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

Sunlight is the best of disinfectants

3

Spenders

Auditors

Public Representatives

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Produces accounts
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PUBLIC ACCOUNTS
COMMITTEE Functions
Public Finance and Audit Act 1983, Section 57
• PAC’s primary functions are to examine:
 Total State Sector Accounts
 Financial reports of State authorities
 Opinions and reports of the Auditor-General
Restrictions on the Committee
x Government policy, unless inquiry referred by
Assembly or Minister
x Estimates of proposed expenditure

PUBLIC ACCOUNTS
COMMITTEE Source of Inquiries
Referral by:

• Referral by:
 Legislative Assembly

• Referral by:
 Legislative Assembly
 Minister

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

The NSW Public Accounts Committee

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

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

PUBLIC ACCOUNTS
COMMITTEE Review of Performance Audits
• Seek submission from agency 12 months after audit
• Refer agency’s submission to A-G for comment
• Hearings with agency and A-G
• Report to Parliament
• Debate in Parliament
• Government response within 6 months

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

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

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

PUBLIC ACCOUNTS
COMMITTEE Review of Performance Audits
Purpose:
• Bring together the professional expertise of the Audit Office and
political authority and accountability of the PAC
• Ensure recommendations of value are not forgotten
Agency revised responses for hearing

PUBLIC ACCOUNTS
COMMITTEE Review of Performance Audits
Purpose:
• Bring together the professional expertise of the Audit Office and
political authority and accountability of the PAC
• Ensure recommendations of value are not forgotten
• Allow both recommendations and responses to be tested in the
political arena
Explain any rejection of recommendations
Demonstrate how any problems have been addressed

PUBLIC ACCOUNTS
COMMITTEE Review of Performance Audits
Purpose:
• Bring together the professional expertise of the Audit Office and
political authority and accountability of the PAC
• Ensure recommendations of value are not forgotten
• Allow both recommendations and responses to be tested in the
political arena
• Ensure CEOs account to the Parliament for how they respond to
recommendations
Outline changes to address issues
Explain any lack of progress

PUBLIC ACCOUNTS
COMMITTEE Review of Performance Audits
Purpose:
• Bring together the professional expertise of the Audit Office and
political authority and accountability of the PAC
• Ensure recommendations of value are not forgotten
• Allow both recommendations and responses to be tested in the
political arena
• Ensure CEOs account to the Parliament for how they respond to
recommendations
• Provide reality check to Audit Office
External assessment of recommendation in light of experience

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

Represents public interest
Interprets the accounts Spends the money

www.parliament.nsw.gov.au/publicaccounts