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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Auditor General Bill 2006
CONTENTS
Part 1 -- Preliminary
1. Short title 2
2. Commencement 2
3. Purpose 2
4. Terms used in this Act 2
5. Functions under other written laws 4
Part 2 -- The Auditor General and
Deputy Auditor General
6. Auditor General 5
7. Status and independence of Auditor General 5
8. Auditor General to have regard to audit priorities
of Parliament 6
9. Application of Public Sector Management
Act 1994 limited 6
10. Deputy Auditor General 6
11. General provisions as to Auditor General 7
Part 3 -- Auditing and other
functions of Auditor General
Division 1 -- Functions as to the State, agencies,
subsidiary bodies and related entities
12. Audit of the Public Ledger 8
13. Audit and opinion on Annual Report on State
Finances 8
14. Audits of accounts of agencies 8
15. Audits and opinions on financial statements and
related information as to agencies 9
16. Audits of accounts of certain subsidiary bodies 10
099--3 page i
Auditor General Bill 2006
Contents
17. Audits of accounts of related entities 11
18. Examinations and investigations 12
19. Audits at the request of the Treasurer 12
20. Audits at the request of committees of Parliament 13
21. Audit fees 13
Division 2 -- Other audits, services and
functions
22. Audits and other services by arrangement 13
23. Provision of advice or information 14
Division 3 -- Reporting to Parliament
24. Reports on performance of functions generally 14
25. Report on an examination or investigation 15
26. Reports transmitted to Clerks 16
Part 4 -- Powers and duties of
Auditor General
Division 1 -- Powers and duties generally
27. Powers 17
28. Duties of Auditor General as to audits 17
29. Auditor General may appoint person to audit 17
30. Power to obtain opinion 17
31. Delegation by Auditor General 18
32. Powers and duties under other written laws 18
Division 2 -- Information gathering powers
33. Auditor General may authorise people to perform
functions 19
34. Power to obtain information 19
35. Access to accounts, information, money and
property 20
36. Duty to give information overrides other duties and
rights 21
37. Powers extend to confidential information 22
Part 5 -- Independent auditing of the
OAG
38. Appointment of independent auditor for the OAG 23
39. Audits of accounts of the OAG 23
40. Audits and opinions on financial statements and
related information as to the OAG 23
page ii
Auditor General Bill 2006
Contents
41. Duties of independent auditor as to audits 24
42. Audit fees for independent auditor 24
Part 6 -- Miscellaneous
43. Joint Standing Committee on Audit 25
44. Recommendations by the Joint Standing
Committee on Audit 25
45. Protection from liability 25
46. Information confidential 26
47. Regulations 27
48. Review of Act 27
Part 7 -- Transitional and saving
49. Incumbent Auditor General remains in office 30
50. Savings of appointments of persons to audit 30
Schedule 1 -- General provisions as
to Auditor General
1. Appointment of Auditor General 31
2. Remuneration 31
3. Other employment 32
4. Leave and other conditions of service 32
5. Rights of officers preserved 32
6. Resignation of Auditor General 33
7. Removal and suspension from office 33
8. Acting Auditor General 34
9. Deputy Auditor General, or acting Deputy Auditor
General, may act as Auditor General 35
Schedule 2 -- Form of declaration
Defined Terms
page iii
Western Australia
LEGISLATIVE ASSEMBLY
(As amended in Committee of the Whole)
Auditor General Bill 2006
A Bill for
An Act to provide for the appointment of an Auditor General, to set
out the Auditor General's functions, and for related purposes.
The Parliament of Western Australia enacts as follows:
page 1
Auditor General Bill 2006
Part 1 Preliminary
s. 1
Part 1 -- Preliminary
1. Short title
This is the Auditor General Act 2006.
2. Commencement
5 This Act comes into operation on the day on which the Financial
Management Act 2006 comes into operation.
3. Purpose
The purposes of this Act are --
(a) to ensure that the State has an Auditor General with the
10 necessary functions, immunities and independence; and
(b) to provide for the independent external audit of the
public sector and related entities.
4. Terms used in this Act
(1) In this Act, unless the contrary intention appears --
15 "accounts" means --
(a) records, however compiled, recorded or stored, of
transactions in respect of moneys or other property,
expressed in monetary units, or in the case of
property, expressed in monetary units or other units
20 of measurement; and
(b) books, documents, writings, monetary forms,
abstracts, vouchers and other records of any kind
from which records mentioned in paragraph (a) have
been compiled;
25 "audit" includes to examine, investigate, inspect and review;
"Auditing and Assurance Standards" means standards made
or formulated from time to time by the Auditing and
Assurance Standards Board established by the Australian
Securities and Investments Commission Act 2001 of the
30 Commonwealth;
page 2
Auditor General Bill 2006
Preliminary Part 1
s. 4
"authorised person" has the meaning given to that term in
section 33;
"Corporations Act" means the Corporations Act 2001 of the
Commonwealth;
5 "Estimates and Financial Operations Committee" means the
Estimates and Financial Operations Committee of the
Legislative Council or such other committee determined by
the Legislative Council to be the responsible committee for
the purposes of this Act;
10 "independent auditor" has the meaning given to that term in
section 38(2);
"Joint Standing Committee on Audit" means the Joint
Standing Committee on Audit or, if it is renamed, that
committee as renamed;
15 "OAG" means the department of the Public Service known as
the Office of the Auditor General;
"Public Accounts Committee" means the Public Accounts
Committee of the Legislative Assembly or, if it is renamed,
that committee as so renamed;
20 "public service officer" has the meaning given to that term in
the Public Sector Management Act 1994 section 3(1);
"related entity" has the meaning given to that term in
section 17(1).
(2) If this Act uses a term that is used in the Financial Management
25 Act 2006, the term has the same meaning in this Act as it has in
that Act unless the contrary intention appears in this Act.
(3) Without limiting subsection (2), in this Act --
"accountable authority" and "agency" have the meanings
given to those terms in the Financial Management
30 Act 2006 section 3;
"subsidiary body", in relation to an agency, has the meaning
given to that term in the Financial Management Act 2006
section 60(1).
page 3
Auditor General Bill 2006
Part 1 Preliminary
s. 5
5. Functions under other written laws
(1) A reference in this Act to the Auditor General's functions
includes a reference to functions given to the Auditor General
under other written laws.
5 (2) The provisions of this Act extend to audits that the Auditor
General is authorised to carry out under other written laws.
page 4
Auditor General Bill 2006
The Auditor General and Deputy Auditor General Part 2
s. 6
Part 2 -- The Auditor General and Deputy
Auditor General
6. Auditor General
(1) There is to continue to be an office of Auditor General for
5 Western Australia.
(2) Whenever a vacancy occurs in the office of Auditor General, an
appropriately qualified person is to be appointed to the office
under Schedule 1 as soon as practicable.
7. Status and independence of Auditor General
10 (1) The Auditor General is an independent officer of Parliament.
(2) The functions of the Auditor General are as specified in this Act
and other written laws and there are no implied functions arising
from the Auditor General being an independent officer of
Parliament.
15 (3) The powers of Parliament to act in relation to the Auditor
General are as specified in or applying under this Act and other
written laws and there are no implied powers of Parliament
arising from the Auditor General being an independent officer
of Parliament.
20 (4) In subsection (3) --
"Parliament" includes --
(a) each House of Parliament; and
(b) the members of each House of Parliament; and
(c) the committees of each House of Parliament and joint
25 committees of both Houses of Parliament.
(5) The Auditor General is authorised and required to act
independently in relation to the performance of the functions of
the Auditor General and, subject to this Act and other written
laws, has complete discretion in the performance of those
30 functions.
page 5
Auditor General Bill 2006
Part 2 The Auditor General and Deputy Auditor General
s. 8
(6) In particular, the Auditor General is not subject to direction
from anyone in relation to --
(a) whether or not a particular audit is to be conducted; or
(b) the way in which a particular audit is to be conducted; or
5 (c) whether or not a particular report is to be made; or
(d) what is to be included in a particular report; or
(e) the priority to be given to any particular matter.
8. Auditor General to have regard to audit priorities of
Parliament
10 Despite section 7(6)(e), the Auditor General must have regard to
the audit priorities of Parliament as determined by --
(a) either House of Parliament;
(b) the Public Accounts Committee; or
(c) the Estimates and Financial Operations Committee.
15 9. Application of Public Sector Management Act 1994 limited
(1) The office of Auditor General is not an office in the Public
Service.
(2) The Public Sector Management Act 1994 sections 21(1)(e) and
(g) to (i), 24 and 32 do not apply to or in relation to the Auditor
20 General.
(3) The Public Sector Management Act 1994 Parts 3, 5 and 6 apply
to and in relation to the Auditor General to the extent, and only
to the extent, provided in section 4(6) of that Act.
10. Deputy Auditor General
25 (1) In the OAG there is to be an office designated Deputy Auditor
General.
(2) The Deputy Auditor General is to perform such functions as the
Auditor General directs.
page 6
Auditor General Bill 2006
The Auditor General and Deputy Auditor General Part 2
s. 11
11. General provisions as to Auditor General
Schedule 1 sets out provisions as to appointment, conditions of
service, acting arrangements and other matters relating to the
Auditor General.
page 7
Auditor General Bill 2006
Part 3 Auditing and other functions of Auditor General
Division 1 Functions as to the State, agencies, subsidiary bodies and
related entities
s. 12
Part 3 -- Auditing and other functions of
Auditor General
Division 1 -- Functions as to the State, agencies, subsidiary
bodies and related entities
5 12. Audit of the Public Ledger
The Auditor General is to audit the Public Ledger.
13. Audit and opinion on Annual Report on State Finances
(1) The Auditor General is to audit the Annual Report on State
Finances submitted by the Treasurer under the Government
10 Financial Responsibility Act 2000 section 14B(1).
(2) The Government Financial Responsibility Act 2000
section 14B(2) applies in respect of the audit carried out under
subsection (1).
14. Audits of accounts of agencies
15 (1) The Auditor General is to audit the accounts of an agency at
least once in respect of each financial year.
(2) Despite subsection (1), the Auditor General may dispense with
all or any part of an audit of the accounts of an agency in
respect of a financial year if the Auditor General considers that
20 the dispensation is appropriate in the circumstances.
(3) The Auditor General must consult with the Treasurer before
exercising the power conferred by subsection (2).
(4) If the Auditor General exercises the power conferred by
subsection (2), the Auditor General must notify the Public
25 Accounts Committee and the Estimates and Financial
Operations Committee.
(5) The power conferred by subsection (2) cannot be exercised in
respect of 3 consecutive financial years of an agency.
page 8
Auditor General Bill 2006
Auditing and other functions of Auditor General Part 3
Functions as to the State, agencies, subsidiary bodies and Division 1
related entities
s. 15
15. Audits and opinions on financial statements and related
information as to agencies
(1) The Auditor General is to audit the financial statements, key
performance indicators and other information submitted by
5 agencies under the Financial Management Act 2006
section 63(1).
(2) Subsection (1) does not apply to an agency in respect of a
financial year for which the audit of its accounts has been
dispensed with under section 14(2).
10 (3) The Auditor General is to prepare and sign an opinion on an
audit carried out under subsection (1), and is to state whether in
the Auditor General's opinion --
(a) the financial statements are based on proper accounts
and present fairly the operating results and cash flows
15 for the period under review and the financial position at
the end of that period; and
(b) the controls exercised by the agency are sufficiently
adequate to provide reasonable assurance that the
receipt, expenditure and investment of money, the
20 acquisition and disposal of property and the incurring of
liabilities have been in accordance with legislative
provisions; and
(c) the key performance indicators are relevant and
appropriate to assist users to assess the agency's
25 performance and fairly represent indicated performance
for the period under review.
(4) In subsection (3)(b) --
"controls" exercised by an agency means the policies and
procedures that have been established for the governance
30 and management of the agency by those charged with that
governance and management and other staff of the agency.
page 9
Auditor General Bill 2006
Part 3 Auditing and other functions of Auditor General
Division 1 Functions as to the State, agencies, subsidiary bodies and
related entities
s. 16
(5) The Auditor General is to provide the opinion prepared and
signed under subsection (3) to the agency's Minister and give a
copy to the accountable authority of the agency.
16. Audits of accounts of certain subsidiary bodies
5 (1) In this section --
"foreign subsidiary" means a subsidiary body that is --
(a) a company within the meaning of the Corporations
Act that is not taken to be registered in this State; or
(b) otherwise formed or incorporated under the law of
10 another State or a Territory or of a place other than a
State or Territory;
"local subsidiary" means any subsidiary body that is not a
foreign subsidiary.
(2) If an agency has a local subsidiary that has power to appoint an
15 auditor, the agency must exercise its control over the local
subsidiary so as to ensure that the local subsidiary appoints the
Auditor General as its auditor.
(3) The Auditor General is to audit the accounts and financial
statements of a local subsidiary that has appointed the Auditor
20 General as its auditor under subsection (2).
(4) For the purposes of subsection (3) the Auditor General may
accept appointment under the Corporations Act as the auditor of
a local subsidiary.
(5) For the purposes of performing an audit of a local subsidiary
25 referred to in subsection (2), the powers and duties conferred
and imposed on the Auditor General under this Act are in
addition to the powers and duties conferred and imposed under
the Corporations Act or any other written law in relation to the
audit.
page 10
Auditor General Bill 2006
Auditing and other functions of Auditor General Part 3
Functions as to the State, agencies, subsidiary bodies and Division 1
related entities
s. 17
(6) If an agency has a foreign subsidiary that has power to appoint
an auditor the agency must exercise its control over the foreign
subsidiary so as to ensure that --
(a) the foreign subsidiary appoints as its auditor a person
5 nominated by the Auditor General; and
(b) the person appointed as auditor carries out such audits,
and makes such reports to the accountable authority of
the agency, as the Auditor General requests.
(7) The accountable authority of the agency must transmit any
10 report received under subsection (6)(b) to the Auditor General.
17. Audits of accounts of related entities
(1) If an agency performs any of its functions in one or more of the
following ways --
(a) in partnership or jointly with another person or body;
15 (b) through the instrumentality of another person or body;
(c) by means of a trust,
the accountable authority of the agency must give written notice
of that fact to the Auditor General, and the person, body or trust
is referred to as a "related entity" of the agency.
20 (2) The Auditor General may audit the accounts and financial
statements of a related entity of an agency to the extent that they
relate to functions that are being performed by the related
entity --
(a) on behalf of the agency; or
25 (b) in partnership or jointly with the agency; or
(c) as the delegate or agent of the agency.
(3) Subsection (2) does not limit the operation of section 16(3).
page 11
Auditor General Bill 2006
Part 3 Auditing and other functions of Auditor General
Division 1 Functions as to the State, agencies, subsidiary bodies and
related entities
s. 18
18. Examinations and investigations
(1) In this section --
"audited local subsidiary" means a local subsidiary that has
appointed the Auditor General as its auditor under
5 section 16(2).
(2) The Auditor General may at any time carry out an examination
or investigation for one or more of the following purposes --
(a) examining the accounting and financial management
information systems of the Treasurer or an agency to
10 determine their effectiveness in achieving or monitoring
programme results;
(b) investigating any matter relating to the accounts of the
Treasurer, an agency or an audited local subsidiary;
(c) investigating any matter relating to public money, other
15 money or statutory authority money or to public
property or other property;
(d) examining an agency's compliance with legislative
provisions, public sector policies or its own internal
policies;
20 (e) examining the efficiency and effectiveness of an agency,
a number of agencies, a part of an agency or an audited
local subsidiary;
(f) examining the efficiency and effectiveness with which a
related entity of an agency performs functions --
25 (i) on behalf of the agency; or
(ii) in partnership or jointly with the agency; or
(iii) as the delegate or agent of the agency.
19. Audits at the request of the Treasurer
(1) The Auditor General may audit any accounts that the Treasurer
30 requests the Auditor General to audit.
page 12
Auditor General Bill 2006
Auditing and other functions of Auditor General Part 3
Other audits, services and functions Division 2
s. 20
(2) Without limiting subsection (1), where a grant or advance of
moneys is made by the Government to a person for specific
purposes, the Treasurer may request the Auditor General to
audit the accounts of that person to ascertain whether the
5 moneys granted or advanced have been expended in accordance
with the purposes of the grant or advance.
20. Audits at the request of committees of Parliament
The Auditor General may carry out any audit that the Public
Accounts Committee or the Estimates and Financial Operations
10 Committee requests the Auditor General to carry out.
21. Audit fees
(1) The Auditor General is to determine whether a fee is to be
charged for an audit carried out by the Auditor General under
this Division and, if so --
15 (a) the amount of that fee; and
(b) the person or body who or which is liable to pay that
fee.
(2) A fee determined under subsection (1)(a) is to be paid by the
person or body determined under subsection (1)(b).
20 Division 2 -- Other audits, services and functions
22. Audits and other services by arrangement
(1) The Auditor General may enter into an arrangement with any
person or body --
(a) to carry out an audit for or in relation to the person or
25 body; or
(b) to provide services to a person or body that are of a kind
commonly performed by auditors.
(2) The Auditor General may carry out audits and provide services
under an arrangement under subsection (1).
page 13
Auditor General Bill 2006
Part 3 Auditing and other functions of Auditor General
Division 3 Reporting to Parliament
s. 23
(3) An arrangement under subsection (1) may provide for the
payment of fees to the Auditor General in respect of the audit or
services.
(4) Section 30(b) and Part 4 Division 2 do not apply in relation to
5 an audit carried out under this section.
23. Provision of advice or information
(1) In this section --
"Auditor General's responsibilities" means --
(a) the Auditor General's functions; and
10 (b) any matter that the Auditor General could consider
when performing those functions.
(2) The Auditor General may provide advice or information to a
person or body relating to the Auditor General's responsibilities
if, in the Auditor General's opinion, the provision of the
15 information or advice --
(a) would be in the State's interests; and
(b) would not compromise the Auditor General's
independence.
(3) The Auditor General may determine that a fee determined by
20 the Auditor General is payable to the Auditor General by a
person or body to whom advice or information is provided
under subsection (2).
Division 3 -- Reporting to Parliament
24. Reports on performance of functions generally
25 (1) At least once in each year the Auditor General is to prepare,
sign and submit to both Houses of Parliament a report on
matters arising out of the performance of the Auditor General's
functions that are, in the opinion of the Auditor General, of such
significance as to require reporting in that manner.
page 14
Auditor General Bill 2006
Auditing and other functions of Auditor General Part 3
Reporting to Parliament Division 3
s. 25
(2) Without limiting subsection (1), in a report under that
subsection the Auditor General --
(a) is to draw attention to any case in which the functions of
accountable authorities were not adequately and
5 properly performed; and
(b) is to include particulars of any major change of
approach made by the Auditor General in relation to the
extent or character of the audit function; and
(c) is to include an opinion as to whether a decision by a
10 Minister not to provide information to Parliament
concerning any conduct or operation of an agency is
reasonable and appropriate.
(3) Within 14 days after signing a report under subsection (1), the
Auditor General is to transmit it to both Houses of Parliament if
15 Parliament is then in session and sitting.
(4) If Parliament is not in session and sitting when the Auditor
General signs a report under subsection (1), the Auditor General
is to --
(a) transmit a copy of the report to the Clerk of the
20 Legislative Assembly and the Clerk of the Legislative
Council; and
(b) make the report available to the public,
within 14 days after signing the report.
25. Report on an examination or investigation
25 (1) The Auditor General may prepare and sign a report on an
examination or investigation carried out under section 18 and
may submit the report to --
(a) both Houses of Parliament; or
(b) the Public Accounts Committee and the Estimates and
30 Financial Operations Committee.
page 15
Auditor General Bill 2006
Part 3 Auditing and other functions of Auditor General
Division 3 Reporting to Parliament
s. 26
(2) Before signing a report proposed to be submitted under
subsection (1), the Auditor General must --
(a) give a summary of findings to the Treasurer, agency or
audited local subsidiary, as the case may be, and any
5 other person who, in the Auditor General's opinion, has
a special interest in the report; and
(b) by written notice, invite the Treasurer, the accountable
authority of the agency, the audited local subsidiary or
that other person, as the case may be, to make
10 submissions or comments on the content of the summary
of findings before a specified day, being not more than
14 days after the summary of findings is given to the
Treasurer, agency, audited local subsidiary or person.
(3) The Auditor General must include in a report prepared under
15 subsection (1) any submissions or comments made under
subsection (2) before the specified day, or a fair summary of
them.
(4) If Parliament is not in session and sitting when the Auditor
General signs a report under subsection (1), the Auditor General
20 may transmit a copy of the report to the Clerk of the Legislative
Assembly and the Clerk of the Legislative Council.
26. Reports transmitted to Clerks
(1) A copy of a report transmitted to the Clerk of a House of
Parliament under section 24(4) or 25(4) is taken to have been
25 laid before the House.
(2) The laying of a copy of a report before a House that is taken to
have occurred under subsection (1) is to be reported to the
House by the Clerk, and recorded in the Votes and Proceedings
or Minutes of Proceedings, on the first sitting day of the House
30 after the receipt of the copy.
page 16
Auditor General Bill 2006
Powers and duties of Auditor General Part 4
Powers and duties generally Division 1
s. 27
Part 4 -- Powers and duties of Auditor General
Division 1 -- Powers and duties generally
27. Powers
The Auditor General has all the powers that are needed for the
5 performance of the Auditor General's functions.
28. Duties of Auditor General as to audits
(1) The Auditor General is to carry out an audit in such manner as
the Auditor General thinks fit having regard to --
(a) Auditing and Assurance Standards; and
10 (b) the character and effectiveness of the internal control
and internal audit of the relevant agency, person or
body.
(2) In carrying out an audit the Auditor General is to consider
whether the requirements of relevant enactments have been
15 complied with.
29. Auditor General may appoint person to audit
(1) The Auditor General may, in writing, appoint a public service
officer or some other person, whether corporate or
unincorporate, to carry out all or a part of an audit.
20 (2) A person appointed under subsection (1) must report on
completion of the audit to the Auditor General.
(3) The fee payable to a person appointed under subsection (1) who
is not a public service officer is to be fixed by the Auditor
General.
25 30. Power to obtain opinion
The Auditor General is entitled to submit to the State
Solicitor --
(a) a question concerning the functions of the Auditor
General; or
page 17
Auditor General Bill 2006
Part 4 Powers and duties of Auditor General
Division 1 Powers and duties generally
s. 31
(b) a question of law relating to an audit,
and the State Solicitor is to give the Auditor General a written
opinion on the question.
31. Delegation by Auditor General
5 (1) The Auditor General may delegate to a member of the staff of
OAG any power or duty of the Auditor General under --
(a) a provision of this Act, other than this section or
section 24, 25 or 34(1); or
(b) another written law.
10 (2) If a person has been appointed under section 29(1) to carry out
all or a part of an audit, the Auditor General may delegate to
that person any power or duty of the Auditor General under --
(a) a provision of this Act, other than this section or
section 24, 25, 29(1) or 34(1); or
15 (b) another written law,
in relation to that audit.
(3) A delegation under this section must be by written notice signed
by the Auditor General.
(4) A person to whom a power or duty is delegated in accordance
20 with this section cannot delegate that power or duty.
(5) A person exercising or performing a power or duty that has been
delegated to the person in accordance with this section is taken
to do so in accordance with the terms of the delegation unless
the contrary is shown.
25 (6) Nothing in this section limits the ability of the Auditor General
to perform a function through an officer or agent.
32. Powers and duties under other written laws
The Auditor General's powers and duties under this Part are in
addition to the Auditor General's powers and duties under other
30 written laws.
page 18
Auditor General Bill 2006
Powers and duties of Auditor General Part 4
Information gathering powers Division 2
s. 33
Division 2 -- Information gathering powers
33. Auditor General may authorise people to perform functions
The Auditor General may, by written notice, authorise a person
(an "authorised person") to perform functions under this
5 Division.
34. Power to obtain information
(1) For the purpose of an audit the Auditor General may, by written
notice, direct a person to do all or any of the following --
(a) to provide the Auditor General with any information or
10 explanation that the Auditor General requires;
(b) to attend and give evidence before the Auditor General
or an authorised person;
(c) to produce to the Auditor General any documents in the
custody or under the control of the person.
15 (2) The Auditor General may direct that --
(a) the information, explanation or answers to questions be
given either orally or in writing (as the Auditor General
requires);
(b) the information, explanation or answers to questions be
20 verified or given on oath or affirmation that the
information or evidence the person will give will be
true.
(3) The Auditor General or an authorised person may administer an
oath or affirmation for the purposes of this section.
25 (4) A person who, without reasonable excuse, fails to comply with
a direction under this section within 14 days of receiving it
commits an offence.
Penalty: a fine of $50 000.
(5) The regulations may prescribe scales of expenses to be allowed
30 to persons who are required to attend under this section.
page 19
Auditor General Bill 2006
Part 4 Powers and duties of Auditor General
Division 2 Information gathering powers
s. 35
35. Access to accounts, information, money and property
(1) In this section --
"premises" means any land or place;
"written authority", in relation to an authorised person, means
5 a written notice signed by the Auditor General that states
that the person is authorised to exercise powers under this
Division.
(2) For the purpose of an audit the Auditor General, or an
authorised person, is entitled to full and free access at all
10 reasonable times to --
(a) all accounts, information, documents, systems and
records that the Auditor General considers to be relevant
to the audit; or
(b) public money, other money or statutory authority
15 money; or
(c) public property or other property,
that is or are in the possession of any person and the Auditor
General, or an authorised person, may make copies of or take
extracts from any of the accounts, information, documents and
20 records.
(3) For the purpose of subsection (2) the Auditor General may
cause a search to be made in, and extracts to be taken from,
anything in the custody of the Treasurer or in any office of an
agency, without paying any fee for doing so.
25 (4) Subject to subsection (6), the Auditor General or an authorised
person may, at all reasonable times, enter and remain on any
premises in order to exercise powers under this section.
(5) If an authorised person enters, or proposes to enter, premises
under this section, the occupier must provide the authorised
30 person with all reasonable facilities for the effective exercise of
powers under this section.
Penalty: a fine of $50 000.
page 20
Auditor General Bill 2006
Powers and duties of Auditor General Part 4
Information gathering powers Division 2
s. 36
(6) An authorised person is not entitled to enter or remain on
premises if the authorised person fails to produce a written
authority on being asked by the occupier to produce proof that
the entry is authorised.
5 36. Duty to give information overrides other duties and rights
(1) A person is not excused from giving information or an
explanation, answering a question or producing a document
under section 34 on the ground that the information, explanation
or answer, or the production of the document, might tend to
10 incriminate the person.
(2) A person must give information or an explanation, answer a
question or produce a document as required under section 34
despite any duty of secrecy or confidentiality that the person has
under another written law, and the person does not commit an
15 offence under another written law by doing so.
(3) If a person gives information or an explanation, answers a
question or produces a document under section 34, neither --
(a) the giving of the information or explanation, answering
of the question or production of the document; nor
20 (b) anything obtained as a direct or indirect result of the
giving of the information or explanation, answering of
the question or production of the document,
is admissible in evidence against that person in any civil or
criminal proceedings except --
25 (c) proceedings for an offence against this Division; or
(d) proceedings under The Criminal Code Chapter XX.
(4) Despite subsection (3), the person may, in any civil or criminal
proceedings, be asked about an answer under the Evidence
Act 1906 section 21.
page 21
Auditor General Bill 2006
Part 4 Powers and duties of Auditor General
Division 2 Information gathering powers
s. 37
37. Powers extend to confidential information
(1) The provisions of this Division extend to information that is the
subject of a notice under the Financial Management Act 2006
section 82(1).
5 (2) If the Minister decides that it would not be in the public interest
for information mentioned in subsection (1) to be disclosed and
advises the Auditor General of that decision, the Auditor
General is not to include the information in a report to
Parliament.
page 22
Auditor General Bill 2006
Independent auditing of the OAG Part 5
s. 38
Part 5 -- Independent auditing of the OAG
38. Appointment of independent auditor for the OAG
(1) The Auditor General is not to carry out audits under Part 3
Division 1 in relation to the OAG.
5 (2) The Governor may appoint an auditor who is a registered
company auditor under the Corporations Act (the "independent
auditor") to carry out audits in relation to the OAG.
39. Audits of accounts of the OAG
The independent auditor is to audit the accounts of the OAG at
10 least once in respect of each financial year.
40. Audits and opinions on financial statements and related
information as to the OAG
(1) The independent auditor is to audit the financial statements, key
performance indicators and other information submitted by the
15 OAG under the Financial Management Act 2006 section 63(1).
(2) The independent auditor is to prepare and sign an opinion on an
audit carried out under subsection (1), and is to state whether in
the independent auditor's opinion --
(a) the financial statements are based on proper accounts
20 and present fairly the operating results and cash flows
for the period under review and the financial position at
the end of that period; and
(b) the controls exercised by the OAG are sufficiently
adequate to provide reasonable assurance that the
25 receipt, expenditure and investment of money, the
acquisition and disposal of property and the incurring of
liabilities have been in accordance with legislative
provisions; and
page 23
Auditor General Bill 2006
Part 5 Independent auditing of the OAG
s. 41
(c) the key performance indicators are relevant and
appropriate to assist users to assess the OAG's
performance and fairly represent indicated performance
for the period under review.
5 (3) In subsection (2)(b) --
"controls" exercised by the OAG means the policies and
procedures that have been established for the governance
and management of the OAG by the Auditor General and
other staff of the OAG.
10 (4) The independent auditor is to provide the opinion prepared and
signed under subsection (2) to the Auditor General.
41. Duties of independent auditor as to audits
The independent auditor is to carry out an audit under this Part
in accordance with Auditing and Assurance Standards.
15 42. Audit fees for independent auditor
The independent auditor is entitled to receive a fee to be
determined by the Treasurer for carrying out an audit under
this Part.
page 24
Auditor General Bill 2006
Miscellaneous Part 6
s. 43
Part 6 -- Miscellaneous
43. Joint Standing Committee on Audit
The Houses of Parliament are to establish a Joint Standing
Committee on Audit comprising an equal number of members
5 appointed by each House.
44. Recommendations by the Joint Standing Committee on
Audit
(1) In the determination of the budget of the OAG for a financial
year regard is to be had to any recommendation as to that
10 budget made to the Treasurer by the Joint Standing Committee
on Audit.
(2) Regard is to be had to any recommendation as to organisational
structure or resources of the OAG made by the Joint Standing
Committee on Audit.
15 45. Protection from liability
(1) No action or claim for damages lies against --
(a) the Auditor General; or
(b) any person acting on behalf of, or with the authority of,
the Auditor General; or
20 (c) the independent auditor,
for or on account of anything done or omitted, or ordered or
authorised to be done or omitted --
(d) under, or apparently under, this Act or any other written
law; or
25 (e) for the purpose, or apparently for the purpose, of giving
effect to this Act or any other written law.
(2) Subsection (1) does not apply if it is proved that the thing was
done or omitted, or ordered or authorised to be done or omitted,
maliciously and without reasonable and probable cause.
page 25
Auditor General Bill 2006
Part 6 Miscellaneous
s. 46
46. Information confidential
(1) Subsection (2) applies to a person who is or has been --
(a) the Auditor General; or
(b) a person employed in the OAG; or
5 (c) a person appointed to assist the Auditor General in
respect of a particular matter; or
(d) the independent auditor.
(2) A person to whom this subsection applies must preserve
confidentiality with respect to all matters that come to the
10 person's knowledge in the course of employment or duties
under this Act or another written law and must not communicate
any information as to matters of that kind to any person, except
as may be required in connection with --
(a) the administration of this Act or that other written law;
15 or
(b) any proceedings under this Act, that other written law or
The Criminal Code.
Penalty: a fine of $50 000.
(3) Subsection (2) does not apply to the communication of
20 information to --
(a) the Joint Standing Committee on Audit; or
(b) the Public Accounts Committee; or
(c) the Estimates and Financial Operations Committee.
(4) A person to whom a summary of findings is given under
25 section 25 must preserve confidentiality with respect to all
matters that are in the summary of findings and must not --
(a) communicate any information as to those matters to any
person; or
(b) copy or reproduce any part of the summary of findings,
page 26
Auditor General Bill 2006
Miscellaneous Part 6
s. 47
except as may be necessary in connection with making
submissions or comments to the Auditor General under that
section or obtaining legal advice as to those matters.
Penalty: a fine of $50 000.
5 47. Regulations
The Governor may make regulations prescribing all matters and
things that by this Act are required or permitted to be prescribed
or that are necessary or convenient to be prescribed for giving
effect to this Act.
10 48. Review of Act
(1) The Joint Standing Committee on Audit is to carry out a review
of the operation and effectiveness of this Act as soon as is
practicable after --
(a) the fifth anniversary of its commencement; and
15 (b) the expiry of each 5 yearly interval after that
anniversary.
(2) In the course of a review under subsection (1) the Joint Standing
Committee on Audit is to consider and have regard to --
(a) whether there is a need for this Act to continue; and
20 (b) how the process for appointing an Auditor General has
operated in practice; and
(c) whether the Auditor General's information gathering
powers are adequate, particularly in relation to claims of
legal professional privilege and Cabinet documents; and
25 (d) the impact of any exercise of the power to audit certain
accounts of related entities; and
(e) the efficiency and effectiveness of the provisions for
dealing with confidential information; and
(f) any other matters that appear to the Joint Standing
30 Committee on Audit to be relevant to the operation and
effectiveness of this Act.
page 27
Auditor General Bill 2006
Part 6 Miscellaneous
s. 48
(3) For the purposes of subsection (1), the Joint Standing
Committee on Audit is to appoint a suitably qualified person
(the "reviewer") to conduct a review (a "performance and
legislative review") as to such matters relating to --
5 (a) the operation and effectiveness of this Act; and
(b) the performance of the Auditor General's functions by
the Auditor General and the OAG,
as are within the terms of reference given to the reviewer by the
Joint Standing Committee on Audit.
10 (4) The Joint Standing Committee on Audit is to consult with the
Auditor General before appointing the reviewer and determining
the terms of reference to be given to the reviewer.
(5) The reviewer is to carry out a performance and legislative
review and is to prepare a report based on that review and
15 provide it to the Joint Standing Committee on Audit.
(6) Before providing the report the reviewer must --
(a) give a summary of the findings of the performance and
legislative review to the Auditor General; and
(b) by written notice invite the Auditor General to make
20 submissions or comments on the summary of findings
before a specified day, being --
(i) not more than 14 days after the summary of
findings is given to the Auditor General; and
(ii) before the report is provided to the Joint
25 Standing Committee on Audit.
(7) The reviewer must include in the report any submissions or
comments made under subsection (6) before the specified day,
or a fair summary of them.
(8) The Joint Standing Committee on Audit is to prepare a report
30 based on a review under subsection (1) and, as soon as is
practicable after the report is prepared, is to cause it to be laid
before the Legislative Council and the Legislative Assembly.
page 28
Auditor General Bill 2006
Miscellaneous Part 6
s. 48
(9) The Joint Standing Committee on Audit may adopt the report
provided to it by the reviewer, in whole or in part and with or
without modifications, as part of the report under subsection (8).
page 29
Auditor General Bill 2006
Part 7 Transitional and saving
s. 49
Part 7 -- Transitional and saving
49. Incumbent Auditor General remains in office
(1) In this section --
"former office" means the office of Auditor General under the
5 Financial Administration and Audit Act 1985.
(2) Despite Schedule 1 clause 1, if a person held the former office
immediately before the commencement of this Act (other than
in an acting capacity), that person is entitled to hold office as
Auditor General in accordance with Schedule 1 until the person
10 reaches 65 years of age.
(3) Subsection (2) does not apply if the person resigned from the
former office with effect immediately before the
commencement of this Act.
(4) If a person holding office under subsection (2) is able and
15 willing to continue as Auditor General, the Governor may
authorise the person to continue to hold office as Auditor
General in accordance with this Part after reaching 65 years of
age for a period not exceeding 12 months determined by the
Governor.
20 (5) The Financial Administration and Audit Act 1985 section 73
continues to apply to a person holding office under
subsection (2) or (4).
50. Savings of appointments of persons to audit
An appointment made under a written law or by the Auditor
25 General under the Financial Administration and Audit Act 1985,
and subsisting immediately before the commencement of this
Act, of a person to carry out all or part of an audit is to be
regarded as having been made by the Auditor General under
section 29.
page 30
Auditor General Bill 2006
General provisions as to Auditor General Schedule 1
cl. 1
Schedule 1 -- General provisions as to Auditor General
[s. 6(2), 11 and 49(2)]
1. Appointment of Auditor General
(1) The Auditor General is to be appointed by the Governor on the
5 recommendation of the Minister, and is to hold office as Auditor
General in accordance with this Schedule.
(2) Before applications are sought for appointment to the office of
Auditor General, the Minister must consult with the Public Accounts
Committee and the Estimates and Financial Operations Committee as
10 to the appropriate criteria for selection for appointment.
(3) Before making a recommendation under subclause (1), the Minister
must consult with the parliamentary leader of each political party with
party status within Parliament and with the Public Accounts
Committee and the Estimates and Financial Operations Committee.
15 (4) Subject to this Act, a person appointed as Auditor General holds
office for a term of 10 years.
(5) A person cannot be appointed as Auditor General if the person has
previously been appointed as Auditor General under this Act or the
Financial Administration and Audit Act 1985.
20 (6) Before performing the functions of Auditor General for the first time,
the Auditor General must make a declaration in the form in
Schedule 2 before the Governor.
2. Remuneration
(1) In this clause --
25 "remuneration" has the meaning given to that term in the Salaries
and Allowances Act 1975 section 4(1).
(2) The remuneration of the Auditor General is to be determined by the
Salaries and Allowances Tribunal under the Salaries and Allowances
Act 1975.
30 (3) The rate of remuneration of the Auditor General must not be reduced
during the term of office of the Auditor General without the Auditor
General's consent.
page 31
Auditor General Bill 2006
Schedule 1 General provisions as to Auditor General
cl. 3
3. Other employment
The Auditor General must not, except so far as authorised so to do by
another enactment or by resolutions of both Houses of Parliament --
(a) hold any office or place referred to in the Constitution Acts
5 Amendment Act 1899 Schedule V Part 1 or 2 (other than the
office of Auditor General) or be a member of, or of the
governing body of, any commission, council, board,
committee, authority, trust or other body referred to in Part 3
of that Schedule; or
10 (b) engage in any paid employment outside the duties of the
office of Auditor General.
4. Leave and other conditions of service
(1) The Governor may determine --
(a) the leave of absence to which the Auditor General is entitled;
15 and
(b) other terms and conditions of service that apply to the
Auditor General.
(2) Subject to any determination under subclause (1), the Auditor General
is entitled to leave of absence and other conditions of service as
20 applicable to public service officers.
5. Rights of officers preserved
(1) If a person who is a public service officer is appointed as Auditor
General, the person is entitled to retain any accruing and existing
rights, including any rights under the Superannuation and Family
25 Benefits Act 1938, as if service as Auditor General were a
continuation of service as a public service officer.
(2) If a person ceases to be Auditor General and becomes a public service
officer, the service as Auditor General is to be regarded as service in
the Public Service for the purposes of determining the person's rights
30 as a public service officer and, if applicable, for the purposes of the
Superannuation and Family Benefits Act 1938.
page 32
Auditor General Bill 2006
General provisions as to Auditor General Schedule 1
cl. 6
(3) If --
(a) a person immediately before appointment as Auditor General
occupied an office under the Public Sector Management
Act 1994 Part 3; and
5 (b) the person's term of office expires by effluxion of time,
the person is entitled to be appointed to an office under the Public
Sector Management Act 1994 Part 3 of at least the equivalent level of
classification as the office that the person occupied immediately
before appointment as Auditor General.
10 6. Resignation of Auditor General
The Auditor General may resign from office by giving the Governor a
signed letter of resignation.
7. Removal and suspension from office
(1) The Auditor General may, at any time, be removed or suspended from
15 office by the Governor on addresses from both Houses of Parliament.
(2) If the Auditor General has been suspended from office under
subclause (1), the suspension has effect until the Auditor General is
restored to or removed from office by the Governor on addresses from
both Houses of Parliament.
20 (3) Despite subclause (1), the Governor may suspend the Auditor General
from office if the Governor is satisfied that the Auditor General --
(a) is incapable of performing the functions of the Auditor
General properly; or
(b) has performed the functions of the Auditor General
25 incompetently or has neglected to perform those functions; or
(c) has been guilty of misconduct; or
(d) has contravened clause 3; or
(e) is an insolvent under administration as defined in the
Corporations Act section 9.
30 (4) Either House of Parliament may order the Joint Standing Committee
on Audit to inquire into and report on any motion for suspension or
removal of the Auditor General.
page 33
Auditor General Bill 2006
Schedule 1 General provisions as to Auditor General
cl. 8
(5) If the Auditor General has been suspended from office under
subclause (3), the Auditor General is restored to office by operation of
this subclause if --
(a) by the end of the seventh sitting day of a House of Parliament
5 following the day of the suspension, a full statement of the
grounds of the suspension has not been laid before that
House; or
(b) by the end of the relevant day for a House of Parliament, that
House has not passed an address requesting the removal of
10 the Auditor General from office.
(6) In subclause (5)(b) --
"relevant day" for a House of Parliament means --
(a) the 30th sitting day of that House following the day on
which the statement referred to in subclause (5)(a) is laid
15 before it; or
(b) the last day of the session during which the statement
referred to in subclause (5)(a) is laid before that House, if
that session ends before the sitting day referred to in
paragraph (a).
20 (7) The Interpretation Act 1984 section 52 does not apply to the office of
Auditor General.
8. Acting Auditor General
(1) The Governor on the recommendation of the Minister may appoint an
appropriately qualified person as an Acting Auditor General to act in
25 the office of Auditor General during a period when --
(a) that office is vacant; or
(b) the Auditor General is absent from duty, suspended from that
office under clause 7 or unable to perform the functions of
that office for any other reason.
30 (2) Before making a recommendation under subclause (1), the Minister
must consult with the parliamentary leader of each political party with
party status within Parliament and with the Public Accounts
Committee and the Estimates and Financial Operations Committee.
page 34
Auditor General Bill 2006
General provisions as to Auditor General Schedule 1
cl. 9
(3) Before performing the functions of Auditor General for the first time,
an Acting Auditor General must make a declaration in the form in
Schedule 2 before the Governor.
(4) While an Acting Auditor General is acting in the office of Auditor
5 General --
(a) the Acting Auditor General is to perform all the functions of
the Auditor General and any act or thing done by the Acting
Auditor General in that performance has the like effect as if it
were done by the Auditor General; and
10 (b) any act or thing that is required under a written law to be
done to, by reference to or in relation to the Auditor General
is taken to be effectually done if done to, by reference to or in
relation to the Acting Auditor General; and
(c) the Acting Auditor General has the same immunities and
15 independence as the Auditor General.
(5) Clauses 2 to 7 apply to an Acting Auditor General.
9. Deputy Auditor General, or acting Deputy Auditor General, may
act as Auditor General
(1) In this clause --
20 "Deputy Auditor General" means the person holding the office
referred to in section 10(1).
(2) Subject to subclauses (3) and (4), the Deputy Auditor General is to act
in the office of Auditor General during any period when --
(a) that office is vacant; or
25 (b) the Auditor General is absent from duty, suspended from
office under clause 7 or unable to perform the functions of
Auditor General for any other reason.
(3) Subject to subclause (4), if during a period mentioned in
subclause (2) --
30 (a) the office referred to in section 10(1) is vacant; or
(b) the Deputy Auditor General is absent from duty or unable to
perform the functions of Auditor General for any other
reason,
the person who would otherwise act in the office referred to in
35 section 10(1) is to act in the office of Auditor General.
page 35
Auditor General Bill 2006
Schedule 1 General provisions as to Auditor General
cl. 9
(4) If an Acting Auditor General has been appointed under clause 8 for a
period mentioned in subclause (2), subclauses (2) and (3) do not apply
in respect of that period unless the Acting Auditor General is absent
from duty, suspended from office under clause 7 or unable to perform
5 the functions of Auditor General for any other reason.
(5) While a person is acting in the office of Auditor General under
subclause (2) or (3) --
(a) the person is to perform all the functions of the Auditor
General and any act or thing done by the person in that
10 performance has the like effect as if it were done by the
Auditor General; and
(b) any act or thing that is required under a written law to be
done to, by reference to or in relation to the Auditor General
is taken to be effectually done if done to, by reference to or in
15 relation to the person; and
(c) the person has the same immunities and independence as the
Auditor General.
(6) Anything done by or in relation to a person purporting to act in the
office of Auditor General under subclause (2) or (3) is not invalid
20 merely because the occasion to act had not arisen or had ceased.
(7) Before performing the functions of the Auditor General for the first
time under subclause (5)(a), a person must make a declaration in the
form in Schedule 2 before the Governor.
page 36
Auditor General Bill 2006
Form of declaration Schedule 2
Schedule 2 -- Form of declaration
[Sch. 1 cl. 1(6), 8(3) and 9(7)]
I, ..........................................................., sincerely promise and declare that,
according to the best of my skill and ability, I will faithfully, impartially and
5 truly execute the office and perform the functions of Auditor General according
to law.
.................................. ...........
(Signature of declarant) (Date)
10
page 37
Auditor General Bill 2006
Defined Terms
Defined Terms
[This is a list of terms defined and the provisions where they are defined.
The list is not part of the law.]
Defined Term Provision(s)
accounts ...................................................................................................... 4(1)
accountable authority................................................................................... 4(3)
agency......................................................................................................... 4(3)
audit............................................................................................................ 4(1)
audited local subsidiary ..............................................................................18(1)
Auditing and Assurance Standards............................................................... 4(1)
Auditor General's responsibilities...............................................................23(1)
authorised person ...................................................................................4(1), 33
controls ........................................................................................... 15(4), 40(3)
Corporations Act ......................................................................................... 4(1)
Deputy Auditor General .............................................................. Sch. 1, cl. 9(1)
Estimates and Financial Operations Committee............................................ 4(1)
foreign subsidiary.......................................................................................16(1)
former office ..............................................................................................48(1)
independent auditor ........................................................................... 4(1), 38(2)
Joint Standing Committee on Audit ............................................................. 4(1)
local subsidiary ..........................................................................................16(1)
OAG ........................................................................................................... 4(1)
Parliament................................................................................................... 7(4)
premises.....................................................................................................35(1)
Public Accounts Committee......................................................................... 4(1)
public service officer ................................................................................... 4(1)
related entity ..................................................................................... 4(1), 17(1)
relevant day................................................................................. Sch. 1, cl. 7(5)
remuneration ............................................................................... Sch. 1, cl. 2(1)
subsidiary body ........................................................................................... 4(3)
written authority.........................................................................................35(1)
page 38
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