Sensitive information - such as hospital and child protection records - is at risk because two Victorian government departments don't manage it properly.
An auditor-general's report found the Department of Education and Training and Department of Health and Human Services are not meeting legal requirements for record keeping.
The report, which was tabled in Victorian parliament on Wednesday, said the ineffective management "increases the risk of records being lost, inaccessible, inappropriately accessed, unlawfully altered or destroyed".
The audit checked the departments' compliance with 218 criteria of the Public Records Office of Victoria's standards.
DHHS fully complied with 130 criteria - the DET just 30.
The audit also found the DHHS had about 16,800 files recorded as 'missing' in its electronic management system.
Documents missing included, but were not limited to, files for hospitals, disability services, palliative care, youth justice, homeless services, protective services and child protection.
The Auditor-General's Report into Managing Public Sector Records makes nine recommendations to the Department of Premier and Cabinet, PROV, DHHS and DET, which have all been accepted.
