Inquiry into the Performance Audit of VAGO 2015-16

Questions and Answers

Questions and Answers

Clarification Two (13 January 2016)

The following points are made in respect of Conflicts of Interest:

1.  The Performance Auditor is appointed under section 19 of the Audit Act 1994. In this regard, the ‘person” appointed must comply with all the provisions in that section of the Act.  Section 19 (2A) is specific about who cannot be appointed as the Performance Auditor. References in this section are also made to sections 7F and 7G which must be read in conjunction with section 19 (2A).

2.  The Evaluation criteria set out in the RFT includes an assessment of “Conflict of interest” (refer page 6 of the RFT Part A). In relation to this evaluation, it is critical that a tenderer provide full details of any actual, perceived or potential conflicts of interest associated with their engagement in providing the required services. These details provide critical information for the evaluation and assessment of tenders by the PAEC Tender Evaluation Panel. It is important to include information about any distinctions between the nature of the services provided and/or separations in staffing or other relationships, etc. which may assist in mitigating any perceived conflict of interest issues.

3.  It is also important for the tenderer to include in the Offer, any mitigation strategies and processes which the tenderer has (or will put) in place to manage any actual or perceived conflict of interest in relation to the delivery of the required services.

Clarification One (12 January 2016)

Q1:  Regarding 'Not associated or involved during the course of the performance audit an audit examination or consultancy in a department or agency in respect of which the Auditor-General has a statutory responsibility', indicate whether this requirement applies to the specific members of the team or also to their broader practices, where members of the broader practice not included in the bid to PAEC are undertaking a consultancy for a department of agency in respect of which the Auditor-General has a statutory responsibility?

A1:  This requirement applies to the firm broadly.

Q2:  Indicate whether a consultancy is defined as any sort of contractual service or is more narrowly defined and, if the latter, the extent of the definition?

A2:  A consultancy is defined as: any professional advice, expertise or services provided to a department or agency for which the Auditor-General has a statutory responsibility.

Q3:  Indicate the effect of this requirement effectively excludes performance evaluators unless they refrain from undertaking any work for departments or agencies in respect of which the Auditor-General has a statutory responsibility for the period of the Performance Audit?

A3:  As to whether this requirement effectively excludes performance evaluators unless they refrain from undertaking any work for departments/agencies for which the Auditor-General has a statutory responsibility for the period of the Performance Audit:

  • the requirement refers to an audit examination or consultancy;
  • applies to the period of the performance audit (expected to be approximately 4 months);
  • page 16 of Part B - Conditions of Participation of the RFT states that Invitees (tenderers) are required to disclose any conflicts of interest;
  • page 70 of Part D - The Offer requires the tenderer to provide details of work being undertaken which may give rise to a conflict of interest but also to state strategies in place to mitigate against a conflict arising.

Q4: Indicate whether each and every team member must be a member of 'a leading Australian, Australasian or International organisation in the fields of auditing and/or consulting (with an emphasis on performance evaluation)?

A4:  Page 5 of the RFT under Evaluation Criteria states: Membership of a leading Australian, Australasian or International organisation in the fields of auditing and/or consulting with an emphasis on performance evaluation. Tenders should state in their Offer details of the professional membership of all staff proposed to provide the required services (refer page 64 of Part D - The Offer).

Q5:  Membership of the Australasian Evaluation Society meets the required membership threshold?

A5:  The Australasian Evaluation Society would be considered as an acceptable professional membership/association.

Q6:  The inclusion in the project team of former members of Parliament or current academics do not pose a conflict of interest?

A6:  The RFT does not contain any specific exclusions in relation to the composition of teams involved in providing the required services. It is a requirement that a Curriculum Vitae of all staff being proposed to provide the required services are included in the offer.

Report

Final Report

The Committee tabled its report on the Recommendation on the Appointment of a Person to Conduct the Performance Audit of the Auditor-General and the Victorian Auditor-General's Office in Parliament on Thursday 9 June 2016.

The report can be found pdfhere1.07 MB.

PAEC 58 06 Performance Audit Front Cover 1

 

 

Request for Tender

 

Performance Auditor to conduct an audit of the Victorian Auditor-General and the Victorian Auditor-General’s Office under Section 19 of the Audit Act 1994 (Vic)

The Public Accounts and Estimates Committee seeks expressions of interest from suitably qualified, skilled and experienced persons to conduct a performance audit of the Victorian Auditor-General and the Victorian Auditor-General’s Office (VAGO). The opportunity to tender only becomes available every three years under the Audit Act 1994 (Vic). The purpose of the audit is to determine if the Auditor-General and VAGO are achieving their objectives effectively and doing so economically and efficiently and in compliance with the Audit Act and relevant auditing standards.

Prospective tenderers should be able to demonstrate as minimum requirements, the following criteria:

  • Must be a member of a leading Australian, Australasian or international organisation in the fields of auditing and/or consulting (with an emphasis on performance evaluation);
  • An appreciation of the role of the Auditor-General as an independent officer of the Parliament;

  • Knowledge and experience in the application of large scale performance audits/reviews of organisations, including public sector organisations; and

  • No actual or perceived conflicts of interest in relation to performing this audit work as specified under S19(2A) of the Audit Act 1994.

The skills and experience requirements for prospective tenderers are detailed in the Request for Tender document, which can be found here:

Request for Tender - pdfcomplete document(675.12 KB)

Request for Tender - Part D - docxThe Offer (to be completed)(254.18 KB)

The closing date for tenders is 2:00pm AEDST, Friday 29 January 2016. Further information for lodgement is contained in the Request for Tender.

Tenderers are requested to provide electronic tenders only via tenderbox@parliament.vic.gov.au.

Erratum:

Page 12 of the 'Invitation to Supply' documentation under the heading Proposed Timelines and Key Deliverables contains two incorrect dates.

The paragraph should read:

'The Committee expects the Performance Auditor to complete a preliminary report with draft findings for consultation with the Auditor-General and the Committee by 1 July 2016 and a final report transmitted to the Parliament of Victoria, as required by the Audit Act 1994, by 1 August 2016.'


Danny Pearson MP, Chair
Public Accounts and Estimates Committee
Parliament of Victoria
Melbourne, Australia