New South Wales Consolidated Acts

PUBLIC FINANCE AND AUDIT ACT 1983 - SECT 11

11 Internal control and audit

(1) The Head of an authority shall ensure that there is an effective system of internal control over the financial and related operations of the authority, including:

(a) management policies and requirements made by the provisions of this Act and the prescribed requirements,

(b) sound practices for the efficient, effective and economical management of functions by each organisational branch or section within the authority,

(c) a system of authorisation and recording and procedures adequate to provide accounting control in relation to assets, liabilities, receipts and expenses,

(d) proper segregation of functional responsibilities, and

(e) procedures to review the adequacies of and compliance with the system of internal control.

(2) Wherever practicable, the Head of an authority shall establish and maintain an effective internal audit organisation which shall be responsible to the Head of an authority for:

(a) the regular appraisal of the adequacy of and compliance with the system of internal control,

(b) the review of operations or programs to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned, and

(c) the reporting directly at regular intervals to the Head of the authority as to the result of any appraisal, inspection, investigation, examination or review made by the internal audit organisation.

(3) The Head of an authority shall supervise the preparation and maintenance of an accounting manual for use within the authority.

(4) To the extent of any inconsistency between the provisions of the regulations or the Treasurer’s directions and the provisions of an accounting manual, the provisions of the regulations or the Treasurer’s directions, as the case may require, shall, to the extent of the inconsistency, prevail.