AUDITOR-GENERAL’S DEPARTMENT

FUNCTIONAL RESPONSIBILITY AND STRUCTURE

The Public Finance and Audit Act 1987 confers wide powers on the Auditor-General to examine any matters relating to the collection, receipt, issue or expenditure of public monies and to report on the efficiency and economy of public sector operations. In addition, the Auditor-General has been appointed auditor of various statutory corporations and funds; has been appointed auditor of a number of companies associated with the operations of public sector agencies; has a discretionary right under the Education Act 1972 to inspect or audit the accounts of school councils and; is required by the South Australian Health Commission Act 1976 to audit the accounts of prescribed incorporated hospitals and health units and to approve of the auditor of other incorporated hospitals and units.

The structure of the Department is:

AUDIT MANDATE AND COVERAGE

Audit Authority

Under section 35(1) of the Public Finance and Audit Act 1987, the Governor, on the recommendation of the Treasurer, has appointed Grant Thornton as auditor of the Auditor-General’s Department. An unqualified Independent Audit Report was issued in respect of the year ended 30 June 2002.

AUDIT FINDINGS AND COMMENTS

Grant Thornton reported the results of their audit in a management letter dated 11 July 2002. One matter that came to their attention during the course of the audit related to possible improvements in the control of electronic funds transfers (EFT). In response to the recommendation, the Department changed control procedures involving the segregation of the authorised preparation of an EFT transaction and the transmission of the EFT transaction through the use of independent electronic passwords.