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Report Details


Committee Name:

Estimates and Financial Operations Committee

House:

Legislative Council
Report Type:Report

Title:

Financial Management Bill 2006, Financial Legislation Amendment and Repeal Bill 2006 and Auditor General Bill 2006
Report No:6
No of Pages:59
Physical Location:Legislative Council Committee Office

Presentation Date:

11/21/2006
Inquiry Name(s):Financial Management Bill 2006, Financial Legislation Amendment and Repeal Bill 2006 and Auditor General Bill 2006


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Hide details for RECOMMENDATIONSRECOMMENDATIONS

1 Recommendations are grouped as they appear in the text at the page number indicated:


Page 5

Recommendation 1: The Committee recommends that a definition of ‘accounts’ be inserted into the Financial Management Bill 2006 with flexibility to enable additional matters to be prescribed in Treasurer’s instructions.


Page 7

Recommendation 2: The Committee recommends that clause 5(1) of the Financial Management Bill 2006 be amended so that it prescribes within the bill the administration of the listed entities as departments for the purposes of the bill. The amendment to clause 5(1) should ensure that generic descriptions of the listed entities are used in order to minimise the need for amendment Acts whenever changes of titles and/or departmental structures occur.


Page 14

Recommendation 3: The Committee recommends that Part 3, Division 5 of the Financial Management Bill 2006 should be amended so that:

a) the Office of the Auditor General and the entities listed in clause 5(1) of the bill are expressly exempted from its operation; and


b) if, despite being expressly exempt from the operation of Part 3, Division 5, those entities voluntarily submit a draft resource agreement, they must use reasonable endeavours to reach agreement with the Treasurer on the draft resource agreement.


Page 14

Recommendation 4: The Committee recommends that clause 46 of the Financial Management Bill 2006 be amended so that the accountable authorities of the Office of the Auditor General and the entities listed in clause 5(1) of the bill are required to obtain the approval of the proposed Joint Standing Committee on Audit (as recommended by the Committee in Recommendation 8) before reaching agreement with the Treasurer on any draft resource agreements for the relevant entities.


Page 19

Recommendation 5: The Committee recommends that Schedule 2 of the Financial Management Bill 2006 be amended so that clause 54 of the bill prescribes the accountable authorities for the entities listed in clause 5(1) of the bill. For the purposes of the parliamentary departments, the bill should prescribe:

a) the Clerk of the Legislative Council as the accountable authority of the Department of the Legislative Council;

b) the Clerk of the Legislative Assembly as the accountable authority of the Department of the Legislative Assembly; and

c) the Executive Manager of the Parliamentary Services Department as the accountable authority of the Parliamentary Services Department.


The amendment to Schedule 2 should ensure that generic descriptions of the positions and the listed entities are used in order to minimise the need for amendment Acts whenever changes in titles and/or departmental structures occur.


Page 24

Recommendation 6: The Committee recommends that clause 85 of the Financial Management Bill 2006 be amended so that the proposed Joint Standing Committee on Audit (as recommended by the Committee in Recommendation 8) is the parliamentary committee which has the responsibility of conducting a review of the Minister’s report on the review of the operation and effectiveness of the proposed Act.


Page 24

Recommendation 7: The Committee recommends that clause 85 of the Financial Management Bill 2006 be amended so that the reviews which are contemplated by that clause occur as soon as practicable after the expiry of every five years after the commencement of the proposed Act.


Page 31

Recommendation 8: The Committee recommends that a Joint Standing Committee on Audit be established.

Page 32

Recommendation 9: The Committee recommends that the definition of ‘Estimates and Financial Operations Committee’ in the Auditor General Bill 2006 be amended to mean the Estimates and Financial Operations Committee of the Legislative Council or such other committee determined by the Legislative Council to be the responsible committee for the purposes of the Auditor General Act 2006.


Page 33

Recommendation 10: The Committee recommends that a definition of ‘accounts’ be inserted into the Auditor General Bill 2006 with flexibility to enable additional matters to be prescribed in Treasurer’s instructions.


Page 33

Recommendation 11: The Committee recommends that clause 8 of the Auditor General Bill 2006 be amended to require that the Auditor General also have regard to the audit priorities as determined by the Estimates and Financial Operations Committee.


Page 34

Recommendation 12: The Committee recommends that clause 14 of the Auditor General Bill 2006 be amended to require that the Auditor General also notify the Estimates and Financial Operations Committee.


Page 35

Recommendation 13: The Committee, by a majority (comprising Hons Giz Watson, Anthony Fels and George Cash MLCs) recommends that the Auditor General Bill 2006 be amended to provide that a report under clause 24 is to include an opinion as to whether a decision by a Minister not to provide information to Parliament concerning any conduct or operation of an agency is reasonable and appropriate.


Page 35

Recommendation 14: The Committee recommends that clause 25 of the Auditor General Bill 2006 be amended to require that a report on an examination or investigation carried out under clause 18 of the Auditor General Bill 2006 also be submitted to the Estimates and Financial Operations Committee.


Page 36

Recommendation 15: The Committee recommends that clause 37 of the Auditor General Bill 2006 be amended to require that where the Auditor General decides to report information, the Auditor General should report to the proposed Joint Standing Committee on Audit (as recommended by the Committee in Recommendation 8) and that the proposed Joint Standing Committee on Audit should determine, in private, whether the information shall be included in a report to be tabled in Parliament.

Page 37

Recommendation 16: The Committee recommends that clause 43 of the Auditor General Bill 2006 be amended to provide that the Treasurer, when determining the budget of the Office of the Auditor General, be required to have regard to the recommendations of the proposed Joint Standing Committee on Audit (as recommended by the Committee in Recommendation 8).


Page 37

Recommendation 17: The Committee recommends that clause 43 of the Auditor General Bill 2006 be amended to provide that regard be given to any recommendation made by the proposed Joint Standing Committee on Audit (as recommended by the Committee in Recommendation 8) regarding organisational structure or resources of the Office of the Auditor General.


Page 38

Recommendation 18: The Committee recommends that clause 47 of the Auditor General Bill 2006 be amended to provide that the proposed Joint Standing Committee on Audit (as recommended by the Committee in Recommendation 8) carry out a review of the operation and effectiveness of the Auditor General Act 2006 as soon as practicable after the expiry of every five years from the commencement of the Auditor General Act 2006.


Page 38

Recommendation 19: The Committee recommends that clause 47 of the Auditor General Bill 2006 be amended to provide that the proposed Joint Standing Committee on Audit (as recommended by the Committee in Recommendation 8) have the ability to direct, from time to time, that a performance review of the Auditor General’s Office be conducted by a person or persons appointed by the proposed Joint Standing Committee on Audit.


Page 39

Recommendation 20: The Committee recommends that Schedule 1, clause 1 of the Auditor General Bill 2006 be amended to require that the Minister also consult with the Estimates and Financial Operations Committee.


Page 40

Recommendation 21: The Committee recommends that Schedule 1, clauses 7(1) and 7(2) of the Auditor General Bill 2006 be amended to delete the words ‘made on the recommendation of the Public Accounts Committee’.


Page 40

Recommendation 22: The Committee recommends that Schedule 1, clause 7 of the Auditor General Bill 2006 be amended to provide that either House of Parliament may order the proposed Joint Standing Committee on Audit (as recommended by the Committee in Recommendation 8) to inquire into and report on any motion for suspension or removal of the Auditor General.


Page 41

Recommendation 23: The Committee recommends that Schedule 1, clause 8 of the Auditor General Bill 2006 be amended to require that the Minister also consult with the Estimates and Financial Operations Committee.