Wednesday, 1 November 2023

 Lauren KATHAGE (Yan Yean) (10:22): I rise to speak on the Appointment of a Person to Conduct the Performance Audit of the Auditor-General and Victorian Auditor-General’s Office report, tabled in October 2023. As a member of the Public Accounts and Estimate Committee (PAEC) I was very happy to participate in this process. The Auditor-General and the Victorian Auditor-General’s Office (VAGO) have an esteemed reputation in Victoria, and it is important that we maintain the public’s confidence in the Victorian Auditor-General’s Office. One of the ways we do that is by ensuring that at least every four years a performance audit is conducted so that we can be reassured that the information and guidance that is coming from that office is robust and appropriate.

PAEC has made a recommendation to both houses on the appointment of a suitably qualified person to undertake that performance audit. What they are really looking at in this audit is, as I said, most importantly maintaining trust through being reassured of the independence and objectivity of that office. They deal with important and sensitive topics, so we need to be sure that we can have full faith there, and we certainly do. It is also important that we assess the ability of the office to work collaboratively with Victorian agencies and stakeholders. If the office is to obtain all of the necessary and relevant information to allow them to conduct their audits, they need to engage respectfully and appropriately with other agencies to allow them to access that information. At the same time, the performance audit will ensure that those relationships are appropriate and that they are finding that right balance between obtaining information and maintaining impartiality.

We want to make sure that the audits are produced using the latest methodologies and tools available to auditors. So as part of this performance audit they will be reviewing what tools and standards they use in the preparation of their reports. We want quality reports and quality recommendations to provide robust options for future actions or future steps. That is why it is really important that we can feel confident that when they are assessing a particular topic they are using the most cutting-edge approaches to that. That helps with improving public confidence in the work of the office as well.

It is also important to note that, as with most audits, this performance audit will take a sample of completed works and in reviewing those completed works will look to see that there is sufficient evidence to adequately support the findings that are included in the reports. In that sample of reports they will also be looking to ensure that they are balanced and that there are no material or unjustified omissions of adverse findings, which is very important. We also need to make sure through this performance audit that the recommendations from VAGO are clear, concise and actionable. We need to be confident that we can pick up a report and make decisions around implementing clear recommendations. It needs to be very straightforward in that sense. Of course, as with all parts of the wider public sector, we need to ensure that the processes are devoid of fear, favour and affection.

Because they are performed at least every four years, it means that the performance audits can make assessments about whether continuous improvement has been built into the processes and systems of VAGO and that they are accountable for ensuring continued improvement within the office and within the management of that office. So as far as the management of that office goes, we need to make sure that staff are engaged and that the leadership focuses on wellbeing. We expect the final performance audit report to be tabled in Parliament in May 2024.