A report by the Victorian Auditor-General has criticised the University of Melbourne for failing to establish that its investment in a $100 million life sciences computing facility represents the most effective use of a $50 million state government grant.


In its review of the Victorian Life Sciences Computation Initiative (VLSCI), the audit assessed whether VLSCI was effectively planned, procured and managed. It found that, "notwithstanding the positive early signs, the absence of sufficient needs and options analysis and sound procurement processes means the University cannot demonstrate that the initiative represents the most effective use of the $50 million provided by the state government."


However, it concluded, the Department of Business and Innovation’s use of a grant agreement to establish governance, monitoring and reporting frameworks was generally sound.


To improve the management of future projects,VAGO recommended that:

  • the Department of Business and Innovation provide targeted guidance to agencies on how to identify and support proposals for government funding
  • before agencies receive significant public sector funding for projects, they should be required to demonstrate their proposals are adequately supported and include option and cost benefit analysis, and agree to comply with all relevant government policies and procedures.

The Auditor-General’s report is available here.