Procurement audit and accreditation

Agencies must complete an audit of their procurement activities.

The State Supply Commission Act 1991 established the State Supply Commission (SSC) to regulate government procurement of goods and services.  

The SSC grants partial exemptions to agencies so they can independently buy goods and services, usually up to the value of $250,000. The partial exemption contains various terms and conditions that the agency must meet, to ensure government engages in best practice procurement.   


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One of the conditions of the partial exemption is that agencies must complete a periodic audit of their goods and services procurement activity. 

This procurement compliance audit examines if the agency is complying with procurement policies and other requirements of the partial exemption.  

Some agencies are required to submit an audit every year and other agencies are required to submit an audit every second year. Agencies should refer to clause 5 – Public Authority to Conduct Internal Audit in their partial exemption to check how frequently they need to complete their audit, and whether the audit must be completed by an independent external audit company.  Agencies can apply to increase their partial exemption threshold.

Agencies should complete the audit between May and June of the audit year. Procurement activity from the previous May to April period is to be reviewed, with all procurements over $50,000 eligible for the audit sample. Procurement activity includes purchases from Common Use Agreements and procurement of services under the Delivering Community Services in Partnership policy.  

The audit report must be submitted to the State Supply Commission for review by 31 July of the audit year. 

Procurement Compliance (Audit) Framework Guidelines and a Procurement Compliance (Audit) Framework Audit Template can assist agencies to undertake their audit.  

Procurement accreditation

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Another condition of the partial exemption is that an agency must involve the Department of Finance when the procurement is valued above a certain amount.

Most agencies must involve Finance in all procurement activities valued at $250,000 (including GST) and above.  Agencies wanting to increase their partial exemption threshold can contact Agency Procurement Services

Agencies who are granted a monetary threshold higher than $250,000 (including GST) must engage an independent external audit company when they undertake their periodic procurement audit.  

Page reviewed 4 September 2019