The Northern Territory's anti-corruption body has recommended the country's oldest First Nations tertiary education provider make sweeping changes to its financial and corporate culture.
Independent Commissioner Against Corruption Michael Riches said an audit of the Batchelor Institute of Indigenous Tertiary Education found several financial anomalies and governance flaws.
These included at least one example of "an apparent failure to abide by statutory obligations in respect of a loan", Mr Riches said in the report.
Mr Riches said the audit was not a formal investigation but had been prompted by reports alleging impropriety and poor process during a period of leadership, financial and operational "turbulence".
He said staff turnover, a lack of understanding of process, poor systems and inadequate oversight were to blame and he recommended a review of all financial controls and better staff training.
"Public bodies have an obligation to manage effectively the public resources for which they are responsible," Mr Riches said.
The commissioner also recommended a "wholesale review" of internal policies and staff codes of conduct that were found to be deficient, inconsistent and outdated.
He said changes to corporate culture, enforcing respect and accountability, were also "critical".
"A number of current and former institute staff described the institutes' corporate culture in negative terms," he said.
Batchelor Institute has campuses in the NT towns of Batchelor, Darwin and Alice Springs and aims to provide employment and study pathways to First Nations students.
Mr Riches said the findings were relevant to other public bodies and that is why the report was recently tabled through the NT Parliament's Speaker.
"To that end, the purpose of this general report is to educate, not to punish or embarrass," he said.
Looking into conflicts of interest, Mr Riches found the legislation setting up Batchelor Institute failed to address family or social conflicts of interest and codes of conduct gave little guidance to staff about how and when to disclose those.
He said there were several occasions where staff recruitment appeared to breach policies with direct appointments and no selection process, which could erode confidence in senior leadership.
"Actual or perceived impropriety in recruitment can have a tremendous impact upon the culture of an organisation," Mr Riches said.
The audit also found asset logs were not properly maintained, with some information missing and mobile phones still recorded against staff no longer employed there.
"A number of assets, including artworks, had been recorded as missing," he said.
Mr Riches also found an advisory board required by law to guide Batchelor Institute about cultural issues and consult with First Nations people was no longer in existence and needed to be set up again.
He said former chief executive Mick Gooda had been particularly helpful in assisting with the review and Batchelor Institute's council chairperson Pat Anderson had also been supportive.
Batchelor Institute has told the ICAC it accepts all 27 of the anti-corruption body's recommendations and has started implementing them.
