Poor oversight sees higher costs on service delivery in remote communities



06 May 2015 - Poor contracting means the Department of Housing is not getting full value from the Program Manager and its $1million a year fee.

The Program Manager is contracted and paid to supervise the Service Providers. However, at times this has not happened and instead the Service Providers deal directly with Housing.

Poor oversight means there is a risk that Housing may have overpaid for services. Self-reporting by Service Providers, a lack of inspections by the Program Manager, and inconsistency in invoice and job order descriptions have created this risk. In 2013-14, invoices for all unplanned maintenance and repairs in the Program totalled $14.7 million.

Housing does not have an up-to-date view of the condition of Program assets which have an estimated value of $765 million. This severely limits its ability to plan effectively for asset maintenance and replacement.