Hello,
You do not need a direct contract with the processor - if your contract with the other government department allows for them to use a processor. The processor is working as an extension of the government department so as long as their contract allows that kind of processing you should be ok.
If you currently have no data sharing agreements whatsoever with the other government department, indeed you need one, which includes the ability for the other party to use a processor for that kind of processing. You do not need to be joint signatories to the contract between the other government department and their processor.
Emile
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