Evaluating major infrastructure projects

Tabled Report 14: 2019–20

Tabled date

2020-05-05

Report year

2019-20

Economic development Infrastructure Whole of government

Entities audited

Not identified in the published HTML audit scope.

Recommendations

1. QAO's text Addressed to: Building Queensland

   improves the design and application of its frameworks for developing business cases and providing assurance activities on business cases (Chapter 4)

   This should include:

   • reviewing and refining its assurance framework to better reflect its current practices (that is, ensuring there is clearer alignment between Building Queensland’s assurance framework and its actual assurance activities)
   • improving how it manages any risks to its independence when it both leads the development of a business case and performs project assurance activities
   • improving the process for quantifying and monetising benefits for social infrastructure projects that have less-developed datasets available
   • improving timing and conduct of its assurance activities on business cases, to enable comprehensive reviews and timely resolution of issues before finalising a business case
   • providing clear protocols for agencies to follow during the early stages of developing an infrastructure proposal to ensure announcements occur once sufficient assessment has been undertaken to determine the project is suitable and sufficiently viable
   • establishing and applying internal guidelines for developing business cases for investment proposals where the government has already decided to deliver a project.

2. QAO's text Addressed to: Building Queensland

   publishes information in its infrastructure pipeline reports on how it uses its assessment criteria to identify infrastructure proposals that it considers to be a priority for the state (Chapter 5)

3. QAO's text Addressed to: Building Queensland

   develops and implements a strategy to improve its internal infrastructure knowledge and capability, so it can more effectively undertake its functions as required under the Building Queensland Act 2015 (BQ Act) (Chapter 6)

   The strategy should include plans for developing, retaining, and using internal capacity to undertake its core responsibilities, and optimising its mix of internal and external resources.

4. QAO's text Addressed to: Building Queensland

   performs cost-efficiency analysis of its business case development activities to enable efficiency improvements (Chapter 6)

   This should include:

   • monitoring costs and time of internal resources used in developing business cases
   • improving the process for recording costs of external consultants used in developing business cases to ensure all costs are appropriately categorised.

5. QAO's text Addressed to: Building Queensland (BQ) and the Department of State Development, Manufacturing, Infrastructure and Planning (DSDMIP) work together to

   assess the merits of developing both BQ’s infrastructure pipeline and DSDMIP’s State Infrastructure Plan (Chapter 5)

6. QAO's text Addressed to: Building Queensland (BQ) and the Department of State Development, Manufacturing, Infrastructure and Planning (DSDMIP) work together to

   review and clarify BQ’s role and obligations in fulfilling what is required under the BQ Act to enable it to more effectively manage its functions (Chapter 6)

   This should include reviewing the BQ Act and, where necessary, recommending to the Minister for State Development, Manufacturing, Infrastructure and Planning to amend the BQ Act and clarify its role of leading and developing business cases to ensure:

   • there is clearer alignment between BQ’s current practices and the obligations stated in the BQ Act (that is, BQ considers its role in developing business cases based on project risks and agencies’ capability)
   • there is clarity on the distinction between BQ’s role in leading business cases and providing project assurance.

Authoritative report — Queensland Audit Office

Report PDF on QAO