Structure and outsourcing model
The Northern Territory Auditor-General’s Office (NTAGO) is a government agency and the Auditor-General is its chief executive officer for the purposes of the Financial Management Act 1995 and the Public Sector Employment and Management Act 1993.
The Auditor-General is an independent statutory officer appointed under the Audit Act 1995 by the Administrator of the Northern Territory, on recommendation of the Legislative Assembly.
Hybrid funding model
Since July 2015, NTAGO has a hybrid funding model where fees paid to contracted auditors for audits of statutory entities and grant acquittals are on-charged to the audited entities.
Output appropriation is the only source of revenue to fund all remaining activities. These activities include audit work in government departments and agencies to support the audit of the Treasurer’s annual financial statement, performance management system audits, IT and compliance audits, preparing reports to the Legislative Assembly and all compliance and administration costs.
Outsourcing model
Since 1982, NTAGO has operated under an outsourcing model where all audits are managed internally but delivered using contracted auditors.
Audit related tasks are outsourced to local private sector audit firms to assist with the delivery of the Auditor-General’s mandate, with the Auditor-General and NTAGO staff involved in establishing the audit program, planning, preparation of guidelines for audit assignments, information support and managing the contracts with private sector audit firms.
Employees within the audit firms must be approved as authorised auditors prior to undertaking audit work on behalf of the Auditor‑General pursuant to section 17 of the Audit Act.
NTAGO’s audits are undertaken by:
- BDO
- Deloitte Australia
- KPMG
- Lowrys Accountants
- PKF
- TDH Chartered Accountants.
Private sector firms are contracted to the NTAGO on a 3-year contract.