Where private sector entities take on expenditure of public funds, it is reasonable that they be subject to public sector transparency expectations which may be greater than in the private sector. In May 2016, the Integrity and Accountability Legislation Amendment Act 2016 was passed to amend the Audit Act 1994. These reforms now provide the Victorian Auditor-General's Office with follow-the-dollar powers for performance audits (i.e. the capacity to consider the effectiveness, efficiency and economy of public sector services or functions that are delivered through contracts with the private or not-for-profit sectors). This enables the Auditor-General to obtain information about private parties' activities in respect of their expenditure of public funds.
As confidential information may be made public through the FoI Act, or by the Auditor-General, the Ombudsman or parliamentary committees, a contract director should avoid giving the private party absolute assurances about the confidentiality that will be accorded to information the private party provides to the government party. |