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February 2008 report to the Legislative Assembly



February 2008 report to the Legislative Assembly


Report to the Legislative Assembly; Reports; PublicationNT




Made available via the Publications (Legal Deposit) Act 2004 (NT).






Northern Territory. Auditor-General's Office -- Periodicals; Finance, Public -- Northern Territory -- Accounting -- Periodicals; Northern Territory -- Appropriations and expenditures -- Periodicals

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Northern Territory Auditor-General's Office

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52 Auditor-General for the Northern Territory February 2008 Report Department of the Chief Minister Procurement of Advertising and Related Services Audit Scope and Objectives The objective of the audit was to assess the extent to which the processes adopted by the Department of the Chief Minister (the Department) in awarding and administering contracts for the provision of advertising and related services, with an emphasis on contracts awarded to Sprout Creative (NT) Pty Ltd (the Company), complied with the requirements of the NT Government Procurement Policy. Audit Opinion The processes that governed the procurement of consultancy services from firms on the panel contract D04-0867 and the associated payments by the Department were in place and generally consistent with NT Government procurement policy. However, there were instances where the analysis of firms capabilities were documented after the decision to engage those firms for specific assignments. The database maintained by the Department in accordance with the contract is required to record, inter alia, an internal assessment of the working relationship and product produced as a result of each assignment and is to be used by the Department from time to time to review panel members and the effectiveness of the panel contract. While the Department had established the required database, the information held on panel members performance was considered to be of limited assistance in assessing firms for subsequent engagements. Background An initial analysis of payments made by NT Government agencies to Sprout Creative (NT) Pty Ltd from 1 July 2005 to 31 January 2007 identified that services have been procured from the Company by a number of agencies on a regular basis throughout the period in question. Total expenditure by all agencies amounted to almost $880,000 and of that amount, almost $436,000 was incurred by the Department of the Chief Minister. This represents approximately 50 per cent of the total expenditure on services provided by Sprout and is illustrated in the following table: