Page 1806 - Week 06 - Thursday, 9 May 2013

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a broader approach to performance audits of the Auditor-General through a wider concept of strategic review and a fixed time frame in each parliamentary term for the conduct of such reviews.

The government has also included some other changes to support joint or collaborative audits by commonwealth, state and territory auditors-general, and reflect the role of the Head of Service in consultation on draft audit reports.

A number of other changes are made to the sequence of the act’s provisions to reflect more recent drafting practice.

Clause 9 of the bill amends existing provisions that define the independent role of the Auditor-General by stating that the Auditor-General cannot be directed by any person. A complementary provision that Auditor-General staff can be directed only by the Auditor-General or a person authorised by the Auditor-General is provided at clause 10.

Clause 14 of the bill introduces a new requirement that the Auditor-General must have regard to professional standards and practices in carrying out the role’s functions. This new section is framed to ensure that it is clear that the Auditor-General still retains complete discretion and independence.

Clause 15 introduces a new section to provide for joint or collaborative audits with other Australian auditors-general. This is a result of discussion between auditors-general on the advantages of having a concurrent audit across all jurisdictions on key national issues.

Clause 20 introduces a new concept of an annual performance audit program. This supports subsequent provisions in this clause that require the Auditor-General to consult the public accounts committee, each MLA, the Head of Service, and anyone else the Auditor-General considers appropriate about the program. This clause also requires that the program be placed on the Auditor-General’s website.

Clause 21 introduces the new power for the Auditor-General to audit non-government entities in certain circumstances. This implements the public accounts committee’s recommendation to provide express authority to the Auditor-General to audit outsourced activities of government. The government agreed to this recommendation in principle, commenting in its response to the public accounts committee inquiry report that there are already non-legislative measures in which non-government organisations are required to account for their government funding. In the government’s view, new powers should therefore be framed as a last resort, where existing acquittal or internal audit arrangements have proven ineffective to resolve the issue. This approach is built into the new provisions.

The approach taken in the bill introduces a new power to track government funding, but in a way that defines the scope of the proposed performance audit more tightly so that audit powers can be exercised only in relation to the government funding provided.


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