Report 13

Royalties for Regions – are benefits being realised?

Agency Response

Department of Regional Development

The Department of Regional Development (DRD) welcomes the findings and recommendations of the Auditor General’s report and acknowledges the work undertaken by his staff. The findings and recommendations detailed are pertinent to DRD’s continuous improvement process for administering the Royalties for Regions program. As acknowledged by the Auditor General, in just over five years, Royalties for Regions has funded over 3 500 projects across regional Western Australia.

These projects are delivering key infrastructure and services as intended by the Royalties for Regions. Given the significant number of projects and to avoid duplication, DRD requires funding recipients to measure outcomes at the project level. To properly measure the outcomes of Royalties for Regions at the program level, DRD undertakes significant evaluations. Evaluations are already being undertaken in key areas of health, community infrastructure, housing, education and support for aboriginal communities.

In regard to this current report, DRD has already responded to the Auditor General’s recommendations and has since instigated the auditing of annual performance measures reported by funding recipients. This will improve the quality of reported outcome measures and support the achievement of intended outcomes.

However, the measurement of long-term regional outcomes will take time to be ascertained and evaluated. DRD has already put in place an Evaluation Framework and a Governance Model to support this process, which was previously endorsed in an audit by the Auditor General. The Evaluation Framework has been nationally recognized and is currently being considered for adoption by other government agencies including the Department of Treasury for use across all government agency expenditure programs.

The Royalties for Regions program is unique in that it is the only State Government program that ensures projects/programs are approved by State Cabinet twice, once through the annual budget process and also individually via a formal submission and business case. No other area of government follows this rigorous assessment and approval process.

DRD publishes annually on its website (www.drd.wa.gov.au) a Royalties for Regions Progress Report that provides extensive examples, supported by on-the-ground case studies and testimonials, of the positive impacts that the Royalties for Regions program is having on Regional WA.

Page last updated: June 25, 2014

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