Purpose of the assignment:
This assignment provides an opportunity for students to critically evaluate the major issues in
public sector contracting, accountability and auditing, and to apply the conceptual knowledge
covered in the course to a practical case. Students will be able to obtain an in-depth
understanding of the major government contracting issues and the role of public sector audit
in shaping government accountability and performance through a case study of government
contract management and the related performance audit.
Requirements:
Over the last few decades, the Australian government has entered into contracts with private
sector providers to deliver essential services to the general public. Contract management has
since become an important matter for the government.
In 2017, the Australian National Audit Office (ANAO) has conducted a performance audit on
the management of the contract for telephone universal service obligations – a contract
established by a Commonwealth government department, the Department of
Communications and the Arts, and a private provider, Telstra, in the provision of standard
telephone services to the general public (ANAO, 2017, Management of the Contract for
Telephone Universal Service Obligations, Report No. 12, 2017-18).
https://www.anao.gov.au/work/performance-audit/management-contract-telephone-universalservice-obligations
1) Discuss the following issues that the Department of Communications and the Arts has
to consider in contracting with Telstra for providing standard telephone services and
in achieving the policy objective of telephone universal service obligations:
a) Value for money for the government;
b) Risk sharing and risk management issues;
c) Monitoring of services delivered by the private sector provider, including
performance reporting by the private sector provider.
2) In light of your discussion in (1) above, and using this performance audit as an
example, critically evaluate:
a) the extent to which public sector performance audit may enhance the effectiveness
of contract management by government; and
b) the implications of the audit findings for government accountability.
of contract management by government; and
b) the implications of the audit findings for government accountability.
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