The Victorian Auditor General’s Office needs to combat the perception that its audits aren’t always objective, a report says.

“There are views that VAGO has preconceived conclusions and focuses on evidence to support these,” the report tabled on Wednesday by the parliamentary public accounts and estimates committee says.

The report notes that VAGO has effective polices and processes for ensuring independence.

But while all parties acknowledged the independence of VAGO, perceptions about the objectivity of its performance audits were mixed, with some believing it ‘didn’t always come to an audit with an open mind’.

“Those interviewees felt that VAGO had formed a conclusion before they started and focused on finding evidence to support this,” the report says.

“There are .. perceptions that VAGO is not always objective in conducting performance audits.”

The report says VAGO could improve its internal guidance on the importance of objectivity and managing the risk and perceptions of non-objectivity.

“Given the persistence of perceptions and risks of non-objectivity, there is an opportunity for VAGO to include more references to managing objectivity and perceptions of objectivity in guidance materials to complement existing training,” it recommends.

“This might include guidance on the importance of addressing potential perceptions at the planning and early stages of the audit, as well as at later briefing and drafting stages.”

Data collection concerns

The report also identifies concerns about data collection by the audit office, with some external stakeholders and auditees concerned VAGO is collecting data beyond what’s needed and that data on interactive dashboards could be misused.

“There is an opportunity for VAGO to clarify and publish the principles and parameters for its data gathering and reporting,” the report says.

The report did identify some strengths, including VAGO’s contribution to and effective and efficient public service, as well as a focus on quality and improvement and staff wellbeing, and an inclusive culture.

On the downside it said there could more of a focus on efficiency and economy, and legacy systems needed to be updated to avoid inefficiencies. (VAGO’s efforts to expedite replacement of the old systems were however identified as a strength).

VAGO and the Victorian Auditor General must be subject to a performance audit every four years to ensure they are doing their job effectively, efficiently and in compliance with legislation.

The report was prepared for the committee by consultants Martin, Jenkins and Associates.