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Legislative Assembly for the ACT: 2004 Week 10 Hansard (Thursday, 26 August 2004) . . Page.. 4401 ..

The bill clarifies the role of the auditor with respect to performance audits by ensuring that the auditor may conduct a single performance audit covering activities that are common to more than one agency. The bill also provides the auditor with an enhanced capacity to collect information during an audit process and to protect that information and the people who may have provided it. As would be expected, the Auditor-General supports the provisions contained in the bill.

An additional issue on which I wish to direct some comments is the ability of the auditor to audit what I shall call third party organisations; that is, organisations that receive public funds and then use those funds to provide services to the community. Each year the government provides considerable funds to community organisations and, as a member of the Assembly and as chairman of the public accounts committee, I believe that there is considerable merit in permitting the auditor to assess the efficacy of that expenditure.

The main reason that this matter has not been included in this amending legislation is that I understand considerable consultation is required before such an imposition should be placed on community organisations; that is, on organisations that in many instances are non-profit and that rely on volunteers for much of their work. There is an issue, for example, about whether the records held by these organisations might be in a form that is sufficient and suitable to be audited by the auditor. There is also the matter of the management processes that are being used by such an organisation. Again, these should be developed to a standard that makes them suitable to be audited.

In principle, I would suggest that, if an organisation has the substance to apply for public funds, that organisation should have the capacity to manage those funds using appropriate management, financial and other processes; hence, such organisations should be able to provide relevant information, including documentation, to the auditor. At the same time, I would anticipate that these organisations would undertake their own financial audits in the normal course. Given that this is the case, these organisations should have the necessary information at hand for any audit by the auditor.

The concern I have is that it may be a substantial impost on not-for-profit organisations to require them to undertake an annual financial audit and, separately, to subject them to an audit by the ACT Auditor-General. Ultimately a balance will need to be reached between enabling the Auditor-General to audit organisations that receive public funds from government departments and agencies and not imposing requirements that are too onerous for some organisations. I understand that consultation with community organisations is continuing and I look forward to considering proposals on this matter in due course. With those comments, Mr Speaker, the opposition will be supporting the Auditor-General Amendment Bill 2004.

MS DUNDAS (8.53): Mr Speaker, the Auditor-General does play a crucial role in our system of government. The scrutiny that the Auditor-General provides is essential to the transparency and accountability of the government of the day. The Auditor-General provides valuable advice to members of this place on the financial structures of government and this process strengthens our democratic system. I am happy to support this bill, as it will improve the Auditor-General’s access to information and assist the auditors to carry out their job.

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