Forensic financial investigation of a social service provider

 

Overview

BDO was engaged by a government department to conduct an independent forensic financial investigation into a key service provider. The engagement was prompted by concerns relating to compliance with funding agreements, financial management practices, and the delivery of contracted services. The department required assurance that public funds were being managed responsibly and that contractual obligations were being fulfilled.

Delivery

BDO’s forensic services team undertook a comprehensive, multi-disciplinary investigation, which included:

• Policy and contractual review: Assessment of all relevant policies, guidelines, and contractual documents to establish the framework for compliance and governance.
• Financial testing: Application of detailed procedures to verify that expenditure was incurred and/or committed in accordance with the service agreement, including transaction-level testing and reconciliation to source records.
• Assessment of unspent funds: Scrutiny of reported unspent funds to ensure accuracy, reasonableness, and proper attribution.
• Advice on non-compliance: Provision of advice regarding instances of contract non-compliance, including the absence of required approvals, and recommended remedial actions.

Outcome

BDO delivered an evidence-based report identifying areas of non-compliance with funding agreements, as well as weaknesses in financial controls, reporting, and governance. Based on these findings, we provided the department with targeted recommendations to restore compliance, strengthen financial integrity, and safeguard public funds. Recommendations included enhancements to financial reporting, cost allocation methodologies, asset management, and governance frameworks.

How BDO can help

Our forensic services team offers expertise in forensic financial investigations for government and public sector clients. Our approach combines:

• Rigorous methodology: Structured evidence gathering, transaction-level analysis, and reconciliation to source documents.
• Sector insight: Understanding of public sector operations, funding frameworks, and compliance requirements.
• Advanced tools: Capability to analyse large volumes of contractual and financial data across multiple years and complex service environments.
• Actionable outcomes: Clear, practical recommendations that enable clients to remediate issues, enhance governance, and demonstrate accountability.

Our independence and commitment to confidentiality ensure that our clients receive objective, reliable and actionable advice.

Contact us to discover how our forensic services team can support your organisation with complex financial investigation, compliance reviews, and operational transformation.