How to engage an external probity adviser or auditor

Your procurement process and conduct must be fair, ethical, transparent and probity rich.

Engaging a probity adviser or auditor doesn't outsource accountability – the agency is always accountable.

Read our guide on probity and fairness.

When to engage an external probity adviser or auditor

Using external probity advisers and auditors should be the exception, not the rule.

It may be appropriate to engage a probity adviser or auditor if:

• the integrity of the process (or part of it) may be questioned
• the process is extremely complex
• the project is politically sensitive, controversial or vulnerable to corrupt practices
• there could be a perception of bias or favouritism
• there are substantial costs to prepare submissions
• there is substantial government funding involved.

How to select a probity adviser or auditor

Probity advisers and auditors should be selected competitively, based on merit and value for money. They should:

• have an appropriate level of knowledge and skill, including knowledge government policies
• demonstrate professional competence and good judgment
• be independent, objective and of good character
• enter into a confidentiality agreement.

Before deciding to engage an external person, you could consider resources within your agency or elsewhere in the NSW public sector.

• Experienced procurement professionals or procurement governance experts may provide probity advice.
• Internal audit professionals can be used for probity auditing.

What to include in the terms of reference

As for any professional services engagement, you should clearly define the scope of the proposed engagement.

The terms of reference should include the general principles of probity, along with:

• background and context of the procurement or project
• project timeline and length of engagement
• the intended role of the adviser or auditor
• location of work (agency offices, consultant’s offices, flexible)
• minimum experience or qualifications required
• the scale and scope of the procurement project
• expected outcomes from the engagement, key deliverables and due dates
• known project issues and risks, particularly in relation to probity
• governance structure and decision-making processes, including how the they fit within the structure
• key stakeholders
• how conflicts of interest will be managed
• dispute mechanisms and escalation process.

When engaging a probity adviser, the terms of reference should also:

• ensure they have access to enough information to fulfil their role
• outline how they can request access to more information.

When engaging a probity auditor, the terms of reference should also:

• give full authority to access records, personnel, meetings and premises
• describe reporting timelines and the expected completion date of the audit
• specify who they will report to
• define ownership of the report (including working papers and supporting materials)
• specify arrangements to secure the materials during the audit.

How to manage conflicts of interest

Whenever you engage an adviser or auditor you must be satisfied they’re independent and there’s no real or perceived conflict of interest.

Don’t use advisers or auditors already doing other work inside your agency, except when the audits are directly linked or there are other mitigating circumstances.

To ensure independence, be careful not to engage the same probity advisers or auditors continually or serially.

Also, be mindful that you may be asked to report to the Procurement Board on your use of probity advisers and auditors.

Related content

• Probity and fairness guide
• Performance and Management Services Scheme