This was a narrow scope performance review, conducted under section 18 of the Auditor General Act 2006 and in accordance with Australian Auditing and Assurance Standards. Narrow scope performance reviews have a tight focus and generally target agency compliance with legislation, public sector policies and accepted good practice. The approximate cost of tabling the review is $68,500.

The objective of the review was to determine whether the Department of Treasury exercises appropriate oversight over Contractor payments to its subcontractors in accordance with contract terms.

A review is not an audit and the conclusion expressed in this report has been formed on that basis. Our work was limited to a review of documentation and inquiries with the Department of Treasury. We did not review the Contractor’s internal controls relating to payment of its subcontractors or interview their staff.

In conducting this review we:

• examined relevant provisions in the contract between the State Government and the Contractor, and the standard subcontract between the Contractor and each of its subcontractors
• looked at Contractor creditor listings for 30 June 2015 and 31 August 2015
• spoke with Treasury staff and examined Treasury documents including a report commissioned by Treasury. The Department had appointed an independent consultant to conduct a forensic examination of the Contractor’s records including creditor listings
• confirmed the independence and qualifications of Treasury’s Consultant
• tested a sample of Contractor statutory declarations
• provided the Contractor with a draft of this report for its comment.