The Queensland Audit Office (QAO) has examined whether Building Queensland (BQ) effectively and efficiently led and assisted government agencies to deliver robust business cases for major infrastructure projects, and whether it provided agencies with expert advice.
The QAO conducted interviews, reviewed key documents, and selected five business cases for detailed review.
The findings of the audit were tabled in parliament on 5 May 2020 by the Auditor-General, Brendan Worrall.
Developing business cases
Queensland’s infrastructure investment is significant – with a program of around $49.5 billion planned over the next four years.
Recognising the need for a fundamental shift in how infrastructure was planned and delivered, the Queensland Government established BQ in 2015. Since then, Building Queensland has developed best practice frameworks and worked with government agencies to improve the quality of business cases in Queensland.
As a result, the State Government now receives more robust analysis to support investment decisions.
The report found that BQ’s frameworks are ‘generally sound’, and the business cases reviewed ‘generally aligned with its frameworks’. However, BQ does not always effectively apply its frameworks, and some business cases could be more robust.
Four of the cases reviewed assessed options using qualitative analysis only, without the required quantitative analysis. It was deemed that social infrastructure projects, in particular, need better-developed processes for quantifying benefits. Three of the cases reviewed were endorsed on benefits that could not be monetised.
The report notes that BQ’s assurance activities are well planned but not always fully implemented. Some assurance activities were informal, and others were not conducted at the optimal time, limiting their assurance.
“In some cases, issues raised by peer reviewers remained unresolved and peer review logs were not always fully maintained,” the report said.
The timing of infrastructure investment announcements affects the value of business cases. Early announcements create risk and lead to undue pressure to progress. There are currently no guidelines for scenarios when the State Government announces its preferred option before the business case is complete.
Providing infrastructure advice
BQ provides infrastructure advice about the business cases it develops and the projects that agencies propose. However, the report states that BQ has not necessarily fulfilled its legislative role to provide expert advice about infrastructure to the State Government.
“BQ’s pipeline report overlaps with the State Infrastructure Plan. BQ does not identify proposals through research and does not publish the criteria used to identify priorities,” the report said.
Operating efficiently and effectively
Furthermore, the report deems that BQ effectively delivers and/or facilitates robust business cases, but could be more efficient.
“BQ’s significant use of external consultants limits its ability to develop its internal capability by ensuring skills and knowledge are transferred from one assessment to the next,” it said.
Unlike agencies in other jurisdictions, BQ has two roles – developing business cases and providing assurance. This affects how BQ’s stakeholders perceive its independence.
Central government agencies value its independent assurance role, but agencies with extensive business case experience question its role in leading business cases.
Audit recommendations
The QAO provides six recommendations to improve the effectiveness and efficiency of BQ, including:
- Improving application of Business Queensland’s framework;
- Improving transparency of criteria used to identify new proposals;
- Reviewing the overlap between Business Queensland’s infrastructure pipeline and the State Infrastructure Plan;
- Clarifying Business Queensland’s dual role in leading business cases and providing project assurance.
For more information
For more information on the issues, opportunities and recommendations highlighted, please view the full report.