Legislation governing the role and functions
of the Auditor-General
The position of Auditor-General is designated as an independent officer
of Parliament within Division 3 of Part V of Victoria's Victoria's
Constitution Act 1975. Provisions relating to the appointment,
operational independence and tenure of the Auditor-General are also
set out in the Constitution Act.
In March 2003, the Victorian Parliament passed amendments to the Constitution
Act that, among other things, preclude any future change to the provisions
relating to the Auditor-General other than by way of a referendum.
With this action, the Parliament has reinforced the importance it
places on ensuring that the independence of the Auditor-General in
Victoria is always adequately protected.
The Audit
Act 1994 establishes the legislative framework governing the
ongoing role and functions of the Auditor-General. This Act identifies
the statutory powers and responsibilities of the Auditor-General.
It provides the authority for the Auditor-General to:
- conduct annual financial statement audits of public sector agencies;
- undertake performance audits within the public sector which
encompass assessments of the economy, efficiency and effectiveness
of the management of public resources by the Government or individual
agencies of government;
- examine the use of public grants received by both private and
public sector organisations; and
- utilise the Victorian Auditor-General's Office as the organisational
and resourcing avenue available to the Auditor-General to assist
in the discharge of the position's legislative functions.
During June 2003, Parliament approved a range of amendments to
the Audit Act. These amendments significantly strengthen the legislation
and include:
- a capacity for the Auditor-General to present reports to Parliament,
and for the reports to be regarded as public documents, when Parliament
is in recess;
- widening of the Auditor-General’s mandate to encompass all
entities controlled by the State;
- assignment of an explicit power to the Auditor-General to examine
instances of waste, probity or lack of financial prudence in the
use of public resources; and
- provision for the Auditor-General to audit the financial statements
of a non-public body if invited and the Auditor-General considers
it is in the public interest to do so.
The Audit Act also addresses the special relationship of
the Auditor-General with the Parliament and with the Parliament's
Public
Accounts and Estimates Committee. The Act assigns several statutory
responsibilities to the Committee in relation to the work of the
Auditor-General. These responsibilities include:
- review of the Auditor-General's draft annual work plan and annual
budgetary needs;
- a consultative role in the formulation of objectives and scope
for all performance audits undertaken by the Auditor-General;
and
- provision of recommendations to Parliament on the appointment
of a financial statement auditor (annually) and a performance
auditor (every 3 years) to independently examine and report
on the quality of financial reporting and resource management
within the Victorian Auditor-General's Office.
These legislative responsibilities of the Public Accounts and Estimates
Committee represent the means by which Parliament protects and supports
the independence of the Auditor-General and ensures there is adequate
accountability back to it on the ongoing use of that independence.
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