2009_11_10_ipaa_presentation.ppt

8/11/2019 2009_11_10_IPAA_presentation.ppt

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Auditing in the Public Interest

Victorian Auditor-Generals Office

Parliament's Auditor -

Role & Perspectives

Des Pearson, Auditor-General

10 November 2009, IPAA


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Parliament's auditor

Parliament

Agencies

Electors

ExecutiveGovernment

Independent Objective

Auditor-General


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Role of Auditor General

Our Purpose: Providing assurance toParliament on the accountability and

performance of the Victorian public sector

Auditing in the public interest since 1851.

Constitutional safeguard to serve interests ofParliament.

A key link in the accountability process.


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Role of Auditor-General - continued

Constitution ActIndependent officer ofParliament S. 94B

has complete discretion in the performance or

exercise of his or her functions or powers and, inparticular, is not subject to direction from anyone

Accountable to Parliament via the PAEC

Recommends appointment of Auditor-General Oversees performance audit of VAGO

Recommendations on annual budget

Consulted on annual plan and audit specifications


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Role of Auditor-General: Context

Victorian public sector One of the States largest businesses

More than 232 000 employees; $73 billion annual turnover

Government departments Local government

Companies, trusts & joint ventures Water authorities

State Owned Enterprises Police, emergency services & courts

Public hospitals & ambulances Universities & colleges

Financial institutions Superannuation schemes

620+ Client agencies include:


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Context: changing role for reporting &audit

Increased stakeholder expectations intransparency, governance and reporting

Increased role for auditin public sector

Expand audit beyond review offinancial statements efficiency &effectiveness, probity & compliance


7/25Auditing in the Public Interest

Auditor-Generals mandate

Financial Audit

Review financial statements of 620+ agencies each year Around 70% of audits undertaken by audit service providers

Report on States Estimated Financial Statements &Annual Financial Report

Performance Audit

Determine whether an authority is achieving objectives

& operating economically, efficiently and effectively incompliance with all relevant Acts

Not question merits of policy objectives

Not to second guess reasonable management judgements



Implications: changing servicedelivery

Last 20 years: changes in the way governmentdelivers services

Commercial arrangements e.g. contracting out, PublicPrivate Partnerships

Victoria has 39% (value) of all PPP projects in Australia (at Dec2006)

New legal entities being created outside government access other revenue sources and more flexiblegovernance regimes

e.g. housing associations, community health centres, Universitycompanies and subsidiaries

Services increasingly outside accountabilityframeworks

Erosion of Parliaments audit mandate



Risk & Materiality:

In economic, social and environmental impactterms

Having regard to:

Growing Victoria Together

Financial Management and Reporting Financial prudence, legislative compliance and

avoidance of waste

Audit PlanningDetermining auditpriorities


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VAGO Annual Plan

Annual Plan 2009-10 tabled 6 May 2009:

Selected performance audits for 2009-10

Prospective areas of audit interest 2009-10 to2012-13

New this yearsector reports for financialaudit results

Comprehensive sector consultation

Robust and transparent topic sectionframework



VAGO Strategic Plan2007-08 to 2009-10

Objectives:

1. Authoritative and relevant reports and advice

2. Being highly regarded by Parliament

3. Fostering productive relationships with auditclients

4. Being an employer of choice

5. Being innovative and cost effective



VAGO Structure



VAGO Strategic Plan2007-08 to 2009-10

Objectives:

1. Authoritative and relevant reports and advice

2. Being highly regarded by Parliament

3. Fostering productive relationships with auditclients

4. Being an employer of choice

5. Being innovative and cost effective



Auditor-Generals Office

Questions?



Key audit themes 2008-09

1. Oversight and coordination

2. Outcomes and benefits

3. Performance information4. Training and knowledge management

5. Records management

6. Boards and governing councils



1. Oversight and coordination

Devolved accountability and subsidiarity Increasingly common in Victorian accountability arrangements

principle of delegation to lowest/ least centralized authority

Applies both within portfolios(Departments and agencies) and inside

entities(accountable officer and program area). Howeveryou can delegate responsibility, but not accountability!

Audits found: Gaps and challenges in oversightarrangementswho is monitoring?

Program outcomes compromised and challenged by lack of clarityofroles/responsibilities

Several audits recommended Departments

strengthen their oversightrole

more actively monitor/respond to subsidiary performance information.

Preparedness to Respond to Terrorism Incidents:


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Preparedness to Respond to Terrorism Incidents:Essential Services and Critical Infrastructure (Jan2009)

Devolved governance arrangementsunderpin Victorias terrorismresponse framework

Audit found:

Lack of clarityof roles and governance responsibilitieslead agency

(DPC), committees, networks, steering group and line agencies. Confus ion and gaps

some Depts unaware of requirements under the policy and legislation

varying progress in meeting policy targets and legislative responsibilities

We recommended DPC strengthen oversight & coordinationarrangements.

DPC questioned this stronger role: VAGO advocates a role that DPCshould perform. that is different to that which DPC believes it shouldundertake, highlighting need for greater clarity of governance arrangements.


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2. Outcomes and benefits

Policies, plans and proceduresare often in place This is positive from a controls and compliance

perspective

Audits found: Need to shift focus beyond plans, policies and procedures

to outcomes, implementation& delivering programbenefits

From compliance to performance This focus on outcomes will inform our 2009-10 audit

program


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Implementing Victoria Polices Code of Practicefor the Investigation of Family Violence (June 2009)

Victorian Police Code of Practice for the Investigation of FamilyViolencea policy designed to improve the effectiveness of policeresponse, and better meet community expectations

Audit found:

Victoria Police were complying with Coderequirements

Related activity (attendance incidents, intervention orders, criminalcharges, investigations and prosecutions) has increased

However - data does not showwhether this has improved outcomesfor victims of family violence.

We recommended VicPol focus on measuring outcomesof thispolicy, through measures such as appropriate service referrals,successful prosecutions and repeat offences.


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ra n ng an now e ge


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. ra n ng an now e gemanagement

Efficient and effective service delivery depends on thecapabilitiesof responsible public sector staff, particularlywhen

Delivering specialised services i.e. case management(Claims Management by the Victorian WorkCover Authority)

Managing major projects (Connecting Courts - the Integrated CourtsManagement System)

Supporting good governance (Governance and Fraud Control withinSelected Adult Education Agencies)

Audits found good public sector governance was sometimesundermined by ongoing skills shortagesand staff turnover

As such, audits proposed attention to trainingand

knowledge management


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5. Records management

Records and recordkeeping are fundamental to transparent,accountable government.

Cross-agency audit and good practice guide (July 2008) identified:

Lack of senior management support and promotion for records

management. Most agencies did not adopt a strategic approach to records

management.

Electronic records were not well managed.

Other audits have found deficits in record-keeping supportingdecision-makingin agencies e.g.

Key financial and human resources decisions (Governance and FraudControl within Selected Adult Education Agencies)

Decisions about the direction of major projects (Buy-back of the

Regional Intrastate Rail Network)


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A diti i th P bli I t t

Discussion?

More informationwww.audit.vic.gov.au
http://www.audit.vic.gov.au/http://www.audit.vic.gov.au/

2009_11_10_ipaa_presentation.ppt

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