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This translates into approximately $1 650 per job. The RGF aimed to drive economic development, improve career opportunities, create jobs, support sustainability and increase the capacity of regional communities. RDV advised that the list of towns for the EFR program was announced by the former government in November 2010 as an election commitment, and that it did not provide any input into the list. The source for this data was not identified. RGF recorded all 105 jobs as expected jobs. to audit nor the evidentiary standards required to reach an audit conclusion. There is evidence of both internal and external stakeholder input in RGF planning and design. The RGF also had four objectives to accomplish its two goals: The RGF was divided into strategic and local initiatives. The company had 424 employees. “This funding will also help Swan Hill Rural City Council construct a new regional art gallery and interpretive centre and Pioneer Settlement entry. Elaine. This audit focused on the Regional Growth Fund (RGF), which provided over $570 million in grants to local councils, business and other departments and agencies over the past four years. information provided by To address this objective, the audit examined whether RDV: The audit considered recommendations of the 2012 PVGF audit and examined the achievement of regional development objectives as envisioned in the RGF. A more organised structure was introduced. “Securing great community projects such as these is a huge part of what makes me want to begin a career in politics. However, reporting to the minister was restricted to project details such as the number and type of projects and level of funding. The report also highlights worrying shortcomings with the Coalition’s Energy for the Regions program. the $50 million Stronger Regional Communities Plan. The initial RGF allocation of $500 million was supplemented by $52 million worth of savings and uncommitted funds from RIDF, an additional $11 million for the Geelong Advancement Fund, as well as interest earned on the fund annually. In the assessment decisions RDV has documented, there are various rationales for deviating from the established benchmark. These are also the expected numbers of jobs to be created and not a confirmed number of actual jobs achieved. However, it is unclear why RDV could not have assigned equal weights to all criteria to confirm this understanding to potential applicants. Figure 2F The monitoring of other outcomes is not effectively undertaken. It will continue to be chaired by the CEO of RDV and will have representatives from the Department of Premier of Cabinet, the Department of Treasury and Finance, and the Department of Economic Development, Jobs, Transport & Resources as well as representatives from agencies and departmental divisions relevant to the applications being heard. However, limited performance measures were developed at the start of the RGF to monitor the stated outcomes. applied to the planning and implementation of the Regional Jobs and However, given RJIF's recent implementation, it is too early to determine the effectiveness of these improvements. As a result, it was difficult to ascertain whether the best possible projects were funded under the RGF. Assistant Minister for Regional Development and Territories and Federal Member for Farrer Sussan Ley said the funding is positive news for the region following a highly competitive assessment process that saw more than 300 applications being received from state, territory and local governments, businesses and not-for-profit organisations. Figure 1C Nearly all applications received for the RGF were ultimately approved for funding, as shown in Figure 2C. This is discussed further in Section 2.6. However, lack of documentation of the pre-application process means RDV cannot demonstrate this for the major infrastructure component. potentially misleading and not an accurate reflection of the achievements of To address this, RDV planned a number of actions, including: RDV did not carry out the planned interim evaluations. RDV believes this is a highly transparent model that is informed by shared information within a regional context and in which value for money is assessed openly by regional leaders. There were also some weaknesses in governance, with independent assessment committees seemingly 'rubber stamping' projects for approval. GEMS records 'live data' for certain key statistics. RDV accepted a finding of the April 2015 internal review that highlighted the lack of performance reporting for RGF. The panel concluded that the final bid by the successful bidder represented achievement of the EFR Program objectives and value for money to the state. RDV invested significant resources and made efforts to have an evaluation of the RGF, however, it failed to do so. I also examined whether there were robust governance and oversight mechanisms in place under the RGF, whether intended outcomes were being achieved and whether the state is achieving value for its investments. provided to the Department of Economic Development, Jobs, Transport & Regional and rural communities face a range of challenges including declining population in certain areas, fewer economic opportunities, issues with the development and maintenance of infrastructure, adverse environmental changes and the need for increased community participation. RGF planned to focus on activities and projects that: RDV has publically reported on only two major outcomes of the RGF: Better practice frameworks for estimating jobs recommend setting targets, estimating net effects and regional impacts, and include making an overall assessment of how many jobs were created or retained. RDV incorporated some better practice elements of grants management in the design of the RGF, including stakeholder engagement, grants processes, and governance and accountability. reporting, which focused primarily on jobs and investment leveraged, is You’ll find Regional Development Victoria (RDV) Offices at 18 sites throughout regional Victoria. A number of place-based programs were also administered through the EIP. Two towns previously identified as meeting the value for money threshold were not connected. The published assessment criteria addressed the objectives of the RGF and provided applicants with appropriate information to determine if their projects aligned with the relevant RGF funding criteria. The Victorian Auditor-General’s Office acknowledges Australian Aboriginal peoples as the traditional custodians of the land throughout The new fund has dealt with many of the concerns of the Auditor-General in its design and development. In another case RDV has advised that although the benchmark was not adhered to, the minister was in the process of revising the guidelines for the benchmarks. The RGF focused on creating jobs and leveraging investments in regional Victoria. RDV further advised that: However, in advice to the minister, RDV has included all jobs expected to be created and retained, and construction jobs related to the total project investment as part of an update on the RGF overview reporting. While the department has acted to address VAGO's previous recommendations, actions have not adequately addressed the issues. The annual report presented case studies but did not describe its performance against targets. RDV advised that it held detailed discussions with 'potential funding applicants' prior to providing them with application forms for their formal application. Despite the Coalition’s promise to regional Victorians, the report confirms there was never $1 billion within the fund. The RGF received $70 million in addition to its initial $500 million allocation as shown in Figure 1D. The complete project cost might be higher as can be seen in Figure 3D. RDV paid approximately $322 000 of the $450 000 to the contractor as the final settlement. Therefore, the actual cost per connection for each town will not be known for a number of years. It was divided into five programs with different objectives, guidelines and administrative processes. RDV did not document any minutes of the Monitoring and Evaluation Working Group prior to December 2014. RDV is a statutory body established in 2002 and is part of the Department of Economic Development, Jobs, Transport & Resources. Approximately a quarter of Victorians live in regional areas where the population is projected to grow from 1.48 million to 2.91 million by 2036. The change of government meant the NGEP was not pursued further and was replaced by the EFR program. The projections are based on economic modelling provided by the applicant and will be evaluated once the project has been completed. At the outset RDV did not have a robust evaluation framework in place for the RGF. Prior to December 2014 the Department of Economic Development, Jobs, Transport & Resources was the Department of State Development and Business Innovation, and prior to December 2013 it was the Department of Planning and Community Development.

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