This audit examined if Victorian government departments use suitable controls to prevent, detect and investigate fraud and corruption when procuring goods and services.

The Victorian Auditor-General's Office assessed all 10 Victorian government departments during the planning stage of the audit. The Office then selected 3 departments for an in-depth analysis – the Department of Education, the Department of Justice and Community Safety and the Department of Jobs, Skills, Industry and Regions.

The audit found that departments have further work to do to effectively manage the risk of fraud and corruption when procuring goods and services. While all departments have fraud and corruption controls, they are at different stages in making sure their controls work as intended. Some controls could be better designed.

Key recommendations

• Review and update fraud and corruption policies and plans.
• Review and update procurement, conflict of interest and vendor master files policies and procedures.
• Set up a data analytics program to proactively identify fraud and corruption risks.