Northern Territory Auditor‑General's Office

Auditing for Parliament

 

 

Frameworks

The frameworks may provide useful information and criteria for your Agency to facilitate improved governance arrangements and conduct self‑assessments.  These include performance management system audits, reviews and other tasks conducted by the Auditor‑General under the Audit Act 1995.

Please note the information provided does not constitute an audit program.  No assurance is provided that self‑assessment by an entity against the criteria will result in reliance being able to be placed by any user on the design, implementation or effectiveness of the entity's internal control/s.

 

 

Contract Management

The legislative basis is found in the Financial Management Act 1995, specifically section 13(2)(b) requirements that the Accountable Officer must ensure that "procedures in the Agency are such as will at all times afford a proper internal control".

Some broad criteria which may be useful:

• Contract/agreement management – How does the Agency know what contract/agreement is in place?
• Performance/Key Performance Indicator (KPI) reporting – Does the Agency have a system in place for actively and comprehensively monitoring actual performance of the contract/agreement that includes management reporting on KPIs?
• Governance/oversight groups – What governance arrangements are in place to manage the contract/agreement?
• Document management and record keeping – What systems and processes are established and used throughout the life of the contract/agreement/project for document management?

Agencies should refer to internal policies and processesand across government guidance such as the Guide to Contract Management released by the Department of Trade, Business and Innovation.

 

 

Evaluation of Internal Audit Framework

The legislative basis is found in the Financial Management Act 1995, specifically section 13(2)(b) requirements that the Accountable Officer must ensure that "procedures in the Agency are such as will at all times afford a proper internal control" and section 15.

Specific Treasurer's Directions, which must be complied with by agencies, include:

• Part 3, Section 2 Internal Audit; and
• Part 3, Section 3 Audit Committees.

Some broad criteria which may be useful can be found in this diagram    

References that may be useful:

• Institute of Internal Auditors

 

 

Evaluation of Performance Management Systems

The legislative basis is found in the Financial Management Act 1995, specifically section 13(2)(b) requirements that the Accountable Officer must ensure that "procedures in the Agency are such as will at all times afford a proper internal control".

Some broad criteria which may be useful can be found in this diagram    

 

 

Fraud Assessment Framework

The legislative basis is found in the Financial Management Act 1995, specifically section 13(2)(b) requirements that the Accountable Officer must ensure that "procedures in the Agency are such as will at all times afford a proper internal control" and section 15.

Specific Treasurer's Directions, which must be complied with by agencies, include:

• R2.1 Agency Reporting – Agency Financial Statements, including appendices; and
• Fraud Control.

Some broad criteria which may be useful can be found in this diagram    

References that may be useful:

• Audit Office of New South Wales, Fraud Control Improvement Kit, February 2015
• Australian Standard AS8001-2008, Fraud and Corruption Control

 

 

Governance Framework - Lighthouse

The legislative basis is found in the Financial Management Act 1995, specifically section 13(2)(b) requirements that the Accountable Officer must ensure that "procedures in the Agency are such as will at all times afford a proper internal control" and section 15.

Specific Treasurer's Directions, which must be complied with by agencies, include:

• R2.1 Agency Reporting – Agency Financial Statements, including appendices.

Some broad criteria which may be useful can be found in this checklist    

References that may be useful:

• Audit Office of New South Wales, Governance Lighthouse – Strategic Early Warning System, February 2015

 

 

Major Projects

The legislative basis is found in the Financial Management Act 1995, specifically section 13(2)(b) requirements that the Accountable Officer must ensure that "procedures in the Agency are such as will at all times afford a proper internal control".

These reviews have focused on gaining an understanding of the project and the performance management systems in place at the agency.  Some broad criteria that may be useful:

• Procurement – Is the process undertaken in accordance with the Northern Territory Government’s procurement framework, including the Procurement Act 1995, Procurement Regulations, Procurement Code, Procurement Directions, and Procurement Best Practice Guidelines, including supporting Fact Sheets if required?
• Going to the market – How did the agency communicate with the market about the project?
• Evaluation – Is there evidence to support a process intended to ensure that evaluation and selection of a preferred bidder was objective and unbiased?  To what extent were any criteria that may have been specified as part of the tender/bid documentation, or in any document made available to all potential tenderers, varied during the negotiation phases?  Are the basis for those variations and agreed variations fully documented?
• Probity – Were probity auditors or probity advisors involved for the duration of the assessment process?  Was there a probity plan which was followed?  What was the level of assurance provided by the probity auditor (and findings if any) or, alternatively, what were the findings of the probity advisor?
• Contracts and agreements – How does the Agency know what contract/agreement is in place?  Has the Department established a system for ensuring compliance with contractual arrangements and milestones?  Does the agency have a system in place for monitoring and reporting on the agreement/s, including key performance indicators?
• Costs and contributions by the Territory – What did the Northern Territory Government contribute to the project?  Are there ongoing or further contributions that the Northern Territory needs to make as a result of the project?  What is the total cost of the project?
• Document management and record keeping – What systems and processes are established and to be used throughout the life of the contract/agreement/project for document management?

 

 

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