• Audit and Accreditation Framework

    The State Supply Commission Act 1991 established the State Supply Commission to regulate government procurement of goods and services, primarily through the creation of supply policy.

    The State Supply Commission grants a partial exemption to Public Authorities to enable them to arrange the supply and undertake the purchase of goods and services necessary for their operations.  A number of terms and conditions are attached to the partial exemption. One of the conditions is that the Public Authority must undertake an internal audit of its procurement activity to ensure compliance with supply policies and the Public Authority’s partial exemption. Another is that most partially exempt Public Authorities must involve Finance in all procurement activities valued at $250,000 or above.

    The partial exemptions issued to Public Authorities since the 2 May 2016 have required Public Authorities to conduct the internal audit on an annual basis. After reviewing the annual audit process for the 2016/17 audit period, the State Supply Commission decided to change the audit schedule for Public Authorities with very few procurement transactions. The partial exemptions for those Public Authorities have been updated to reflect an audit frequency of once every two years commencing in the 2017/18 audit period or once every two years commencing in the 2018/19 audit period.

    Public Authorities should refer to clause 5 – Public Authority to Conduct Internal Audit of their partial exemption to verify their audit frequency.

    Public Authority Audit Requirements

    For Public Authorities with the authority to procure up to $250,000 (including GST) without involving Finance, an audit can be conducted by an internal audit team.

    Public Authorities who are granted an increase in the monetary threshold at which Finance must be involved, must conduct an audit by engaging an external (independent) audit company.

    For all partially exempt Public Authorities the audit is to be completed during May and June of the audit year, reviewing procurement activity that has taken place from the previous May to April period. All procurements over $50,000 are eligible for the audit sample, including purchases from CUAs and community service agreements under the Delivering Community Services in Partnership Policy.

    The audit report is then submitted to the State Supply Commission (enquiries@ssc.wa.gov.au) for review by 31 July of the audit year.

    The documents below will assist Public Authorities to undertake the audit.

    Procurement Accreditation

    A process exists for Public Authorities to apply for an increased threshold at which they must involve Finance. 

    To obtain information on initiating the accreditation process, contact the Director of Agency Procurement Services at GM.APS@finance.wa.gov.au.