financial scrutiny of the executive nsw pac

1. Financial Scrutiny
of the Executive
PUBLIC ACCOUNTS Paul McLeay MP
COMMITTEE Chair, PAC

2. Sunlight is the best of disinfectants

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4. Spenders

5. Auditors

6. Public Representatives

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Produces accounts
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8. PUBLIC ACCOUNTS
COMMITTEE Functions
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

9. PUBLIC ACCOUNTS
COMMITTEE Source of Inquiries
Referral by:

11. • Referral by:
 Legislative Assembly

13. • Referral by:
 Legislative Assembly
 Minister

15. • Referral by:
 Legislative Assembly
 Minister
 Auditor-General

16. The NSW Public Accounts Committee

17. Referral by:
 Legislative Assembly
 Minister
 Auditor-General
 the Committee

18. Inquiries
Functions include reporting on circumstances
connected with Auditor-General’s reports

19. PUBLIC ACCOUNTS
COMMITTEE Review of Performance Audits
• 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

20. • A-G made 15
recommendations
• Main issue: Need targets
• Committee found Legal Aid
implementing 9, considering
2, rejected 3
• Reporting against targets
rejected

21. • PAC made 3
recommendations
• Government agreed to
primary rec: Legal Aid to
report services against
targets
• Government did not agree to
2 minor recs.

22. PUBLIC ACCOUNTS
COMMITTEE Review of Performance Audits
Purpose:
• Bring together the professional expertise of the Audit Office and
political authority and accountability of the PAC

24. PUBLIC ACCOUNTS
COMMITTEE Review of Performance Audits
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

25. PUBLIC ACCOUNTS
COMMITTEE Review of Performance Audits
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

26. PUBLIC ACCOUNTS
COMMITTEE Review of Performance Audits
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

27. PUBLIC ACCOUNTS
COMMITTEE Review of Performance Audits
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

28. PUBLIC ACCOUNTS
COMMITTEE Review of Performance Audits
Outcome:
• Improved accountability & performance of State agencies

29. Represents public interest
Interprets the accounts Spends the money

30. www.parliament.nsw.gov.au/publicaccounts