Queensland Auditor-General, Rachel Vagg, has today tabled the Supporting industry development report in Parliament, which makes eight recommendations to strengthen grants programs.
In a statement, the Audit Office said Governments use industry development programs to grow particular sectors, attract private investment, and create jobs.
“When designed and delivered well, these programs can generate strong economic and social benefits. But if not managed well, they can carry risks, such as suppressing competition or not achieving value for money,” the Office stated.
This report examines the effectiveness and probity of the Industry Partnership Program administered by the Department of State Development, Infrastructure and Planning in supporting industry development in Queensland.
“We focused on the effectiveness and probity of the grant component and examined how the department designed, administered, and evaluated the program. We also assessed how the department manages engagement with the private sector while maintaining financial accountability, and how it monitors and evaluates outcomes, compliance, and overall effectiveness.”
The Office found the program was well-designed and attracted strong industry interest.
“It had clear objectives, strong governance, and sound probity controls. However, risk, assessment, and compliance processes could be strengthened, and grant processes should better reflect program intent and ensure public accountability. We also found monitoring, evaluation, and reporting of outcomes could be improved.”
“We make eight recommendations, mostly directed to the department around ensuring clearer and more consistent grant processes, stronger risk assessments and enhanced evaluation and measurement. Two of the recommendations apply to all entities involved in administering government grant programs.”
While the program was found to have some positive initial outcomes, the Audit Office found the Department could have tracked and
reported results better. It found that:
- The department collected data on jobs created, private investment, and supply chain spending. It did not set program-level targets for these outcomes, making it difficult to measure progress or success;
- It did not develop a monitoring and evaluation framework at the outset and relied on self-reported, unverified information from grantees for some outcomes. As a result, broader impacts, such as supply chain and industry-wide benefits, were hard to assess;
- The department did not conduct economic modelling to assess the program’s overall impact.
The Office also found that public reporting on Government support for private businesses needs to increase;
“Funding agreements included confidentiality clauses to protect business information. While this encouraged participation, it also reduced transparency by limiting what could be reported publicly,” it stated.
Read the report: www.qao.qld.gov.au/reports-resources/reports-parliament/supporting-industry-development including a 2-page summary: report summary.
