Independent review of NT Auditor-General finds crippling budget pressures, threats to independence

The NT Auditor-General has warned he’s at risk of not being able to monitor the public sector, unless the government helps to implement recommendations from a key independent review.

Northern Territory auditor general Jara Dean. Picture: Southern Cross Care Tasmania

The Northern Territory Auditor-General has warned he may not be able to fulfil his role as public sector watchdog without government support to increase funding and overhaul systems.

An independent review of the NT Auditor-General’s office has called for immediate action against funding pressures, key person dependency, and threats to the office’s independence.

The NT has consistently scored the lowest among all states and territories for audit legislation, and it was noted the NT office “continues to be the most vulnerable to executive influence of all the jurisdictions surveyed”.

The independent review, authored by former Tasmania and NT Auditor-General Mike Blake AM, found Territory politicians should be better informed about the performance of the public service by investing in a performance audit mandate.

Mike Blake authored the independent strategic review of the NT Auditor-General’s office. Picture Chris Kidd

It recommended the NT Audit Act be amended; that the Auditor-General be given access to Cabinet documents in all cases requested; to remove the ability for the Chief Minister to direct the Auditor-General; and for the Auditor-General to not be a public servant.

Auditor-general Jara Dean accepted the two recommendations addressed specifically to him, and called on the government to give serious consideration to the remaining 17.

The Northern Territory Auditor-General’s Office operates under a unique outsourced model not seen in other jurisdictions.

Audits are delivered using private sector audit firms but the Auditor-General remains responsible for the audits.

Fees paid to private sector audit firms increased by almost 25 per cent since 2021 but funding for the office increased by less than one per cent over the same period.

Mr Dean said the ability to do his work was constrained by the budget.

For many years, successive governments have failed to address recommendations to improve the audit office, and have rejected repeated requests for more funding.

This year, Mr Dean was forced to remove three agencies from the 2025 assurance program and cancel planned performance management system and information technology audits due to the continued budget constraints, heightened by the creation of six new government agencies after the 2024 Territory election.

In his response to Blake’s review, Mr Dean committed his office to play its role in ensuring financial efficiency.

“Our internal systems and structures must be fit for purpose,” he said.

“To that effect we have already made a number of changes to our processes and implemented a partial restructure, all funded from the existing budget.

“I am also considering a number of revenue measures, but without government assistance we are at risk of falling short of community and parliament expectations of effectively overseeing the public sector.”

A spokesman for the government said the CLP was considering the Auditor-General’s strategic plan, and all government-wide funding was being considered as part of the 2025-26 budget.

Originally published as Independent review of NT Auditor-General finds crippling budget pressures, threats to independence