Implementation of operational transition plan is an issue that has not previously been identified to date in the literature review. The audit undertaken by the Victorian Auditor-General's Office in 2007 (Victorian Auditor-General 2007a) identified a number of issues with regard to the Southern Cross Station Authority's performance management system (see Table 5.1, below). Although (in context of this case study project) the matter is essentially presented as a performance management issue, there are also significant risk management implications. These relate to incomplete asset management plans (e.g. that could give rise to wrong-doing, fraud or theft of assets), reliance upon inaccurate operational data as well as difficulties with KPI measurement and trend reporting (e.g. all potentially leading to poor decision-making and achievement of VfM outcomes).
In responding to the audit team's recommendation that the Southern Cross Station Authority should address these inadequacies, the Authority's Chief Executive Officer, Tony Canavan, agreed with the finding, stating that the partners were committed to working together to improve operational performance (Victorian Auditor-General 2007a: p.43). Commenting upon the management of Southern Cross Station Authority's performance since operational handover to consortia, Mr Canavan remarked (Victorian Auditor-General 2007a: p.43):
"It should be appreciated that the operating phase of the PPP commenced just over one year ago and for a significant portion of this period was in a transition phase…this settling-in period has been invaluable in establishing the groundwork for the future and enabling the development of an effective working relationship between the [Southern Cross Station Authority] and the concessionaire".