New South Wales: Government Sector Audit Act 1983 (NSW)

Government Sector Audit Act 1983 No 152 An Act to make provision with respect to the audit of government sector finances and the establishment and functions of the Public Accounts Committee; and for other purposes. Part 1 Preliminary 1 Name of Act This Act may be cited as the Government Sector Audit Act 1983. 2 Commencement (1) Part 1, Divisions 1 and 4 of Part 2, section 34 and Division 5 of Part 3 shall be deemed to have commenced on 1 July 1983. (2) Except as provided by subsection (1), this Act shall commence on such day as may be appointed by the Governor in respect thereof and as may be notified by proclamation published in the Gazette. 3 Principal objects of Act The principal objects of this Act are— (a) to recognise that the Auditor-General is an independent and accountable statutory officer responsible for providing independent audit and audit-related services, and (b) to establish the Audit Office of New South Wales to assist the Auditor-General in the exercise of the Auditor-General's functions. 4 Definitions (1) In this Act— accountable authority, in relation to an auditable entity, means— (a) for a GSF agency—the accountable authority for the GSF agency within the meaning of the Government Sector Finance Act 2018, or (b) for a university or any of its controlled entities—the accountable authority for the university or its controlled entities within the meaning of the Government Sector Finance Act 2018, or (c) for any other entity—the person who is the chief executive officer (however described) of the entity or otherwise responsible for the entity's day to day management or any other person prescribed by the regulations. annual GSF financial statements for a reporting GSF agency has the same meaning as in the Government Sector Finance Act 2018. Audit Office means the Audit Office of New South Wales established by this Act. auditable entity means each of the following— (a) a GSF agency (whether or not a reporting GSF agency), (b) a university or any of its controlled entities (within the meaning of the Government Sector Finance Act 2018), (c) any other entity— (i) the financial reports or statements of which are subject to audit by the Auditor-General under this Act, the Government Sector Finance Act 2018 or any other Act, or (ii) that is prescribed by the regulations to be an auditable entity. auditor means a person appointed to be an auditor pursuant to section 35. Australian Auditing Standards means the standards issued by the Auditing and Assurance Standards Board, as in force from time to time. banking account and banking service have the same meanings as in the Government Sector Finance Act 2018. Consolidated State Financial Statements has the same meaning as in the Government Sector Finance Act 2018. controlled entity has the same meaning as in the Government Sector Finance Act 2018. entity has the same meaning as in the Government Sector Finance Act 2018. function includes a power, authority or duty, and exercise a function includes perform a duty. GSF agency has the same meaning as in the Government Sector Finance Act 2018. government money has the same meaning as in the Government Sector Finance Act 2018, and includes anything that was public money within the meaning of this Act immediately before the definition of public money was omitted by the substitution of this section by the Government Sector Finance Legislation (Repeal and Amendment) Act 2018. government officer has the same meaning as in the Government Sector Finance Act 2018. government property has the same meaning as in the Government Sector Finance Act 2018. government resources has the same meaning as in the Government Sector Finance Act 2018. money includes— (a) any instrument ordering or authorising the payment of money if it is an instrument of a kind that may be lodged with an authorised deposit-taking institution for the purpose of enabling it to collect money so payable and credit that money to a banking account with it, and (b) a bill of exchange, postal order, money order and promissory note. prescribed requirements, in relation to a GSF agency, means— (a) requirements prescribed by or under this Act, the Government Sector Finance Act 2018 or any other law applying to the agency, and (b) any Treasurer's directions applying to the agency. related money has the same meaning as in the Government Sector Finance Act 2018. reporting GSF agency has the same meaning as in the Government Sector Finance Act 2018. responsible Minister, in relation to auditable entity, means— (a) for a GSF agency—the responsible Minister for the GSF agency within the meaning of the Government Sector Finance Act 2018, or (b) for a university or any of its controlled entities (within the meaning of the Government Sector Finance Act 2018)—the Minister administering the Act under which the university is established, or (c) for any other entity—the Minister having the administration of the Act by or under which the entity is appointed, constituted or regulated or any other Minister that is prescribed by the regulations. Special Deposits Account has the same meaning as in the Government Sector Finance Act 2018. Treasurer's directions has the same meaning as in the Government Sector Finance Act 2018. Note— The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act. (2) Notes included in this Act do not form part of this Act. 4A Relationship with Corporations legislation (1) The regulations may declare a matter that is dealt with by this Act or the regulations to be an excluded matter for the purposes of section 5F of the Corporations Act 2001 of the Commonwealth in relation to— (a) the whole of the Corporations legislation to which Part 1.1A of the Corporations Act 2001 of the Commonwealth applies, or (b) a specified provision of that legislation, or (c) that legislation other than a specified provision, or (d) that legislation otherwise than to a specified extent. Note— Section 5F of the Corporations Act 2001 of the Commonwealth provides that if a State law declares a matter to be an excluded matter for the purposes of that section in relation to all or part of the Corporations legislation of the Commonwealth, then the provisions that are the subject of the declaration will not apply in relation to that matter in the State concerned. (2) The regulations may declare a relevant provision of this Act to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act 2001 of the Commonwealth (either generally or specifically in relation to a provision of the Corporations legislation to which Part 1.1A of the Corporations Act 2001 of the Commonwealth applies). Note— Section 5G of the Corporations Act 2001 of the Commonwealth provides that if a State law declares a provision of a State law to be a Corporations legislation displacement provision, then any provision of the Corporations legislation with which the State provision would otherwise be inconsistent does not apply in the State concerned to the extent necessary to avoid the inconsistency. (3) In this section— matter includes act, omission, body, person or thing. relevant provision of this Act means a provision that is— (a) a post-commencement provision within the meaning of section 5G of the Corporations Act 2001 of the Commonwealth, or (b) materially amended within the meaning of that section on or after the commencement of the Corporations Act 2001 of the Commonwealth if the amendment is enacted on or after that commencement. Part 2 Secs 5–27AB (Repealed) Part 3 Audit Division 1 The Auditor-General 27B The Auditor-General (1) There is to be an Auditor-General for the State. (1A) The Auditor-General is an independent officer of Parliament. (2) The Auditor-General has the functions conferred or imposed on the Auditor-General by law. (2A) No implied rights, obligations or immunities arise from the Auditor-General being an independent officer of Parliament. (3) The Auditor-General's functions include the following— (a) to audit the Consolidated State Financial Statements and any other financial reports that the Auditor-General is required or authorised to audit by law, (b) to provide any particular audit or audit-related service to Parliament at the joint request of both Houses of Parliament, (c) to provide any particular audit or audit-related service to the Treasurer at the request of the Treasurer or to any other Minister at the request of that other Minister, (c1) to provide any other auditing, audit-related or reporting services that the Auditor-General is required or authorised to provide by law, (d) to report to Parliament as required or authorised by law, (e) to do anything that is incidental to the exercise of the Auditor-General's functions. (3A) For subsection (3)(b) or (c), the Parliament or Treasurer or other Minister must consult with the Auditor-General about the scope of a particular audit or audit-related service before requesting the Auditor-General to provide the audit or audit-related service. (4) The Auditor-General may exercise his or her functions in such manner as the Auditor-General thinks fit. However, the Auditor-General is required— (a) to have regard to recognised professional standards and practices, and (b) to comply with any relevant requirements imposed by law. (5) The Auditor-General may, in the exercise of his or her functions, have regard to whether there has been— (a) any wastage of public resources, or (b) any lack of probity or financial prudence in the management or application of public resources. (6) Nothing in this Act entitles the Auditor-General to question the merits of policy objectives of the Government, including— (a) any policy objective of the Government contained in a record of a policy decision of Cabinet, and (b) a policy direction of a Minister, and (c) a policy statement in any Budget Paper or other document evidencing a policy direction of the Cabinet or a Minister. (6A) Towards defraying the costs and expenses of any particular audit or audit-related service provided at the request of both Houses of Parliament or of a Minister under subsection (3), there is payable to the Auditor-General, out of funds available for the expenditure of Parliament or of the Minister (as the case requires), such amounts at such times as the Treasurer decides. (7) In this section, by law means by or under this or any other Act or law. 28 Appointment etc (1) The Auditor-General is to be appointed by the Governor for a term of 8 years and is not eligible for re-appointment, including re-appointment after the end of that term. (2) Part 1 of Schedule 1 has effect. 28A Veto of proposed appointment of Auditor-General (1) A person is not to be appointed as Auditor-General until— (a) a proposal that the person be appointed has been referred to the Public Accounts Committee under section 57A, and (b) either the period that the Committee has under that section to veto the proposed appointment has ended without the Committee having vetoed the proposed appointment or the Committee notifies the Treasurer that it has decided not to veto the proposed appointment. (2) A person may be proposed for appointment on more than one occasion. 29 Declaration of office (1) The Auditor-General, on being appointed under this Act, shall, before exercising the powers or performing the duties conferred or imposed on the Auditor-General by this Act, make and subscribe, before one of the Judges of the Supreme Court, a declaration in the form of Part 2 of Schedule 1. (2) The declaration made and subscribed pursuant to subsection (1) shall be kept among the records of the Supreme Court. 30 Deputy Auditor-General (1) A Deputy Auditor-General may be appointed by the Governor to act in the office of the Auditor-General at any time while the Auditor-General is absent from office through illness or any other cause or while there is a vacancy in the office of the Auditor-General. (2) An appointment under subsection (1) may be made whether or not, at the time at which the appointment is made, the Auditor-General is absent from office as referred to in that subsection or there is a vacancy in the office of Auditor-General as so referred to. (3) Section 29 applies to and in respect of the Deputy Auditor-General in the same way as it applies to and in respect of the Auditor-General. (4) The Deputy Auditor-General, while acting as referred to in subsection (1), shall be deemed to be the Auditor-General and shall have and may exercise the functions of the Auditor-General. (5) No person shall be concerned to inquire whether or not any occasion has arisen requiring or authorising a person to act in the office of the Auditor-General, and all things done or omitted to be done by that person while so acting shall be as valid and effectual and shall have the same consequences as if they had been done or omitted to be done by the Auditor-General. 31 Auditor-General shall communicate with Treasurer (1) The Auditor-General shall communicate with the Treasurer upon all matters arising under this Act or the prescribed requirements and which, in the opinion of the Auditor-General, are sufficiently significant to be brought to the Treasurer's attention. (2) The Auditor-General shall transmit to the Treasurer the name of any person failing to comply with any of the provisions of this Act or the prescribed requirements. (3) Upon the name of a person being transmitted to the Treasurer under subsection (2) and until the failure of that person is made good to the satisfaction of the Auditor-General, the payment of any salary or money due or to become due to that person may, subject to and in accordance with the regulations, be withheld. 32 Search in public books The Auditor-General may cause a search to be made in and any extracts to be taken from any book, document or record, in any public office, without paying any fee therefor. 33 Auditor-General may obtain opinion of law officer The Auditor-General shall be entitled to lay before the Attorney General or Crown Solicitor a case in writing as to any question regarding the interpretation of this Act, the Constitution Act 1902, or any other Act, or the prescribed requirements concerning the functions of the Auditor-General and the Attorney General or Crown Solicitor, as the case may be, shall give a written opinion on the case. Division 1A The Audit Office 33A Establishment of Audit Office (1) The Audit Office of New South Wales is established by this Act. (2) The Audit Office consists of those persons who are for the time being appointed by the Auditor-General under section 33B. (3) The Auditor-General is not a member of the Audit Office but is taken, for all purposes, to be the person who exercises the functions of chief executive officer in relation to the Audit Office. 33B Staff of Audit Office (1) The Auditor-General may appoint, as members of staff of the Audit Office, such persons as may be necessary to enable the Auditor-General to exercise the Auditor-General's functions. (2) Those persons are taken to be employed by the Government of New South Wales in the service of the Crown, except as provided by section 33E. (3) Each person who is appointed as a member of staff of the Audit Office continues, subject to the provisions of this Division and the terms of the person's appointment, to be employed in the Audit Office at the discretion of the Auditor-General. (4) The provisions of the Government Sector Employment Act 2013 relating to the employment of Public Service employees do not apply to a member of staff of the Audit Office. 33C Auditor-General may determine employment conditions (1) The Auditor-General may from time to time make determinations fixing the conditions and benefits of employment of the members of staff of the Audit Office and their salary, wages and other remuneration. Such a determination can provide for redundancy and severance payments and for remuneration packaging. (2) The conditions, benefits, salary, wages and other remuneration of a member of staff of the Audit Office are, except in so far as provision is otherwise made by law, such as may be fixed by a determination made under this section. (3) A member of staff may sue for and recover the amount of remuneration of the member that is determined under this section. For that purpose, the determination is taken to be a State industrial instrument. 33D Auditor-General may enter into agreements (1) The Auditor-General may enter into an agreement with any association or organisation representing a group or class of staff of the Audit Office with respect to industrial matters. (2) Any such agreement binds all persons in the class or group affected by the agreement, and no such person (whether a member of the association or organisation with which the agreement was entered into or not) has any right of appeal against the terms of the agreement. (3) An agreement under this section is not an enterprise agreement within the meaning of the Industrial Relations Act 1996. However, the Auditor-General may enter into such an enterprise agreement as the employer of the members of staff concerned. 33E Role of Auditor-General in industrial proceedings The Auditor-General is, for the purposes of any proceedings relating to members of staff of the Audit Office held before a competent tribunal having jurisdiction to deal with industrial matters, taken to be the employer of the staff. 33F Executive officers (1) In this section— employment of an executive officer means— (a) the appointment of, or failure to appoint, a person to a vacant executive position, or (b) the removal, retirement, termination of employment or other cessation of office of the executive officer, or (c) any disciplinary proceedings or disciplinary action taken against the executive officer, or (d) the remuneration or conditions of employment of the executive officer. executive officer means a person holding an executive position. executive position means a position in the Audit Office that— (a) has a salary greater than the maximum salary applicable to a grade 12 clerk's position in the Public Service, and (b) is designated by the Auditor-General as an executive position. (2) The contract of employment of an executive officer may provide for the payment of compensation to the officer on the removal or termination of employment of the executive officer. (3) The Auditor-General may remove an executive officer from an executive position at any time for any or no reason and without notice. The person is not, except as may be provided in the person's contract of employment, entitled to any compensation for the removal from office. (4) The employment of an executive officer, or any matter, question or dispute relating to any such employment, is not an industrial matter for the purposes of the Industrial Relations Act 1996. This subsection applies whether or not any person has been appointed to a vacant executive position. (5) Part 6 (Unfair dismissals), Part 7 (Public sector promotion and disciplinary appeals) and Part 9 (Unfair contracts) of Chapter 2 of the Industrial Relations Act 1996 do not apply to or in respect of the employment of an executive officer. (6) Any State industrial instrument (whether made before or after the commencement of this section) does not have effect in so far as it relates to the employment of executive officers. (7) Subsection (6) does not prevent the Auditor-General from applying the provisions of an award or industrial agreement (including a determination under section 33C) to the employment of an executive officer. (8) (Repealed) (9) No proceedings for an order in the nature of prohibition, certiorari or mandamus or for a declaration or injunction or for any other relief, lie in respect of the appointment of or failure to appoint a person to an executive position, the entitlement or non-entitlement of a person to be so appointed or the validity or invalidity of any such appointment. (10) This section prevails over any inconsistent provision of any other Act or law or of the terms of appointment of, or contract of employment with, an executive officer. 33G Delegation of Auditor-General's functions The Auditor-General may delegate any of the Auditor-General's functions under this or any other Act (other than this power of delegation) to a member of staff of the Audit Office. Division 2 Audit—generally 33H Definitions In this Division— auditable entity does not include a local council. authorised person means— (a) the Auditor-General, or (b) an auditor, or (c) any other person authorised by the Auditor-General. 34 Reports on audits and audit-related functions for purposes of Government Sector Finance Act 2018 (1) This section applies to any of the following statements and reports given to the Auditor-General under the Government Sector Finance Act 2018 for auditing or audit-related services— (a) any annual GSF financial statements for a reporting GSF agency under section 7.6 of that Act, (b) any final annual GSF financial statements for a former reporting GSF agency under section 7.7 of that Act, (c) an SDA account financial report for an account in the Special Deposits Account under section 7.8 of that Act, (d) a special purpose financial report for a GSF agency under section 7.9 of that Act, (e) Consolidated State Financial Statements under section 7.17 of that Act. (2) The Auditor-General (or, if authorised by the Auditor-General, the Deputy Auditor-General or an auditor) must prepare within the relevant auditing period after the statements or reports are given to the Auditor-General— (a) for statements or reports provided for auditing—an audit report, or (b) for statements or reports provided for audit-related services—a report on the results from performing those services. (3) The relevant auditing period is— (a) in the case of Consolidated State Financial Statements—as soon as practicable after the Auditor-General is given the statements, or (b) in any other case—the period specified by the Government Sector Finance Act 2018 or the Treasurer's directions for the statement or report concerned. (4) An audit report must state— (a) for annual GSF financial statements or final annual GSF financial statements—whether in the Auditor-General's opinion they comply with section 7.6 (3) of the Government Sector Finance Act 2018, or (b) for Consolidated State Financial Statements—whether in the Auditor-General's opinion they comply with section 7.17 (3) of the Government Sector Finance Act 2018. (5) An audit report may include such information as is required or permitted by the Australian Auditing Standards. (6) The Auditor-General (or, if authorised by the Auditor-General, the Deputy Auditor-General or an auditor) must report to the accountable authority for the GSF agency concerned, the responsible Minister for the agency and the Treasurer as to the result of any audit or audit-related service for the purposes of this section and as to any irregularities or other matters that, in the judgment of the Auditor-General or authorised person, call for special notice. 35 Inspection, examination and audit of accounts and records of auditable entities (1) The Auditor-General may appoint, in writing, a person (whether or not a government officer) or a firm to be an auditor for the purposes of this Act. (2) The Auditor-General may inspect, examine and audit (or cause an auditor to inspect, examine and audit) the accounts and records of an auditable entity for the purpose of— (a) determining whether they properly record and explain the entity's transactions, cash flows, financial position and financial performance, or (b) auditing or providing audit-related services in connection with the entity's financial statements or financial reports. (3) The Auditor-General may exercise functions under subsection (2) whenever the Auditor-General thinks fit, but must do so if required by the Treasurer. (4) An auditor who has conducted an inspection, examination and audit under this section must, as soon as practicable after doing so, prepare and sign a report and forward it to the Auditor-General. (5) The Auditor-General (or, if authorised by the Auditor-General, the Deputy Auditor-General or an auditor) must, as soon as practicable after an inspection, examination and audit is conducted under this section, forward a report of the results of it— (a) for a report on a GSF agency or on a university or its controlled entity— (i) to the accountable authority for the agency, and (ii) to the Treasurer, and (iii) to the responsible Minister for the agency, or (b) for a report on any other auditable entity—to the accountable authority for the agency and the Treasurer. (6) The Auditor-General may require an auditable entity to pay to the Auditor-General (and the auditable entity must pay) such amounts, at such times, as the Treasurer decides towards defraying the costs and expenses of any inspection, examination or audit and report under this section. 36 Access to documents and information (1) An authorised person is entitled at all reasonable times to full and free access to the books, records or other documents of or relating to any entity, fund or account or government resources or related money for the purposes of— (a) any inspection, examination, audit or audit-related services that the Auditor-General is authorised or required to perform by or under this Act or any other law, or (b) exercising any other function conferred or imposed on the Auditor-General by or under this Act or any other law. (2) An authorised person is also entitled to make copies of, or take extracts from, any books, records or other documents to which the authorised person is entitled to access under subsection (1). (3) An authorised person may require a relevant person in relation to the entity, fund or account or government resources or related money concerned to provide to the authorised person, within 14 days, such information in the relevant person's possession, or to which the relevant person has access, as the authorised person considers necessary for any of the purposes referred to in subsection (1) (a) or (b). (4) The Auditor-General may, by notice in writing signed by the Auditor-General, require a person named in the notice— (a) to appear personally before the Auditor-General at a time and place specified in the notice, and (b) to produce to the Auditor-General such books, records or other documents in the person's possession or under the person's control as appear to the Auditor-General to be necessary for the purposes of an audit that the Auditor-General is authorised or required to perform by or under this Act or any other law. (5) A person must comply with a requirement made of the person under subsection (3) or (4). Maximum penalty—20 penalty units. (6) An authorised person is entitled to exercise functions under this section despite— (a) any rule of law which, in proceedings in a court of law, might justify an objection to access to books, records, documents or information on grounds of public interest, or (b) any privilege of an entity that the entity might claim in a court of law, including a claim based on legal professional privilege, or (b1) any books, records or other documents being accessed, provided or produced being or including Cabinet information, or (c) any duty of secrecy or other restriction on disclosure applying to an auditable entity or an officer or employee of an auditable entity (including a government officer). (7) A person who complies with a requirement made of the person under subsection (3) or (4) does not incur civil or criminal liability under any other law because of that compliance. (8) (Repealed) (9) In this section— relevant person, in relation to an entity, fund or account or government resources or related money, means an officer, employee or other person exercising functions in relation to that entity, fund, account, resources or money. 36A Disclosure of confidential information (1) An authorised person must not disclose confidential information unless the Auditor-General has authorised the disclosure. (2) The Auditor-General may authorise the disclosure of confidential information only if— (a) in the Auditor-General's opinion, the disclosure of the confidential information is— (i) in the public interest, and (ii) necessary for the exercise of the Auditor-General's functions, and (b) the Auditor-General has, at least 28 days before authorising the disclosure of the confidential information, notified the Premier that the Auditor-General is proposing to disclose the information, and (c) the Premier has not, within 28 days after being notified by the Auditor-General of the proposed disclosure, issued a certificate that the disclosure of the confidential information is, in the Premier's opinion, not in the public interest. (3) The Auditor-General or Premier, in forming an opinion under subsection (2) about whether or not it is in the public interest to disclose confidential information, must consider the public interest factors both for and against the disclosure. (4) A certificate of the Premier that it is not in the public interest to disclose confidential information is conclusive evidence of that fact. (5) If information is confidential information, a claim of confidentiality or privilege is not waived merely because the information is accessed, provided or produced under this Act. (6) In this section— confidential information means— (a) Cabinet information within the meaning of the Government Information (Public Access) Act 2009, or (b) information that could be subject to a claim of privilege by the State or a public official in a court of law. disclose includes publish. 37 Access to banking information about auditable entities (1) An authorised person may require the provider of a banking service (including a banking account) to an auditable entity to do any of the following— (a) provide the authorised person with banking information, in accordance with the requirement, about the entity, (b) without limiting paragraph (a), produce to the authorised person any book, account, record or document relating to the entity and under the custody or control of the provider. (2) A provider of a banking service must comply with a requirement made of the provider under subsection (1). Maximum penalty—20 penalty units. (3) In this section— banking information about an auditable entity means— (a) any information about banking services the entity receives (including information about the entity's banking accounts), and (b) any statements or reports about banking services the entity receives. provider of a banking service means the authorised deposit-taking institution or other entity that provides the service to the auditable entity concerned (whether under a State financial service agreement within the meaning of the Government Sector Finance Act 2018 or otherwise). 38 Secrecy (1) The Auditor-General, an auditor and an authorised person shall preserve and aid in preserving secrecy with respect to all matters and things that come to the knowledge of the Auditor-General, auditor or authorised person in the exercise of the functions of the Auditor-General, auditor or authorised person under this Act and the prescribed requirements and shall not communicate to any person any such matter or thing. (2) Nothing in subsection (1) applies to or in respect of— (a) the conduct of any matter necessary for the proper administration of this Act or the prescribed requirements, or (b) proceedings for an offence relating to government resources or related money or for the recovery of such resources or money, or (c) disciplinary proceedings brought against a government officer or accountable authority for a GSF agency, or (d) a report or communication authorised or required to be made by or under this Act or the prescribed requirements, or (e) a report or communication that the Treasurer authorises the Auditor-General to make to a person for the purposes of a due diligence or similar process relating to the sale, lease or disposal of any government undertaking (or following such a sale, lease or disposal), or (f) a communication that, in the opinion of the Auditor-General, auditor or authorised person, is reasonably necessary for the purpose of exercising a function under the Public Interest Disclosures Act 2022. Division 2A Performance audits of activities 38A Definitions In this Division— audit includes examination and inspection. auditable entity does not include a local council. governing body—see section 38B. performance audit—see section 38EA(1). related relevant entity, for an auditable entity, means an entity that is a relevant entity because it receives money or other resources, whether directly or indirectly, from or on behalf of the auditable entity for a State purpose. relevant activities, of a relevant entity— (a) means the activities of the relevant entity that relate to achieving the State purpose, but (b) does not include— (i) the provision of goods and services by the relevant entity to an auditable entity for the direct and exclusive use, or direct and exclusive benefit, of the auditable entity, or (ii) an arrangement of a class prescribed by the regulations. relevant entity—see section 38C. State purpose—see section 38C(a). 38B Meaning of "governing body" (1) In this Division, a governing body, in relation to a relevant entity, means— (a) a board, council or other body comprised of individuals that are collectively responsible for managing the affairs of the entity, or (b) if the entity does not have a body described in paragraph (a)—the person who is the chief executive of the entity (however described) or otherwise responsible for the entity's day to day management, or (c) another entity declared by the regulations to be the governing body for the entity. (2) In this Division, a governing body does not include— (a) a board, council or other body with merely advisory functions, or (b) an entity, or an entity of a kind, prescribed by the regulations not to be a governing body. 38C Meaning of "relevant entity" In this Division, a relevant entity is an entity that— (a) receives money or other resources, whether directly or indirectly, from or on behalf of an auditable entity for a particular purpose (a State purpose), and (b) either— (i) agrees to use the money or other resources in achieving the State purpose, or (ii) has entered into a contract that relates to the State purpose, and (c) cannot be the subject of an audit conducted under another Division of this Act. 38D Relationship with definition of "auditable entity" To avoid doubt, a relevant entity is not to be taken to be an auditable entity under this Act merely because the Auditor-General may conduct an audit of one or more of its activities under this Division. 38E Application of Division 2 to audit of relevant activities of relevant entities (1) Division 2, other than sections 34 and 35, applies to the audit of the relevant activities of a relevant entity under this Division in the same way as Division 2 applies to the audit of an auditable entity. (2) However, sections 36 and 37 apply only to the extent the Auditor-General considers the exercise of powers under the sections necessary to assess the operations of the relevant entity in relation to achieving the State purpose. 38EA Performance audit by Auditor-General (1) The Auditor-General may, when the Auditor-General considers it appropriate, conduct an audit (a performance audit) of all or any particular activities of an auditable entity to determine whether the auditable entity is carrying out its activities effectively and doing so economically and efficiently and in compliance with all relevant laws. (2) In conducting a performance audit of an auditable entity the Auditor-General may, if the Auditor-General considers it appropriate, include a performance audit of the relevant activities of a related relevant entity for the auditable entity. Example— In conducting a performance audit of an auditable entity, the Auditor-General may decide to conduct a performance audit of a grant made by the auditable entity to a related relevant entity for the auditable entity. (3) An audit under subsection (2) may be conducted only to the extent it assesses the operations of the related relevant entity in relation to achieving the State purpose. (4) A performance audit under this Division is separate from, and does not affect, another audit required or authorised by or under— (a) this Act, or (b) another Act. (5) A single performance audit may relate to the activities of more than one auditable entity or relevant entity. 38EB Report of performance audit (1) The Auditor-General must report the result of the performance audit and other matters that, in the Auditor-General's judgement, call for special notice to the following (the report recipients)— (a) the responsible Minister for the auditable entity, and (b) the Treasurer, and (c) the accountable authority for the auditable entity, and (d) if the audit includes an audit of the relevant activities of a related relevant entity for the auditable entity—the governing body of the related relevant entity. (2) The Auditor-General must not make a report of a performance audit under this section unless, at least 28 days before making the report, the Auditor-General has given the report recipients a summary of any findings and proposed recommendations in relation to the audit. (3) The Auditor-General may make a report of a performance audit under this section before the expiration of the 28-day period if the report recipients mentioned in subsection (1)(c) and (d) have provided to the Auditor-General any submissions or comments the report recipients wish to make. (4) The Auditor-General must include in the report of a performance audit under this section— (a) any submissions or comments made by the report recipients referred to in subsection (1)(c) and (d), or (b) a summary, in a form agreed by the report recipients referred to in subsection (1)(c) and (d), of any submissions or comments made by the report recipients. (5) The Auditor-General, in a report of a performance audit under this section— (a) may include other information the Auditor-General thinks desirable in relation to the activities the subject of the audit, and (b) must set out the reasons for opinions expressed in the report, and (c) may include recommendations arising out of the audit the Auditor-General thinks fit to make. (6) The Auditor-General may include the report in another report of the Auditor-General. (7) If a single performance audit relates to the activities of more than one auditable entity, the Treasurer may, if asked by the Auditor-General, decide the accountable authority for an appropriate auditable entity and responsible Minister to whom the Auditor-General must report under this section. (8) If the Treasurer makes a decision under subsection (7), a reference in this section to the accountable authority for the auditable entity or the responsible Minister is taken to be a reference to the accountable authority and responsible Minister decided by the Treasurer. 38EC Tabling etc of reports under section 38EB (1) The Auditor-General must, as soon as practicable after making a report under section 38EB, present the report to each House of Parliament, if that House is sitting. (2) If a House of Parliament is not sitting when the Auditor-General seeks to present a report to the House under this section, the Auditor-General must present the report to the Clerk of the House to be dealt with in accordance with section 63C. (3) The Auditor-General may include the report in another report of the Auditor-General to the House of Parliament concerned. Division 2B Modern slavery audit 38F Definitions In this Division— audit includes examination and inspection. government agency has the same meaning it has in the Modern Slavery Act 2018, but does not include a public or local authority that is constituted by an Act of another jurisdiction that exercises public functions. modern slavery has the meaning it has in the Modern Slavery Act 2018. modern slavery audit means an audit under this Division. 38G Modern slavery audit by Auditor-General (1) The Auditor-General may, when the Auditor-General considers it appropriate to do so, conduct a risk-based audit of all or any particular activities of a government agency to determine whether the government agency is ensuring that goods and services procured by and for the agency are not the product of modern slavery. (2) In exercising functions under this section, the Auditor-General is to consider whether the government agency— (a) has exercised due diligence in relation to procurement of goods and services, and (b) if the Public Works and Procurement Act 1912, Part 11 applies to the procurement of goods and services by or for the government agency, has complied with the directions of the NSW Procurement Board under section 175(3)(a1) of that Act. Note— The Public Works and Procurement Act 1912, Part 11 does not apply to the procurement of goods and services by or for— (a) a local council or other local authority, or (b) the Parliament of New South Wales. See section 163(2) of that Act. (3) In subsection (2), due diligence includes taking reasonable steps (whether by way of contractual terms or otherwise) to ensure the primary supplier of goods and services is responsible for implementing processes to eliminate or minimise the risk of the goods or services supplied being products of modern slavery. (4) A modern slavery audit is separate from, and does not affect, any other audit required or authorised by or under this or any other Act. (5) A single modern slavery audit may relate to the activities of more than one government agency. 38H Advice concerning modern slavery audit (1) The Auditor-General is to give the Anti-slavery Commissioner advice as to the result of any modern slavery audit. (2) Before giving the advice to the Anti-slavery Commissioner, the Auditor-General is to give the head of the government agency an opportunity to make submissions or comments concerning the modern slavery audit. (3) The Auditor-General is to include in the advice any submissions or comments made by the head of the government agency or a summary, in an agreed form, of any such submissions or comments. (4) The Auditor-General, in an advice concerning a modern slavery audit under this section— (a) may recommend that the Anti-slavery Commissioner identify the government agency in the register kept under section 26 of the Modern Slavery Act 2018, and (b) is to set out the reasons for opinions expressed in the advice, and (c) may include such other recommendations arising out of the audit as the Auditor-General thinks fit to make. Division 3 Secs 39–43A (Repealed) Division 4 Particular audits of prescribed entities 44 Application and interpretation (1) In this Division— authorised person means— (a) the Auditor-General, or (b) the Deputy Auditor-General, or an auditor, authorised by the Auditor-General. prescribed entity means— (a) an entity (or entity of a kind) prescribed by the regulations as an entity to which this Division applies, or (b) an entity having the control or management of a fund or account (or fund or account of a kind) prescribed by the regulations as a fund or account to which this Division applies. prescribed requester, in relation to a prescribed entity, means a person prescribed by the regulations as a person who can make a request under section 45 in relation to the entity. responsible Minister, in relation to a prescribed entity, means the Minister who administers the Act under which the entity is appointed, constituted or regulated. (2) Nothing in this Division limits the operation of Division 2. 45 Particular audit (1) In accordance with a request of the Treasurer or a responsible Minister or prescribed requester in relation to a prescribed entity, the Auditor-General is to inspect and audit— (a) for an entity (or entity of a kind) prescribed by the regulations as an entity to which this Division applies—the financial report of the entity and the books and records of financial transactions of or relating to— (i) the entity, and (ii) assets of or in the custody of the entity, or (b) for an entity having the control or management of a fund or account (or fund or account of a kind) prescribed by the regulations as a fund or account to which this Division applies—the financial report of the entity and the books and records of financial transactions of or relating to the fund or account under the control or management of the entity. (2) An authorised person must report to the prescribed entity, the Treasurer and the responsible Minister and any prescribed requester in relation to the entity as to the result of the inspection and audit and as to any irregularities or other matters that, in the judgment of the authorised person, call for special notice. (3) The Auditor-General is to include a reference to any audit conducted under this section in the report referred to in section 52 (1). (4) The prescribed entity must pay to the Auditor-General such amounts, at such times, as the Treasurer decides towards defraying the costs and expenses of any such inspection and audit. Division 4A Secs 45A–45I (Repealed) Division 5 Audit and review of the Audit Office 46 Definitions In this Division— annual reporting period for the Audit Office means its annual reporting period for the purposes of the Government Sector Finance Act 2018. auditor means the auditor appointed for the time being by the Governor under section 47 (1). 47 Appointment and functions of auditor (1) The Governor may, in relation to an annual reporting period for the Audit Office, appoint a registered company auditor within the meaning of the Corporations Act 2001 of the Commonwealth to inspect and audit the Audit Office's financial report and the books and records relating to the administration, during the annual reporting period, of the Audit Office. (2) For the purposes of subsection (1), the auditor shall have and may exercise, in relation to the Audit Office, the same functions as the Auditor-General has under this Act in relation to an audit of government money. 48 Auditing of financial report and records (1) The auditor shall inspect and audit the Audit Office's financial report and the books and records relating to the administration, during the annual reporting period for the Audit Office in respect of which the auditor is appointed, of the Audit Office. (2) On completion of the audit, the auditor shall furnish an opinion in respect of the audit to the Auditor-General and shall furnish a copy of the opinion to the Treasurer. (3) (Repealed) 48A Review of Audit Office (1) A review of the Audit Office is to be conducted under this section at least once every 4 years. (2) The review is to examine the auditing practices and standards of the Auditor-General and to determine whether the Auditor-General is complying with those practices and standards in the carrying out of the Auditor-General's functions under this Act. (3) The review is to be conducted by a person (the reviewer) appointed by the Public Accounts Committee for the time being constituted under Part 4. (4) The reviewer— (a) is to be appointed on such terms and conditions and is entitled to such remuneration (if any) as are determined by the Public Accounts Committee, and (b) in conducting a review under this section, must comply with any directions as to the review given by the Committee. (5) The remuneration payable to the reviewer is to be paid from money appropriated by Parliament for the purpose. (6) Sections 36, 37 and 38 apply in relation to the reviewer as if references in those sections to the Auditor-General were references to the reviewer. (7) The reviewer is to report to the Public Accounts Committee as to the result of any such review and as to such other matters as in the judgment of the reviewer call for special notice. (8) The reviewer must not make a report of a review conducted under this section unless, at least 28 days before making the report, the reviewer has given the Auditor-General a summary of findings and proposed recommendations in relation to the review. (9) The reviewer must include in the report any written submissions or comments made by the Auditor-General or a summary, in an agreed form, of any such submissions or comments. (10) The reviewer, in a report of a review under this section— (a) may include such information as he or she thinks desirable in relation to matters that are the subject of the review, and (b) must set out the reasons for opinions expressed in the report, and (c) may include such recommendations arising out of the review as he or she thinks fit to make. (11) (Repealed) (12) The Chair of the Public Accounts Committee is, on receipt of a report under this section, to present the report to the Legislative Assembly, if the Legislative Assembly is then sitting. (13) If at the time at which the Chair seeks, in accordance with this section, to present the report to the Legislative Assembly the Legislative Assembly is not sitting, the Chair is to present the report to the Clerk of the Legislative Assembly to be dealt with in accordance with section 63C. Division 6 Auditor-General's annual report etc 49 Examination of Consolidated State Financial Statements (1) The Auditor-General must— (a) examine the Consolidated State Financial Statements given to the Auditor-General by the Treasurer under the Government Sector Finance Act 2018, section 7.17(2), and (b) prepare and sign an opinion as to whether the statements comply with the Government Sector Finance Act 2018, section 7.17(3). (2) As soon as practicable after receiving the Consolidated State Financial Statements from the Treasurer under the Government Sector Finance Act 2018, section 7.17(2), the Auditor-General must give the statements and the opinion prepared under this section to the Treasurer. (3) Nothing in this section prevents the alteration of the Consolidated State Financial Statements, with the approval of the Auditor-General, after being received by the Auditor-General and before being given to the Treasurer. 50, 51 (Repealed) 52 Auditor-General's reports (1) After examining the Consolidated State Financial Statements given to the Auditor-General by the Treasurer in accordance with section 7.17 of the Government Sector Finance Act 2018, the Auditor-General shall prepare and sign a report that shall include full particulars in every case in which the provisions of this or any other Act or the prescribed requirements have not been carried out or adopted or have in any manner been varied or departed from and which, in the opinion of the Auditor-General, are sufficiently material to the financial position disclosed in the statements as to be brought to the attention of Parliament. (2) (Repealed) (3) The Auditor-General may, in the report of the Auditor-General prepared under subsection (1) or in any special report which the Auditor-General may at any time think fit to make, recommend any plans and make any suggestions for the better collection and payment of government money, and for more effectually and economically auditing and examining the Consolidated State Financial Statements and the financial reports of auditable entities, and may report on any matter that arises from or relates to the exercise of the audit or other functions of the Auditor-General and that in the opinion of the Auditor-General should be brought to the attention of Parliament. (4) The Auditor-General may give a summary of the proposed report (or of the relevant part) to the accountable authority for each auditable entity to which it relates or which, in the opinion of the Auditor-General, has a special interest in it. The Auditor-General may include in the report any submissions or comments made by the accountable authority for an auditable entity or a summary, in an agreed form, of any such submissions or comments. 52A Auditor-General's report to be presented to Parliament (1) The Auditor-General must, as soon as practicable after giving the statements and the opinion to the Treasurer under section 49(2), present the report prepared under section 52 (1) to each House of Parliament, if that House is then sitting. (2) If a House of Parliament is not sitting when the Auditor-General seeks to present a report to it under this section, the Auditor-General is to present the report to the Clerk of the House concerned to be dealt with in accordance with section 63C. 52B Tabling etc of special reports (1) The Auditor-General is, as soon as practicable after making a special report under section 52 (3), to present the report to each House of Parliament, if that House is then sitting. (2) If a House of Parliament is not sitting when the Auditor-General seeks to present a report to it under this section, the Auditor-General is to present the report to the Clerk of the House concerned to be dealt with in accordance with section 63C. Division 7 Protected disclosures to Auditor-General 52C Definitions In this Division— public official means a public official within the meaning of the Public Interest Disclosures Act 2022. 52D Complaints about waste of government money (1) A public official may complain to the Auditor-General that there has been a serious and substantial waste of government money by an auditable entity or an officer or employee of an auditable entity (including a government officer). (2) A complaint to the Auditor-General may be made orally or in writing. (3) The Auditor-General may deal with the complaint— (a) by conducting an inspection, examination or audit under this Act into the matter, or (b) in such other manner as the Auditor-General considers appropriate. (4) To avoid doubt, for the purposes of this section waste of government money in relation to an auditable entity that is not a GSF agency includes waste of money of that entity even if it is not government money. 52E Reports by Auditor-General (1) The Auditor-General may, if of the opinion that it is appropriate to do so, make a report on a complaint— (a) to the accountable authority for the auditable entity, except as provided by paragraphs (b) and (c), or (b) if the complaint relates to the conduct of the accountable authority for the auditable entity—to the responsible Minister, or (c) if the complaint relates to the conduct of a Minister—to the Premier. The Auditor-General is to give the responsible Minister and the Treasurer a copy of a report made to the accountable authority for the auditable entity. (2) The Auditor-General must not make a report under this section unless, at least 28 days before making the report, the Auditor-General has given the person to whom the report is to be made a summary of the proposed report. The Auditor-General may make any such report before the expiration of that 28-day period if that person has provided to the Auditor-General any submissions or comments he or she wishes to make. (3) The Auditor-General is to include in a report under this section any submissions or comments made by the person or a summary, in an agreed form, of any such submissions or comments. (4) The Auditor-General, in a report under this section— (a) may include such information as he or she thinks desirable in relation to the activity the subject of the complaint, and (b) is to set out the reasons for opinions expressed in the report, and (c) may include such recommendations arising out of the complaint as the Auditor-General thinks fit to make. (5) The Auditor-General may include a report under this section in any other report of the Auditor-General. 52F Presentation of reports to Parliament (1) The Auditor-General may, if of the opinion that a report on a complaint under this Division should be brought to the attention of Parliament, present the report to each House of Parliament, if that House is then sitting. The Auditor-General may include the report in any other report of the Auditor-General to the House of Parliament concerned. (2) If a House of Parliament is not sitting when the Auditor-General seeks to present a report to it under this section, the Auditor-General is to present the report to the Clerk of the House concerned to be dealt with in accordance with section 63C. Part 4 The Public Accounts Committee 53 Definitions In this Part— authority of the State means— (a) a statutory body representing the Crown, or (b) any entity appointed, constituted or regulated by or under an Act the financial report of which is, pursuant to this Act, the Government Sector Finance Act 2018 or any other law, required or authorised to be audited by the Auditor-General or an auditor appointed under section 47 (1) or to be laid before the Legislative Assembly. Chair means the Chair of the Committee. Committee means the Public Accounts Committee for the time being constituted under this Part. Deputy Chair means the Deputy Chair of the Committee. 54 Constitution of Public Accounts Committee (1) As soon as practicable after the commencement of the first session of each Parliament, a committee of members of the Legislative Assembly, to be known as the Public Accounts Committee, shall be appointed. (2) The Committee shall consist of 6 members. (3) The appointment of members of the Committee shall be in accordance with the practice of the Legislative Assembly with respect to the appointment of members to serve on select committees of the Legislative Assembly. (4) A member of the Legislative Assembly is not eligible for appointment as a member of the Committee if the member is a Minister of the Crown or a Parliamentary Secretary. (5) A member of the Committee ceases to hold office— (a) when the Legislative Assembly is dissolved or expires by the effluxion of time, (b) if the member becomes a Minister of the Crown or a Parliamentary Secretary, (c) if the member ceases to be a member of the Legislative Assembly, (d) if the member resigns the office by instrument in writing addressed to the Speaker of the Legislative Assembly, or (e) if the member is discharged from office by the Legislative Assembly. (6) The Legislative Assembly may appoint one of its members (not being a Minister of the Crown or a Parliamentary Secretary) to fill a vacancy in the office of a member of the Committee. (7) Any act or proceeding of the Committee is, notwithstanding that at the time when the act or proceeding was done, taken or commenced there was— (a) a vacancy in the office of a member of the Committee, or (b) any defect in the appointment, or any disqualification, of a member of the Committee, as valid as if the vacancy, defect or disqualification did not exist and the Committee were fully and properly constituted. 55 Chair and Deputy Chair of Committee (1) There shall be a Chair and a Deputy Chair of the Committee who shall be elected by and from the members of the Committee. (2) A member of the Committee ceases to hold office as Chair or Deputy Chair if— (a) the member ceases to be a member of the Committee, (b) the member resigns the office by instrument in writing presented to a meeting of the Committee, or (c) the member is discharged from the office by the Committee. (3) At any time when the Chair is absent from New South Wales or is, for any reason, unable to perform the duties of the office of Chair or there is a vacancy in that office, the Deputy Chair may exercise the functions of the Chair under this Act or under the Parliamentary Evidence Act 1901. 56 Procedure of Committee (1) The procedure for the calling of meetings of the Committee and for the conduct of business at those meetings shall, subject to this Part, be as determined by the Committee. (2) The Clerk of the Legislative Assembly shall call the first meeting of the Committee in each Parliament in such manner as the Clerk thinks fit. (3) At a meeting of the Committee, 4 members constitute a quorum. (4) The Chair or, in the absence of the Chair, the Deputy Chair or, in the absence of both the Chair and Deputy Chair, a member of the Committee elected to chair the meeting by the members present shall preside at a meeting of the Committee. (5) The Deputy Chair or other member presiding at a meeting of the Committee shall, in relation to the meeting, have all the functions and powers of the Chair. (6) The Chair, Deputy Chair or other member presiding at a meeting of the Committee shall have a deliberative vote and, in the event of an equality of votes, shall also have a casting vote. (7) A question arising at a meeting of the Committee shall be determined by a majority of the votes of the members present and voting. (8) The Committee may sit and transact business notwithstanding any prorogation or adjournment of