Page 1807 - Week 06 - Thursday, 9 May 2013
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The power to audit a non-government entity’s use of government funds should reflect the extent of risk involved. Further, it should not create excessive cost or unreasonable exposure for private sector or community partners and stakeholders. Private sector entities subject to these audits will also have an initial right to comment on draft audits before government agencies. The audit powers are also more restrictive than those applying within government in that, while the Auditor-General may use existing powers to require production of documents and take evidence under oath for these audits, the power to access premises without consent is not extended.
The trigger for these non-government entity audits is a referral by the public accounts committee or the minister with responsibility for the Auditor-General Act. The Auditor-General will then decide whether to undertake the audit. This reflects the existing discretion the Auditor-General has about which audits to conduct to manage relative priorities within an annual audit program. In this case, the decision is also subject to some criteria identified in the act.
In addition to the referral by the public accounts committee or the minister, the Auditor-General may also decide to initiate a non-government entity audit, but this decision is subject to these same criteria.
The prerequisites are that the usual acquittal process for property provided to a non-public sector entity have been exhausted, there are no other mechanisms readily available and failure to conduct the audit may result in significant risk to the territory. If an audit is conducted, the Auditor-General must explain the reason in the audit report.
Clauses 24 to 28 adjust existing sections on consultation on draft audit reports to incorporate the need to consult and take account of comments from non-government organisations that have been audited under the new power. These changes also include provision for non-public sector entities to have a right to comment before government agencies.
The across-government role of the Head of Service has also been incorporated into these provisions.
Clauses 29 to 31 make changes to the provisions that deal with inclusion of sensitive information in audit reports. Clauses 29 and 30 limit reporting to the Legislative Assembly on Legal Aid clients’ legal files and also reflect related changes to the Legal Aid Act.
Clause 31 provides new processes for including cabinet material in audit reports. Under the new provision, the Auditor-General can make a decision to release cabinet information where the Auditor-General considers this is in the public interest. This replaces the existing provision that prohibits release of executive deliberative information where the Chief Minister has issued a certificate that release is contrary to the public interest. This change is consistent with the removal of conclusive certificates from the Freedom of Information Act.
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