examined how
contaminated and potentially contaminated sites
are managed, particularly where a ‘sensitive use’
of the land is involved.
Findings of the Auditor-General
The audit found that the Department of
Planning and Community Development, the
Environment Protection Authority and councils
are not effectively managing contaminated sites,
and consequently cannot demonstrate that they
are reducing potentially significant risks to
human health and the environment to acceptable
levels.
This is largely because the complex regulatory
framework that has evolved to deal with
contaminated sites has significant gaps, and key
elements lack clarity. The Auditor-General found
in many cases, this has led to a lack of
accountability and responsibility, and subsequent
inaction.
The ability to assess and mitigate health,
environmental and financial risks associated with
contamination was also found to be hampered
by the lack of complete and reliable information
on the number and location of contaminated
sites, and the nature and extent of
contamination. The responsible entities have
been neither proactive nor systematic in
obtaining this information. Until this
information is known, agencies cannot reliably
plan and prioritise actions.
Recommendation
The Department of Planning and Community Development, assisted by the Environment Protection
Authority and in consultation with councils, should:

undertake a systematic and coordinated review of the entire regulatory framework for the
management of potentially contaminated and contaminated sites to improve clarity and address
gaps, including:
–
the wording, application and use of the Environmental Audit Overlay;
–
the application of the framework for planning permits and planning scheme amendments,
and the types of use to which it applies;
–
the use, content, guidance material and peer review of environmental site assessments; and
–
establishing mandatory reporting requirements;

establish processes to capture information about framework and system issues, and processes
to address issues in a timely way; and

establish a performance framework to assess the efficiency and effectiveness of the
contaminated sites framework and system.
Recommendation 1, page 24
88
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Sustainability and Environment
Support
The Department of Sustainability and
Environment supports this recommendation in
principle.
The Victorian Government is committed to
ensuring that the management of contaminated
land minimises the risk of public and
environmental health impacts. The Government
acknowledges that a whole of government
approach is needed to address the matters raised
in the recommendations given the breadth and
significance of the issues requiring reform. This
requirement for whole of government
consideration applies to the specific issues raised
in this recommendation.
The Department of Planning and Community
Development, the Department of Sustainability
and Environment and the Environment
Protection Authority will work in partnership to
review the existing policy and regulatory
framework for contaminated environments in
Victoria.
The Environment Protection Authority’s
Contaminated Environments Strategy (released in
February 2013) outlines improvements within
the existing policy settings and its regulatory
roles.
Planning and Community
Development
Support
The Department of Planning and Community
Development supports this recommendation in
principle.
The Department is participating in an
inter-departmental committee (IDC) that
includes the Department for Sustainability and
Environment and the Environmental Protection
Authority which has commenced implementing
this recommendation.
The inter-departmental committee was
established in mid-2012 to progress the
recommendations of the Auditor-General’s
report and Potentially Contaminated Land
Ministerial Advisory Committee reports. The
issues that the steering committee are
considering are significant and span across a
wide number of themes, including
environmental policy, roles and responsibilities,
regulation, governance, and monitoring and
reporting.
As part of the inter-departmental committee, the
Department is preparing short-term reforms in
response to the Ministerial Advisory Committee
Report recommendations.
The Department is currently working with the
EPA on changes to the Environmental Audit
Overlay, Ministerial Direction for Potentially
Contaminated Land and the relevant
Practice Note.
Recommendation
The Department of Planning and Community Development should:

assume responsibility and accountability for the leadership, coordination and oversight of the
contaminated sites framework;

establish mechanisms and processes to improve the leadership, coordination, oversight and
accountability of, and for, the contaminated sites framework and system; and

clarify and communicate responsibilities within the framework so that they are clear and
understood.
Recommendation 2, Page 34
Managing Contaminated Sites
89
Response by department
Planning and Community
Development
Support
The Department of Planning and Community
Development supports this recommendation in
principle. The concept of a single point of
responsibility is supported, but a decision about
who should assume responsibility for the
leadership of the contaminated sites framework
should be determined once the outcome of their
review is available.
Recommendation
The Environment Protection Authority should:

develop mechanisms and processes that enable the identification and recording of contaminated
land;

assess the risks of these sites; and

prioritise high-risk sites and actions to manage the associated risks.
Recommendation 3, page 34
Response by department
Sustainability and Environment
Under review
In accordance with Chapter 3 (page 34) of the
audit report, the Department of Sustainability
and Environment is working with Environment
Protection Authority (the EPA) to review this
recommendation.

developing a centralised, publicly available
listing of information regarding
contaminated environments known to EPA,
including Groundwater Quality Restricted
Use Zones; and
The EPA Contaminated Environments Strategy
(released in February 2013) details a number of
specific operational commitments to improve
risk assessment and access to information that
address elements of the recommendation, as
follows:

developing options for EPA to gain
information about contaminated
environments that would not come to
EPA’s attention through the current system.

90
developing and adopting a risk tool to assess
the level of risk posed by contaminated
environments;
Government Response to the Auditor-General’s Reports
issued during 2011-12
Recommendation
Councils, with the support of the Department of Planning and Community Development, should:

develop systems to capture ongoing site conditions to inform their compliance monitoring
activities around the development, management and clean-up of contaminated sites;

develop compliance monitoring programs and enforcement processes, consistent with better
practice, and perform these activities on a routine basis; and

assess the level of expertise and financial resources required to accurately manage and clean up
high-risk sites.
Recommendation 4, page 42
Response by department
Planning and Community
Development
Support
Monitoring systems will be considered as part
of the wider review conducted by the
inter-departmental committee on
contaminated sites.
Managing Contaminated Sites
91
Maternity Services: Capacity
Background
This report was tabled in Parliament on
12 October 2011 and examined whether the
Department of Health and health services
effectively plan to meet current and future
demand. It also examined whether women
throughout the state can access the services they
need at the optimal time.
Findings of the Auditor-General
Department of Health’s planning approach have
limited its understanding of maternity capacity in
Victoria. As a result, the Department’s planning
decisions are not based on system-level
knowledge of maternity service capacity. More
positively, the Department is now beginning to
gather information on the maternity system
which will allow it to reliably identify gaps in
service delivery.
The audit found that planning is critical to the
delivery of effective, accessible maternity
services. However, shortcomings in the
Recommendation
That the Department of Health improves its understanding and planning of maternity services by:

routinely measuring and monitoring maternity service capacity;

documenting a work plan for the Capability Framework for Victorian Maternity and Newborn
Services which clearly articulates how it will address gaps and issues identified; and

establishing an advisory committee with external health sector and consumer representatives to
provide strategic system-wide planning advice.
Recommendation 1, page 22
Response by department
Health
Support
The Department of Health views the provision
of health services from a system-wide
perspective. While the Department monitors
access to and demand for maternity services,
health services are responsible for managing and
monitoring capacity.
92
Government Response to the Auditor-General’s Reports
issued during 2011-12
Actions taken include:

maternity activity is monitored by the
Department on a monthly basis;

in November 2011, the Department
developed a high-level plan to support
implementation of the Capability
Framework;

in August 2012, public health services were
requested to review their service capability
against the Capability Framework;

in October 2011, the Minister for Health
endorsed the establishment of the
Perinatal Services Advisory Committee
(PSAC). The inaugural meeting was held on
27 June 2012; and

health services are responsible for managing
and monitoring capacity.
Recommendation
That the Department of Health focuses on improving access to maternity services in growth areas.
Recommendation 2, page 34
Response by department
Health
Support
The Department of Health notes that access to
maternity services is an issue in certain growth
areas. The Department has identified that
additional birthing capacity is likely to be
required in the future at one of the audited
hospitals. Private capacity has also been affected
following the change to the Medicare Safety Net
by the Commonwealth.
Actions taken include:

the 2012 State Budget announced funding
for Western Health for capital works
including two labour-delivery rooms at
Sunshine Hospital; and

on 4 October 2012, Maternity and Neonatal
Services were opened at Werribee Mercy
Hospital. This included a 16 cot Special Care
Nursery, an interlinked building to house a
new 24 bed maternity services and six
refurbished labour delivery rooms.
Recommendation
That the Department of Health prioritises its work with the Commonwealth to improve access to
antenatal care.
Recommendation 3, page 34
Response by department
Health
Support
Actions taken include:

on 10 November 2011, the Minister for
Health wrote to the Commonwealth
Minister for Health and Ageing regarding
the findings of the audit report and the need
to work collaboratively to improve access
for women to antenatal care;

the Victorian Government has requested
that the Commonwealth consider funding
levels due to the increased demand caused
by Medicare ineligibles and refugees;
Maternity Services: Capacity
93

under the National Maternity Services Plan,
the Department, in collaboration with the
Tasmanian Department of Health and
Human Services, led a national audit of
access to antenatal care. This was completed
in May 2012;

under the National Maternity Services Plan:
Middle Years, states and territories are
required to consider and implement
mechanisms to increase access to public
antenatal care; and

the Victorian Government has committed
funding to support programs targeting
vulnerable and at risk women and their
families during the antenatal period. These
include, but are not limited to, the Koori
Maternity Services program and Healthy
Mothers Healthy Babies.
Recommendation
That the Department of Health provides information in relevant community languages, made
available through general practitioners and hospitals, that informs women on how to navigate the
maternity system, the range of maternity services options and likely costs.
Recommendation 4, page 42
Response by department
Health
Support
The Department will work with health services
and the Commonwealth Government to develop
appropriate information for women on access
and choices in maternity care.
The Perinatal Services Advisory Committee will
oversee the development of consumer
information relating to the maternity and
neonatal service systems.
The Department has met with Medicare locals
and After Hours advisory committee about
maternity.
The Department has published on its website
information for overseas students on access to
health services in Victoria including maternity
care.
The department has provided funding to
foundations which has partnered with the
Murdoch Children’s Research Institute to
undertake a program of work around
information and support for refugee women and
their families.
Recommendation
That the Department of Health requires health services to monitor and report their progress in
improving continuity of care on an ongoing basis.
Recommendation 5, page 42
94
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Health
Support
Health services have undertaken to implement
the Department of Health’s policy directions to
improve continuity of care to women. This is
evidenced through positive feedback from
consumers and improvements in the proportion
of women reporting through the Victorian Patient
Satisfaction Monitor that they received care during
labour, birth and the postnatal period from
midwives they had met during their pregnancy.
In October 2012, the Department published
Postnatal Care Program Guidelines for Victorian
Health Services. A key objective of the guidelines is
to improve communication and continuity of
care for women across the full range of
maternity services.
Recommendation
That health services systematically evaluate targeted programs for vulnerable women to assess
whether they are meeting objectives.
Recommendation 6, page 42
Response by department
Health
Support
A statewide review of the Koori Maternity
Services program was finalised in February 2012.
The Department of Health is working in
collaboration with the Victorian Aboriginal
Community Controlled Health Organisation to
implement the recommendations of the review.
The Department is currently developing
statewide Koori Maternity Services Guidelines. It is
expected that these will be released later this
year.
Under the Indigenous Early Childhood
Development National Partnership, the
Department has expanded the Koori Maternity
Services program provided at four Aboriginal
Community Controlled Health Organisations
and established three new sites (Sunshine
Hospital, Northern Hospital, and Frankston
Hospital).
Maternity Services: Capacity
95
Melbourne Markets Redevelopment
Background
This report was tabled in Parliament on
14 March 2011 and evaluated whether the
redevelopment was effectively planned, procured
and managed, and examined initiation, planning
and management of the market redevelopment,
procurement planning and management, and the
project delivery to the end of 2011.
The audit examined the roles played by the
Department of Primary Industries, the
Department of Business and Innovation, Major
Projects Victoria and the Melbourne Markets
Authority, as well as the oversight provided by
the Department of Premier and Cabinet and the
Department of Treasury and Finance.
Findings of the Auditor-General
The audit found the initial project planning and
governance arrangements for the relocation were
sound. However, poor project implementation
and stakeholder management has resulted in
significant delays, cost overruns and has
damaged the Government’s reputation.
A number of significant changes made during
the project, including changes in administrative
responsibility, project scope and changes to the
delivery strategy, operation and ownership of the
market, were found to have adversely affected
the achievement of its objectives.
Recommendation
The Department of Business and Innovation and the Department of Primary Industries should
implement appropriate project management policies and procedures so that:

the options and risks associated with proposed changes to project scope, size, delivery methods
and administrative arrangements are critically assessed and documented prior to actioning them;
and

once changed, governance arrangements, business cases and project implementation and
management plans are appropriately updated in a timely manner.
Recommendation 1, page 20
Response by department
Business and Innovation
Support
The Melbourne Markets Relocation Project team
has put in place a revised project governance
structure and procedures with the Project
Steering Committee having an increased decision
making role. As the Melbourne Markets
Relocation Project is a High Value/High Risk
96
Government Response to the Auditor-General’s Reports
issued during 2011-12
project, necessary approvals from the Treasurer
have been sought and obtained at key stages of
the project. Prior to making submissions to the
Treasurer, endorsement of proposals is sought
from the Melbourne Markets Authority Board
and the Project Steering Committee.
Determination of final market rents will be a
decision for the Budget and Expenditure Review
Committee of Cabinet.
Documentation of these issues is maintained in
accordance with proper standards, including
papers related to the Financial Management
Plan, the Market Warehousing Business Case,
Transition Plan and warehousing procurement
options analysis.
In respect of other project activity, project
management documentation is updated as
required as are the impacts recorded in risk
management plans and financial reports. For
Major Projects Victoria, this process is
monitored as part of the weekly meetings
between the project director and group heads.
Primary Industries
Not applicable
Project responsibility for the Melbourne Markets
redevelopment was transferred from the
Department of Primary Industries to the
Department of Business and Innovation in
April 2009.
The Department’s view is that the governance
arrangements and project plans related to the
project at the time that the Department had
administrative responsibility for the project, were
regularly updated.
These processes are ongoing.
Recommendation
The Department of Treasury and Finance should provide more definitive guidance on better practice
project management in its Investment Lifecycle Guidelines.
Recommendation 2, page 20
Response by department
Treasury and Finance
Support
The Investment Lifecycle Guidelines were
reviewed and updated in 2012 and are now
called the Investment Lifecycle and High Value/High
Risk Guidelines (Guidelines). The Guidelines aim
to provide clear, integrated guidance and useful
tools that promote better practice and help
shape, plan and deliver well considered
infrastructure investments.

easy guidance to follow that provides
accessibility to all levels of investment
experience and competency; and

practical elements such as worked examples,
tools, tables and case studies.
The 2012 Guidelines incorporate current
preferred practice and user feedback, with
improved presentation and worked examples
to make them easier to understand and apply by
including:

better practice advice that identifies
appropriate evolving best practice;

clear, scalable and integrated guidance and
standard expectations as users move through
the investment lifecycle;
Melbourne Markets Redevelopment
97
Recommendation
The Department of Business and Innovation should:

immediately provide further information to tenants, including finalisation of allocation of new
space at the new market, to provide certainty and allow investment decisions to be made; and

implement a clear and robust engagement strategy for the remainder of the project.
Recommendation 3, page 29
Response by department
Business and Innovation
Support
The Melbourne Markets Relocation Project team
has an official engagement strategy with key
market stakeholders, which is periodically
updated. The strategy has been jointly developed
with the Melbourne Markets Authority. Market
Advisory committees meet regularly and provide
advice to government on relocation issues.
Discussion papers have been released through
the Advisory Committees to the market
community on store allocation options, fruit and
vegetable stand allocation options, flower
allocation options, rent options, warehousing,
market rules and traffic management
arrangements.
Following feedback from the Advisory
Committees on the discussion papers, the
Minister for Major Projects has released final
policy papers on loss and gain of store space,
store allocation, flower market allocation,
warehousing and store leasing.
An Expression of Interest for tenant
warehousing demand has been conducted and
interviews are underway to obtain details on
warehousing needs to support the warehousing
procurement approach. Final store leasing
material was issued on 1 March 2013. Ballots for
stores were held in December 2012 so that
tenants know their locations. Ballots for flower
stands were held in April 2013. Ballots for fruit
and vegetable stands are planned for July 2013.
Recommendation
Major Projects Victoria should:

revise its procurement policy and operating procedures to align with contemporary better
practice in public sector purchasing; and

provide regular probity training for all staff involved in procurement activities.
Recommendation 4, page 44
98
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Business and Innovation
Support
Major Projects Victoria (MPV) has developed a
new suite of probity documents, comprising:

protocols for engaging and working with
probity practitioners;

a Probity Plan template;

a Request for Tender template;

protocols for the conduct of positive
guidance meetings;

a Tender Evaluation Plan template; and

a Tender Evaluation report template.
All project staff have undertaken probity
training. These workshops were conducted to
refresh MPV staff understanding of probity, to
introduce the new suite of probity documents
and to discuss probity requirements in the
context of commercial engagements.
MPV has appointed a Probity Auditor to
provide probity audit services for an 18 month
period. The Probity Auditor will audit all
projects during the period of engagement. The
Probity Auditor will also undertake other probity
work as agreed with the MPV Executive
Director. The Probity Auditor engagement has
been made in addition to the probity advisors
who have been engaged for specific projects.
The Department of Business and Innovation has
revised its Conflict of Interest Policy which
applies to MPV and MPV now maintains its own
Conflict of Interest register in accordance with
this policy.
Recommendation
The Department of Treasury and Finance should:

require agencies to obtain related interest declarations from project staff for each procurement
project on which they work; and

develop processes to assess the quality of service of probity practitioners.
Recommendation 5, page 44
Melbourne Markets Redevelopment
99
Response by department
Treasury and Finance
Support
The Department of Treasury and Finance
supports this recommendation in principle. This
practice is already in place including through the
Victorian Public Sector Code of Conduct and the
standards of conduct set out in the Public
Administration Act 2004.
A requirement of probity in Government
contracting includes identification and resolution
of conflicts of interest which could be expected
to include declarations of related interests.
Conflict of interest provisions apply to public
officials as part of their conditions of
employment. This is in addition to being
informed generally on the Victorian Public Sector
Code of Conduct and the standards of conduct set
out in the Public Administration Act 2004. External
staff and advisers who are involved in a
commercial transaction process are required to
make a conflict of interest declaration.
100
Government Response to the Auditor-General’s Reports
issued during 2011-12
Public officials who act as probity practitioners
should have completed probity training, or have
an acceptable level of competence. The level of
competence can be assessed by the departmental
Approved Purchasing Unit. External probity
practitioners can be engaged through a whole of
government panel. The Department of Treasury
and Finance and each agency are mandated to
use this whole of government panel
arrangement, members of which are selected
based on the necessary skills and demonstrated
ability to perform the services. The members of
this panel will have met predetermined minimum
standards. Under the panel, the Department
requires all agencies to assess the performance of
each probity engagement for work over the value
of $2 000. This allows the Department to
monitor and improve the quality of service
provided by the panel and also provides each
probity practitioner with constructive feedback.
Obsolescence of Frontline ICT: Police and Schools
Background
This report was tabled in Parliament on
20 June 2012 and assessed whether obsolescence
of information and communications technology
(ICT) equipment and software is managed
effectively and efficiently in the public sector.
Frontline ICT includes the hardware, software
and supporting network infrastructure used to
help public sector agencies deliver services.
ICT can quickly become obsolete due to the
high tempo of innovation and subsequent
refresh rate of technology assets. Inadequate
management of obsolescence of ICT assets
could lead to poor or degraded service delivery.
Findings of the Auditor-General
The audit found that obsolescence of frontline
ICT assets is not being given adequate
recognition:

whole of government policies have not kept
pace with the increasingly central role of
ICT in service delivery;

there are no ICT-specific policies or
frameworks to guide the ongoing
management of ICT obsolescence; and

a more robust funding model is needed to
better reflect the rapid ageing of ICT assets.
Recommendation
The Department of Treasury and Finance should provide specific guidance to departments on ICT
governance and asset management, and review the implementation of such guidance.
Recommendation 1 (dot point 1), page 14
Response by department
Treasury and Finance
Under review
The Department of Treasury and Finance has
developed guidance for departments to support
planning and delivery of technology enabled
projects. The Department will review the
Victorian Government’s Asset Management and
Accountability Framework. This framework
applies to a broad range of asset classes. As part
of these reviews, the Department will consider
incorporating specific guidance on ICT
governance and asset management.
Recommendation
The Department of Treasury and Finance should better recognise the rapid ageing of frontline ICT
assets in funding models.
Recommendation 1 (dot point 2), page 14
Obsolescence of Frontline ICT: Police and Schools
101
Response by department
Treasury and Finance
Do not support
The departmental funding model includes
indexing and depreciation for existing assets,
which recognises asset ageing and obsolescence
and provides a funding source for the
maintenance of these assets.
Recommendation
The Department of Education and Early Childhood Development and the Department of Justice
should:

develop a comprehensive ICT asset management framework: and

provide specific guidance to portfolio agencies on ICT obsolescence.
Recommendation 2, page 14
Response by department
Education and Early Childhood
Development
Justice
Support
The Department of Justice has transferred the
ownership of the majority of their ICT assets to
CenITex. The only assets that remain are
personal computers and multi-function devices.
The Department of Education and Early
Childhood Development has a systematic
framework for school based ICT assets. To
further underpin the school ICT planning
process, the Department will review and
enhance the existing framework for student
based ICT assets, further integrate this into the
new ICT planning process and provide guidance
to schools. This will include:

further ICT asset management guidance and
advice;

risk register – with treatment advice for the
risk of obsolescence; and

assist schools in managing the risk of
obsolescence by providing a four year ICT
equipment replacement cycle report based
on school annual computer census/School
ICT Progression Strategy inventory data.
102
Government Response to the Auditor-General’s Reports
issued during 2011-12
Support
The Department is working with CenITex to
develop a framework and process on how the
Department’s assets will be refreshed on a
regular basis.
In support of this recommendation, and in
relation to the Mobile Data Network (MDN),
Victoria Police is addressing the issues of asset
management and ICT obsolescence through the
MDN End of Contract Term Project and the
Long-Term Strategic Plan Project. This is being
undertaken under the auspices of the Emergency
Services Heads of Agency Committee.
Recommendation
The Department of Education and Early Childhood Development should quantify and give
comprehensive advice to government on the looming mass obsolescence arising from the National
Secondary School Computer Fund without delay.
Recommendation 3, page 20
Response by department
Education and Early Childhood
Development
Support
The Department of Education and Early
Childhood Development has provided advice to
government on risks associated with cessation of
the National Secondary School Computer
Fund. These risks are expected to be considered
in the context of a range of demands for
resourcing across government and in a
constrained budget environment.
Recommendation
The Department of Justice should continue to engage proactively with the Commonwealth
Government to safeguard appropriate and sufficient radio spectrum for current and future
emergency voice and data services across Victoria.
Recommendation 4, page 26
Response by department
Justice
Support
The Department of Justice, through Emergency
Management Programs and Resources, is
represented on a number of Commonwealth
Government facilitated national committees
concerned with Police and Emergency
Management ICT. The key committee for
national liaison on spectrum matters is the
National Coordination Committee for
Government Radiocommunications (the
Committee).
Through this forum, collaborative arrangements
for radio spectrum planning and implementation
are prepared. The Committee has been operating
since 2004, and has responsibility for the Council
of Australian Governments endorsed (2008)
National Radiocommunications Interoperability
Framework, a 10 year program to improve
radio communications for Police and Emergency
Services through spectrum harmonization and
collaborative network planning. The Committee,
in consultation with experts in wireless
communications, is also supporting the national
Public Safety Mobile Broadband (PSMB)
initiatives. Re-planning of the critical 400 and
800 MHz land mobile radio spectrum bands are
at the centre of both areas of specialisation for
the Committee (i.e. mobile radio
communications and public safety mobile
broadband).
Obsolescence of Frontline ICT: Police and Schools
103
compatible with next generation mobile
broadband technologies. The national PSMB
initiative has complicated the timing for
completion of the band review and eventual
final revision of the band. The general
expectation is for completion of the review
and formal announcement of a new plan by
the end of 2014, and completion of
implementation by end of 2020. PSMB may
have early access to some parts of the band;
and
The critical spectrum programs for the Victorian
Government and specifically the Police and
Emergency Management sector are:


400 MHz (new) band plan implementation – The
Australian Communications and Media
Authority (the Authority) has mandated that
all government users will move into
dedicated spectrum areas within the revised
400 MHz band plan by end of 2015 (for
Melbourne and Geelong metropolitan areas)
to end of 2018 (for rest of regional Victoria).
Within the next few years, program staging
will require initial narrow banding and partial
relocation to occur at end of 2012 and 2014
respectively;
800 MHz revised band plan – The Authority
has commenced a consultation program to
effectively update the 800 MHz band to be

4900 MHz PPDR allocation – The Authority
has formally announced the internationally
aligned allocation of 4940 to 4990 MHz for
Public Protection and Disaster Relief
(referred to as Public Safety in Australia).
Minimal relocation is required but further
governance arrangements for this band are
still under consultation.
Recommendation
The Department of Justice should work with its portfolio emergency services agencies (such as the
Emergency Services Telecommunications Authority and Victoria Police) to finalise the operational
communications component of the emergency services communication strategic master plan within
the next year, in order to procure the next generation of frontline ICT equipment.
Recommendation 5, page 26
Response by department
Justice
Support
The Department of Justice is in the process of
producing a long-term strategic plan (the plan)
for emergency services operational
communications. The plan is due to be
completed by 30 June 2013.
The Emergency Services Heads of Agency
Committee is overseeing the project. A broad
range of stakeholders are also engaged via
operational and technical working groups and
senior reference group activities.
Victoria Police is addressing its ‘operational
communications’ requirements through the
annual budget processes.
104
Government Response to the Auditor-General’s Reports
issued during 2011-12
Recommendation
The departments of Treasury and Finance and Justice, the Emergency Services Telecommunications
Authority and Victoria Police should conduct a comprehensive ‘lessons learned’ study on the use of
the public private partnership procurement model for frontline ICT and consider whether this
approach:

reduces agencies’ exposure to operational risk by transferring day-to-day technical performance
and availability issues to the managed services contractor;

provides equal or better value-for-money when compared to traditional ICT procurement costs
over a typical technology life cycle; and

gives agencies more certainty of funding for the systematic refresh of critical ICT equipment than
annual bidding for recurrent funding.
Recommendation 6, page 26
Response by department
Justice
Treasury and Finance
Support
Support
As part of the development of the long-term
strategic plan for emergency services operational
communications, a comprehensive review of the
potential service delivery options for the delivery
of operational communications and associated
frontline ICT equipment will be undertaken.
The Department of Treasury and Finance and
the Department of Justice (in conjunction with
other agencies) will undertake a comprehensive
lessons learned study on the use of the Public
Private Partnerships procurement for
Emergency Services communications. This
model was used as part of the previous
State-wide Integrated Public Safety and
Communications Strategy.
Included in the service delivery options
component of the review, will be a consideration
of public private partnership lessons learned in
relation to the State-wide Integrated Public Safety and
Communications Strategy.
The study will inform the development of the
Long-Term Strategic Plan for Emergency
Services Communications.
Obsolescence of Frontline ICT: Police and Schools
105
Payments to Visiting Medical Officers in Rural and
Regional Hospitals
Background
This report was tabled in Parliament on
23 May 2012 and examined the appropriateness
and transparency of payments to visiting medical
officers (VMOs), including the adequacy of
contractual arrangements.
Findings of the Auditor-General
The audit found payments to VMOs by rural
and regional health services are appropriate and
transparent. Testing of a statistically significant
sample of VMO payments at the four audited
health services found no material errors or
evidence of inappropriate VMO billing. Rural
and regional health services, with feedback from
review work by the Department of Health, have
improved their VMO payment systems. The
Department of Health’s implementation of an
information technology payment system for
small rural hospitals will also assist.
Recommendation
That health services assure contracts are signed and current.
Recommendation 1, page 14
Response by department
Health
Support
The Department of Health notes this is the
responsibility of health services.
Recommendation
That health services proactively review and plan their need for visiting medical officer services.
Recommendation 2, page 14
Response by department
Health
Support
The Department of Health notes this is the
responsibility of health services.
106
Government Response to the Auditor-General’s Reports
issued during 2011-12
Recommendation
That health services include performance expectations in visiting medical officer contracts and
conduct annual reviews.
Recommendation 3, page 14
Response by department
Health
Support
The Department of Health notes this is the
responsibility of health services.
Recommendation
That health services obtain advice on visiting medical officer contractor arrangements.
Recommendation 4, page 14
Response by department
Health
Support
The Department of Health notes this is the
responsibility of health services.
Recommendation
The Department of Health facilitate the development of guidance on contracted visiting medical
officer arrangements, by coordinating relevant stakeholders.
Recommendation 5, page 14
Response by department
Health
Support
The Department of Health has facilitated
informal and formal discussion with key
stakeholders, including the Victorian Hospitals
Industrial Association, the Australian Medical
Association, Chief Executive Officers and
Directors of Medical Services of Health Service,
with the aim of confirming existing resources
and providing guidance to health services.
The 2012-13 Victorian Health Policy and Funding
Guidelines includes within its conditions for
funding that health services establish and
maintain appropriate accountability procedures
for payments to visiting medical officers. The
requirement allows health services flexibility in
the accountability measures they use, depending
on the size of their service and the extent of
visiting medical officer usage.
Payments to Visiting Medical Officers in
Rural and Regional Hospitals
107
The Department of Health will review this
advice and include guidance in the 2013–14 Policy
and Funding Guidelines to ensure that health
services obtain appropriate advice relating to
contract negotiations with visiting medical
officers.
Recommendation
The Department of Health revise the Partnering for Performance policy to clarify performance
assessment processes for contracted visiting medical officers and monitor health service compliance.
Recommendation 6, page 14
Response by department
Health
Support
The Department of Health will be undertaking
the evaluation of the Credentialing and defining the
scope of clinical practice for medical practitioners in
Victorian health services policy (2007) and the
Partnering for Performance framework. This
evaluation process will clarify the performance
assessment processes for contracted visiting
medical officers.
The Department will continue to monitor health
service compliance with the Partnering for
performance policy through health services’
accreditation outcomes.
Recommendation
That health services complete routine audits of visiting medical officer payments.
Recommendation 7, page 20
Response by department
Health
Support
The Department of Health notes this is the
responsibility of health services.
108
Government Response to the Auditor-General’s Reports
issued during 2011-12
Performance Reporting by Local Government
Background
This report was tabled in Parliament on
18 April 2012 and assessed the effectiveness of
existing local government performance reporting
arrangements, and the adequacy of statewide
initiatives to reform local government
performance reporting.
Findings of the Auditor-General
The 2008 audit of Performance Reporting in Local
Government found that, for most councils,
reporting had limited relevance to ratepayers
because it lacked information about outcomes,
achievement of objectives and service quality.
This audit found that performance reporting by
councils remains inadequate. It is focused on
inputs and operating activities, and offers little
insight into the impact of services and the
achievement of objectives.
While some improvements were evident at
councils since 2008, the progress to date has not
been sufficient to satisfy the information needs
of residents and ratepayers, to drive continuous
improvement, or to deliver timely performance
reporting.
These shortcomings continue to impair
accountability for performance and represent
major obstacles to effectively addressing
recurring performance deficiencies at councils.
Ongoing performance challenges in the sector
strongly indicate that significant further work
towards an appropriate local government
performance reporting framework is warranted.
Recommendation
All councils should:

review their strategic and service objectives to assure they are clearly expressed, measurable and
aligned;

critically review the performance information in their annual reports to assure it is relevant,
balanced, appropriate and clearly aligned with their objectives;

document and approve performance reporting policies and standards; and

provide training for councillors and staff on effective performance measurement, management
and reporting.
Recommendation 1, page 25
Performance Reporting by Local Government
109
Response by department
Planning and Community
Development
Not applicable
The Department of Planning and Community
Development notes this is the responsibility of
individual councils to implement.
Local Government Victoria has updated the
guidance document Local Government Planning
and Reporting Better Practice Guide to assist
councils to meet their statutory obligations
under the Local Government Act 1989 as it relates
to the preparation of key documents in the
planning and accountability framework. The
updated guidance reinforces the
Auditor-General’s recommendations in
relation to the preparation of the council plan,
annual report and performance statement.
Recommendation
The Department of Planning and Community Development should seek the approval of the Minister
for Local Government to develop regulations establishing minimum standards for the form and
content of performance statements.
Recommendation 2, page 25
Response by department
Planning and Community
Development
Support
The Government has announced a commitment
to introduce a mandatory performance reporting
framework for local government.
The performance reporting framework will be
enabled by the making of new legislation
proposed to be undertaken in 2013-14.
The Department of Planning and Community
Development has commenced work to develop
a comparative performance reporting framework
and indicators.
Recommendation
Local Government Victoria, councils, and local government peak bodies should adopt the proposed
local government performance reporting framework and associated implementation strategy.
Recommendation 3, page 44
110
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Planning and Community
Development
Support
As outlined above in the response to
Recommendation 2, Local Government Victoria
has commenced development of a comparative
performance reporting framework for local
government which will be available for trial in
July 2013 and for mandatory implementation for
the 2014-15 financial year onwards.
Recommendation
Local Government Victoria, in consultation with stakeholders, should lead and expedite
establishment of the governance structure for implementation.
Recommendation 4, page 44
Response by department
Planning and Community
Development
Support
Local Government Victoria has appointed three
technical working groups to inform the
development of a new performance reporting
framework for local government. The groups
will assist Local Government Victoria to
undertake the technical work of defining
indicators, establishing counting rules and
measurement standards as well as advising on
implementation of the framework. Terms of
reference, minutes and membership details can
be found at: http://www.dpcd.vic.gov.au.
Performance Reporting by Local Government
111
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards
Background
This report was tabled in Parliament on
2 May 2012 and examined the management of
travel related, hospitality, credit card and
reimbursed expenses for the following six
agencies: the departments of Business and
Innovation, Human Services, Justice and
Premier and Cabinet, the Country Fire Authority
and Tourism Victoria. The audit also included
the Department of Treasury and Finance
because of its whole of government oversight
role.
Overall, agencies have not done enough to
improve cost-effectiveness by understanding and
reducing the costs of small transactions and
addressing spending that leaks outside of
mandatory, heavily discounted State Purchase
Contracts. To help achieve the Government’s
goal of reducing departments’ non-payroll costs
by $722 million over four years, agencies should
identify further efficiencies by:

understanding where they do not use
mandatory State Purchase Contracts,
reporting this information to the
Department of Treasury and Finance and
securing further savings by addressing
contract leakage; and

analysing how they purchase and pay for
goods and services and identifying
improvements based on the costs, benefits
and risks.
Findings of the Auditor-General
The agencies were found to be effectively
controlling expenses to ensure use for legitimate
business purposes. It was found that cases where
public money is used:

for purely personal benefit are extremely
rare; and

for legitimate business purposes, but
without complying with all the rules, make
up a small proportion of purchases-less than
10 per cent of the total number.
Recommendation
Public sector agencies should review and increase the level of scrutiny and control applied to
transactions by:

making greater use of in-built card limits;

running regular, automated tests to detect control breaches and better target detailed
reviews; and

including reviews of personal expenses in their forward internal audit programs.
Recommendation 1, page 22
112
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Business and Innovation
Human Services
Support
Support
The Department of Business and Innovation
utilises in-built card limits for individual
transactions and overall card limits.
The Department of Human Services undertakes
regular reviews of expenditure in relation to
transaction and monthly card limits and also
reviews card usage where only a small number of
transactions have been actioned on the card.
Reviews of personal expenses form part of the
Department’s internal audit program.
In addition, personal expenses are included in
annual internal audit programs under general
government purchasing cards and expenses and
hospitality.
Personal expense transactions are also further
scrutinised when validating whether fringe
benefit tax applies.
Education and Early Childhood
Development
Support
In December 2011 a new card provider and a
new online card system was introduced
throughout the Department of Education and
Early Childhood Development. This involved
providing refresher training to all cardholders
and cardholder approvers highlighting their
financial governance responsibilities. The
electronic system has streamlined manual paper
based processes allowing for more accurate
checking by both the financial delegate and
program administrator. In February 2012, the
Financial Services Division also implemented a
risk based audit methodology to ensure
cardholder statements are reviewed for
compliance with the Purchasing Card Policy and
the Financial Management Act 1994. Reviews of
card limits and usage will be ongoing.
Justice
Support
The Department of Justice already utilises inbuilt
card limits on both a transactional and monthly
basis.
The Department undertakes regular testing to
detect control breaches. As noted in the report,
transactions are randomly selected each month
for review.
The Department’s Chief Finance Officer checks
the monthly statements of the Secretary, Fire
Services Commissioner and Executive Directors
who are cardholders.
Reviews of personal expenses are due to be
considered as part of the payroll and
accounts payable internal audit scheduled to
occur in 2015.
Credit card breaches regarding personal
expenses are reported quarterly to the
Department’s Audit and Risk Management
Committee.
Health
Planning and Community
Development
Support
Support
The Department of Health undertakes regular
reviews of expenditure in relation to transaction
and monthly card limits and also reviews card
usage where only a small number of transactions
have been actioned on the card.
Annual internal audits of corporate card usage
and personal expense reimbursement have
confirmed controls already in place are
reasonable.
Reviews of personal expenses form part of the
forward internal audit programs for the
Department.
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards
113
Premier and Cabinet
Transport
Support
Support
The Department of Premier and Cabinet has
recently issued a Purchasing Card Policy. The
policy requires the program administrator to
regularly review the purchasing card limit,
adjusting where necessary in line with each
cardholder’s actual usage and current role.
The Department of Transport is regularly
reviewing and increasing the level of scrutiny
applied to transactions. Specifically:
The Department’s internal audit program
includes periodic reviews of purchasing cards
and personal expenses based on a risk-based
cycle. These reviews incorporate various
fit-for-risk audit methodologies.

a default monthly credit limit of $2 000 per
transaction is applied to each corporate card.
Any increase to this default limit requires
approval by the cardholder’s manager and
by Finance (and the Minister for Finance
where the limit required is greater than
$25 000);

accounts payable review approvals and
overdue expense reports. An automated
online approval process has been
implemented to enhance control procedures.
The manager of accounts payable conducts a
detailed monthly review of all credit card
transactions and checks that ‘appropriate
approvals’ appear on all expense reports
submitted to Accounts Payable; and

the Department of Transport conducts an
annual review of their purchasing card
system and personal expenses as part of
their internal audit program.
Primary Industries
Support
The Department of Primary Industries is
reviewing additional purchasing card automated
controls tests options.
The Department has sought to include a review
of personal expenses in the forward internal
audit plan.
Sustainability and Environment
Support
The Department currently has in place reporting
and oversight mechanisms that provide a level of
scrutiny and control over credit card
transactions.
In particular, the Department utilises in-built
credit card limits to ensure transactions are
declined where it is above the transaction limit
for the card, or where it will result in the
monthly card limit being exceeded.
The Department also runs monthly reports to
assist in identifying control breaches and general
non-conformance with policy.
The Department’s Financial Compliance Team
undertakes reviews of personal expenditure
claims with internal audit being able to access
these reviews and undertake further testing as
required.
Treasury and Finance
Support
The Department of Treasury and Finance
follows strict controls, limiting the number of
corporate cards across the Department to
individuals who meet specific criteria for the
need.
All corporate card statements are reviewed by
Finance and Technology Services staff (in the
Department) after they are signed by the
financial delegate. If the card hasn’t been used
for six months a request is made for the card to
be returned.
Recommendation
Public sector agencies should review and, where required, strengthen how they document and
communicate rules so that staff have a comprehensive understanding of their obligations.
Recommendation 2, page 22
114
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Business and Innovation
Support
Following each internal audit program covering
personal expense reimbursement, travel
expenses and corporate credit cards any
recommendations are communicated to relevant
staff and policies and procedures are updated
accordingly.

the responsibilities that come with a
financial delegation; and

purchasing card rules and controls.

Education and Early Childhood
Development
incorporating the latest Department of
Treasury and Finance purchasing card rules
into cardholder agreements; and

publishing purchasing card rules on the
Department’s intranet.
Support

regular email communication with
cardholders and approvers to remind them
of their obligations.
In December 2011, a new card provider and a
new online card system was introduced
throughout the Department of Education and
Early Childhood Development. This involved
providing refresher training to all cardholders
and cardholder approvers highlighting their
financial governance responsibilities. The
electronic system has streamlined manual paper
based processes allowing for more accurate
checking by both the financial delegate and
program administrator. In February 2012, the
Financial Services Division also implemented a
risk based audit methodology to ensure
cardholder statements are reviewed for
compliance with the Purchasing Card Policy and
the Financial Management Act 1994. Reviews of
card limits and usage will be ongoing.
Human Services
Support
The Department of Human Services has
reviewed the documentation and communication
of rules. The Department provides new
cardholders with training covering procurement
card principles, rules and controls and financial
delegation responsibilities. Department of
Treasury and Finance rules are incorporated into
cardholder agreements and cardholders are
regularly reminded of their obligations.
Justice
In addition, the Department introduced in
January 2013 a compulsory online financial
delegations accreditation program for all
financial delegates. A section of the program
includes responsibilities in monitoring and
approving purchasing card transactions.
Support
Health
Planning and Community
Development
Support
The Department of Health communicates
policies by:

providing new cardholders with a full day
training course covering:

The Duties and Responsibilities Purchasing Card
procedure was updated in February 2012
providing cardholders with a better
understanding of their obligations.
Support
The Department of Planning and Community
Development has incorporated these
recommendations into its policies and
procedures.
procurement card principles;
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards
115
Premier and Cabinet
Support
As detailed in its response to
Recommendation 1, the Department of Premier
and Cabinet has recently issued a Purchasing
Card Policy. As part of the communications
strategy for this policy, all staff have been
advised of the new policy through the
Department’s intranet website and a copy has
been sent to all cardholders. Other departmental
communications and meeting fora will be used
to promote awareness of obligations and
responsibilities.
All new credit cardholders will be issued with a
copy of the credit card procedures. They are
required to read and sign that they understand
and agree to comply with the Department’s
Purchasing Card Policy prior to issue of the
card.
Primary Industries
Support
A purchasing card newsletter communicating
purchasing card rules and obligations has been
issued to Department of Primary Industries
cardholders quarterly since November 2012.
Sustainability and Environment
Support
The Department has an established system for
communicating obligations and responsibilities
to staff members holding corporate credit cards.
Departmental staff are made aware of their
obligations through business rules and guidelines
published on the Department’s intranet, targeted
emails and compulsory Governance of Financial
Management training for delegates and
corporate cardholders.
Transport
Support
The Department of Transport includes detailed
policies and guidelines on their intranet which
clearly set out the obligations of staff and
management. Cardholders are regularly
reminded of these rules.
On issue of a procurement card, the cardholder
is given one-on-one instruction on the
Department’s policies and procedures. The
cardholder is required to sign a declaration that
the rules have been explained to them and that
the policies and procedures are understood.
Treasury and Finance
Support
Due to the small number of cardholders in the
Department of Treasury and Finance, Finance
and Technology Services staff hold one-on-one
training sessions with each new card recipient.
Recommendation
Public sector agencies should meet the mandatory requirements for reporting unauthorised
purchasing card use and thefts and losses.
Recommendation 3, page 22
116
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Business and Innovation
Support
The Department of Business and Innovation is
committed to meeting the mandatory
requirements for reporting unauthorised
purchasing card use and thefts and losses.
Education and Early Childhood
Development
Support
The Department of Education and Early
Childhood Development continues to report
thefts and losses including any incidents of
fraudulent use of credit cards to the Minister for
Finance and the Auditor-General.
Planning and Community
Development
Support
The Department of Planning and Community
Development has met and continues to meet its
mandatory requirements for reporting
unauthorised purchasing card use and thefts and
losses.
Premier and Cabinet
Support
Health
The Department of Premier and Cabinet’s
Purchasing Card Policy provides advice to
cardholders on the mandatory requirements for
reporting unauthorised purchasing card use and
theft and losses. The Department will comply
with the reporting requirements.
Support
Primary Industries
The Department of Health will continue to meet
the mandatory requirements for reporting
unauthorised purchasing card use and thefts and
losses.
Human Services
Support
The Department of Human Services will
continue to meet the mandatory requirements
for reporting unauthorised purchasing card use
and thefts and losses.
Justice
Support
The Department of Justice currently satisfies this
recommendation and as was highlighted in the
report, was the only agency to meet this
obligation.
Support
The Department of Primary Industries will
continue to meet the mandatory requirements
for reporting thefts and losses and will develop a
register to improve reporting of all unauthorised
use of purchasing cards.
Sustainability and Environment
Support
The Department has reviewed its corporate card
business rule and its theft and loss reporting
business rule and has made the necessary
changes to ensure they meet the mandatory
requirements for reporting of unauthorised card
use and thefts and losses.
The Department maintains a register recording
and tracking purchasing card breaches. This
information is reported to the Department of
Treasury and Finance as required.
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards
117
Transport
Treasury and Finance
Support
Support
The Department of Transport has introduced an
escalation process whereby Accounts Payable
informs the Director Financial Operations of
any breach in purchasing card policy to enable
further investigation and reporting.
The Department of Treasury and Finance
already meets the mandatory requirements for
reporting unauthorised purchasing card use and
thefts and losses.
On an annual basis the Department provides the
Department of Treasury, the Minister for Public
Transport, the Minister for Finance and the
Auditor-General with a report on any
unauthorised purchasing card use and on
thefts/losses incurred.
Recommendation
That the Department of Treasury and Finance should improve its communication of changes to the
legislated purchasing rules so that agencies have a comprehensive and current understanding of
what is required.
Recommendation 4, page 22
Response by department
Treasury and Finance
Support
The Purchasing Card Rules (the Rules) were
updated in March 2012 to ensure they continue
to safeguard public money, increase transparency
and promote effective financial management
across the Victorian public service.
To support this update, the Minister for Finance
informed coordinating Ministers of changes to
the Rules and suggested that portfolio
departments inform agencies of the reporting
requirements and updated Rules.
The Department of Treasury and Finance
informed departmental contacts and Chief
Finance Officers of the changes, and to further
raise awareness, linked the Rules and the
Standing Directions of the Minister for Finance
to the Victorian Government Procurement
website, http://www.procurement.vic.gov.au.
Recommendation
That the Department of Treasury and Finance should significantly improve its scrutiny of agencies’
reporting on breaches of the purchasing card rules and reports on thefts and losses.
Recommendation 5, page 22
118
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Treasury and Finance
Support
The Department of Treasury and Finance has
monitoring processes under the Financial
Management Compliance Framework to
facilitate full disclosure of purchasing card/theft
and losses breaches by agencies.
The Department is reviewing its approach to
breach monitoring and reporting as part of its
review of the financial oversight processes
required of Victorian public service entities.
In addition, in the 2011-12 certification period,
agencies were asked to provide a nil report if
there were no breaches of the Purchasing Card
Rules and no instances of thefts and losses. This
practice will continue in the 2012-13 reporting
period.
Recommendation
That the Department of Premier and Cabinet should evaluate the effectiveness of the 2012
hospitality guidelines within two years of their issue, by:

confirming that agencies have adequately reflected the revised framework in their individual
policies; and

assessing the impact on hospitality expenditure and controls, and the community’s satisfaction
with the way agencies control this type of expenditure.
Recommendation 6, page 22
Response by department
Premier and Cabinet
Support
The Department of Premier and Cabinet will
review the effectiveness of the 2012 Hospitality
Guidelines by the end of 2014.
Recommendation
Public sector agencies should comprehensively analyse how they purchase and pay for goods and
services, and identify improvements based on the costs, benefits and risks.
Recommendation 7, page 27
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards
119
Response by department
Business and Innovation
Justice
Support
Support
The Department of Business and Innovation
recently undertook an analysis of procurement
methods to identify and implement the most
effective and cost efficient method of payment
based on the value of the purchase.
Over the last three years, the Department of
Justice has undertaken a comprehensive review
of its financial systems, policies and procedures.
Education and Early Childhood
Development
Support
As part of a recent major restructure of the
Department of Education and Early Childhood
Development which commenced 1 January
2013, a review of all cardholders was undertaken
with a view to utilising the Ariba purchase to pay
system. The Department also decommissioned
its use of petty cash systems to improve the
purchase to pay process.
As part of these system improvements, analysis
was undertaken and full business cases were
prepared that examined the costs, benefits and
risks.
Policy changes were undertaken to encourage
greater use of corporate card for low value, low
risk purchases as a more efficient payment
mechanism.
Planning and Community
Development
Health
Under Review
The Department of Health is continuously
reviewing purchasing and payment processes to
identify cost effective improvements.
Human Services
Support
The Department of Human Services has
undertaken a review of the various approaches
to purchase and pay for goods and services. To
improve purchasing and minimise risk, the
Department uses automated system interfaces to
ensure timely and accurate payments.
Procurement staff receive extensive training and
are kept informed of changes to government and
departmental policy and process requirements.
120
This has resulted in the implementation of a new
Oracle internet expenses system for personal
expense reimbursement and a new procure to
pay system for accounts payable including
scanning of invoices, improved use of purchase
orders and improved electronic workflow.
Government Response to the Auditor-General’s Reports
issued during 2011-12
Support
Under the auspices of Victorian Government
Purchasing Board Procurement Reform initiative
and Sustainable Government imperative, the
Department of Planning and Community
Development is undergoing a wide-ranging
review of procurement.
In terms of procurement reform, procurements
at the Department are to be grouped and
organised around key categories of spend.
Categories of spend are to be controlled by
designated and trained category managers
including planning, expert advice, market
analysis, execution, negotiation and performance
management of key contracts.
In terms of payment for procurements, the
Department has significantly centralised its
accounts payable function gaining considerable
efficiency.
Premier and Cabinet
Transport
Support
Support
The Department of Premier and Cabinet
currently uses a mixture of payment types.
In accordance with Victorian Government
Purchasing Board policies gazetted on
7 February 2013, the Department of Transport
will be reviewing in detail over the next 12-18
months how it purchases goods and services.
The Department, in conjunction with its shared
services provider (the Department of Treasury
and Finance’s Finance and Technology Services),
will continue to seek improvement to its
purchasing to payment process.
The Department of Transport regularly reviews
its accounts payable processes.
Primary Industries
Treasury and Finance
Support
Support
An external review of procurement was
completed in November 2012. A range of
improvements have been identified and will be
implemented progressively in 2013.
This recommendation is addressed in the new
Victorian Government Purchasing Board
(VGPB) policies which were gazetted in
February 2013.
These include:
Relevant departments and agencies will
progressively transition to the new policy
framework from 1 July 2013, and it is scheduled
to be complete by October 2014.

improved compliance through updated
purchasing policies and procedures;

improved data quality through active vendor
database management; and

improved cost efficiencies through greater
use of Electronic Fund Transfer (EFT)
payments.
Sustainability and Environment
Support
Based on a comprehensive review into
purchasing and payment options in 2010, the
Department implemented a centralised invoice
management system (the system) to streamline
payment processes, increase goods and services
tax compliance, improve data accuracy and
reduce duplicate payments.
Once transitioned to the new policy framework,
departments will be required to include a
comprehensive spend analysis. This analysis
should detail major suppliers, supply chains,
procurement trends and opportunities to
aggregate spend across the organisation. Current
VGPB annual reporting requirements mandate
departments to report all procurement activity
valued over $100 000.
The VGPB’s new Market Approach policy
stipulates that departments must report
information to the lead agency as required.
Since the implementation of the system, the
Department has made further refinements as
part of an ongoing review and analysis of
payment options from both control and
efficiency perspectives.
Recommendation
Public sector agencies should report and address expenditure occurring outside of mandated State
Purchase Contracts.
Recommendation 8, page 38
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards
121
Response by department
Business and Innovation
Justice
Support
Support
The Department of Business and Innovation
monitors vendor payments to ensure
procurement is made via mandated State
Purchase Contracts.
As was noted in the audit report, the
Department of Justice was the only department
to manage expenditure outside of mandated
State Purchase Contracts. The Department
continually:
Education and Early Childhood
Development
Under Review
The Department of Education and Early
Childhood Development will meet with the
Department of Treasury and Finance to
determine reporting requirements and
timeframes and discuss options to ensure data
integrity in reports.
Health

monitors and manages leakages from State
Purchase Contracts to secure additional
savings; and

reports the scale and reason for
non-compliance to category managers or the
Victorian Government Purchasing Board in
its annual submission.
Planning and Community
Development
Support
Under Review
The Department of Health will investigate cost
effective ways to review and address expenditure
outside State Purchase Contracts. It may not be
cost effective to pursue low value items.
Human Services
Support
Staff are made aware of State Purchase Contract
requirements through training and intranet
information. Compliance is reinforced through
purchasing and funding guidelines, procurement
card rules, accountability statements and the
departmental purchasing system which assists
staff in identifying contract suppliers.
Non-compliance is regularly reported as part of
the financial management compliance audit.
A recent review of over two years’ worth of
procurement expenditure at the Department of
Planning and Community Development has
revealed good compliance with State Purchase
Contracts.
Ongoing monitoring of procurement
expenditure is continuing to ensure adherence to
State Purchase Contracts.
Premier and Cabinet
Support
The Department of Premier and Cabinet’s
internal audit program includes periodic review
of expenditure and use of mandated State
Purchase Contracts.
Primary Industries
Support
In August 2012, the Department of Primary
Industries implemented monthly accounts
payable expenditure data reviews, which report
and address expenditure outside of the State
Purchase Contracts.
122
Government Response to the Auditor-General’s Reports
issued during 2011-12
Sustainability and Environment
Treasury and Finance
Support
Support
The Department undertakes monthly financial
compliance checks to assess whether
expenditure occurred outside of mandated State
Purchase Contracts.
Refer to the response to Recommendation 7.
Transport
Support
Although it is not a specific requirement of the
new Victorian Government Purchasing Board
policies or canvassed in the related guidance
materials, the proposed ‘Transition Tool’ asks
several related questions about maximising usage
of State Purchase Contracts (SPCs), ensuring
compliance with SPC rules and how
departments manage non-compliant purchases
outside the SPCs. The Department of Transport
will address these issues in the context of
preparing for the Victorian Government
Purchasing Board transition.
Recommendation
The Department of Treasury and Finance should request an acquittal of the scale of contract leakage
and the reasons why this happens from agencies participating in a mandatory State Purchase
Contract.
Recommendation 9, page 38
Response by department
Treasury and Finance
Support
Refer to the response to Recommendation 7.
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards
123
Portfolio Departments and Associated Entities: Results
of the 2010–11 Audits
Background
This report was tabled in Parliament on
23 November 2011 and provides an overview of
the results from the 2010–11 financial report
audits and the review of targeted internal control
areas in portfolio departments and associated
entities.
Findings of the Auditor-General
At the date of preparation of this report, clear
audit opinions had been issued for all 11
portfolio departments and the 183 associated
entities who had completed their financial
statements.
For the 46 self-funded entities, the audit found
the most significant challenge facing their
finanical sustainability is self-financing, with
23 entities generating insufficient cash from
operations to fund new assets and asset
renewals. Twelve entities were rated as a high
financial sustainability risk.
Leave management and grant management
practices in the 11 portfolio departments were
adequate.
Weaknesses were identified in information
technology change management at the 11
portfolio departments, CenITex and Shared
Business Systems. Similarly, management,
governance and oversight of information
technology security was adequate at the portfolio
departments, CenITex and Shared Business
Systems. However, the audit found information
technology security policies could be
strengthened.
Recommendation
That the Department of Treasury and Finance work with agencies to address accountability
obligations when statutory responsibilities for governance and the funding models are not aligned.
Recommendation 1, page 18
Response by department
Treasury and Finance
Support
The Department of Treasury and Finance
recognises the importance of maintaining
financial sustainability to ensure the public sector
can absorb foreseeable changes and risks in the
context of the Government’s financial
management and funding frameworks.
124
Government Response to the Auditor-General’s Reports
issued during 2011-12
The Department will continue to clarify the
accountabilities and responsibilities of public
sector agencies relating to financial sustainability
by further clarifying the financial management
and governance frameworks that apply.
Recommendation
That portfolio departments prepare and approve leave management plans for all staff with excess
annual leave, and actively manage compliance with those plans.
Recommendation 2, page 26
Response by department
Business and Innovation
Human Services
Support
Support
The Department of Business and Innovation
already reports on staff with excess annual leave
and line managers are requested to actively
manage excess leave.
A policy on management of annual leave
entitlements has been developed and approved.
A workforce management reporting system has
been implemented to allow managers to more
effectively monitor and manage leave.
Education and Early Childhood
Development
Justice
Support
Support
A workforce metrics dashboard is currently
being developed for the Victorian public service
(VPS) and schools. This will provide manager
access to monitor key workforce metrics such as
sick leave, annual leave and attrition. A working
group has been established and technology
platforms developed to support this project. A
VPS Workforce Report is also developed
annually which provides senior leaders with
analysis of VPS workforce trends and
comparisons. First release of workforce metrics
dashboard is expected in December 2013.
Prior to the introduction of a new online
management reporting tool, the Department of
Justice provided quarterly reports to business
unit staff with excessive annual leave balances
including clear instruction on the need to
manage reducing leave accrual and the
development of leave plans.
Health
Planning and Community
Development
Support
The Department of Health has taken an active
approach to managing excess leave through use
of leave management plans, regular reporting of
excess leave to executive officers, and through
promotion of the cashing out of annual leave
provision in the Victorian Public Service
Workplace Determination.
In this financial year the percentage of
employees with excess leave (greater than
304 hours) has reduced from 6.8 per cent at the
end of June 2012 to 5.1 per cent at the end of
January 2013.
The new online management reporting tool was
launched on 7 March 2013, giving managers real
time access to excess annual leave information
for their teams, facilitating better management,
and compliance with leave management plans.
Support
Excess leave reports are provided to business
groups on a regular basis. As at 27 February
2013, there were 11 staff from a total of 856
staff who had an annual leave balance in excess
of 304 hours (1.3 per cent). Excess annual leave
plan forms were provided to those staff, and
excess annual leave will be monitored on a
regular basis.
Active monitoring and reporting will continue.
Portfolio Departments and Associated Entities:
Results of the 2010-11 Audits
125
Premier and Cabinet
Support
In line with the Victorian Public Service
Determination, the Department of Premier and
Cabinet’s leave policy provides details for
management of excess leave. The Department
supports managers to ensure compliance with
policy through the provision of monthly excess
leave reports.
The Department is currently finalising a
comprehensive leave management plan to
address excess annual leave by staff. The
management plan is due to be finalised by
30 June 2013.
Managers are expected to put in place a leave
plan with their employees to reduce excess leave.
Support
Primary Industries
Support
The Department of Primary Industries manages
excess recreational leave by providing monthly
reports to enable divisions to monitor and assist
in creating leave plans for staff who have excess
allowance, and provides an online guide for
managers to assist in managing excess recreation
leave.
Sustainability and Environment
Support
Since 2010, annual leave reports have been
provided to all executive staff on a monthly
basis. Executive staff are required to directly
manage excess leave balances with staff.
Transport
Monthly excess annual leave reports are
provided to all divisions. Further action will
include human resource business partners to
discuss excess leave and the use of leave plans
directly with their divisions at their divisional
leadership meetings
Treasury and Finance
Support
The Department of Treasury and Finance’s
People and Culture team actively monitors
employees with excess leave and follow up with
managers to ensure that plans to deal with excess
leave are formulated and implemented. Excess
leave is also discussed quarterly at the
Department’s People and Culture
Subcommittee, which is chaired by the Secretary
of the Department.
Recommendation
That portfolio departments report to senior management periodically on sick leave data, including
patterns and trends against internal and public sector benchmarks to enable the timely identification
of problems, and development of action plans to mitigate risks to staff wellbeing, or underlying
issues in the workplace escalating.
Recommendation 3, page 26
126
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Business and Innovation
Justice
Support
Under Review
The Department of Business and Innovation is
fully compliant with the requirements of this
recommendation.
The Department of Justice provides direct access
to sick leave data to managers though the new
online management reporting tool.
Education and Early Childhood
Development
Support
A workforce metrics dashboard is currently
being developed for the Victorian public service
(VPS) and schools. This will provide manager
access to monitor key workforce metrics such as
sick leave, annual leave and attrition. A working
group has been established and technology
platforms developed to support this project. A
VPS Workforce Report is also developed
annually which provides senior leaders with
analysis of VPS workforce trends and
comparisons. First release of the workforce
metrics dashboard is expected in December
2013.
Health
Support
The Department of Health quarterly executive
performance report includes a range of human
resource metrics including staff turnover,
average days to fill a vacancy, sick leave and
excess recreation leave. Metrics are reported by
quarter and division and are compared to the
previous year’s performance.
Human Services
Support
The Department of Human Services has
implemented the workforce management
reporting system mentioned in the response to
Recommendation 2. Leave entitlements are
monitored by corporate reporting systems and
additional human resource metrics including sick
and recreation leave and sick leave per full-time
equivalent were implemented in January 2011.
Sick leave data is provided monthly to the Justice
Executive Committee at the departmental,
divisional and business unit level. Managers have
access at the business unit level through the new
online management reporting tool.
Benchmarking has proved problematic given the
differing entitlements under the various
Enterprise Bargaining Agreements within the
Justice Portfolio workforce. The Department has
a comprehensive wellbeing program in place as a
proactive initiative to improve staff wellness.
Planning and Community
Development
Support
Sick leave data is provided with each quarterly
performance report that is presented to senior
management. Data is benchmarked against
public sector organisations identified in the
report on the annual workforce data collection
provided by the State Services Authority.
Premier and Cabinet
Support
The Department of Premier and Cabinet will be
establishing internal systems and management
reports in order to monitor sick leave trends.
Primary Industries
Support
The Department of Primary Industries reports
on a monthly basis to senior management on
sick leave data. Additional reporting is required
regarding trend analysis against public sector
benchmarks. The Department has recently
commenced this analysis.
Portfolio Departments and Associated Entities:
Results of the 2010-11 Audits
127
The Department has a holistic approach to
incident and injury management recording and
action plan development through its Safety
Incident Management System.
Using a human resources business partnering
model, wellbeing issues are identified early and
are managed through active early intervention
programs and referrals to Employee Assistance
Programs.
Risks are further mitigated through departmental
health and wellbeing programs including
compliance medicals.
Sustainability and Environment
Support
The Department currently collates workforce
data reports on a monthly basis. This data is
analysed and any anomalies are appropriately
responded to.
Transport
Support
Quarterly reports are provided and discussed at
the Occupation Health and Safety Committee.
This committee includes senior management
representatives.
Further action includes sick leave data to be
included in a Quarterly People Data Report to
the Department’s leadership and senior
managers.
Treasury and Finance
Support
The Department of Treasury and Finance’s
People and Culture team presents unplanned
absence data to the Department’s People and
Culture Subcommittee quarterly. The
presentation includes time series data across
both internal and external benchmarks.
Recommendation
That portfolio departments reinforce the importance of conflicts of interests declarations by all staff
undertaking grants assessments.
Recommendation 4, page 31
Response by department
Business and Innovation
Support
The Department of Business and Innovation’s
Grants Management Manual specifies, under
Section 3 Governance, that: ‘The grant
assessment process should include risk
management procedures associated with the
actual, perceived and potential conflict of
interest relating to the grant’.
128
Government Response to the Auditor-General’s Reports
issued during 2011-12
Education and Early Childhood
Development
Support
A review of the Department of Education and
Early Childhood Development’s Grants
Payments and Policy Guidelines document (the
Policy) is currently underway, with an anticipated
completion in mid 2013. The revised Policy will
raise the importance for business units to declare
‘conflict of interest’ details.
Health
Premier and Cabinet
Support
Support
This requirement is included in the Department
of Health’s purchasing and funding policies and
procedures and associated training.
The Department of Premier and Cabinet’s
Conflict of Interest Policy includes requirements
for the declaration of a conflict of interest for
staff undertaking grants assessments. The policy
has been communicated across the Department
in various mediums including targeted
communication to the Department’s employees
involved in grants assessments.
Human Services
Support
This requirement is addressed through the
Department of Human Service’s funding and
purchasing policies and processes.
Justice
Support
The Department of Justice’s business units have
been reminded about their obligations under the
Department’s Conflict of Interest Policy to
declare potential, actual or perceived conflicts of
interest and that if an employee is in doubt as to
whether a conflict exists, to raise this with the
appropriate manager.
The areas that deal with grants management in
particular have been advised about the
importance of declaring conflicts of interest.
Planning and Community
Development
Support
The Department of Planning and Community
Development has a Conflict of Interest Policy,
which incorporates the State Services Authority
Conflict of Interest guidelines and has a
departmental wide mandatory annual training
module for conflicts of interests. Additionally, all
grant assessors using the Department’s grant
system are required, as part of the grant
assessment process, to make a declaration
regarding conflicts of interest.
Primary Industries
Support
The Department of Primary Industries has a
conflict of interest policy and associated
procedures which require all employees who
authorise payments over a specific threshold to
complete and sign a conflict of interest
declaration. The policy and procedures are
approved by the Secretary and are subject to
regular review.
Sustainability and Environment
Support
The Department of Sustainability and
Environment supports this recommendation.
The Department’s Business Rule for Grants and
Transfer Payments mandates the need to
complete a conflict of interest form for all staff
involved in the assessment of grant programs.
Transport
Support
The Department of Transport’s Conflict of
Interest Policy is available on their intranet. A
fraud and corruption (including Conflict of
Interest) audit was completed in February 2013
by Ernst & Young. Further action includes
human resource business partners to raise the
issues with relevant executive directors.
Treasury and Finance
Support
Conflicts of interest declarations are completed
by all executive officers and officers who have a
financial delegation. This covers staff who
approve grants assessments.
Portfolio Departments and Associated Entities:
Results of the 2010-11 Audits
129
Recommendation
That the Departments of Justice, Primary Industries, and Sustainability and Environment leverage the
experience and expertise of other portfolio departments to examine the costs and benefits of a
consolidated grants management system.
Recommendation 5, page 31
Response by department
Justice
Primary Industries
Support
Do not support
The Auditor-General’s report pointed to two
benefits in relation to consolidated grants
management systems which are:
The Department of Primary Industries has a
number of grant programs which each have
strong governance, policies and procedures.

timely access to consolidated grants
information; and

enabling portfolio departments to provide
periodic reports to their Secretary or senior
management to monitor key deliverables and
grants program outcomes.
The Department has processes and systems that
enable it to deliver timely and comprehensive
information and reporting on grant programs.
This includes financial reporting systems that
enable budget monitoring, and monitoring of
grant recipient payments. There has been no
indication that reporting requirements are not
being met in a timely manner by the
Department’s grant programs.
In response to this recommendation, the
Enterprise Contract and Contract Management
System (ECCMS) project examined the
feasibility of creating a consolidated grants
management system for the Department, with
particular focus on the benefits specified in the
report.
In the Department, grant management systems
are managed by the business unit responsible for
the grant program. Despite the decentralised
nature of these systems, reports across the
Justice portfolio can be compiled at short notice.
Given the diversity in funding, objectives, and
complexity of the various grant payments and
programs, the Department does not consider a
consolidated grants management system would
increase effectiveness in reporting.
Sustainability and Environment
Support
Furthermore, the internal audit work program
has a review of Justice grant programs on its
three year work schedule, providing assurance to
the Secretary and executive that grants are being
managed and monitored regularly.
Following an examination of the costs and
benefits of a consolidated grants management
system, it was determined that the adoption of
such a system would not be suitable or
appropriate for the type of contested grants
managed by the Department.
The ECCMS project recommended that the
current system not be expanded to include a
consolidated grants management system, as the
Department’s current systems also deliver timely
access to Justice portfolio grants information
and enables monitoring of key deliverables and
grants program outcomes.
The level of contested grants represents just over
4 per cent of the total grants and transfer
payments made by the Department in 2011-12.
The remainder of these payments are
predominately on-passed grants to portfolio
entities for a range of on ground and service
orientated programs.
130
Government Response to the Auditor-General’s Reports
issued during 2011-12
Nevertheless, the examination of other portfolio
department’s grant management systems led to
amendments being made to the Department’s
Grants and Transfer Payments Business Rule.
The amended business rule now includes
governance, planning, reporting and monitoring
requirements for all grants and transfer
payments. This business rule is based on the
Australian National Audit Office’s Administration
of Grants Better Practice Guide and Department of
Planning and Community Development’s Best
Practice Guide for the Administration of Grants.
Further, from 1 January 2013, the Department
adopted the Victorian Government’s Common
Funding Agreement for all grants to the
not-for-profit sector.
Recommendation
That CenITex have its change management policy, and process and procedures guide approved and
adopted by senior management.
Recommendation 6, page 45
Response by department
Treasury and Finance
Support
CenITex’s internal auditors have provided
evidence to support the effectiveness of their
change management controls over the
2011-2012 financial period.
Recommendation
That portfolio departments develop, approve and implement change management policies and
procedures for all financial applications.
Recommendation 7, page 45
Response by department
Business and Innovation
Support
The Department of Business and Innovation has
comprehensive information technology change
management policies and procedures. Regular
audits are being conducted to ensure that
compliance is fully maintained with these
policies/procedures.
Education and Early Childhood
Development
Support
The Department of Education and Early
Childhood Development has developed,
approved and implemented change management
policies and procedures that cover all
departmental financial applications.
Portfolio Departments and Associated Entities:
Results of the 2010-11 Audits
131
Health
Primary Industries
Support
Support
In accordance with the requirements of the
Standing Directions of the Minister for Finance,
all Department of Health financial systems have
change management policies and procedures.
The Department of Primary Industries has
integrated a change register and change
management process for its financial
applications, which ensures the appropriate
linkage are made between project management
and costing framework.
Human Services
Support
The Department of Human Services has formal
application integration and change control
processes for the development, testing and
implementation of applications.
The change management process is reviewed
regularly to ensure it provides a high level of risk
mitigation whilst maintaining efficiency.
Justice
Relevant staff are trained in the change
management process and appropriate
governance arrangements are in place for the
approval of all change requests.
Support
Sustainability and Environment
In support of this recommendation, the
Department of Justice follows extant approval
processes implementing change management of
financial applications with the appropriate level
sign off and oversight.
Support
Planning and Community
Development
Transport
Support
This is managed through the Department of
Planning and Community Development’s shared
service provider the Department of Primary
Industries.
Premier and Cabinet
Support
The Department of Premier and Cabinet’s
financial applications are provided by the
Department of Treasury and Finance’s shared
service provider (Finance and Technology
Services) and are hosted and managed by
CenITex. For this reason, CenITex’s change
policies and procedures are used for any change
to the applications.
132
The Department of Sustainability and
Environment notes it is the responsibility of the
Department of Primary Industries for the
implementation of improvements to Shared
Business Service’s change management process
for financial systems.
Government Response to the Auditor-General’s Reports
issued during 2011-12
Support
The Department of Transport has a framework
and process relating to all changes to its financial
applications. This framework applies to all
system enhancements, configuration, patching or
upgrades to software or hardware involving any
departmental financial application. The
Department is currently developing the formal
documentation of the policies and guidelines in
support of this framework. Once completed,
these policies and guidelines will be published on
the intranet and will clearly set out
responsibilities and obligations of each
stakeholder with defined roles. Associated
training and awareness sessions will then be
held. Regular reviews and policy updates are
scheduled to be completed yearly.
Treasury and Finance
Support
The Department of Treasury and Finance’s
financial applications are hosted and managed by
CenITex. The Department complies with
CenITex change management policies and
procedures using the Information Technology
Infrastructure Library best practice framework.
Recommendation
That portfolio departments develop comprehensive policies and procedures over information
technology system security which are approved by the Secretary and subject to regular review.
Recommendation 8, page 45
Response by department
Business and Innovation
Support
Education and Early Childhood
Development
The Department of Business and Innovation has
mature information technology system security
policies and procedures which are applied by
CenITex and the Department’s Information
Management and Technology Branch. These are
reviewed on a regular basis. New policies and
procedures are developed if new information
technology services are established to ensure
security arrangements remain appropriate.
Support
The Department has adopted the
Commonwealth Information Security
Management System and is well advanced
towards its target of complying with ISO27001
Information Security Management System by
December 2013.
The Department has an Information Security
Committee chaired by a Deputy Secretary, and a
Chief Information Security Officer. All whole of
Victorian government information security
policies and standards are adhered to and
monitored for ongoing compliance.
The Department of Education and Early
Childhood Development has produced and/or
updated four security related policies since this
audit recommendation:

Portable Storage Device Policy;

Information and Communications
Technology (ICT) Security Incident Policy;

ICT Security Policy; and

Password Policy.
Health
Support
The Department of Health has an approved
Information Security Policy and Standards. The
current policy and standards will be updated to
reflect the recent changes to the Victorian
Government Information Security Policy and Standards
and the required alignment with the
Commonwealth Government Attorney
General’s Department Protective Security Policy
Framework and Defence Signals Directorate
Information Security Manual.
Portfolio Departments and Associated Entities:
Results of the 2010-11 Audits
133
Human Services
Primary Industries
Support
Support
An information management and technology
security policy framework and guidelines have
been approved by the Secretary and are reviewed
annually. This includes the information security
framework. The policies and requirements have
been communicated to staff.
The Department of Primary Industries has an
information security policy and associated
procedures that align with the whole of
Victorian government information security
management framework. The policy and
procedures are approved by the Secretary and
are subject to regular review.
Justice
Sustainability and Environment
Support
The Department of Justice has in place an
Information Security Policy with the appropriate
technical standards.
The policies are regularly reviewed and approved
by the peak information and communications
technology governance body of the Department.
Planning and Community
Development
Support
The Information Security Policy and the Cloud
Computing Policy are currently being developed.
The Department of Planning and Community
Development is working towards being fully
compliant with the Information Security Manual
and the Protective Security Policy Framework.
An online training module for staff is being
developed.
Premier and Cabinet
Support
The Department of Premier and Cabinet has
implemented an Information Security
Management System that is consistent with the
Protective Security Policy Framework.
The Department’s Information Security
Management System contains a number of
PSPF-compliant information security policies
and procedures which are reviewed and updated
as an ongoing activity.
Support
The Department is currently implementing a
comprehensive Information Security and Access
Framework Program which has been approved by
the Secretary and will be fully implemented
in 2013.
Transport
Support
The Department of Transport has an
Information Security Management Framework,
Information Security Policy, Information
Security Classification Standard and Information
Security Risk Assessment Guideline endorsed by
the Secretary and published on the intranet for
all staff.
Implementation of information technology
system security is primarily the responsibility of
CenITex in providing desktop, system
infrastructure and support functions for the
Department.
The Department’s self-assessment required by
the Department of Treasury and Finance in 2012
was positive.
Treasury and Finance
Support
The Department of Treasury and Finance has a
set of information security policies and
procedures based on Australian Government
standards Protective Security Policy Framework,
Information Security Manual published by Defence
Signals Directorate and ISO 27 000 Information
Security Management Systems.
The head policy document requires review every
two years and was last reviewed and endorsed by
the Department of Treasury and Finance Board
including the Secretary in March 2012.
134
Government Response to the Auditor-General’s Reports
issued during 2011-12
Recommendation
That portfolio departments develop an information security classification policy that outlines criteria
for assigning security classifications to information and the required security controls for each
classification.
Recommendation 9, page 45
Response by department
Business and Innovation
Health
Support
Support
The Department of Business and Innovation is
finalising an update to its information security
classification policy as a result of the
Commonwealth Government changing its
system of classification. The Department is
doing this on behalf of the Chief Information
Officer Council (the Council) for adoption by
all departments.
The Department of Health has an approved
Information Security Classification Policy and
Standards. The current Policy and Standards will
be updated to reflect the recent changes to the
Victorian Government Information Security
Policy and Standards and support the
Commonwealth Government Protective Security
Policy Framework.
Once this is approved by the Council, the
Department will implement procedures enabling
its staff to assign security classifications to email
and other documents and files they create. It is
planned to complete this by August 2013. It is
noted that a pilot of classifying email occurred
on the former Commonwealth classification
scheme.
Education and Early Childhood
Development
Support
A new Information Strategy and Policy Unit in
the Governance and Executive Services division
was formed in January 2013. This unit has taken
responsibility for the delivery of the revised
information strategy along with the review of a
range of information management related policy
and governance arrangements. An information
security classification policy and supporting
guidelines will be incorporated into the
development of the Department of Education
and Early Childhood Development’s
Information Management program of work.
Implementation of information security
classification policy and supporting guidelines is
expected in December 2013.
Human Services
Support
The Department of Human Services has
developed an information security classification
framework, policy, guidelines, procedures and
risk management guidelines which will be subject
to regular review.
Justice
Support
The Department of Justice already has
established an information security classification
policy and criteria for assigning security
classifications.
Planning and Community
Development
Support
The Information Asset Classification Guidelines are
under review by the Department of Planning
and Community Development’s Information
Security Committee. The Guidelines have been
amended to be fully compliant with the
Information Security Manual and Protective
Security Policy Framework.
Portfolio Departments and Associated Entities:
Results of the 2010-11 Audits
135
Premier and Cabinet
Transport
Support
Support
The Department of Premier and Cabinet has a
Protective Security Policy Framework-compliant
information security classification policy in
place.
The Department of Treasury and Finance takes
the lead role in determining Information Security
Classification policy and guidelines for Victorian
Government. The Department of Transport has
an Information Security Classification Standard
endorsed by the Secretary and published on the
intranet for all staff.
Primary Industries
Support
The Department of Primary Industries has an
Information Classification and Handling
Procedure that is aligned with the whole of
Victorian Government information security
policy. The policy and procedures are approved
by the Secretary and are subject to regular
review.
Sustainability and Environment
Support
The Department has an established set of
information security classification guidelines that
are currently under revision to ensure they align
with the new Australian Government Protective
Security Policy Framework.
The new Information Security and Access
Management Framework is scheduled for release
mid-2013.
The Department’s information asset register
identifies and classifies systems and information
assets, by security classification.
Treasury and Finance
Support
The Department of Treasury and Finance has
developed and implemented an information
security classification policy. The Department
has Board approved business classification
guidelines.
In addition, the Department has completed a
sensitive information asset audit of the
organisation.
System controls in policy and guideline
documents are based on the security rating of
the information.
Recommendation
That portfolio departments develop, approve and implement disaster recovery policies and
procedures for all financial applications.
Recommendation 10, page 45
Response by department
Business and Innovation
Support
The Department of Business and Innovation has
its own business continuity planning and disaster
recovery policies/plans for financial systems.
These policies/plans are reviewed annually by
the Finance Management team and tested more
than once per annum.
136
Government Response to the Auditor-General’s Reports
issued during 2011-12
Education and Early Childhood
Development
Support
The Department of Education and Early
Childhood Development’s financial applications
have up-to-date disaster recovery plans which
are tested on an annual basis. The plans are
supported by approved disaster recovery policies
and procedures.
Health
Support
In accordance with the requirements of the
Standing Directions of the Minister for Finance,
the Department of Health has valid disaster
recovery plans for each financial system. The
financial system disaster recovery plans are
reviewed and tested on an annual basis.
Human Services
Support
The Department of Human Services has
documented disaster recovery plans for all
financial applications that are reviewed and
tested annually.
Justice
Support
The Department of Justice has an approved
disaster recovery plan that is regularly updated to
ensure that policies and procedures are in place
to return the Department to full functionality as
soon as possible after a disaster.
An analysis of critical applications conducted by
the Department of Treasury and Finance
determined that financial systems (which cover
general ledger, accounts payable, accounts
receivable and assets) do not require a recovery
time of less than 24 hours, as the reporting cycle
for these systems is not less than monthly and
the operation of the Department is not
significantly affected by this information not
being available for three days. Accordingly, a
disaster recovery process is not required for the
Department’s financial applications.
Recovery of the financial systems, however, is
addressed within the Department of Treasury
and Finance’s Business Continuity management
processes – which requires recovery within three
days. These business continuity arrangements
ensure that financial application information is
recovered within three days of the primary
application becoming unavailable. The operation
of government is not significantly affected as a
result of this information not being available for
this period of time.
Protection and recovery of financial applications
and data are part of the Department’s disaster
recovery plan.
Primary Industries
Planning and Community
Development
The Department of Primary Industries has a
disaster recovery policy in place. A disaster
recovery plan and procedures have been
developed for the financial application system.
The policy and procedures are approved by the
Secretary and are subject to regular review.
Support
This is managed through the Department of
Planning and Community Development’s shared
service provider (the Department of Primary
Industries).
Premier and Cabinet
Do not support
The Department of Premier and Cabinet’s
financial applications are provided by the
Department of Treasury and Finance’s shared
service provider (Finance and Technology
Services). Disaster recovery policies and
procedures are required for systems which must
be in operation within 24 hours of becoming
unavailable.
Support
Sustainability and Environment
Support
Disaster recovery planning and testing is
undertaken by the Department of Primary
Industries on behalf of the Department of
Sustainability and Environment under the
Service Level Agreement between the two
departments.
Portfolio Departments and Associated Entities:
Results of the 2010-11 Audits
137
Transport
Treasury and Finance
Support
Do not support
The Department of Transport currently has a
disaster recovery site in place for its key financial
application Oracle Financials. The disaster
recovery solution is tested and restored on a
yearly basis to ensure critical services such as
payments are available.
The Department of Treasury and Finance
supports this recommendation in principle.
The yearly exercise:

tests and verifies the recovery processes and
procedures;

familiarises staff with the recovery process
and documentation;

verifies the effectiveness of the recovery
documentation;

verifies the effectiveness of the recovery site;

establishes if the recovery objectives are
achievable; and

identifies improvements required to the
disaster recovery strategy, infrastructure, and
recovery processes.
For all other financial applications, where these
are not considered business critical, backups are
made nightly.
138
Government Response to the Auditor-General’s Reports
issued during 2011-12
Disaster recovery policies and procedures are
required for systems which must be in operation
within 24 hours of becoming unavailable.
An analysis of critical applications conducted by
the Department determined that financial
systems (which cover general ledger, accounts
payable, accounts receivable and assets) do not
require a recovery time of less than 24 hours, as
the reporting cycle for these systems is not less
than monthly and the operation of the
Department is not significantly affected by this
information not being available for three days.
Accordingly, a disaster recovery process as such
is not required for the Department’s financial
applications.
Recovery of the financial systems, however, is
addressed within the Department’s business
continuity management processes – which
requires recovery within three days. These
business continuity arrangements ensure that
financial application information is recovered
within three days of the primary application
becoming unavailable. The operation of
government is not significantly affected as a
result of this information not being available for
this period of time.
Procurement Practices in the Health Sector
Background
This report was tabled in Parliament on
26 October 2011 and examined whether
procurement practices in the public hospital
sector deliver best value and are conducted with
probity and transparency. It assessed the
performance of the Department of Health, the
central procurement agency for the public
hospital sector Health Procurement Victoria
(HPV) and four hospitals.
Findings of the Auditor-General
The audit found HPV performs central
procurement for the sector well, has expanded
the range of products centrally procured and is
making significant savings. However, 10 years
after its establishment, HPV is yet to implement
all its functions under the Health Services Act 1988
or exploit its full potential. By not undertaking
its probity assurance function, and having only
limited involvement in procuring medical
equipment, HPV has missed opportunities for
greater savings and better procurement practice.
As system manager, the Department of Health
should have done more to address these issues.
The audit also found improvement could be
made in hospital procurement practices, with
almost one in five of the hospital procurement
processes reviewed in the audit having
weaknesses in the transparency and
appropriateness of decision making.
Recommendation
That the Department of Health complete and implement the Medical Equipment Asset Management
Framework.
Recommendation 1, page 20
Response by department
Health
Support
The Medical Equipment Asset Management
Framework and associated documents (business
improvement tools and resources to assist health
services with asset management) were completed
in March 2012 and have been made available to
hospitals.
Procurement Practices in the Health Sector
139
Recommendation
That the Department of Health resolve public hospital procurement data problems by expediting the
effective implementation of the Victorian Product Catalogue.
Recommendation 2, page 20
Response by department
Health
Support
Health Purchasing Victoria (HPV) is responsible
for the implementation of the Victorian Product
Catalogue (the catalogue). Funding for the
catalogue was approved in February 2012 at
which time HPV engaged a technology partner
to undertake this work. This will result in
synchronisation of health services’ catalogues
with updated data held in the catalogue.
HPV have also been provided with additional
funds over three years for catalogue resources.
Recommendation
That the Department of Health oversee whether Health Purchasing Victoria is performing the
functions assigned to it under the Health Services Act 1988.
Recommendation 3, page 20
Response by department
Health
Support
Commencing from 2012-13, the Department of
Health and Health Purchasing Victoria (HPV)
have instituted a Statement of Priorities (the
statement), replacing the previous Memorandum
of Understanding. The statement includes a
range of performance measures including a
requirement for HPV to commence
implementation of all functions required to
be undertaken by HPV in accordance with the
Health Services Act 1988 as recommended by the
Auditor-General. This was formally signed off
in November 2012.
140
Government Response to the Auditor-General’s Reports
issued during 2011-12
Recommendation
That the Department of Health review resourcing for Health Purchasing Victoria to undertake its full
legislative responsibilities in partnership with them.
Recommendation 4, page 20.
Response by department
Health
Support
In 2012-13 the Department of Health provided
additional funding to Health Purchasing Victoria
to allow the commencement of their legislative
responsibilities under the Health Services Act 1988.
Recommendation
That Health Purchasing Victoria aligns its plans, resources, and performance monitoring with its
functions under the Health Services Act 1988.
Recommendation 5, page 20
Response by department
Health
Support
Commencing from 2012-13, the Department of
Health and Health Purchasing Victoria (HPV)
have instituted a Statement of Priorities (the
statement), replacing the previous Memorandum
of Understanding. The statement includes a
range of performance measures including a
requirement for HPV to commence
implementation of all the functions required to
be undertaken by HPV in accordance with the
Health Services Act 1988 as recommended by the
Auditor-General. This was signed in
November 2012.

achieve economies of scale in equipment
procurement;

drive measurable end-to-end supply chain
efficiencies;

support procurement and probity practice
improvement;

improve the integrity and availability of the
information used to drive supply chain
decisions; and

build capability and capacity.
HPV have completed a five year strategic plan.
Under the Plan, HPV will:
The statement requires HPV to commence
implementation of this report’s
recommendations.

increase the benefit to Victoria’s health
sector from collective procurement of goods
and services;
Procurement Practices in the Health Sector
141
Recommendation
That Health Purchasing Victoria purposefully leads procurement improvement in the public hospital
sector by actively fulfilling all its legislative functions.
Recommendation 6, page 20
Response by department
Health
Support
Commencing from 2012-13, the Department of
Health and Health Purchasing Victoria (HPV)
have instituted a Statement of Priorities (the
statement), replacing the previous Memorandum
of Understanding. The statement includes a
range of performance measures including a
requirement for HPV to commence
implementation of all functions required to be
undertaken by HPV in accordance with the
Health Services Act 1988 as recommended by the
Auditor-General. This was signed off by the
Minister for Health in November 2012.
Subsequent to this audit, HPV has completed a
five year strategic plan, which was signed off in
May 2012. The HPV five year strategic plan
includes the provision of guidance and training
to health services to assist in revising their
procurement strategies, policies and activities.
The Department formally meets with HPV to
monitor its performance.
Recommendation
That Health Purchasing Victoria actively assures the probity of public hospital procurement practices.
Recommendation 7, page 31
Response by department
Health
Support
Refer to the response to Recommendation 6.
Recommendation
That public hospitals revise their procurement strategies, policies, activities and monitoring to
demonstrate consistently robust and transparent procurement practices.
Recommendation 8, page 31
142
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Health
Support
Public hospitals are responsible for the
implementation of this audit recommendation.
The Department of Health can only direct
hospitals to ensure that appropriate procurement
strategies, policies, activities and monitoring of
procurement practices are in place through the
policy and funding guidelines.
The Department, through the annual Policy and
Funding Guidelines, advises hospitals and health
services to adopt the Victorian Government
Purchasing Board’s guidelines and practices as a
minimum requirement.
The Department relies on hospitals and health
services to confirm compliance with the audit
recommendations, and this compliance is
followed up routinely and reported to the
Secretary of the Department of Health.
The Health Purchasing Victoria five year
strategic plan includes the provision of guidance
and training to health services to assist in
revising their procurement strategies, policies
and activities.
Procurement Practices in the Health Sector
143
Public Hospitals: Results of the 2010–11 Audits
Background
This report was tabled in Parliament on
9 November 2011 and comments on the quality
and timeliness of financial reporting, the
financial sustainability of public hospitals and the
effectiveness of procurement practices and
information technology security.
complete and reliable information, but there are
opportunities for improvement in:

establishing financial report preparation
plans outlining the processes, resources,
milestones and quality assurance practices
required;
Findings of the Auditor-General

preparing and providing timely shell
financial statements to enable issues to be
identified and resolved earlier;

preparing materiality assessments to identify
potential errors in the financial statements;
and

undertaking periodic compliance reviews to
identify non-compliance or changes to
legislation that impact the financial report.
Clear audit opinions were issued on all
completed public hospital and associated
entities’ financial statements for the financial
year ended 30 June 2011.
Overall, the financial report preparation
processes of public hospitals and their controlled
entities were adequate and produced accurate,
Recommendation
That public hospitals further refine their financial reporting processes by establishing financial report
preparation plans, preparing timely shell financial statements and materiality assessments and
performing periodic financial compliance reviews.
Recommendation 1, page 17
Response by department
Health
Support
The Department of Health notes that the public
hospitals are responsible for the implementation
of this audit recommendation.
The Department relies on hospitals and health
services to confirm compliance with the
Auditor-General’s recommendations, and this
compliance is followed up routinely and
reported to the Secretary of the Department
of Health.
144
Government Response to the Auditor-General’s Reports
issued during 2011-12
Recommendation
That public hospitals assess their policies and practices against the identified general internal control
weaknesses to determine the adequacy of their controls, and whether they are operating reliably,
efficiently and effectively.
Recommendation 2, page 62
Response by department
Health
Support
Refer to the response to Recommendation 1.
Recommendation
That public hospitals develop comprehensive policies and procedures for procurement and tendering
which are appropriately approved and subject to regular review.
Recommendation 3, page 62
Response by department
Health
Support
Refer to the response to Recommendation 1.
Recommendation
That public hospitals develop comprehensive policies and procedures over information technology
system security which are approved at board level and subject to regular review.
Recommendation 4, page 62
Response by department
Health
Support
Refer to the response to Recommendation 1.
Public Hospitals: Results of the 2010-11 Audits
145
Recommendation
That public hospitals develop an information security classification policy that outlines criteria for
assigning security classifications to information and the required security controls for each
classification.
Recommendation 5, page 62.
Response by department
Health
Support
Refer to the response to Recommendation 1.
Recommendation
That public hospitals undertake periodic assessments of the adequacy of, and compliance with,
information technology security requirements.
Recommendation 6, page 62
Response by department
Health
Support
Refer to the response to Recommendation 1.
.
146
Government Response to the Auditor-General’s Reports
issued during 2011-12
Public Transport Performance
Background
This report was tabled in Parliament on
29 February 2012 and examined the
performance of public bus, tram and train
services across Victoria.
Findings of the Auditor-General
The audit found the Department of Transport
was not prepared to effectively manage the rapid
growth in public transport patronage that
happened between 2004 and 2009. It did not
have the capability to foresee this growth or fully
understand the root causes of poor performance.
It was therefore unable to effectively deal with
the performance pressures.
The Department of Transport was found by the
audit to now have a good, evidence-based
understanding of performance issues and has
developed an effective planning framework for
forecasting and managing current and future
performance. The benefits of this approach can
be seen in the focus on coordination and the
application of a rolling program of timetable
updates dealing methodically with the conflicts
that undermine performance.
Recommendation
The Department of Transport should finalise its draft process for setting its State Budget targets, and
apply it to contract thresholds and other targets.
Recommendation 1, page 22
Response by department
Transport
Support
Public Transport Victoria has finalised its target
setting process and has made this available to
managers as a guide for setting State Budget
targets as well as other targets such as contract
thresholds.
Recommendation
The Department of Transport should progress plans to monitor performance against accessibility,
sustainability and coordination objectives, and develop rigorous plans to better manage these in the
future.
Recommendation 2, page 22
Public Transport Performance
147
Response by department
Transport
Support
Public Transport Victoria has developed a
business plan which includes objectives in the
areas of accessibility, sustainability and
coordination. Measures and initiatives aimed at
achieving these objectives have been established
and these have been incorporated into the Public
Transport Victoria’s balanced scorecard to be
reviewed monthly by Public Transport Victoria
executive team.
Recommendation
The Department of Transport should address residual gaps in its measurement framework.
Recommendation 3, page 22
Response by department
Transport
Support
Public Transport Victoria has developed an
accessibility action plan which takes a whole of
journey approach to accessibility, recognising the
need for people with a disability to be able to
access information to plan their journey and that
pathways to various modes of public transport
services are as important as physical access. This
broader approach also provides a greater focus
on better integrated and coordinated public
transport services.
Public Transport Victoria continues to undertake
independent audits, which focus on key
accessibility issues, to better inform Public
Transport Victoria of compliance levels and
assist in prioritising work programs that provide
the greatest benefits to the community. Further
consideration will be given to addressing the
significant challenges that still exist regarding the
accurate measurement of the Victorian rail
network.
Recommendation
The Department of Transport should develop its plans for buses, trams and regional trains to the
same level of detail it has applied for metropolitan trains.
Recommendation 4, page 31
Response by department
Transport
Support
Public Transport Victoria has recently completed
an organisational restructure. A key change is to
establish a multimodal service planning team.
148
Government Response to the Auditor-General’s Reports
issued during 2011-12
This team is now working on developing a
network-wide plan for buses, trams and regional
trains to the same level of detail as has been
applied for metropolitan trains. It is anticipated
that this plan will be significantly advanced
within the next 12 months.
Recommendation
The Department of Transport should develop the capability to forecast the performance implications
if plan components are delayed or omitted.
Recommendation 5, page 31
Response by department
Transport
Support
Public Transport Victoria has the capability to
forecast the implications if different elements of
the plans are delayed or omitted. Public
Transport Victoria does this for individual
projects when completing each business case and
when it develops a base case.
The base case predicts what will happen if a
project does not proceed.
Public Transport Victoria also updates its
medium to long-term forecasts on a regular
basis, including an update that was completed in
August 2012. It is anticipated that the public
transport network development plan will be
revised on a regular basis, taking into account
refreshed forecasts and funding/investment
decisions.
Recommendation
The Department of Transport should benchmark public transport operating costs and devise a
long-term plan to improve efficiency.
Recommendation 6, page 31
Response by department
Transport
Support
As discussed in Recommendation 2, Public
Transport Victoria has developed a balance
scorecard which includes performance indicators
applied across the public transport industry.
These indicators focus on the key outcomes –
customer service, service delivery, financial
performance, safety and environment.
With regards to V/Line, as its franchise term will
expire in June 2013, Public Transport Victoria
has engaged a third party to undertake a
benchmarking exercise to inform the future
funding profile required by V/Line.
In Victoria, the provision of metropolitan train,
tram and 30 per cent of metropolitan bus
services are outsourced (franchised) through a
competitive process. In addition to the
competitive process, the Franchising
Agreements include reductions in base subsidies
over time reflecting efficiencies to be achieved
by the operators over the franchise term.
Public Transport Performance
149
Road Safety Camera Program
Background
This report was tabled in Parliament on
31 August 2011 and examined whether there is a
sound rationale for the road safety camera
program and whether the cameras are sited for
road safety outcomes. It also examined the
accuracy of the camera system and whether the
public can be confident that an infringement is
valid.
Findings of the Auditor-General
The audit found the road safety camera program
is effective. It is well-supported by evidence that
clearly demonstrates that cameras improve road
safety and reduce road trauma. Siting of cameras
is based on road safety outcomes, not to raise
revenue. To enhance the program, aspects of it
could be further evaluated, including the
effectiveness of fixed and point-to-point
cameras, and whether the current approach for
deploying mobile cameras is optimising
outcomes.
The audit also found that the Department of
Justice could more purposefully develop and
manage its communication and public education
programs to specifically address the widely held
misconceptions that the road safety camera
program’s primary purpose is to raise revenue
and that the cameras are inaccurate. In addition,
greater attention to promoting the positive
contribution the road safety camera program
makes to Victoria’s road safety is needed.
Recommendation
The Department of Justice should continue its focus on evaluation, though priority should be given to
evaluating the effectiveness of both fixed freeway cameras and point-to-point camera systems.
Recommendation 1, page 23
Response by department
Justice
Support
The Department of Justice’s Infringement
Management and Enforcement Services has
commissioned Monash University Accident
Research Centre to undertake reviews of the
effectiveness of both fixed freeway and
point-to-point cameras.
The point-to-point review and the fixed freeway
review is expected to be completed by
November 2013.
Recommendation
VicRoads, in partnership with the Department of Justice, Victoria Police and the Transport Accident
Commission should address the gap in speed enforcement for motorcyclists.
Recommendation 2, page 23
150
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Justice
Treasury and Finance
Support
Support
VicRoads is the lead agency for this
recommendation. Actions to address this
recommendation are contained in the new Road
Safety Strategy and Action Plan.
The Transport Accident Commission is
currently working with VicRoads on a whole of
government response. The Transport Accident
Commission intends to undertake a review to
determine the effectiveness of supporting
enhanced enforcement activities, and funding of
road safety activities will continue to be based on
evidence.
Victoria Police will continue to work with
VicRoads and the Department of Justice to
examine alternative speed enforcement options
for motorcyclists.
Recommendation
To determine the optimal deployment approach for mobile cameras, Victoria Police should conduct
and evaluate pilots of the following alternative approaches:

site selection based only on physical criteria, not deployment criteria; and

random rostering.
Recommendation 3, page 35
Response by department
Justice
Under review
Victoria Police will assess the practical
application of this recommendation during 2013,
and refine its deployment approach for mobile
cameras if required.
Recommendation
To increase the effectiveness of the mobile camera program the Department of Justice should review
the impact of publishing the list of weekly rostered sites for mobile cameras on road safety.
Recommendation 4 (dot point 1), page 35
Response by department
Justice
Support
The publication of the weekly rostered sites for
mobile cameras has ceased in line with the
recommendation.
Road Safety Camera Program
151
Recommendation
To increase the effectiveness of the mobile camera program Victoria Police should establish a target
number of sites required across Victoria and within police divisions to provide sufficient geographic
coverage, and establish a procedure for getting assurance that permanently unsuitable sites are
replaced with new sites.
Recommendation 4 (dot point 2), page 35
Response by department
Justice
Under review
Victoria Police will assess the practical
application of this recommendation during 2013.
Implementation of this recommendation will be
assessed as part of this review.
Recommendation
To increase the effectiveness of the mobile camera program Victoria Police should determine a target
proportion of monthly hours to be allocated at night.
Recommendation 4 (dot point 3), page 35
Response by department
Justice
Do not support
Since the release of the Road Safety Camera
Program Report, Victoria Police has increased the
number of rostered hours for mobile speed
cameras at night through a change to infrared
technology to the camera systems.
Victoria Police is unlikely to impose or identify a
target number of night time deployment hours.
The use of mobile speed cameras is determined
by local police to address their changing local
road policing and road trauma issues.
Therefore, this recommendation is not
supported.
Recommendation
To strengthen assurance, the Department of Justice should establish regular independent testing of
the accuracy and reliability of speed measurement by mobile speed cameras under actual operating
conditions.
Recommendation 5, page 48
152
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Justice
Support
The Department of Justice, Serco Traffic
Camera Services (Serco), and independent testers
are meeting monthly to strengthen assurance.
A testing acceptance plan has been drafted,
covering independent testing to ensure the
accuracy and reliability of speed measurement by
mobile speed cameras under actual operating
conditions.
Recommendation
To increase assurance over the accuracy of infringements from mobile cameras, the Department of
Justice should get stronger assurance that mobile camera operators comply with critical procedures.
Recommendation 6, page 56
Response by department
Justice
Support
Operators are obliged to complete and sign a
statement confirming they have followed the
speed comparison procedure at the
commencement of each session and record the
speeds measured in the test shots.
The Department of Justice is working with its
partners to identify other critical procedures that
could increase accuracy of infringements from
mobile cameras.
Recommendation
To increase transparency of certification, the Department of Justice should require that all
certification service providers comply with appropriate quality control and documentation standards,
and are subject to regular audits against these standards conducted by appropriately qualified
measurement experts.
Recommendation 7, page 56
Response by department
Justice
Support
Infringement Management and Enforcement
Services is working with the Royal Melbourne
Institute of Technology (RMIT), which provides
the certification services for both mobile and
fixed cameras to implement this
recommendation.
A proposed summary report for the certification
of each camera is being worked through with
RMIT. The summary report will be audited by
an independent expert.
Road Safety Camera Program
153
Recommendation
The Department of Justice should expedite the implementation of its communication strategy with a
particular emphasis on addressing misconceptions about the program.
Recommendation 8, page 64
Response by department
Justice
Support
A media campaign with television, radio and
billboard advertisements commenced in
November 2012.
154
Government Response to the Auditor-General’s Reports
issued during 2011-12
Science and Mathematics Participation Rates and
Initiatives
Background
This report was tabled in Parliament on
6 June 2012 and assessed whether Department
of Education and Early Childhood Development
(the Department) initiatives have improved
student participation and achievement in science
and mathematics by considering whether:

the number and proportion of students
studying science and mathematics studies in
senior secondary and post-secondary school
is increasing;

the Department has the required workforce
to support high-quality teaching in science
and mathematics; and

students have access to high-quality science
and mathematics facilities and equipment.
Findings of the Auditor-General
The audit found the Department has not
succeeded in raising achievement in science and
mathematics or participation in the enabling
sciences, despite a 2006 Victorian Parliamentary
inquiry which found that it needed to lift
participation and performance. Three years after
the inquiry the Department released the science
and mathematics education strategy but
implementation of various initiatives has been
slower than anticipated, and their impact small.
The Department will need to improve its
planning, coordination and oversight and
develop greater accountability at the school level
if science and mathematics participation and
achievement are to improve.
Recommendation
The Department of Education and Early Childhood should establish relevant and appropriate
performance measures for science and mathematics education, and obtain the necessary data to
measure progress and success.
Recommendation 1, page 19
Response by department
Education and Early Childhood
Development
Support
The Department of Education and Early
Childhood Development will continue to collect
student participation and outcomes data to
measure science and mathematics education
performance (including teacher judgement
student data from: AusVELS (the Australian
curriculum Prep to Year 10); the National
Assessment Program – Literacy and Numeracy;
the Programme for International Student
Assessment, the Trends in International
Mathematics and Science Study; the Victorian
Certificate of Education; Vocational Education
and Training; and the Victorian Certificate of
Applied Learning). Performance is also being
Science and Maths Participation Rates and Initiatives
155
measured within specific mathematics and
science initiatives, including the Primary
Mathematics and Science Specialists Initiative.
This is occurring through an external evaluation,
addressing initiative implementation, teacher
capacity building and student outcomes.
Learning and Teaching Division will liaise with
other divisions to set relevant and appropriate
performance targets within any future science
and mathematics education strategy.
Recommendation
The Department of Education and Early Childhood Development should complete its workforce data
collection framework and collect, maintain, analyse and report on complete, reliable and timely data
about science and mathematics teachers, and their qualifications, skills and experience.
Recommendation 2, page 31
Response by department
Education and Early Childhood
Development
Support
The Department of Education and Early
Childhood Development is assessing the
availability of additional data to complement
existing data on mathematics and science
teachers including data that will become available
in 2013 through the National Teaching
Workforce Dataset project and Staff in
Australia’s Schools 2013 survey. The
Department will also review its data collection
framework for the Teacher Supply and Demand
report and initiate new data collections if
required.
Recommendation
The Department of Education and Early Childhood Development should implement a workforce
strategy that supplies more and better quality science and mathematics teachers.
Recommendation 3, page 31
Response by department
Education and Early Childhood
Development
Support
The Department of Education and Early
Childhood Development will develop an
integrated strategy to supply mathematics and
science teachers. This will include continuing to
implement and monitor the impact of the
Science Graduate Scholarship, Maths/Science
Specialists, Teach Next and Teach For Australia
156
Government Response to the Auditor-General’s Reports
issued during 2011-12
programs. The Department will also review the
operation of initial teacher education in Victoria
and work with universities to ensure a supply of
teachers that meets the staffing needs of
Victorian employers.
Recommendation
The Department of Education and Early Childhood Development should improve the governance and
operation of the science specialist centres network to meet the participation targets for priority
groups.
Recommendation 4, page 42
Response by department
Education and Early Childhood
Development
Support
In consultation with Science and Mathematics
Specialist Centre (the Centre) directors and host
school principals, a scope for review of the
governance arrangements of the Centres has
been developed. A request for quotation has
been developed to put out to market in March
2013. The successful contractor will undertake
the review and report findings and
recommendations by June 2013. The Centre
directors, Learning and Teaching Division and
Financial Services Division have been
investigating new approaches that will better
enable the Centres to collect participation data
for their online programs. If successful, this
approach may be upscaled to support online data
gathering more broadly.
Recommendation
The Department of Education and Early Childhood Development should facilitate and maximise links
and partnerships between the science specialist centres, specialist science schools and schools with
new science facilities.
Recommendation 5, page 42
Response by department
Education and Early Childhood
Development
Support
The Learning and Teaching Division has
become a member of the Science and
Mathematics Centres Network (the Network)
and have presented to the Network on school
based approaches to improving mathematics and
science across Victoria, including the Primary
Mathematics and Science Specialists initiative
and the Science Laboratory Refurbishment
Grants program. The Learning and Teaching
Division promotes the Mathematics and Science
Centres, as centres of excellence for student
learning and teacher professional learning, at
appropriate opportunities, including publication
of articles about the Centres in Inspire Magazine,
and presentations at science and mathematics
events, such as careers seminars and professional
learning events.
Science and Mathematics Participation Rates and Initiatives
157
Recommendation
The Department of Education and Early Childhood Development should develop and deliver a
program to improve information and communications technology (ICT) skills across the science and
mathematics teacher workforce to better support them to integrate ICT into the curriculum.
Recommendation 6, page 42
Response by department
Education and Early Childhood
Development
Support
The Science and Mathematics Specialist Centres
will continue through their work with teachers
and students to embed new and emerging
technologies into all of their programs. ICT will
continue to be incorporated into mathematics
and science professional learning programs such
as the Earthwatch science scholarship program
that supports teachers to work with scientists in
the field and to communicate with their students
online.
158
Government Response to the Auditor-General’s Reports
issued during 2011-12
State Trustees Limited: Management of Represented
Persons
Background
This report was tabled in Parliament on
8 February 2012 and assessed whether State
Trustees is managing the financial and legal
affairs of represented persons in their best
interests.
Represented persons are those deemed incapable
of managing their own affairs due to disability,
mental illness, injury or other incapacitating
circumstances. They are considered to be among
the most vulnerable members of the community.
Under the Guardianship and Administration
Act 1986 (the Act) represented persons are
appointed administrators who must manage their
legal and financial affairs while acting in their
best interest. State Trustees Limited is the
administrator for over 10 000 represented
persons in Victoria.
Findings of the Auditor-General
The audit found that State Trustees is not able to
clearly demonstrate that it is fulfilling its
obligations to represented persons. Its focus is
on measuring its commercial success and it relies
predominantly on compliance with its service
contract with the state as a proxy for compliance
with the Act. However, this does not
demonstrate the quality or effectiveness of the
management of represented persons’ affairs and
it does not have the robust governance,
monitoring and reporting mechanisms needed to
do so. There is also inadequate quality assurance
and review of the services provided to
represented persons.
State Trustees’ direct engagement with
represented persons was found to be insufficient
for it to be assured that their needs and wishes
are properly understood. In addition, poor
information management and high case manager
turnover means that decisions about their affairs
are not always based on complete or accurate
information.
Recommendation
The State Trustees explicitly includes its community services obligations to represented persons in its
Memorandum of Association so they are incorporated into corporate objectives and governance
frameworks.
Recommendation 1, page 12
State Trustees Limited:
Management of Represented Persons
159
Response by department
Treasury and Finance
Support
State Trustees has undertaken a review of its
Memorandum and Articles to modernise its
Constitution to reflect new governance
arrangements. The Department is currently
assessing the proposal.
Recommendation
The State Trustees fully and properly implement its governance frameworks.
Recommendation 2, page 12
Response by department
Treasury and Finance
Support
State Trustees Limited’s risk framework is now
implemented across the business, linking
corporate and divisional risk registers. Risk
registers are now consistent with the
Auditor-General’s report. State Trustees Limited
has also enhanced its performance management
and corporate reporting capability from 2013.
Recommendation
The State Trustees include all legislative and contractual obligations in its compliance framework and
use the framework to monitor compliance against these obligations.
Recommendation 3, page 12
Response by department
Treasury and Finance
Support
During 2012, State Trustees Limited revised its
compliance registers and plans to incorporate:

Australian Guardianship and Administration
Council National (AGAC) Standard;

legislative obligation; and

community service obligations.
AGAC compliance and quality assessment will
be completed by June 2013.
160
Government Response to the Auditor-General’s Reports
issued during 2011-12
Recommendation
The State Trustees evaluate the impact of its new investment strategy on represented persons.
Recommendation 4, page 12
Response by department
Treasury and Finance
Support
State Trustees Limited conducts annual
investment strategy reviews and also conducted a
full re-assessment of the efficacy of its
investment strategies, including impacts on
represented persons. This review was approved
by the March 2012 State Trustees Limited
Investment Committee. The March 2013
Committee confirmed that the investment
strategy remains appropriate.
Recommendation
The State Trustees implement an information governance framework which is aligned to the
principles of good records management.
Recommendation 5, page 20
Response by department
Treasury and Finance
Support
State Trustees Limited development and rollout
of a new Electronic Document and Records
Management System was completed in
December 2012. State Trustees Limited is also
currently developing an information
management framework and strategy in line with
the Auditor-General’s report, due for
completion at the end of 2013.
Recommendation
The State Trustees review and implement strategies to improve consultant turnover rates, client
communications, record keeping, client feedback and all quality assurance processes.
Recommendation 6, page 20
State Trustees Limited:
Management of Represented Persons
161
Response by department
Treasury and Finance
Support
Actions taken to date include:

realignment of business structure to
centralise quality control functions and
coordinate reporting;
Additional actions (underway and pending)
include:

rollout of a revised quality assurance
framework;

development of a business process
management framework and roadmap;

implementing improved quality control
processes; and

implementation of a competency
framework;

linking of client concerns analysis, process
management and ongoing monitoring.

development of a quality assurance strategy;

completion of an internal audit on concerns
management in November 2012; and

implementation of a client concerns system.
162
Government Response to the Auditor-General’s Reports
issued during 2011-12
Supporting Changes in Farming Practices: Sustainable
Irrigation
Background
This report was tabled in Parliament on
12 October 2011 and assessed Sustainable
Irrigation Program outcomes and the efficiency,
effectiveness and economy of programs
designed to increase water use efficiency and
water savings from on-farm water use.
The Sustainable Irrigation Program,
administered by the Department of Sustainability
and Environment, and delivered through
partnerships with Catchment Management
Authorities and the Department of Primary
Industries, aims to improve the sustainability of
on-farm irrigation practices across Victoria.
Findings of the Auditor-General
The Department of Sustainability and
Environment, Catchment Management
Authorities and the Department of Primary
Industries have effectively planned and
implemented a range of programs and projects
to increase on-farm water use efficiency and
reduce associated environmental impacts. Like
any program, however, there are opportunities to
become more effective and efficient. This
includes improvements to planning and
performance reporting, so that the Department
of Sustainability and Environment can better
demonstrate that it is achieving all of the
expected long-term benefits of the programs.
Recommendation
The Department of Sustainability and Environment should:

update the Sustainable Irrigation Program Strategic Direction and Sustainable Irrigation Program
program logic so that they align with each other, clearly define the intent of outcomes and
demonstrate the links between outputs, intermediate outcomes and longer-term outcomes;

develop relevant and appropriate targets for performance indicators in the Sustainable Irrigation
Program Strategic Direction to enable the assessment of outcome achievement; and

improve its program reporting by including information on the achievement of outcomes in
addition to output reporting.
Recommendation 1, page 13
Supporting Changes to Farming Practices:
Sustainable Irrigation
163
Response by department
Sustainability and Environment
Support
The Department of Sustainability and
Environment is currently updating the Sustainable
Irrigation Program Strategic Directions and the
Program Logic to better reflect the intent of
outcomes and the linkages between outputs,
intermediate outcomes and longer-term
outcomes.
To enable a clearer assessment of outcomes
achieved against stated goals and objectives, the
Department is also refining the Sustainable
Irrigation Program’s (the Program’s)
performance indicators. This work is linked to
the development of a comprehensive
Monitoring, Evaluation, Reporting and
Improvement Plan (the Plan) for the Program.
The Plan will form the basis for an expansion of
outcomes reporting by the Program.
Recommendation
The Department of Sustainability and Environment, Department of Primary Industries and Catchment
Management Authorities should address the inefficiencies of the current reporting processes to
reduce duplication and improve timeliness.
Recommendation 2, page 13
Response by department
Sustainability and Environment
Primary Industries
Support
Support
The Department of Sustainability and
Environment is continuing to work with the
Sustainable Irrigation Program implementation
partners to embed a more streamlined approach
to reporting, including providing a simplified and
consistent data set for the Department of
Primary Industries and Catchment Management
Authorities to report against.
This recommendation has been partially
addressed through the cessation of the Victorian
Investment and Reporting Framework. Project
Information Retrieval System, a web-enabled
project planning and submission database, and
updated standard outputs aim to provide clearer
outputs for the Department of Primary
Industries and Catchment Management
Authorities to report against.
164
Government Response to the Auditor-General’s Reports
issued during 2011-12
TAFE Governance
Background
This report was tabled in Parliament on
26 October 2011 and examined the legal
authority and financial prudence of
Holmesglen’s decision to enter into this
arrangement as well as broader, systemic
questions about the effectiveness of oversight of
the sector.
In December 2010, the Holmesglen Institute of
Technical and Further Education (TAFE) made
a loan of $6.5 million to a financially distressed
Registered Training Organisation as the first step
in an acquisition strategy. In early 2011 the
Holmesglen Board chose not to proceed with
the acquisition and began negotiations with a
new buyer to recover its loan. Skills Victoria
intervened and sought assistance from the
Department of Treasury and Finance to
negotiate the loan repayment. This was finalised
in May 2011 leaving Holmesglen’s accounts
impaired by $3 million.
Findings of the Auditor-General
The audit found the Holmesglen Board lacked
critical information necessary to make an
informed decision on the wisdom of providing a
loan and pursuing an acquisition. It acted outside
its legal authority in making the loan, by not
following government directions and clear
signals about low risk in managing public funds.
The loan occurred in an environment lacking
oversight and leadership from Skills Victoria.
There were no policies to guide commercial
activity by TAFE institutes and where requests
for clarity were sought by Holmesglen, Skills
Victoria did not respond. The audit found a
history of inadequate and ineffective
communication between Holmesglen and Skills
Victoria.
Recommendation
Skills Victoria should:

actively engage with TAFE institutes during the preparation of their strategic plans;

critically review strategic plans and provide feedback to TAFE institutes; and

where appropriate, inform the Victorian Skills Commission and the Minister for Higher Education
and Skills of any conflicts with government policy or accountability issues.
Recommendation 1, page 14
v
TAFE Governance
165
Response by department
Education and Early Childhood
Development
Support
The Government has moved to recognise
TAFEs as autonomous commercial operations.
As such, in future, it will be the role of the
TAFE Board to ensure that the institute
complies with all statutory and reporting
requirements including ensuring that all policies
are applicable and reviewed in a timely manner.
With the implementation of the new Boards in
TAFEs the Chairs will receive an induction
package that will include advice as to the need
for their institute to comply with all relevant
legislative requirements.
The Victorian Skills Commission no longer
exists.
Recommendation
Holmesglen should review its investment policy to ensure that investment decisions are consistent
with its authority to invest, instructions from government and government policy, and that it
embodies better practice prudential consideration.
Recommendation 2, page 14
Response by department
Education and Early Childhood
Development
Under Review
Commercial and Strategic Planning Guidelines
have been developed as part of the package of
reforms of governance to be introduced to the
sector. The Department of Education and Early
Childhood Development will be able to monitor
compliance with the guidelines through the
performance monitoring framework being
developed. Under the updated legislation,
responsibility for compliance with all regulatory
requirements is vested with the Board of the
institute.
Recommendation
The Department of Treasury and Finance should review the intended application of Standing
Direction 4.5.6 and consider whether the exemption should be based on effective investment powers
rather than the legal source of powers.
Recommendation 3, page 14
166
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Treasury and Finance
Under review
The Department of Treasury and Finance is
currently developing advice for Government on
the application of the Centralised Treasury and
Investment Policy and associated Standing
Direction 4.5.6.
Recommendation
Skills Victoria should:

clarify the roles and responsibilities of all entities in the TAFE sector;

develop its workforce capabilities in contemporary business practices and business acumen to
meet the demands of TAFE sector governance;

set clear guidelines for commercial activity and state when TAFE institutes must notify
government of specific types of decisions;

address, as a priority, the legislation and policy conflict created by TAFE institutes expanding
interstate and overseas;

develop and implement a strategy for communicating with TAFE institutes effectively; and

examine the ability of TAFE institutes to create and use trusts.
Recommendation 4, page 26
Response by department
Education and Early Childhood
Development
Support
A process has begun to develop a Compact with
TAFE institutes. The Compact will be an
agreement between the Department of
Education and Early Childhood Development
and stand-alone TAFE institutes that articulates
the respective roles and responsibilities
associated with the changing context of the
Victorian vocational training system, particularly
in relation to professional trust, autonomy and
accountability and support.
A new departmental structure has been
developed to ensure that, across the
Department, staff have the skills required.
The new structure is being supported by a
workforce development strategy which is
designed to ensure that the Higher Education
and Skills Group has the right kind of skills and
capabilities to effectively manage the vocational
training system and relationship with TAFE
institutes.
As part of a strengthened governance
framework, the Department has released new
Commercial Guidelines which clarify the
parameters and policies for commercial activities
by TAFE institutes.
TAFE Governance
167
Issues and policies relating to the expansion of
TAFE institutes expanding interstate and
overseas have been addressed in the most recent
amendments to Education and Training Reform
Act 2006, and are also being clarified in the new
Constitutions for TAFE institutes as well as the
supporting Strategic Planning and Commercial
Guidelines.
The Higher Education and Skills Group is
required to exercise its delegated functions
effectively and efficiently. The Department has
established audit and risk processes that provide
a framework for the Higher Education and Skills
Group achieving this.
Recommendation
The Victorian Skills Commission should develop and implement a mechanism to regularly test
whether Skills Victoria is exercising its delegated functions effectively and efficiently.
Recommendation 5, page 26
Response by department
Education and Early Childhood
Development
Support
The Victorian Skills Commission no longer
exists. The Higher Education and Skills Group is
required to exercise its delegated functions
effectively and efficiently. The Department of
Education and Early Childhood Development
has established audit and risk processes that
provide a framework for the Higher Education
and Skills Group to achieve this.
168
Government Response to the Auditor-General’s Reports
issued during 2011-12
Tertiary Education and Other Entities: Results of the
2011 Audits
Background
This report was tabled in Parliament on
23 May 2012 and covers the results of the annual
audit of 106 entities from the tertiary education,
sustainability and environment, health, planning
and community development and local
government sectors, with a financial year end
other than 30 June 2011. It focuses principally
on 98 tertiary education sector entities,
comprising the eight public universities and their
57 controlled entities, 14 technical and further
education (TAFE) institutes and their 11
controlled entities, seven training entities and the
one controlled entity.
The report informs Parliament about significant
issues arising from the audits of financial and
performance reports and augments the assurance
provided through audit opinions included in the
respective entities’ annual reports.
Findings of the Auditor-General
Parliament can have confidence in 100 of 103
financial reports and all performance reports that
received clear audit opinions.
The audit found internal control structures over
financial reporting within audited entities were
adequate, enabling production of accurate,
complete and reliable information for reporting.
However, improved information security policies
and oversight of information technology systems
security, including having a dedicated
governance committee would improve
information technology security. The review of
capital project management revealed that a third
of tertiary education entities are not performing
post-project evaluations, and 25 per cent are
experiencing budget variances or delays in
completion.
The report comments on the effectiveness of
internal controls, and for the tertiary education
sector, controls over information technology
security and capital project management. It also
comments on the financial sustainability of
universities, TAFE institutes and alpine resort
management boards, and their financial
management and reporting activities.
Recommendation
That performance reporting for the TAFE sector be elevated to legislative status.
Recommendation 1, page 14
Tertiary Education and Other Entities:
Results of the 2011 Audits
169
Response by department
Education and Early Childhood
Development
Support
The Department of Education and Early
Childhood Development supports this
recommendation in principle. The Government
has moved to recognise TAFEs as autonomous
commercial operations. As such, in future, it will
be the role of the TAFE Board to identify and
report on the most appropriate key performance
indicators for their institute.
The Department is finalising Strategic Planning
Guidelines which will provide a performance
monitoring framework for TAFE institutes.
Recommendation
That universities and TAFEs continue to refine their financial reporting processes by preparing shell
financial statements and adopting rigorous quality control and assurance procedures.
Recommendation 2, page 14
Response by department
Education and Early Childhood
Development
Support
The Government has moved to recognise
TAFEs as autonomous commercial operations.
As such, in future, it will be the role of the
TAFE Board to ensure that the institute
complies with all statutory and reporting
requirements including meeting lodgement
timelines.
The Department of Education and Early
Childhood Development is finalising Strategic
Planning Guidelines which will cover the
financial reporting obligations of TAFE
institutes.
Universities have been operating under this
model for some time.
Recommendation
That tertiary education bodies assess their policies and practices against the identified general
internal control weaknesses to determine the adequacy of their controls, and whether they are
operating reliably, efficiently and effectively.
Recommendation 3, page 33
170
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Education and Early Childhood
Development
Support
The Government has moved to recognise
TAFEs as autonomous commercial operations.
As such, in future, it will be the role of the
TAFE Board to ensure that the institute
complies with all statutory and reporting
requirements including ensuring that all policies
are applicable and reviewed in a timely manner.
The Department is currently re-making TAFE
institute constitutions. The new constitutions,
supported by the Commercial Guidelines and
Strategic Planning Guidelines, will clarify the
policies and processes TAFE institutes should
have in place.
Recommendation
That tertiary education bodies develop comprehensive policies and procedures over information
technology system security which are approved at board or council level and subject to regular
review.
Recommendation 4, page 33
Response by department
Education and Early Childhood
Development
Support
The Government has moved to recognise
TAFEs as autonomous commercial operations.
As such, in future, it will be the role of the
TAFE Board to ensure that the institute
complies with all statutory and reporting
requirements including ensuring that all policies
are applicable and reviewed in a timely manner.
With the implementation of the new Boards in
TAFEs the Chairs will receive an induction
package that will include advice as to the need
for their institute to comply with all relevant
legislative requirements.
Recommendation
That tertiary education bodies develop an information security classification policy that outlines
criteria for assigning security classifications to information and the required security controls for each
classification.
Recommendation 5, page 33
Response by department
Education and Early Childhood
Development
Support
Refer to the response to Recommendation 4.
Tertiary Education and Other Entities:
Results of the 2011 Audits
171
Recommendation
That tertiary education bodies undertake periodic assessments of the adequacy of, and compliance
with, information technology security requirements.
Recommendation 6, page 33
Response by department
Education and Early Childhood
Development
Support
Refer to the response to Recommendation 4.
Recommendation
That tertiary education develop capital project management policies and procedures which are
approved by the governing body.
Recommendation 7, page 34
Response by department
Education and Early Childhood
Development
Support
The Department of Education and Early
Childhood Development supports this
recommendation in principle. Refer to the
response to Recommendation 4.
Recommendation
That tertiary education bodies undertake post-project evaluations to learn from recent projects and
report findings to the governing body.
Recommendation 8, page 34
Response by department
Education and Early Childhood
Development
Support
Refer to the response to Recommendation 7.
172
Government Response to the Auditor-General’s Reports
issued during 2011-12
Recommendation
That tertiary education bodies engage internal audit to conduct periodic reviews of their information
technology security policies and capital project management arrangements and outcomes.
Recommendation 9, page 34
Response by department
Education and Early Childhood
Development
Support
Refer to the response to Recommendation 4.
Recommendation
That tertiary education bodies develop and maintain the capacity to monitor the country of residence
and other socio-economic details of their international students to improve their marketing focus
and provide appropriately structured courses.
Recommendation 10, page 46
Response by department
Education and Early Childhood
Development
Support
Under the updated legislation, the Boards of
TAFEs will be required to be more commercially
focussed and this approach will be one that a
commercially-focussed Board will seek to
implement.
Recommendation
The Alpine Resorts Coordinating Council together with Lake Mountain and Mount Baw Baw alpine
resort management boards should investigate the potential for implementing revised operating
arrangements to improve their longer-term financial viability.
Recommendation 11, page 71
Tertiary Education and Other Entities:
Results of the 2011 Audits
173
Response by department
Sustainability and Environment
Support
The Lake Mountain Alpine Resort Management
Board has contracted a private recreation and
leisure operator to deliver commercial
management services at the resort for a one-year
period of financial and operational discovery, in
line with the Auditor-General’s
recommendation. The Board will investigate the
possibility of implementing a long-term
management arrangement with a private
operator following an open and transparent
expression of interest process towards the end of
the discovery period.
The Mt Baw Baw Alpine Resort Management
Board is currently investigating the possibility of
implementing a long-term management
arrangement with a private operator following an
open and transparent expression of interest
process later in 2013, in line with the
Auditor-General’s recommendation.
The Minister for Environment and Climate
Change has also requested the Department of
Sustainability and Environment to provide
greater oversight of both southern resorts’
expenditure and to analyse and review the
financial details of the resorts on a monthly
basis.
Recommendation
Alpine resort management boards should continue to address commonly identified internal control
weaknesses to ensure they are operating in a reliable and sustainable manner.
Recommendation 12, page 71
Response by department
Sustainability and Environment
Support
The Alpine Resort Management Boards have
strengthened internal controls through a revision
of procedures and realignment of duties.
The Boards will advise the Minister for
Environment and Climate Change of any
additional actions proposed to be implemented
as part of their corporate planning process (plan
reviews due to commence in October 2013) to
further address the recommendation.
174
Government Response to the Auditor-General’s Reports
issued during 2011-12
The Department of Sustainability and
Environment will continue to offer guidance to
the Boards at the appropriate time regarding
assessment of existing policies and processes
within internal control environments to ensure
reliable and cost-effective operation and
continued high levels of financial probity.
Victorian Institute of Teaching
Background
This report was tabled in Parliament on
7 December 2011 and assessed the efficiency
and effectiveness of the Victorian Institute of
Teaching’s (VIT) practices for regulating
teachers and promoting its role and activities.
Findings of the Auditor-General
This audit found that overall, VIT performs well
as a regulator. The community can be confident
that teachers in Victorian schools are
appropriately qualified, suitable to teach and
competent in the English language. Its
registration practices give a high level of
assurance that only those teachers who meet the
regulatory standards are registered and that any
unregistered teachers are identified.
However, the audit found VIT needs to improve
the understanding teachers and principals have
about its role. VIT has developed a new
communications strategy and needs to
progressively evaluate the effectiveness of this.
Recommendation
The Victorian Institute of Teaching:

further develop its risk mitigation practices relating to teacher self-declarations that support their
registration application through adopting a structured process of continuous improvement; and

annually cross-check the completeness and accuracy of its teacher register against the
employment records of all schools and use the results to inform identification of opportunities to
improve teacher compliance with registration requirements.
Recommendation 1, page 19
Response by department
Education and Early Childhood
Development
Support
This recommendation is adopted by the
Victorian Institute of Teaching. Risk mitigation
practices are in place and annual cross-checking
is undertaken.
Recommendation
That the Victorian Institute of Teaching promptly resolve the backlog of disciplinary hearing panel
cases.
Recommendation 2, page 19
Victorian Institute of Teaching
175
Response by department
Education and Early Childhood
Development
Support
This recommendation is adopted by the
Victorian Institute of Teaching. The backlog
of cases are resolved.
Recommendation
That the Victorian Institute of Teaching progressively evaluate the effectiveness of its communication
strategy and use the results to better target communication with the teaching community.
Recommendation 3, page 19
Response by department
Education and Early Childhood
Development
Support
This recommendation is adopted by the
Victorian Institute of Teaching. Ongoing
evaluation of the communication strategy is
taking place.
Recommendation
That the Victorian Institute of Teaching:

develop a suite of relevant and appropriate indicators to reliably represent its efficiency and
effectiveness in performing its regulatory functions and achieving its mission, in addition to
implementing its benchmarking regime; and

report on its performance to relevant stakeholders.
Recommendation 4, page 25
Response by department
Education and Early Childhood
Development
Under Review
The VIT Council has reviewed the
Auditor-General’s recommendations. The
Council is in the process of developing its
Strategic plan for 2013-2016. Development of
the plan and key performance indicators (KPIs)
176
Government Response to the Auditor-General’s Reports
issued during 2011-12
was commenced at the annual planning meeting.
Consideration will be given to reporting on
KPIs. Strategic Plan 2013-2016 will be in place
by 1 July 2013 from which KPIs will be
developed.
Water Entities: Results of the 2010–11 Audits
Background
This report was tabled in Parliament on
9 November 2011 and covers the results of
financial audits of 20 entities in the water
industry, comprising 19 water entities and one
controlled entity. It informs Parliament about
significant issues arising from the audits of
financial and performance reports and augments
the assurance provided through audit opinions
included in the entities’ annual reports.
Findings of the Auditor-General
Parliament can have confidence in the 20
financial reports and 16 performance reports
that received clear audit opinions.
The audit found the internal control structures
over financial reporting within audited entities
were adequate, that is they enabled production
of accurate, complete and reliable information
for reporting. However, controls over
information technology, asset valuations,
declarations of interest and outsourcing can
be improved.
Overall the financial sustainability risk for the
water industry was found to be low. However,
the risk is uneven across the metropolitan,
regional urban and rural categories. Longitudinal
trends indicate that the risk profile for the
industry is deteriorating and deeper analysis of
indicators suggests that the sustainability of
entities within the regional urban category could
be at risk over time unless these trends are
reversed.
Debt levels continue to increase and a number
of sustainability indicators such as liquidity and
interest cover show deteriorating trends.
The ability of water entities to increase the price
they charge for water and the provision of
sewerage services is regulated and based on
five-year water plans developed by each entity.
The plans were developed over a period of
drought, below-average rainfall and the
imposition of water restrictions. The audit
identified the risk that assumptions in the plans
are no longer appropriate, that revenue and
expenditure will not be as forecast.
Recommendation
That water entities further refine their financial and performance reporting processes by developing
consolidated financial reporting preparation plans, preparing shell statements, performing
materiality assessments, improving their quality assurance processes, and conducting rigorous
analytical reviews.
Recommendation 1, page 21
Water Entities: Results of the 2010–11 Audits
177
Response by department
Sustainability and Environment
Support
The Department of Sustainability and
Environment has worked with the water entities
to improve the quality assurance processes for
performance reporting.
Recommendation
That the Essential Services Commission revisit the duration of water plans, the appropriateness of the
funding model and its flexibility in times of changed weather patterns and the rigour of the planning
and forecasting by water entities.
Recommendation 2, page 47
Response by department
Treasury and Finance
Support
The Essential Services Commission has
consulted with the water industry on the
duration of the regulatory period, and on the
mechanisms by which prices may be adjusted in
response to changing circumstances, in the lead
up to its current review of Victorian water
prices.
The Commission will finalise its water price
review in June 2013.
Recommendation
That the Department of Sustainability and Environment in conjunction with the Department of
Treasury and Finance develop a consistent and contemporary performance reporting framework for
the 19 water entities.
Recommendation 3, page 53
178
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Sustainability and Environment
Treasury and Finance
Support
Support
In developing the 2010-11 performance report
template, the Department of Sustainability and
Environment consulted with the Department of
Treasury and Finance, the water entities and the
Auditor-General’s Office. Comments from the
Victorian Auditor-General’s Office were
incorporated to improve the performance report
template. The Department has worked with the
Department of Treasury and Finance (and the
Victorian Auditor-General’s Office) to develop a
consistent and contemporary performance
reporting framework for all water entities with
relevant and appropriate key performance
indicators for water industry performance
reports.
The Department of Treasury and Finance’s
Corporate Planning and Performance Reporting
Requirements (the Requirements) set down the
corporate planning and performance reporting
framework for Government business enterprises
that report to the Treasurer, including the 19
water entities. The Requirements complement
the relevant provisions of the Water Act 1989,
which require the 19 water entities to submit a
Corporate Plan to the Treasurer and the Minister
for Water each year.
Recommendation
That a working party, comprising key stakeholders, be established to develop relevant and
appropriate key performance indicators for inclusion in future performance reports of water entities.
Recommendation 4, page 53
Response by department
Sustainability and Environment
Support
The Performance Reporting Framework
Working Group (the Working Group) was
established in November 2011.
The Working Group was chaired by the
Department of Sustainability and Environment
and comprised representatives from the
Department of Treasury and Finance,
metropolitan, regional urban and rural water
corporations and the Victorian Water Industry
Association. The Victorian Auditor-General’s
Office and the Essential Services Commission
had observer status on the Working Group. The
Working Group developed a discussion paper
and a draft Performance Reporting Framework
(Framework) for consultation with the water
industry. The Framework developed comprises a
set of key performance indicators (KPIs) that are
relevant, appropriate, and useful for consistent
performance reporting against performance
objectives by all water corporations.
There are 21 KPIs in the Framework comprising
seven financial KPIs, six water service KPIs
(three urban and three rural services), two
sewerage service KPIs, four customer service
KPIs and two environmental KPIs.
The Minister for Water has been briefed on the
final Framework, and this will be implemented
for the 2013-14 planning and reporting year.
Water Entities: Results of the 2010-11 Audits
179
Treasury and Finance
Support
The Department of Treasury and Finance and
the Department of Sustainability and
Environment have noted that water entities have
at times reported against different key
performance indicators (KPIs), for the purposes
of various publications and reports.
In response to the audit recommendation, the
Department of Sustainability and Environment
established a Water Industry Performance
Reporting Framework Working Group. The
Department of Sustainability and Environment
(Chair), the Department of Treasury and
Finance, VicWater, and representatives of water
entities, are members of this Working Group. A
Victorian Auditor-General’s Office
representative attends meetings of this Working
Group as an observer.
The Working Group was established to develop
a consistent and contemporary Performance
Reporting Framework (the Framework) for the
19 water entities. The Framework will contain a
consistent set of relevant and appropriate key
performance indicators (financial and
non-financial) to inform Government, the
community, the 19 water entities and other key
stakeholders on the performance of the water
entities.
Recommendation
That water entities assess their policies and processes against the commonly identified internal
control environment weaknesses and act to address them to make sure they are operating reliably
and cost-effectively.
Recommendation 5, page 78
Response by department
Sustainability and Environment
Support
The Department of Sustainability and
Environment has brought these audit issues to
the attention of the Water Boards Risk and
Assurance sub-committees to improve internal
control processes.
Recommendation
That water entities take timely action to address identified information technology control
weaknesses.
Recommendation 6, page 78
180
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Sustainability and Environment
Support
Refer to the response to Recommendation 5.
Recommendation
That water entities develop and maintain comprehensive policies and procedures which are
appropriately approved and subject to regular review.
Recommendation 7, page 78
Response by department
Sustainability and Environment
Support
Refer to the response to Recommendation 5.
Recommendation
That the water industry work with the Department of Treasury and Finance and the Valuer-General
Victoria (VGV) to determine the most appropriate valuation methodology for infrastructure assets.
Recommendation 8, page 78
Response by department
Sustainability and Environment
Support
In 2011, the Department of Treasury and
Finance convened a meeting with the
Department of Sustainability and Environment,
the Valuer-General Victoria (and its agent), the
Victorian Auditor-General’s Office (VAGO),
and VicWater on the infrastructure valuation
issue. On advice from VAGO, this meeting
agreed that a ‘straight-line’ depreciated
replacement cost methodology would be
adopted for the fair value measurement of
regional water infrastructure assets for financial
reporting purposes as at 30 June 2011.
Subsequent to this, the Department initiated the
establishment of a VicWater industry Working
Group to develop a policy framework for the
next valuation of infrastructure assets. This
working group has representatives from the
water industry, the Department of Treasury and
Finance, the Department of Sustainability and
Environment, the Victorian Auditor-General’s
Office and the Valuer-General Victoria. This
policy framework will be developed by
June 2014 and Valuer-General Victoria
consulted in implementing the framework for
the 2015-16 infrastructure asset valuations.
Water Entities: Results of the 2010-11 Audits
181
Treasury and Finance
Support
The Department of Treasury and Finance has
provided, as part of its role, a financial reporting
framework in Financial Reporting Direction
103D, on the measurement requirements to
comply with the applicable accounting standard
on the valuation of infrastructure assets.
The Department has commenced and will
continue to work with the Valuer-General’s
Office, the water entities and the Department of
Sustainability and Environment (as the Portfolio
Department of the water entities) on the further
development of the asset valuation methodology
for water infrastructure assets.
Recommendation
The Valuer-General Victoria should ensure all valuations conducted, including those by service
providers, be subjected to rigorous quality assurance processes, and that appropriate effort is
invested in establishing agreement with client entities before valuations are conducted.
Recommendation 9, page 78
Response by department
Treasury and Finance
Not Applicable
The Department of Treasury and Finance notes
that this recommendation is for the
Valuer-General.
Recommendation
That water entities obtain letters of comfort about the effectiveness of internal controls of
outsourced providers.
Recommendation 10, page 78
Response by department
Sustainability and Environment
Support
Refer to the response to Recommendation 5.
Recommendation
That water entities use internal audit to periodically review outsourcing practices and related policy
compliance.
Recommendation 11, page 78
182
Government Response to the Auditor-General’s Reports
issued during 2011-12
Response by department
Sustainability and Environment
Support
Refer to the response to Recommendation 5.
Recommendation
That water entities report regularly to their boards on outsourced activities to enable effective
monitoring of performance, including of actual performance against key performance indicators in
contractual arrangements, risk mitigation activity, cost-benefit analysis, and actual costs against
budget.
Recommendation 12, page 78
Response by department
Sustainability and Environment
Support
Refer to the response to Recommendation 5.
Water Entities: Results of the 2010-11 Audits
183
Departmental index
B
Business and Innovation
Biotechnology in Victoria – the Public Sector’s
Investment, 15, 16
Freedom of Information, 49, 51, 54, 56, 59
Government Advertising and Communications, 63, 66
Melbourne Markets Redevelopment, 96, 98, 99
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards, 113, 115, 117,
120, 122
Portfolio Departments and Associated Entities –
Results of the 2010-11 Audits, 125, 127, 128, 131,
133, 135, 136
E
Education and Early Childhood Development
Casual Relief Teacher Arrangements, 20, 21, 22
Freedom of Information, 49, 51, 54, 57, 59
Government Advertising and Communications, 63, 66
Obsolescence of Frontline ICT – Police and Schools,
102, 103
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards, 113, 115, 117,
120, 122
Portfolio Departments and Associated Entities –
Results of the 2010-11 Audits, 125, 127, 128, 131,
133, 135, 136
Science and Mathematics Participation Rates and
Initiatives, 155, 156, 157, 158
TAFE Governance, 166, 167, 168
Tertiary Education and Other Entities – Results of the
2011 Audits, 170, 171, 172, 173
Victorian Institute of Teaching, 175, 176
H
Health
Agricultural Food Safety, 8, 9, 10, 11
Effectiveness of Justice Strategies in Preventing and
Reducing Alcohol Related Harm, 35
Freedom of Information, 49, 51, 54, 57, 59
Government Advertising and Communications, 63, 67
184
Government Response to the Auditor-General’s Reports
issued during 2011-12
Maternity Services – Capacity, 92, 93, 94, 95
Payments to Visiting Medical Officers in Rural and
Regional Hospitals, 106, 107, 108
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards, 113, 115, 117,
120, 122
Portfolio Departments and Associated Entities –
Results of the 2010-11 Audits, 125, 127, 129, 132,
133, 135, 137
Procurement Practices in the Health Sector, 139, 140,
141, 142, 143
Public Hospitals – Results of the 2010-11 Audits, 144,
145, 146
Human Services
Access to public housing, 3, 4, 5, 6
Freedom of Information, 50, 52, 54, 56, 59
Government Advertising and Communications, 63, 67
Individualised Funding for Disability Services, 69, 70,
71, 72, 73
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards, 113, 115, 117,
120, 122
Portfolio Departments and Associated Entities –
Results of the 2010-11 Audits, 125, 127, 129, 132,
134, 135, 137
J
Justice
Effectiveness of Justice Strategies in Preventing and
Reducing Alcohol Related Harm, 36, 37, 39, 40, 41
Freedom of Information, 47, 48, 49, 50, 52, 54, 55,
57, 58
Government Advertising and Communications, 63, 67
Management of Trust Funds in the Justice Portfolio,
85, 86
Obsolescence of Frontline ICT – Police and Schools,
102, 103, 104, 105
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards, 113, 115, 117,
120, 122
Portfolio Departments and Associated Entities –
Results of the 2010-11 Audits, 125, 127, 129, 132,
134, 135
Road Safety Camera Program, 150, 151, 152, 153, 154
P
S
Planning and Community Development
Business Planning for Major Capital Works and
Recurrent Services in Local Government, 18, 19
Compliance with Building Permits, 24, 25, 26, 27,
28, 29
Effectiveness of Justice Strategies in Preventing and
Reducing Alcohol Related Harm, 38
Fraud Prevention Strategies in Local Government, 42,
43, 44, 45, 46
Freedom of Information, 50, 52, 54, 57, 60
Government Advertising and Communications, 63, 67
Local Government – Results of the 2010-11 Audits,
74, 75, 76, 77, 78, 79
Management of Road Bridges, 82, 83
Managing Contaminated Sites, 89, 90, 91
Performance Reporting by Local Government,
110, 111
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards, 113, 115, 117,
120, 122
Portfolio Departments and Associated Entities –
Results of the 2010-11 Audits, 125, 127, 129, 132,
134, 135, 137
Sustainability and Environment
Freedom of Information, 50, 53, 55, 57, 60
Government Advertising and Communications, 64, 68
Managing Contaminated Sites, 89, 90
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards, 114, 116, 117,
121, 123
Portfolio Departments and Associated Entities –
Results of the 2010-11 Audits, 126, 128, 129, 130,
132, 134, 136, 137
Supporting Charges to Farming Practices –
Sustainable Irrigation, 164
Tertiary Education and Other Entities – Results of the
2011 Audits, 174
Water Entities – Results of the 2010-11 Audits, 178,
179, 180, 181, 182, 183
Premier and Cabinet
Freedom of Information, 50, 52, 54, 57, 60
Government Advertising and Communications, 61, 62,
64, 65, 66, 67
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards, 114, 116, 117, 119,
121, 122
Portfolio Departments and Associated Entities –
Results of the 2010-11 Audits, 126, 127, 129, 132,
134, 136, 137
Primary Industries
Agricultural Food Safety, 7, 8, 9, 10
Freedom of Information, 50, 53, 55, 57, 60
Government Advertising and Communications, 64, 68
Melbourne Markets Redevelopment, 97
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards, 114, 116, 117,
121, 122
Portfolio Departments and Associated Entities –
Results of the 2010-11 Audits, 126, 127, 129, 130,
132, 134, 136, 137
Supporting Charges to Farming Practices –
Sustainable Irrigation, 164
T
Transport
Developing Cycling as a Safe and Appealing Mode of
Transport, 30, 31, 32, 33
Freedom of Information, 50, 53, 55, 58, 60
Government Advertising and Communications, 64, 68
Management of Road Bridges, 80, 81
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards, 114, 116, 118,
121, 123
Portfolio Departments and Associated Entities –
Results of the 2010-11 Audits, 126, 128, 129, 132,
134, 136, 138
Public Transport Performance, 147, 148, 149
Treasury and Finance
Auditor-General’s Report on the Annual Financial
Report of the State of Victoria, 2010-11, 12, 13
Freedom of Information, 51, 53, 55, 58, 60
Government Advertising and Communications, 65, 68
Management of Trust Funds in the Justice
Portfolio, 87
Melbourne Markets Redevelopment, 97, 100
Obsolescence of Frontline ICT – Police and Schools,
101, 105
Personal Expense Reimbursement, Travel Expenses
and Corporate Credit Cards, 114, 116, 118, 119,
121, 123
Portfolio Departments and Associated Entities –
Results of the 2010-11 Audits, 124, 126, 128, 129,
131, 133, 134, 136, 138
Road Safety Camera Program, 151
State Trustees Limited – Management of represented
persons, 160, 161, 162
TAFE Governance, 167
Water Entities – Results of the 2010-11 Audits, 178,
179, 180, 182
Departmental index
185
186
Government Response to the Auditor-General’s Reports
issued during 2011-12