Report 6: 2018

Management of Contract Extensions and Variations

What we did

The objective of this audit was to assess whether entities adequately managed extensions and variations to their contracts. The audit also assessed whether they maintained good records of contracts.

We assessed the policies and practices for managing contract extensions and variations at all 4 public universities and 3 TAFEs, using the following lines of inquiry:

  1. Do entities have adequate policies and practices for managing contract extensions and variations?
  2. Do entities have complete and accurate records of contracts?
  3. Are entities adequately:
  • controlling extensions and renewals of contracts above $50,000, including the review of contractor performance before extending or renewing contracts?
  • controlling contract variations?
  • complying with management approved delegations?

For our testing at the TAFEs, we had regard to Treasurer’s Instruction 820 Register of Contracts. However, as the Treasurer’s Instruction is not applicable to universities, we had regard to general better practice principles when testing against the lines of inquiry.

The following entities were included in this audit:

  • Curtin University
  • Edith Cowan University
  • Murdoch University
  • North Metropolitan TAFE
  • North Regional TAFE
  • South Metropolitan TAFE
  • The University of Western Australia.

We assessed contract extensions and variations processed from 1 January 2017 to October 2017 at each entity.

We conducted this audit under section 18 of the Auditor General Act 2006 and in accordance with Australian Auditing and Assurance Standards.

 
Page last updated: May 8, 2018

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