A Google search revealed a report (on TT Line) seemingly from the Tas. Audit Office of June 2005 (link follows):
I found the contents of the Audit Office report most disturbing. Why did it take so long for the Audit Office to be called in?
One would have thought that closely monitoring a new service such as the Sydney-Hobart run would have been considered normal, but especially so after the Audit Office made 42 recommendation in June 2005.
Why was the service not discontinued at the end of last Summer instead of being carried through this Winter to August 2006, when bookings would naturally be very low? I think we can guess.
A follow-up audit would be most interesting. I wonder if the 42 recommendations were carried out?
One of the comments in the Auditor’s Report (Page 26) is most enlightening:
“We found [cfA1.3.3]:
• The Board appeared to have limited understanding of some critical issues including market research and financial projections in respect of major acquisitions and projects, which limited its capacity to challenge management assertions;
• Management appeared to lack a clear direction as to the process they should go through in relation to major acquisitions. For example, we found no evidence in respect to the purchase of SPOT 111 that a sub-committee had been created, there was no due diligence process and independent advice was not sought; and
• The culture of the organisation does not appear to foster discussion of issues at a board level.”
http://www.premier.tas.gov.au/speeches/spirit3-ms.html
http://www.audit.tas.gov.au/publications/reports/specialreport/index.html
