Queensland: Auditor-General Act 2009 (Qld)

Auditor-General Act 2009 An Act to provide for the Queensland Auditor-General and the Queensland Audit Office and the audit of the State's public finances and all public sector entities Part 1 Preliminary 1 Short title This Act may be cited as the Auditor-General Act 2009. 2 Commencement This Act commences on a day to be fixed by proclamation. 3 Main objects of Act The main objects of this Act are as follows— (a) to establish the position of the Queensland Auditor-General and the Queensland Audit Office; (b) to confer on the Queensland Auditor-General and the Queensland Audit Office the functions and powers necessary to carry out independent audits of the Queensland public sector and related entities; (c) to provide for the strategic review of the Queensland Audit Office; (d) to provide for the independent audit of the Queensland Audit Office. 4 Dictionary The dictionary in the schedule defines particular words used in this Act. 5 What is a controlled entity (1) An entity is a controlled entity if it is subject to the control of 1 or more of the following (the controlling entity)— (a) a department; (b) a local government; (c) a statutory body; (d) a GOC; (e) another entity subject to the control of 1 or more of the entities mentioned in paragraphs (a) to (d). (2) In this section— control means the capacity of an entity to dominate decision-making, directly or indirectly, in relation to the financial and operating policies of another entity so as to enable the other entity to operate with it in pursuing the objectives of the controlling entity. Part 2 Queensland Auditor-General and Queensland Audit Office Division 1 General 6 Auditor-general and audit office (1) There is to be a Queensland Auditor-General. (2) The auditor-general is an officer of the Parliament. (3) Also, there is to be a Queensland Deputy Auditor-General. (4) An office called the Queensland Audit Office is established. (5) The office consists of the auditor-general, the deputy auditor-general and the staff of the audit office. 7 Control of audit office The auditor-general is to control the audit office. 8 Auditor-general not subject to direction The auditor-general is not subject to direction by any person about— (a) the way in which the auditor-general's powers in relation to audit are to be exercised; or (b) the priority to be given to audit matters. 8A Audit office not public sector entity The audit office is an entity prescribed not to be a public sector entity for the Public Sector Act 2022, section 8(2)(s). 8B Audit office to comply with obligations relating to equity, diversity, respect and inclusion The audit office is an entity prescribed for the Public Sector Act 2022, section 25, definition prescribed entity, paragraph (c). 8C Application of provisions of Public Sector Act 2022 (1) A regulation may— (a) apply particular provisions of the Public Sector Act 2022, including, for example, particular directives made under the Public Sector Act 2022, to the audit office, the auditor-general and employees; and (b) provide for the way in which the provisions mentioned in paragraph (a) are to apply, including, for example, that they apply with or without change. (2) Before recommending to the Governor in Council the making of a regulation under subsection (1), the Minister must consult with the auditor-general about the proposed regulation. (3) If a regulation is made under subsection (1)— (a) the Public Sector Act 2022 applies to the audit office, the auditor-general and employees only to the extent provided for under the regulation; and (b) the Public Sector Act 2022 applies in the way mentioned in paragraph (a) with necessary changes. (4) Also, a regulation may prescribe anything necessary or convenient to be prescribed— (a) to enable a regulation under subsection (1) to be made; or (b) to carry out or give effect to a regulation made under subsection (1); or (c) because of the making of a regulation under subsection (1), including, for example, the portability of employment rights and entitlements. Division 2 Provisions relating to auditor-general 9 Appointment of auditor-general (1) The auditor-general is to be appointed by the Governor in Council. (2) A person may be appointed as the auditor-general only if— (a) press advertisements have been placed nationally calling for applications from suitably qualified persons to be considered for appointment; and (b) the person has been selected for appointment in accordance with a process for selection approved by the parliamentary committee; and (c) the Minister has obtained the parliamentary committee's approval for the appointment of the person as the auditor-general. (3) For subsection (2)(c), the parliamentary committee— (a) must decide to give or not give the approval within 20 business days after receiving the request for the approval from the Minister (the original period) or within the further period agreed under subsection (4); and (b) is taken to have approved the appointment of the person as the auditor-general if the committee does not notify the Minister of its decision under paragraph (a) within the period stated in that paragraph. (4) The Minister and chair of the parliamentary committee may, before the end of the original period, agree to extend the original period by a further period of not more than 20 business days. 10 Duration of appointment The appointment of the auditor-general is for a fixed, non-renewable term of 7 years. 11 Terms of appointment (1) The auditor-general holds office on a full-time basis. (2) The auditor-general is to be paid the remuneration and allowances decided by the Governor in Council. (3) The auditor-general holds office on the terms and conditions, not provided for by this Act, that are decided by the Governor in Council. (4) The Minister may make a recommendation to the Governor in Council regarding the remuneration, allowances, and terms and conditions of office only with the approval of the parliamentary committee. (5) For subsection (4), the parliamentary committee— (a) must decide to give or not give the approval within 20 business days after receiving the request for the approval from the Minister (the original period) or within the further period agreed under subsection (6); and (b) is taken to have approved the remuneration, allowances, and terms and conditions of office stated in the request if the committee does not notify the Minister of its decision under paragraph (a) within the period stated in that paragraph. (6) The Minister and chair of the parliamentary committee may, before the end of the original period, agree to extend the original period by a further period of not more than 20 business days. (7) The salary and allowances of the auditor-general are payable out of the consolidated fund, which is appropriated accordingly. (8) The rate of remuneration of the auditor-general must not be reduced during the term of office without the auditor-general's written consent. 11A Oath before performing duties (1) Before performing the duties of office, the auditor-general must make an oath or affirmation to the effect that they will faithfully and impartially perform the duties of the office. (2) The oath must be administered by the Speaker, or if there is no Speaker or the Speaker is unavailable, the clerk of the Parliament. 12 Declaration of interests (1) This section applies to the auditor-general on appointment. (2) The auditor-general must, within 1 month, give the Speaker a statement setting out the information mentioned in subsection (3) in relation to— (a) the interests of the auditor-general; and (b) the interests of each person who is a related person in relation to the auditor-general. (3) The information to be set out in the statement is the information that would be required to be disclosed under the Parliament of Queensland Act 2001, section 69B if the auditor-general were a member of the Legislative Assembly. (4) Subsections (5) and (6) apply if, after the giving of the statement— (a) there is a change in the interests mentioned in subsection (2); and (b) the change is of a type that would have been required to be disclosed under the Parliament of Queensland Act 2001, section 69B if the auditor-general were a member of the Legislative Assembly. (5) The auditor-general must give the Speaker a revised statement. (6) The revised statement must— (a) be given as soon as possible after the relevant facts about the change come to the auditor-general's knowledge; and (b) comply with subsection (3). (7) The Speaker must, if asked, give a copy of the latest statement to— (a) the Premier; or (b) the leader of a political party represented in the Legislative Assembly; or (c) the Crime and Corruption Commission; or (d) a member of the parliamentary committee; or (e) the integrity commissioner. (8) The Speaker must, if asked, give a copy of the part of the latest statement that relates only to the auditor-general to another member of the Legislative Assembly. (9) A member of the Legislative Assembly may, by writing given to the Speaker, allege that the auditor-general has not complied with the requirements of this section. (10) A reference in this section to an interest is a reference to the matter within its ordinary meaning under the general law and the definition in the Acts Interpretation Act 1954, schedule 1 does not apply. (11) In this section— integrity commissioner means the Queensland Integrity Commissioner under the Integrity Act 2009. related person, in relation to the auditor-general, means— (a) the auditor-general's spouse; or (b) a person who is totally or substantially dependent on the auditor-general and— (i) the person is the auditor-general's child; or (ii) the person's affairs are so closely connected with the affairs of the auditor-general that a benefit derived by the person, or a substantial part of it, could pass to the auditor-general. 12A Conflicts of interest (1) If the auditor-general has an interest that conflicts or may conflict with the discharge of the auditor-general's responsibilities, the auditor-general— (a) must disclose the nature of the interest and conflict to the Speaker and parliamentary committee as soon as practicable after the relevant facts come to the auditor-general's knowledge; and (b) must not take action or further action concerning a matter that is, or may be, affected by the conflict until the conflict or possible conflict is resolved. (2) If the conflict or possible conflict between an interest of the auditor-general and the auditor-general's responsibilities is resolved, the auditor-general must give to the Speaker and parliamentary committee a statement advising of the action the auditor-general took to resolve the conflict or possible conflict. (3) A reference in this section to an interest or to a conflict of interest is a reference to those matters within their ordinary meaning under the general law and, in relation to an interest, the definition in the Acts Interpretation Act 1954, schedule 1 does not apply. 13 Restriction on outside employment (1) The auditor-general must not— (a) hold any office of profit other than that of auditor-general; or (b) engage in any remunerative employment or undertaking outside the functions of the office. (2) Contravention of subsection (1) is misconduct under section 17. 14 [Repealed] 15 Leave of absence The Speaker may grant leave of absence to the auditor-general in accordance with the terms on which the auditor-general holds office. 16 Resignation The auditor-general may resign by signed notice given to the Governor and the Speaker or, if there is no Speaker or the Speaker is unavailable, the clerk of the Parliament. 17 Grounds for removal or suspension from office The following are grounds for removal or suspension of the auditor-general from office— (a) proved incapacity, incompetence or misconduct; (b) conviction of an indictable offence; (c) being an insolvent under administration. 18 Removal or suspension of auditor-general on address (1) The Governor may, on an address of the Legislative Assembly, remove or suspend the auditor-general from office on any of the grounds listed in section 17. (2) The motion for the address may only be moved by the Premier. (3) The Premier may move the motion only if— (a) the Premier has given the auditor-general a statement setting out the reasons for the motion; and (b) the statement and any written response by the auditor-general have been laid before the Legislative Assembly; and (c) the Premier has consulted with the parliamentary committee about the motion; and (d) agreement to the motion has been obtained from— (i) all members of the parliamentary committee; or (ii) a majority of members of the parliamentary committee, other than a majority consisting only of the members of the political party or parties in government in the Legislative Assembly. (4) The auditor-general is entitled to be paid remuneration and allowances for the period of a suspension only if— (a) the Legislative Assembly resolves that remuneration and allowances be paid for the period; or (b) the Governor in Council approves the payment of remuneration and allowances for the period. 19 Suspension of auditor-general when Legislative Assembly not sitting (1) When the Legislative Assembly is not in session, the Governor in Council may suspend the auditor-general on any of the grounds listed in section 17. (2) However the auditor-general may be suspended under subsection (1) only if— (a) the Premier has given the auditor-general a statement setting out the reasons for the suspension; and (b) the Premier has considered any response by the auditor-general to the statement. (3) The Premier must table the statement and any written response by the auditor-general in the Legislative Assembly within 3 sitting days after the day on which the suspension begins. (4) A suspension made when the Legislative Assembly is not in session stops having effect— (a) subject to paragraph (b)—at the end of 7 sitting days after the day on which the suspension begins; or (b) if the auditor-general is earlier suspended or removed from office on an address of the Legislative Assembly—at the earlier time. (5) If the suspension stops having effect under subsection (4)(a), the auditor-general is entitled to be paid remuneration and allowances for the period of the suspension. (6) Other than as provided in subsection (5), the auditor-general is entitled to be paid remuneration and allowances for the period of a suspension only if— (a) the Legislative Assembly resolves that remuneration and allowances be paid for the period; or (b) the Governor in Council approves the payment of remuneration and allowances for the period. 19A Restriction on employment after office ends (1) This section applies to a person who stops holding office as the auditor-general, whether because of resignation or ending a term of appointment. (2) For 2 years after the person stops holding the office, the person must not hold an office in or be employed by a public sector entity. 20 Delegation of powers (1) The auditor-general may delegate powers under any Act to an authorised auditor. (2) However, the auditor-general must not delegate a power to report to the Legislative Assembly. 21 [Repealed] Division 3 Provisions relating to deputy auditor-general 22 Employment of deputy auditor-general (1) The auditor-general may employ a deputy auditor-general. (2) Division 4 applies in relation to the employment of the deputy auditor-general as if the deputy auditor-general were a member of the staff of the audit office. 23 Duties of deputy auditor-general (1) The deputy auditor-general is to perform the duties directed by the auditor-general. (2) The deputy auditor-general is to act as auditor-general— (a) during vacancies in the office of auditor-general; and (b) during periods when the auditor-general is absent from duty or Australia or is, for another reason, unable to perform the functions of the office. (3) While the deputy auditor-general is acting as auditor-general— (a) the deputy auditor-general has all the powers and functions of the auditor-general; and (b) this Act and other Acts apply to the deputy auditor-general as if the deputy auditor-general were the auditor-general. (4) Anything done by or in relation to the deputy auditor-general while the deputy auditor-general is purporting to act as auditor-general is not invalid merely because the occasion for the deputy auditor-general to act had not arisen or had ceased. 24 Deputy auditor-general subject only to direction of auditor-general The deputy auditor-general is not subject to direction by any person, other than the auditor-general, about— (a) the way in which the auditor-general's powers in relation to audit are to be exercised; or (b) the priority to be given to audit matters. 25 Declaration of interests and conflicts of interest (1) Section 12 applies to the deputy auditor-general in the same way as it applies to the auditor-general. (2) If the deputy auditor-general is acting as auditor-general, section 12A applies to the deputy auditor-general in the same way as it applies to the auditor-general. 25A Oath of office before acting as auditor-general (1) Before performing the duties of office while acting as auditor-general, the deputy auditor-general must make an oath or affirmation under section 11A as if the deputy auditor-general were the auditor-general. (2) Subsection (1) does not apply to a person employed as the deputy auditor-general if— (a) the person has previously made an oath or affirmation before performing the duties of office while acting as auditor-general; and (b) the person has continued in the person's employment as deputy auditor-general since the oath or affirmation was made. 25B Acting deputy auditor-general The auditor-general may appoint a person to act as the deputy auditor-general during— (a) a vacancy in the office of deputy auditor-general; or (b) a period when the deputy auditor-general is absent from duty or from Australia or is, for another reason, unable to perform the functions of the office. Division 4 Staff of audit office 26 Employment of staff (1) The auditor-general may employ the persons the auditor-general considers necessary for staffing the audit office. (2) The staff of the audit office are employed under this Act and not the Public Sector Act 2022. (3) Subject to this Act and any relevant industrial instrument within the meaning of the Industrial Relations Act 2016, the conditions of service of the staff of the audit office are those decided by the auditor-general. (4) The employment of a member of the staff of the audit office may be— (a) full-time or part-time; or (b) on a permanent, temporary or casual basis. 27 Engagement of public service employees for temporary period (1) The auditor-general may engage a public service employee to perform work for or within, or duties in, the audit office for a temporary period under a mobility arrangement under the Public Sector Act 2022, section 82. (2) While engaged under this section— (a) the person is taken to be a member of the staff of the audit office; and (b) the Public Sector Act 2022 does not apply to the person. 28 Restriction on employment or engagement of person A person may not be employed under section 22 or 26, or engaged under section 27, unless the person has given the auditor-general written consent to obtain the information mentioned in section 29(1)(a) and (b) in relation to the person's criminal history. 29 Criminal history report (1) To decide if a person is suitable to be employed under section 22 or 26, or engaged under section 27, the auditor-general may ask the commissioner of the police service for— (a) a written report about the criminal history of the person; and (b) a brief description of the circumstances of a conviction mentioned in the criminal history. (2) However, the auditor-general may make the request only if the person has given the auditor-general written consent for the request. (3) The commissioner of the police service must comply with the request. (4) However, the duty to comply applies only to information in the commissioner's possession or to which the commissioner has access. (5) Before using information obtained under subsection (1) to decide if the person should be employed or engaged, the auditor-general must— (a) disclose the information to the person; and (b) allow the person a reasonable opportunity to make representations to the auditor-general about the information. (6) In this section— criminal history, of a person, means the person's criminal history within the meaning of the Criminal Law (Rehabilitation of Offenders) Act 1986. 29A Confidentiality of criminal history information (1) This section applies to a person who possesses criminal history information because the person is or was the auditor-general, deputy auditor-general or a member of the staff of the audit office. (2) The person must not, directly or indirectly, disclose the criminal history information to another person unless the disclosure is permitted under subsection (3). Maximum penalty—100 penalty units. (3) The person may disclose the criminal history information to another person— (a) to the extent necessary to perform the person's functions under this Act; or (b) if the disclosure is authorised under an Act; or (c) if the disclosure is otherwise required or permitted by law; or (d) if the person to whom the information relates consents to the disclosure; or (e) if the disclosure is in a form that does not identify the person to whom the information relates; or (f) if the information is, or has been, lawfully accessible to the public. (4) The auditor-general must ensure the criminal history information is destroyed as soon as practicable after it is no longer needed for the purpose for which it was requested. (5) In this section— criminal history information means a report or information given to the auditor-general under section 29. Division 5 Preservation of rights 29B Preservation of rights if public service employee appointed or employed (1) This section applies if a person who is a public service employee is appointed or employed as— (a) the auditor-general; or (b) the deputy auditor-general; or (c) a member of the staff of the audit office. (2) The person is entitled to retain all existing and accruing rights to superannuation or recreation, sick, long service or other leave as if service in the audit office under this Act were a continuation of service as a public service employee. 29C Preservation of rights if person becomes public service employee (1) This section applies if— (a) a person is appointed or employed as a public service employee; and (b) immediately before the appointment or employment, the person was the deputy auditor-general or a member of the staff of the audit office. (2) The person's service in the audit office under this Act must be regarded as service as a public service employee. 29D Preservation of rights if public service employee engaged (1) A public service employee engaged under section 27— (a) keeps the person's existing and accruing rights to superannuation or recreation, sick, long service or other leave as if employment as a member of the staff of the audit office were a continuation of employment as a public service employee; and (b) may apply for positions, and be employed, in the public service as if the person were a public service employee. (2) On ending the engagement, the person's employment as a member of the staff of the audit office under the engagement is taken to be employment of the same nature in the public service for working out the person's rights as a public service employee. (3) If the engagement ended for a reason other than misconduct, the person is entitled— (a) to return to the person's employment as a public service employee; and (b) to be employed on the same terms of employment as applied to the person's employment as a public service employee before the engagement, subject to any subsequent variation of the terms under— (i) any relevant laws or industrial instruments applying to the person's employment; or (ii) the person's contract of employment. Division 6 Funding proposals 29E Definitions for division In this division— additional funding, for a financial year, means funding from the State for the audit office in addition to the allocated amount for the financial year. allocated amount, for a financial year, means the amount of funding from the State allocated to the audit office for the financial year. funding proposal means a written request for additional funding for a financial year or 2 or more financial years. 29F Application of division This division applies if the auditor-general decides additional funding is needed for a financial year or 2 or more financial years. 29G Requirement for, and approval of, funding proposal (1) The auditor-general must— (a) prepare a funding proposal for the additional funding; and (b) give the funding proposal to the parliamentary committee and a copy of the proposal to the Minister. (2) Within the period stated in subsection (3), the parliamentary committee must review the auditor-general's funding proposal and give the Minister a report approving 1 of the following— (a) the auditor-general's funding proposal; (b) a funding proposal for a different amount or a different purpose, or both; (c) a proposal that provides for no additional funding for the audit office. (3) For subsection (2), the period is— (a) 20 business days after the parliamentary committee receives the auditor-general's funding proposal; or (b) if, in the circumstances, the Treasurer decides the approval of a proposal under subsection (2) is required within a shorter period and has notified the parliamentary committee of the shorter period and the reasons for the shorter period—the shorter period. Example for paragraph (b)— The Treasurer may decide the approval of a proposal under subsection (2) is required within a shorter period so the Minister's response to the proposal can be considered in the preparation of the State budget. (4) The parliamentary committee must prepare the report under subsection (2) in consultation with the appropriate officers of Queensland Treasury. (5) If the parliamentary committee does not give the Minister a report under subsection (2) within the period stated in subsection (3), the committee is taken to have approved the auditor-general's funding proposal. 29H Tabling requirement (1) The Minister must table the following documents in the Legislative Assembly for each proposal approved, or taken to be approved, by the parliamentary committee under this division— (a) the committee's report about the proposal under section 29G(2), if any; (b) a report setting out the Minister's response to the proposal. (2) The documents must not be tabled in the Legislative Assembly before the Minister's response to the proposal has been implemented. (3) The parliamentary committee's report about the proposal under section 29G(2) must not be tabled in the Legislative Assembly other than as provided under subsections (1) and (2). (4) In this section— proposal means— (a) a funding proposal mentioned in section 29G(2)(a) or (b); or (b) a proposal mentioned in section 29G(2)(c). 29I Parliamentary committee may obtain advice or information For preparing a report under section 29G(2), the parliamentary committee may obtain advice or other information from any of the following persons— (a) the Treasurer; (b) the Minister; (c) the auditor-general. 29J Confidential information not required to be given Nothing in this division requires the auditor-general to include in a funding proposal, or the auditor-general or any other person to give the parliamentary committee, any details that would, if given— (a) prejudice a current audit by the auditor-general; or (b) disclose information that is privileged or subject to a duty to maintain confidentiality under an Act or other law. Part 3 Audit mandate Division 1 Scope of auditor-general's mandate 30 Auditor-general to audit consolidated fund and public sector entities unless exempted (1) The auditor-general must, for each financial year, audit— (a) the consolidated fund; and (b) all public sector entities. (2) However, the auditor-general must not audit the audit office. (3) Subsection (1) does not apply to— (a) a public sector entity exempted from audit by the auditor-general— (i) under section 30A; or (ii) under a regulation made under section 31; or (b) a controlled entity that is audited by an auditor approved by the auditor-general under section 32. 30A Exemption of public sector entities from audit by auditor-general under s 30 (1) The auditor-general may, by written notice given to a public sector entity, exempt the public sector entity from audit by the auditor-general for a financial year under section 30. (2) The auditor-general may grant the exemption only if the auditor-general is reasonably satisfied that the audit of the public sector entity for the financial year is small in size and of low risk having regard to a general standard mentioned in section 58(1)(a)(iii). (3) If the auditor-general grants the exemption, the public sector entity must engage an appropriately qualified person to audit the public sector entity for the financial year. (4) For the purposes of auditing the public sector entity— (a) the person engaged to audit the public sector entity (the engaged auditor) has all the powers of an authorised auditor; and (b) this Act and other Acts apply to the engaged auditor as if the engaged auditor were an authorised auditor. (5) The engaged auditor must give the certified annual financial statements and a report on the audit to— (a) if the public sector entity is a department—the accountable officer of the department; or (b) otherwise—the chief executive officer or chairperson of the public sector entity. (6) The public sector entity must give the auditor-general any document about the audit of the public sector entity requested by the auditor-general. (7) A notice under subsection (1) may exempt a public sector entity for a maximum of 3 financial years. (8) However, more than 1 notice may be made under subsection (1) for a public sector entity. (9) The auditor-general may repeal an exemption granted to a public sector entity under subsection (1) by written notice given to the public sector entity. (10) A valid exercise of a function or power under an exemption continues to be valid despite the exemption being revoked. (11) A list of public sector entities granted an exemption under subsection (1) must be published by the auditor-general on the website of the audit office. (12) This section does not prevent the auditor-general from performing any of the functions or exercising any of the powers of the auditor-general under this Act for the audit of a public sector entity granted an exemption under subsection (1). (13) In this section— appropriately qualified person, to audit a public sector entity, means— (a) a member of CPA Australia who is entitled to use the letters 'CPA' or 'FCPA' and holds a current public practice certificate issued by CPA Australia; or (b) a member of the Institute of Chartered Accountants in Australia who is entitled to use the letters 'CA' or 'FCA' and holds a current certificate of public practice issued by the institute; or (c) a member of the Institute of Public Accountants who is entitled to use the letters 'MIPA' or 'FIPA' and holds a professional practice certificate issued by the institute. 31 Exemption of certain public sector entities from audit by auditor-general (1) A regulation may— (a) exempt a public sector entity from audit by the auditor-general; and (b) provide that a person appointed under, or in a way stated in, the regulation must audit the public sector entity. (2) Before a regulation is made under subsection (1), the Minister must consult with the auditor-general about the proposed regulation. (3) For the purpose of conducting an audit under a regulation made under subsection (1)(b)— (a) the person appointed under the regulation has all the powers of an authorised auditor; and (b) this Act and other Acts apply to the person as if the person were an authorised auditor. 32 Exemption of foreign-based controlled entities and other controlled entities from audit by auditor-general (1) A controlled entity may be audited by an auditor approved by the auditor-general if 1 or more of the following apply— (a) the controlled entity is based in or has significant operations in a country other than Australia; (b) the controlled entity is legally obliged to be audited under a law of a country other than Australia; (c) the controlled entity operates in cooperation with, or in a corporate group with— (i) other public sector entities that have been exempted from being audited by the auditor-general under section 30A; or (ii) other public sector entities that have been exempted from being audited by the auditor-general under a regulation made under section 31; or (iii) other controlled entities that have been exempted from being audited by the auditor-general under paragraph (a), (b) or (d); (d) preparation of the audit for the controlled entity would require specialist skills. (2) The controlled entity exempted under subsection (1) must give any audit report in relation to the controlled entity to the auditor-general as soon as reasonably practicable after the audit report has been received by the controlled entity. 33 Appropriate Minister or authority to give Treasurer and auditor-general information about public sector entities (1) This section applies if— (a) a public sector entity is established or abolished (a notifiable event); or (b) an entity becomes a public sector entity or stops being a public sector entity (also a notifiable event). (2) If the public sector entity is a GOC or a prescribed subsidiary of a GOC, the board of the GOC or the subsidiary must give the auditor-general a written notice about the notifiable event. (3) For other public sector entities, the appropriate Minister for the public sector entity must give the Treasurer and the auditor-general a written notice about the notifiable event. (4) For all public sector entities if the auditor-general asks the Minister, or for a GOC, the shareholding Ministers of the corporation, for information about the public sector entity, the Minister or shareholding Ministers must give the auditor-general the information. (5) This section does not apply to a public sector entity that is, or is a part of, a department. (6) In this section— prescribed subsidiary means a subsidiary prescribed under a regulation. 34 Auditor-general to be appointed auditor of every company public sector entity (1) The shareholders of a company that is a public sector entity must— (a) appoint the auditor-general to be the auditor of the company; and (b) ensure that the auditor-general remains, at all times, the auditor of the company while the company remains a public sector entity. (2) Subsection (1) does not apply to— (a) a company granted an exemption from audit by the auditor-general under section 30A; or (b) a company exempt from audit by the auditor-general under a regulation made under section 31; or (c) a controlled entity that may be audited by an auditor approved by the auditor-general under section 32. 34A Auditor-general must audit particular trusts (1) The auditor-general must audit each trust subject to the control of 1 or more public sector entities. (2) For subsection (1), a trust is subject to control by 1 or more public sector entities if— (a) the trustee of the trust is a public sector entity or 2 or more public sector entities; and (b) 1 or more public sector entities collectively hold, directly or indirectly, interests in at least 50% of the trust or the assets of the trust. (3) An audit of a trust under this section may be conducted as part of an audit of a public sector entity mentioned in subsection (2). 35 Audits at request of Legislative Assembly (1) If the Legislative Assembly, by resolution, requests the auditor-general to conduct an audit of a matter relating to the financial administration of a public sector entity, the auditor-general must conduct the audit. (2) This section does not apply to the financial administration of the audit office. 36 By-arrangement audits (1) The auditor-general may audit an entity that is not a public sector entity if asked by the Minister or a public sector entity. (2) The auditor-general may audit the entity only if the entity agrees to the audit. 36A Auditor-general may conduct audit of matters (1) The auditor-general may conduct an audit of a matter relating to property that is, or was, held or received by a public sector entity and given to a non-public sector entity. (2) The object of conducting the audit includes deciding whether the property has been applied economically, efficiently and effectively for the purposes for which it was given to the non-public sector entity. Note— Property includes money. See the Acts Interpretation Act 1954, schedule 1. (3) If the auditor-general conducts an audit under subsection (1), the auditor-general must apply the general standards set out in the auditor-general's report mentioned in section 58. Division 2 Conduct of audits 37 Way in which audit is to be conducted (1) The auditor-general may conduct an audit in the way the auditor-general considers appropriate. (2) In deciding the appropriate way to conduct an audit, the auditor-general may have regard to— (a) the character of the internal control system of the entity to be audited, including internal audit; and (b) recognised standards and practices. (3) Subsection (2) does not limit the matters to which the auditor-general may have regard. (4) For the audit of a company, the auditor-general is not limited to conducting the audit under the Corporations Act, and may do anything else the auditor-general considers appropriate. (5) For the audit of a trust conducted under section 34A— (a) the auditor-general must conduct the audit under this division as if the trust were a public sector entity; and (b) for the purposes of the audit, references in this division relating to an entity apply— (i) generally to the trust but, if the context requires, to the trustee of the trust; and (ii) with any other necessary changes. 37A Performance audit of public sector entities (1) The auditor-general may conduct an audit (a performance audit) of all or any particular activities of a public sector entity. (2) The performance audit may be conducted as a separate audit or as part of another audit, including an audit of another public sector entity under this section. (3) The object of the performance audit includes— (a) deciding whether the objectives of the public sector entity are being achieved economically, efficiently and effectively and in compliance with all relevant laws; and (b) identifying any opportunities for the public sector entity to achieve its objectives more economically, efficiently and effectively. (4) When conducting the performance audit, the auditor-general must have regard to the prescribed requirements that apply to the entity. (5) The auditor-general must not question the merits of policy objectives of the State or a local government, including— (a) a decision of Cabinet; and (b) a direction of a Minister; and (c) a policy statement in the budget papers of the State or a local government; and (d) a document evidencing a policy decision of Cabinet or a Minister; and (e) a document evidencing a policy decision of a local government. (6) In this section— annual appropriation Act see the Financial Accountability Act 2009, section 6. budget papers means the budget papers of the State tabled in Parliament with an annual appropriation Act. 38 [Repealed] 38A Preparation of strategic audit plans for performance audits (1) The auditor-general must prepare a plan (a strategic audit plan) for audits under section 37A that the auditor-general proposes to conduct in the next 3 years. (2) When preparing the strategic audit plan, the auditor-general must consult with the parliamentary committee and any relevant entity and prepare a draft of the strategic audit plan. (3) The auditor-general must give the draft of the strategic audit plan to the parliamentary committee. (4) The parliamentary committee must return the draft of the strategic audit plan with any comments to the auditor-general within 42 days of receiving the draft. (5) The auditor-general must consider any comments made by the parliamentary committee when finalising the strategic audit plan. (6) The strategic audit plan must be finalised before the end of each financial year. (7) The strategic audit plan must be published by the auditor-general on the website of the audit office. (8) No person is to direct the auditor-general in relation to the content of the strategic audit plan. (9) In this section— relevant entity means— (a) a public sector entity that the auditor-general proposes to include in a draft of the strategic audit plan; or (b) a portfolio committee for a public sector entity mentioned in paragraph (a). 39 Audit of consolidated fund accounts In auditing the consolidated fund accounts, the auditor-general must decide whether or not, in the auditor-general's opinion— (a) proper accounts were properly kept as required by law; and (b) procedures applied were in accordance with the prescribed requirements and were adequate to ensure— (i) proper control and safeguards were exercised over the collection, custody, banking, withdrawal, payment of, and accounting for, public moneys; and (ii) public moneys were appropriately entered in the consolidated fund accounts as received in, or paid out of, the Treasurer's consolidated fund bank account; and (iii) withdrawals from the Treasurer's consolidated fund bank account were made for lawful and appropriate purposes; and (iv) proper safeguards were followed to prevent fraud and mistake; and (v) the requirements of the law relating to public moneys were complied with in all material respects; and (c) the consolidated fund financial report for a financial year under the Financial Accountability Act 2009, section 23— (i) is in agreement with the consolidated fund accounts for the financial year; and (ii) has been properly drawn up to give a true and fair view of the transactions in relation to the consolidated fund accounts for the financial year and the position of the consolidated fund at the end of the financial year. 40 Audit of public sector entities (1) The auditor-general must— (a) audit the annual financial statements of a public sector entity; and (b) prepare an auditor's report about the financial statements. (2) For subsection (1), the auditor-general must apply the general standards set out in the auditor-general's report mentioned in section 58. (3) Also, the auditor's report about the financial statements of a public sector entity that is a department, statutory body or local government must state whether— (a) the auditor-general has received all the information and explanations required by the auditor-general; and (b) the auditor-general considers the prescribed requirements in relation to the establishment and keeping of accounts have been complied with in all material respects. (4) As soon as practicable after the officers have certified the statements and the auditor-general has prepared the auditor's report about the statements, the auditor-general must give— (a) if the public sector entity is a department— (i) the certified statements and the auditor's report to the accountable officer of the department; and (ii) a copy of the certified statements and the report to the appropriate Minister and the Treasurer; and (b) if the public sector entity is a GOC— (i) the certified statements and the auditor's report to the chief executive officer of the GOC; and (ii) a copy of the certified statements and the report to the appropriate Minister and the Treasurer; and (c) if the public sector entity is a local government— (i) the certified statements and the auditor's report to the chief executive officer of the local government; and (ii) a copy of the certified statements and the report to the mayor of the local government and the appropriate Minister; and (d) if the public sector entity is a statutory body— (i) the certified statements and the auditor's report to the chief executive officer of the statutory body; and (ii) a copy of the certified statements and the report to the appropriate Minister; and (e) if the public sector entity is a controlled entity— (i) the certified statements and the auditor's report to the chief executive officer of the controlled entity; and (ii) a copy of the certified statements and the report to the public sector entity that exercises control over the controlled entity and the appropriate Minister. (5) If the public sector entity is a GOC, or a controlled entity of a GOC, it is enough for subsection (1) if the auditor-general audits the financial statements of the GOC that the GOC is required to provide under the Corporations Act. (6) In this section— annual financial statements includes final financial statements for abolished public sector entities. 41 Audit of expenditure for ministerial offices (1) The auditor-general must audit the full year report of expenditure of ministerial offices and prepare a report about it. (2) The auditor-general's report must state whether— (a) the auditor-general has received all the information and explanations required by the auditor-general; and (b) the auditor-general considers the full year report is an accurate report, in the required form, of expenditure for ministerial offices for the year concerned. (3) As soon as reasonably practicable after the auditor-general prepares the report, the auditor-general must give the auditor-general's report and the full year report to the appropriate Minister. 42 Audit of consolidated whole-of-government financial statements (1) The auditor-general must audit the consolidated whole-of-government financial statements and prepare a report about them. (2) The report must state the following— (a) whether the auditor-general has received all the information and explanations required by the auditor-general; (b) whether the auditor-general considers the statements have been properly drawn up, under prescribed requirements, to give a true and fair view of— (i) the financial operations and cash flows of the State for the financial year; and (ii) the financial position at the end of that financial year. (3) As soon as reasonably practicable after the auditor-general prepares the report, the auditor-general must give the statements and report to the Treasurer. 42A Auditor-general may conduct joint audit The auditor-general may conduct an audit jointly, or in collaboration, with the auditor-general of the Commonwealth or another State if the auditor-general reasonably believes the Commonwealth or other State has an interest in the audit. 43 Appointment of contract auditors (1) The auditor-general may appoint an appropriately qualified individual who is not a member of the staff of the audit office to be a contract auditor. (2) The appointment of a person to be a contract auditor may be general or limited to a particular audit. (3) The contract auditor— (a) is appointed on the terms stated in the instrument of appointment; and (b) may resign the appointment by signed notice given to the auditor-general. 44 Identity cards for authorised auditors (1) The auditor-general may issue an identity card to an authorised auditor. (2) The identity card must— (a) contain a recent photograph of the authorised auditor; and (b) be signed by the authorised auditor and the auditor-general. (3) A person who stops being an authorised auditor must return the person's identity card to the auditor-general as soon as practicable after the person stops being an authorised auditor, unless the person has a reasonable excuse. Maximum penalty for subsection (3)—10 penalty units. 45 Proof of authority as authorised auditor An authorised auditor may exercise a power in relation to a person only if the authorised auditor produces his or her identity card for inspection by the person. 46 Access to documents and property (1) For the purpose of conducting an audit of the consolidated fund accounts, an authorised auditor must be given, at all reasonable times, full and free access to all documents and property relevant to the audit. (2) Subject to subsection (5), for the purpose of conducting an audit of an entity under this Act, an authorised auditor must be given, at all reasonable times, full and free access to all documents and property belonging to, in the custody of, or under the control of, the entity. (3) Subject to subsection (5), for the purpose of conducting an audit under this Act, an authorised auditor may— (a) enter, at any reasonable time— (i) a place occupied by a public sector entity or another entity subject to audit; or (ii) a place occupied by a financial institution with which a public sector entity, or another entity subject to audit, maintains an account; or (iii) another place if the occupier of the place consents to the entry; and (b) inspect, examine, photograph or film anything in the place; and (c) take extracts from, and make copies of, any documents in the place; and (d) take into the place persons, equipment and materials that the authorised auditor reasonably requires; and (e) require any person in the place to give to the authorised auditor reasonable assistance in relation to the exercise of the powers mentioned in paragraphs (a) to (d). (4) A person must comply with a requirement made under subsection (3)(e), unless the person has a reasonable excuse. Maximum penalty—40 penalty units. (5) For the purpose of conducting an audit under section 36A, subsections (2) and (3)(a)(i) and (ii) do not apply to a non-public sector entity subject to audit. (6) It is not a reasonable excuse for a person who is an individual to fail to comply with a requirement made under subsection (3)(e) that complying with the requirement might tend to incriminate the person. Note— In this and similar provisions the reference to a person who is an individual is made because an individual may claim the privilege against self-incrimination. (7) An answer by a person who is an individual under a requirement made under subsection (3)(e), or any information, document or other thing obtained as a direct or indirect consequence of the person giving the answer, is not admissible against the person in a criminal proceeding, other than a proceeding relating to the falsity of the answer, if the answer might in fact tend to incriminate the person. (8) The fact that a document was produced by a person who is an individual under a requirement made under subsection (3)(e) is not admissible in evidence against the person in a criminal proceeding, other than a proceeding relating to the falsity of the document, if producing the document might in fact tend to incriminate the person. 47 Obtaining information (1) If it is reasonably necessary for the purposes of an audit under this Act, an authorised auditor may, by written notice given to a person, require the person to give to the authorised auditor stated information, within a reasonable period and in a reasonable way stated in the notice. (2) A person must comply with a requirement made under subsection (1), unless the person has a reasonable excuse. Maximum penalty—40 penalty units. (3) It is not a reasonable excuse for a person who is an individual to fail to comply with a requirement under subsection (1) that complying with the requirement might tend to incriminate the person. (4) Information given by a person who is an individual under a requirement under subsection (1), or any other information or a document or other thing obtained as a direct or indirect consequence of the person giving the information, is not admissible against the person in a criminal proceeding, other than a proceeding relating to the falsity of the information, if giving the information might in fact tend to incriminate the person. 48 Obtaining evidence (1) If it is reasonably necessary for the purposes of an audit under this Act, an authorised auditor may, by written notice given to a person, require the person— (a) to attend before an authorised auditor, at a reasonable time and place stated in the notice, to answer questions; and (b) to produce to an authorised auditor, at a reasonable time and place stated in the notice, documents belonging to, in the custody of, or under the control of, the person. (2) The authorised auditor before whom the person attends may require answers to be verified or given on oath, either orally or in writing, and for that purpose the authorised auditor may administer an oath. (3) The oath to be taken by a person for this section is an oath that the answers the person will give will be true. (4) An authorised auditor to whom a document is produced under a notice under subsection (1)— (a) may keep the document for a reasonable period for the purposes of conducting the relevant audit; and (b) may take extracts from and make copies of the document. (5) While the authorised auditor has possession of the document, the authorised auditor must allow the document to be inspected at any reasonable time by a person who would be entitled to inspect it if it were not in the authorised auditor's possession. (6) The regulations must prescribe scales of allowances and expenses to be allowed to persons required to attend under this section. (7) A person must comply with a notice under subsection (1), unless the person has a reasonable excuse. Maximum penalty—40 penalty units. (8) It is not a reasonable excuse for a person who is an individual to fail to comply with a notice under subsection (1) that complying with the notice might tend to incriminate the person. (9) An answer given by a person who is an individual under this section, or any information, document or other thing obtained as a direct or indirect consequence of the person giving the answer, is not admissible against the person in a criminal proceeding, other than a proceeding relating to the falsity of the answer if the answer might in fact tend to incriminate the person. (10) The fact that a document was produced by a person who is an individual under this section is not admissible in evidence against the person in a criminal proceeding, other than a proceeding relating to the falsity of the document, if producing the document might in fact tend to incriminate the person. 49 Compensation (1) A person, other than a public sector entity, or anyone else subject to audit, who incurs any loss or expense— (a) because of the exercise or purported exercise of a power under this division; or (b) in complying with a requirement made of the person under this division; may claim compensation from the State. (2) A payment of compensation may be claimed and ordered— (a) in a proceeding for compensation brought in a court having jurisdiction in relation to the recovery of a debt in the amount of the compensation claimed; or (b) during a proceeding for an offence against this Act brought against the person by whom the claim is made. (3) A court may order the payment of compensation for the loss or expense only if it is satisfied that it is just to do so in the circumstances of the particular case. 50 False or misleading information A person must not state anything to an authorised auditor that the person knows is false or misleading in a material particular. Maximum penalty—80 penalty units. 51 Obstruction of authorised auditor (1) A person must not obstruct an authorised auditor in the exercise of a power under this Act, unless the person has a reasonable excuse. Maximum penalty—80 penalty units. (2) In this section— obstruct includes hinder and resist, and attempt to obstruct. 52 Impersonation of authorised auditor A person must not pretend to be an authorised auditor. Maximum penalty—80 penalty units. 53 Confidentiality and related matters (1) This section applies to a person who is or has been any of the following, including before the commencement of this subsection— (a) an authorised auditor; (b) a person engaged by the auditor-general; (c) a person engaged or employed by a contract auditor; (d) a person receiving proposed reports, or extracts of proposed reports, under section 64. (2) The person must not— (a) make a record of protected information; or (b) whether directly or indirectly, divulge or communicate protected information; unless the record is made, or the protected information is divulged or communicated, under this Act or in the performance of duties, as a person to whom this section applies, under this Act. Maximum penalty—200 penalty units or imprisonment for 1 year. (3) Subsection (2) does not prevent the disclosure of protected information to— (a) the parliamentary committee or a portfolio committee; or (b) the Crime and Corruption Commission; or (c) a police officer, or an entity, responsible for the investigation or prosecution of offences in any jurisdiction; or (d) a court for the purposes of the prosecution of a person for an offence in any jurisdiction; or (e) if the auditor-general conducts an audit jointly, or in collaboration, with the auditor-general of the Commonwealth or another State under section 42A—the auditor-general of the Commonwealth or other State; or (f) the Treasurer or the department in which the Financial Accountability Act 2009 is administered. (4) Compliance by a person mentioned in subsection (1) in relation to the Corporations Act, section 311 or the Australian Securities and Investments Commission Act 2001, section 30A is declared to be an excluded matter for the Corporations Act, section 5F. (5) Nothing in subsection (4) is intended to affect the power of a person mentioned in subsection (1) to disclose information to the Australian Securities and Investments Commission under subsection (3)(c). (6) In this section— protected information means information, observations, comments, suggestions or notations that— (a) are not publicly available; and (b) are disclosed to, obtained by or made by a person to whom this section applies in relation to an audit that has been, is being or will be conducted under this Act; and (c) are relevant to the audit. 54 Report on audit (1) The auditor-general may prepare a report on any audit conducted under this Act. (2) An authorised auditor, other than the auditor-general, must give the auditor-general a report on every audit conducted by the authorised auditor. (3) A report under subsection (1) or (2) may contain observations and suggestions about anything arising out of the audit. (4) If the auditor-general considers that observations or suggestions made under subsection (3) require attention or further consideration, the auditor-general must give them, and any comments on them— (a) if they arose out of an audit of the consolidated fund accounts—to the Treasurer and any other person whom the auditor-general considers to have a special interest in the report; or (b) if they arose out of an audit of a department—to the accountable officer of the department and any other person whom the auditor-general considers to have a special interest in the report; or (c) if they arose out of an audit of a matter under section 36A— (i) for a report relating to a public sector entity—to the accountable officer, chief executive officer or chairperson of the public sector entity; and (ii) to any other person whom the auditor-general considers to have a special interest in the report; or