PRINCIPAL LEGISLATION

A wide range of statutory provisions have a direct influence on the operations of the Auditor-General's Department. The majority of those are the statutes that appoint the Auditor-General as the auditor of public sector agencies.

Other legislation includes that which embodies special Commonwealth/State financial arrangements, the financial law of this State (e.g. Supply Acts, Appropriation Acts) and the Corporations Law.

However, the legislative provision that has the greatest impact on the operations of this department is the Public Finance and Audit Act 1987 (the Act). That Act provides the statutory mandate for the Auditor-General to conduct the audits of public sector agencies. The major principles embodied in that Act provide for:

• the appointment of an Auditor-General;

• the Auditor-General to be independent of the Executive Government;

• the Auditor-General to audit the accounts of the Treasurer, Government Departments, Statutory Authorities and other public sector agencies, i.e. the public accounts and the accounts of public authorities;

• the Auditor-General to examine the efficiency and economy with which Government Departments, Statutory Authorities and other public sector agencies use their resources;

• the Auditor-General to report audit findings and other stipulated matters to both Houses of Parliament;

• the Auditor-General to have full and free access to all accounts, records, documents and information required for the discharge of the audit function;

• the Auditor-General, with the approval of the Treasurer, to charge fees for conducting audits.

The Act specifically precludes the Auditor-General from conducting the audit of the Auditor-General's Department. In fact the Act requires that the accounts of the Auditor-General's Department be audited by an auditor appointed by the Governor.

ACCOUNTABILITY

The Act provides a vital link in the chain of accountability of the Executive Government to the Parliament and to the taxpayers of this State who are the ultimate providers of those funds.

The Act stipulates certain financial reporting requirements by the Treasurer and by public sector agencies. The provision of independent professional attestation to those financial reports by the Auditor-General, in accordance with the provisions of the Act, together with the associated statutory reporting responsibilities of the Auditor-General, ensures that Parliament is provided with a high level of assurance that monies that have been raised and collected have been expended properly and in accordance with the law.

THE AUDITOR-GENERAL'S DEPARTMENT

The Act provides for an administrative unit to be established to assist the Auditor-General to carry out his statutory duties and responsibilities.

The Auditor-General is the Chief Executive Officer of the Auditor-General's Department. All staff employed by the Department are appointed pursuant to the provisions of the Public Sector Management Act 1995. As mentioned earlier, the Auditor-General is appointed pursuant to the provisions of the Public Finance and Audit Act 1987.

RELATIONSHIP WITH PARLIAMENT

The Public Finance and Audit Act 1987 (the Act) establishes the independence of the Auditor-General from the Executive Government and provides that the primary relationship of the Auditor-General is to the Parliament.

Provisions contained in the Act relating to the appointment and removal of the Auditor-General and funding for his salary emphasise that independence. However, it is the provisions contained in subsection 24(6) of the Act which state that the Auditor-General is not subject to the direction of any person as to the manner in which he carries out the functions or exercises powers under the Act or to the priority that he gives any matter that reinforces that independence.

The Public Finance and Audit Act 1987 also provides for a high level of accountability to be exercised, mainly through the Auditor-General's statutory report to Parliament.

That report provides the major means of communication between the Auditor-General and Parliament.

An effective working relationship exists between the Economic and Finance Committee and the Auditor-General's Department.

The Auditor-General and senior Audit officers meet with the Economic and Finance Committee to discuss issues which relate to audit matters raised by this department and issues/matters of interest to the Committee.

Contact with other Committees of the Parliament has been on an 'as needs' basis.