Post on 19-Jun-2015
description
Keeping the Audit Alive:PAC examination of performance audits
Paul McLeay MPChair, PAC
PUBLIC ACCOUNTS COMMITTEE
PUBLIC ACCOUNTS COMMITTEE The Committee
The NSW Public Accounts Committee
PUBLIC ACCOUNTS COMMITTEE
• PAC background and functions
• Examination of performance audits
• Created by Part 4 of Public Finance and Audit Act 1983
• Comprises six members of the Legislative Assembly
• Ministers and Parliamentary Secretaries excluded from membership of the Committee
• Chaired by a Government member
• Four members required for quorum
OVERVIEWPUBLIC ACCOUNTS
COMMITTEE
HISTORYPUBLIC ACCOUNTS
COMMITTEE
• Established in 1902
• Examines financial and accountability issues on behalf of the NSW Parliament
• Previously, limited range of issues
unable to initiate own inquiries
Parliament and Auditor-General reluctant to refer matters
• Reforms in the 1980s expanded powers can now initiate its own inquiries
Public Finance and Audit Act 1983, Section 57
• PAC’s primary functions are to examine:
Total State Sector Accounts Financial reports of State authorities Opinions and reports of the Auditor-General
Restrictions on the Committee
x Government policy, unless inquiry referred by Assembly or Minister
x Estimates of proposed expenditure
Current functionsPUBLIC ACCOUNTS
COMMITTEE
Referral by:
Source of InquiriesPUBLIC ACCOUNTS
COMMITTEE
• Referral by:
Legislative Assembly
• Referral by:
Legislative Assembly
Minister
• Referral by:
Legislative Assembly
Minister
Auditor-General
The NSW Public Accounts Committee
Referral by:
Legislative Assembly
Minister
Auditor-General
the Committee
Inquiries
Functions include reporting on circumstances connected with Auditor-General’s reports
Auditor-GeneralAssists Parliament to improve
State accountability & performance through auditing
PACAssists Parliament to improve
State accountability & performance through examination of audits
ParliamentDelegates to the PAC
detailed examination of expenditure & audit reports
Reports
ReportsRefers
Refers
Former Approach — the PAC would:
• choose a performance audit once or twice a year for detailed examination
• conduct a standard, detailed committee inquiry, publicly calling for submissions and hearing from a broad range of witnesses
• Produce a detailed report with recommendations reflecting the Committee’s views on the subject matter of the audit
Review of Performance AuditsPUBLIC ACCOUNTS
COMMITTEE
New Approach — the PAC:
• Examines every performance audit
• Seeks submission from agency 12 months after audit
• Refers agency’s submission to A-G for comment on consistency with audit recommendations
• Holds hearings with agency and A-G
• Report with recommendations regarding response to the audit
• Report debated in Parliament
• Government response within 6 months
Review of Performance AuditsPUBLIC ACCOUNTS
COMMITTEE
Timeline:
• Submission request 12 months after audit
• One month for agency to produce submission
• Two weeks for Auditor-General’s response
• Hearings held periodically on a number of audits
Review of Performance AuditsPUBLIC ACCOUNTS
COMMITTEE
Agency submissions:
• Outline response to each recommendation, including:
Assessment of recommendation
Plans made in response
Timetable for completion
Current status and action taken to date
Review of Performance AuditsPUBLIC ACCOUNTS
COMMITTEE
Hearing Process:
• Questioning on issues arising from consideration of submissions
• Auditor-General appears as a witness at the same time as agencies
• A number of reports will be considered on a single day
Review of Performance AuditsPUBLIC ACCOUNTS
COMMITTEE
Parliamentary Debate:
• New sessional orders provide for debate of all committee reports
• Opportunity for Members to raise enduring concerns or points of interest in Parliament
• Alerts the whole House to issues raised in the Committee
Review of Performance AuditsPUBLIC ACCOUNTS
COMMITTEE
Purpose:
• Bring together the professional expertise of the Audit Office and political authority and accountability of the PAC
Review of Performance AuditsPUBLIC ACCOUNTS
COMMITTEE
Purpose:
• Bring together the professional expertise of the Audit Office and political authority and accountability of the PAC
• Ensure recommendations of value are not forgotten
Agency revised responses for hearing
Review of Performance AuditsPUBLIC ACCOUNTS
COMMITTEE
Purpose:
• Bring together the professional expertise of the Audit Office and political authority and accountability of the PAC
• Ensure recommendations of value are not forgotten
• Allow both recommendations and responses to be tested in the political arena
Explain any rejection of recommendations
Demonstrate how any problems have been addressed
Review of Performance AuditsPUBLIC ACCOUNTS
COMMITTEE
Purpose:
• Bring together the professional expertise of the Audit Office and political authority and accountability of the PAC
• Ensure recommendations of value are not forgotten
• Allow both recommendations and responses to be tested in the political arena
• Ensure CEOs account to the Parliament for how they respond to recommendations
Outline changes to address issues
Explain any lack of progress
Review of Performance AuditsPUBLIC ACCOUNTS
COMMITTEE
Purpose:
• Bring together the professional expertise of the Audit Office and political authority and accountability of the PAC
• Ensure recommendations of value are not forgotten
• Allow both recommendations and responses to be tested in the political arena
• Ensure CEOs account to the Parliament for how they respond to recommendations
• Provide reality check to Audit Office
External assessment of recommendation in light of experience
Review of Performance AuditsPUBLIC ACCOUNTS
COMMITTEE
Purpose:
• Bring together the professional expertise of the Audit Office and political authority and accountability of the PAC
• Ensure recommendations of value are not forgotten
• Allow both recommendations and responses to be tested in the political arena
• Ensure CEOs account to the Parliament for how they respond to recommendations
• Provide reality check to Audit Office
Review of Performance AuditsPUBLIC ACCOUNTS
COMMITTEE
Outcome:
• Improved accountability & performance of State agencies
Review of Performance AuditsPUBLIC ACCOUNTS
COMMITTEE
www.parliament.nsw.gov.au/publicaccounts