The PwC spinoff working with the federal government will be closely monitored, insiders say. 

Following the transition of PwC's government advisory business to Scyne Advisory, the Department of Finance says it will strictly scrutinise the new firm for a minimum of 12 months to ensure its suitability for government contracts. 

Finance's deputy secretary, Andrew Jaggers, revealed during a Senate committee session this week that monthly meetings have been scheduled to assess various aspects of Scyne's performance. 

But Jaggers clarified that these meetings have not yet taken place, and discussions with Scyne regarding potential government contracts are pending.

Notably, there are two active contracts held by PwC with the Department of Finance, one of which will conclude shortly. An additional $4 million contract is under consideration for transfer to Scyne Advisory.

While PwC's Australian Business Number has been transferred to Scyne, the department is yet to transition panel membership. 

The department has requested documentation from Scyne to evaluate its financial stability and skillset for government service provision.

The Department of Finance's assessment of Scyne Advisory was partially based on a report by Ziggy Switkowski, which examined PwC's governance and risk management culture. 

The department aimed to ensure that Scyne's corporate structure and culture would avoid the issues identified in Switkowski's report. 

A probity report by former judge Andrew Greenwood was also taken into account.

The decision to monitor Scyne Advisory closely comes after PwC Australia sold its government advisory business to Allegro Funds. 

Scyne Advisory is preparing to reclaim advisory work previously performed by PwC Australia, with the Department of Finance confirming its readiness to engage with the government.

Notably, 78 staff members who were initially expected to transfer to Scyne Advisory will no longer have roles at the firm, and they have been encouraged to explore internal job opportunities within PwC. 

This change is attributed to factors such as delays in finalising the transition and adjustments to Scyne's partner composition.

Scyne Advisory is gearing up to resume government advisory work, which previously contributed significantly to PwC Australia's revenue.

The Department of Finance has granted Scyne the green light to work with the government, accepting that no staff involved in the previous tax leaks scandal have transferred to the new firm.