Victoria's roads, railways, schools, prisons and hospitals are part of the $265 billion of non-financial assets that government departments and agencies manage. Managing these assets well is important because they support the delivery of services that affect all Victorians.
Despite this, many of the VAGO audits show that asset management is often neglected or poorly done, with more focus on building or buying new assets than on managing them strategically to get the best value from them.
The Department of Treasury and Finance (DTF) released the Asset Management Accountability Framework (the AMAF) in 2016, which aimed to address these issues by increasing agencies’ accountability for how they manage assets and improve their practices. From 2017–18, agencies need to attest to their compliance with the AMAF in their annual reports.
In this audit, VAGO examined the reliability of agencies’ attestations of compliance with the AMAF. The audit included all seven departments in place at the time of the 2018 attestation.
VAGO made 11 recommendations. Four were directed to all departments and one to the audit committees of all departments. One was directed to the Department of Environment, Land, Water and Planning and the Department of Justice and Community Safety, and we made five recommendations to DTF.