Victoria's prison system: Community protection and prisoner welfare

3.2 The decision by the Government during the 1990s to provide for involvement by the private sector in the construction and ownership of 3 prisons and the delivery of prison services was a further factor taken into account in determining that a performance audit be conducted on behalf of the Parliament and community.

3.3 The Auditor-General's Reports on the Government's Annual Financial Statement covering 1994-95 and 1995-96 summarised the contractual arrangements entered into with the 3 private sector service providers and included comment on the transfer of risks from the Government to the private sector. The carrying out of a performance audit provided an opportunity to move beyond these areas and to focus on matters of efficiency and effectiveness relating to the operation of both private and government-owned prisons.

3.4 Finally, the conduct of a performance audit dealing with the State's prison system was endorsed by the Parliament's Public Accounts and Estimates Committee following consultation with the Committee by the Auditor-General on annual performance audit planning, as required by the Audit Act 1994.

"To protect the community and to encourage offenders to adopt law-abiding lifestyles by:

• containing and supervising offenders in a safe, secure, humane and just manner;
• providing opportunities for rehabilitation; and
• facilitating reparation to the community".

3.6 In pursuit of this overall objective, audit directed emphasis towards the management framework established for the prison system within the Department of Justice in terms of the:

• adequacy of the tender evaluation and selection processes in respect of the construction and management of the 3 private prisons;
• appropriateness of the Department's standards, contractual arrangements and service agreements in supporting achievement of the Government's correctional objectives;
• soundness of planning and monitoring functions undertaken by the Office of the Correctional Services Commissioner;
• extent to which the Corrections Contracts Branch has ensured, through its contract administration work, that both public and private sector service providers have met their obligations as defined in contracts and service agreements; and
• suitability of the relevant organisational relationships within the Department.

3.7 The above audit emphasis was complemented by an examination of key aspects of service delivery in a number of prisons.

3.8 The audit also sought to give visibility and recognition to initiatives taken by the Department of Justice to progressively achieve greater effectiveness and improved efficiency in the management of prisons within the State.

• documentation relating to the Department's tender evaluation and selection processes for each of the 3 private prisons;
• all relevant legislation including the Corrections Act 1986, which is the principal statute governing prisons;
• the key functions undertaken by the Correctional Services Commissioner and the Corrections Contracts Branch within the Department;
• policy and management standards for prisons issued by the Commissioner;
• prison operational manuals; and
• important elements of service delivery in selected prisons.

3.10 The prisons visited during the audit for the purpose of examining service delivery were:

• Metropolitan Women's Correctional Centre;
• Fulham Correctional Centre;
• Port Phillip Prison;
• H.M. Prison Dhurringile;
• H.M. Prison Barwon; and
• H.M. Prison Loddon.

3.11 The audit examination at each prison encompassed an assessment of prison performance in the following areas:

• security programs in prisons (including the adequacy of drug detection programs and the application of technology);
• food services in prisons;
• healthcare services for prisoners;
• accommodation and amenities;
• procedures in place covering visits, telephones and mail;
• the management of plans established for individual prisoners;
• education, training and employment programs for prisoners;
• pre-release programs; and
• the quality of training and development programs for custodial staff.

3.12 The audit was performed in accordance with Australian Auditing Standards applicable to performance audits and, accordingly, included such tests and other procedures necessary in the circumstances.

Deaths in custody

3.13 On 31 August 1998, the Minister appointed the Victorian Correctional Services Task Force to review suicides and self-harm in Victorian prisons. The Task Force submitted its report to the Minister on 19 November 1998. Notwithstanding earlier requests to the Department of Justice, a copy of the Task Force's complete report was not made available to audit until April 1999. Some of the criticisms in the report relating to prison management and the delivery of particular prison services mirrored audit findings in that area and reference to the views of the Task Force has, where appropriate, been incorporated within Parts 6 and 8 of this Report.

3.14 No references have been included in this Report on the findings of the Task Force covering case studies of deaths in custody examined during its review. This matter is subject to coronial inquiries and was specifically excluded from the scope of the audit. The Minister tabled an edited version of the report of the Task Force in Parliament on 11 May 1999.

3.16 As a consequence of the legislative changes, the Auditor-General is required to appoint "authorised persons", following a process of contestability, to assist in the carrying out of both financial and performance audits. A new government statutory body, Audit Victoria, initially staffed by personnel transferred from the Victorian Auditor-General's Office and operating under a Board of Directors appointed by the Government, was established within the legislation to participate in this contestability process along with other private sector service providers.

3.17 While external contractors must now be engaged by the Auditor-General to conduct field work, the Auditor-General remains solely responsible to the Parliament for the quality of the final audit product.

3.18 The contestability regime for the Auditor-General's audit responsibilities is to be progressively implemented. For performance audits in progress, the amended legislation provided the Auditor-General with the option of utilising the Victorian Auditor-General's Office to continue to conduct the audits or assigning remaining tasks to Audit Victoria. In this regard, the Auditor-General determined to appoint Audit Victoria to complete the remaining field tasks for this particular audit and prepare an audit report which would be considered for presentation to the Parliament.

3.19 Audit Victoria's formal involvement in the audit commenced on 1 July 1998 following the transfer to that organisation of members of the audit team who were previously employed within the Victorian Auditor-General's Office.

• human resource management practices of prison service providers, including training and development programs for custodial staff - by Mr Simon Brown-Greaves of Occupational Services Australia;
• the provision of food services - by Mr P Webster of William Angliss Institute of TAFE;
• healthcare services for prisoners - by Mr S Kerr of Stephen Kerr and Associates;
• security arrangements and procedures - by Mr A Zalewski of Vocation Australia Pty Ltd; and
• bidding and selection process for the 3 private prisons - by Mr R Macris, consultant.

3.21 The audit team from Audit Victoria and representatives of the Victorian Auditor-General's Office acknowledge the support and assistance provided by the Department of Justice during the course of the audit. Particular appreciation is expressed for the co-operation extended by the current Departmental Secretary, the Correctional Services Commissioner, the previous Acting Commissioner, staff of the Commissioner's Office, the Chief Executive of CORE and staff of CORE, and members of the Corrections Contracts Branch. The Victorian Auditor-General's Office wishes to acknowledge the assistance extended by the above departmental personnel to the preparation of material for this Report.

Other assistance

3.22 The Victorian Auditor-General's Office also wishes to express its appreciation for the assistance provided to Audit Victoria by the following organisations and individuals:

• the operators of the 3 private prisons, namely, Australasian Correctional Management Pty Ltd, Corrections Corporation of Australia Pty Ltd and Group 4 Correction Services Pty Ltd;
• Victorian Association for the Care and Resettlement of Offenders;
• Jesuit Social Services;
• Federation of Community Legal Centres;
• Victorian Law Institute (Criminal Law Section);
• Ombudsman of Victoria;
• Department of Human Services;
• Office of the Public Advocate;
• Victoria Police;
• The Honourable Mr Justice Vincent (in his capacity as Chairperson of the Adult Parole Board); and
• Mr W Jonah (Chairman of the Community Advisory Committee).

3.23 The Office is also grateful for the assistance provided by several individual members of the community who liaised with the audit team on issues relevant to the subject area.