Financial Scrutiny of the Executive

Paul McLeay MPChair, PAC

PUBLIC ACCOUNTS COMMITTEE

Sunlight is the best of disinfectants

3

Spenders

Auditors

Public Representatives

Produces accounts of expenditure

Inte

rpre

ts ac

coun

ts &

expla

ins a

udit o

pinion

sRepresents public

opinions & interest

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

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

• Seek submission from agency 12 months after audit

• Refer agency’s submission to A-G for comment

• Hearings with agency and A-G

• Report to Parliament

• Debate in Parliament

• Government response within 6 months

Review of Performance AuditsPUBLIC ACCOUNTS

COMMITTEE

• A-G made 15 recommendations

• Main issue: Need targets

• Committee found Legal Aid implementing 9, considering 2, rejected 3

• Reporting against targets rejected

• PAC made 3 recommendations

• Government agreed to primary rec: Legal Aid to report services against targets

• Government did not agree to 2 minor recs.

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

Outcome:

• Improved accountability & performance of State agencies

Review of Performance AuditsPUBLIC ACCOUNTS

COMMITTEE

Represents public interest

Interprets the accounts Spends the money

www.parliament.nsw.gov.au/publicaccounts