Powers needed to tackle Vic prison drugs

Victoria's financial watchdog wants stronger auditing powers after he was unable to review two drug-ridden prisons.

Auditor-General John Doyle says "out of date" laws have hampered his ability to scrutinise non-government organisations.

One audit did not review two of the prisons with the highest risk of drug issues because they could not compel the private prison to grant them access to their documents, a report tabled in parliament on Wednesday said.

Mr Doyle and three former auditors-general publicly called for more powers to "follow-the-dollar" in a pre-election open letter.

Mr Doyle repeated that call in his 2015-2016 Annual Plan, saying he needs to scrutinise commercial and non-profit organisations that carry out services for the government.

"For more than six years now this has been the message supported by the current auditor-general and his three immediate predecessors," the report said.

Mr Doyle said he had been assured that in 2015 the state government would fulfil its promise in the lead up to the 2014 election to provide the auditor-general with follow-the-dollar powers.

An investigation into the termination of the East West Link project is among many other proposed audits for the coming financial year.

Bullying within the health sector and the effectiveness of parole will also be audited.