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GOVERNMENT SECTOR FINANCE LEGISLATION (REPEAL AND AMENDMENT) ACT 2018 - SCHEDULE 2

SCHEDULE 2 – Amendment of Public Finance and Audit Act 1983 No 152

[1[#93] Long title

Omit "administration and audit of public finances".
Insert instead "audit of government sector finances and the establishment and functions of the Public Accounts Committee;".

[2[#93] Section 1 Name of Act

Omit " Public Finance and Audit Act 1983 ".
Insert instead " Government Sector Audit Act 1983 ".

[3[#93] Section 3

Insert after section 2--

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[#93] Section 4

Omit the section. Insert instead--

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.

"General Government Sector Financial Statements" means the statements referred to in section 7.17 (1) (b) of the Government Sector Finance Act 2018 .

"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.

[5[#93] Part 2 Public finance administration

Omit the Part.

[6[#93] Section 27B The Auditor-General

Omit section 27B (3) (a). Insert instead--

(a) to audit the Consolidated State Financial Statements, the General Government Sector Financial Statements and any other financial reports that the Auditor-General is required or authorised to audit by law,

[7[#93] Section 27B (3) (c1)

Insert after section 27B (3) (c)--

(c1) to provide any other auditing, audit-related or reporting services that the Auditor-General is required or authorised to provide by law,

[8[#93] Sections 33H-37

Omit sections 35-37. Insert instead--

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, other than a claim based on legal professional privilege, 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) Nothing in this section entitles an authorised person to have access to information that is Cabinet information under the Government Information (Public Access) Act 2009 .
(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.
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).

[9[#93] Section 38 Secrecy

Omit section 38 (2) (b). Insert instead--

(b) proceedings for an offence relating to government resources or related money or for the recovery of such resources or money, or

[10[#93] Section 38 (2) (c)

Omit "an officer of an authority".
Insert instead "a government officer or accountable authority for a GSF agency".

[11[#93] Section 38 (2) (e)

Omit the paragraph. Insert instead--

(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).

[12[#93] Section 38A Definitions

Omit the definitions of
"authority" and
"responsible Minister" .
Insert in alphabetical order--


"auditable entity" does not include a local council.

[13[#93] Sections 38B (1) and 38C (1), (2), (2A), (3) and (6)

Omit "an authority" and "the authority" wherever occurring.
Insert instead "an auditable entity" and "the auditable entity", respectively.

[14[#93] Sections 38B (3) and 38C (6)

Omit "one authority" wherever occurring. Insert instead "one auditable entity".

[15[#93] Section 38C Report of performance audit

Omit "Head of" wherever occurring. Insert instead "accountable authority for".

[16[#93] Section 38C (6)

Omit "appropriate authority". Insert instead "appropriate auditable entity".

[17[#93] Part 3, Division 3 General audit of statutory bodies

Omit the Division.

[18[#93] Part 3, Division 4

Omit the Division. Insert instead--

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.

[19[#93] Part 3, Division 4A General audit of Departments

Omit the Division.

[20[#93] Section 46

Omit the section. Insert instead--

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).

[21[#93] Section 47 Appointment and functions of auditor

Omit "a financial year", "the financial year" and "public money".
Insert instead "an annual reporting period for the Audit Office", "the annual reporting period" and "government money", respectively.

[22[#93] Section 48 Auditing of financial report and records

Omit "financial year" from section 48 (1).
Insert instead "annual reporting period for the Audit Office".

[23[#93] Sections 49, 51 and 52

Omit "consolidated financial statements" and "general government sector financial statements" wherever occurring.
Insert instead "Consolidated State Financial Statements" and "General Government Sector Financial Statements", respectively.

[24[#93] Sections 49 (1) (a) and 52 (1)

Omit "transmitted to the Auditor-General by the Treasurer in accordance with section 6 (4)" wherever occurring.
Insert instead "given to the Auditor-General by the Treasurer in accordance with section 7.17 of the Government Sector Finance Act 2018 ".

[25[#93] Section 52 (2)

Omit the subsection.

[26[#93] Section 52 (3)

Omit "public money". Insert instead "government money".

[27[#93] Section 52 (3)

Omit "statutory bodies to which Division 3 or 4 applies".
Insert instead "auditable entities".

[28[#93] Section 52 (4)

Omit "Head of each authority" and "Head of an authority".
Insert instead "accountable authority for each auditable entity" and "accountable authority for an auditable entity", respectively.

[29[#93] Section 52A Auditor-General's report to be presented to Parliament

Omit ", accompanied by copies of such opinions, if any, as are directed to be annexed or appended to the Auditor-General's report under section 52 (2)" from section 52A (1).

[30[#93] Section 52A (2)

Omit "and any copies of such opinions".

[31[#93] Section 52C Definition

Omit the definitions of
"authority" and
"responsible Minister" .

[32[#93] Section 52D Complaints about waste of government money

Omit "public money by an authority or an officer of an authority" from section 52D (1).
Insert instead "government money by an auditable entity or an officer or employee of an auditable entity (including a government officer)".

[33[#93] Section 52D (4)

Insert after section 52D (3)--

(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.

[34[#93] Section 52E Reports by Auditor-General

Omit "head of the authority" wherever occurring in section 52E (1).
Insert instead "accountable authority for the auditable entity".

[35[#93] Section 53 Definitions

Omit paragraph (b) of the definition of
"authority of the State" . Insert instead--

(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.

[36[#93] Section 57 Functions of Committee

Omit "consolidated financial statements and general government sector financial statements" wherever occurring in section 57 (1) (a) and (c).
Insert instead "Consolidated State Financial Statements and General Government Sector Financial Statements".

[37[#93] Part 4A Payment of tax-equivalents

Omit the Part.

[38[#93] Section 59 Form of books, records etc

Omit "An authority" and "the authority" from section 59 (3).
Insert instead "The accountable authority for an auditable entity" and "the auditable entity", respectively.

[39[#93] Section 59 (4)

Omit the subsection.

[40[#93] Section 59A Treasury Fire Risks Account

Omit the section.

[41[#93] Section 59B Payment of certain amounts by statutory authority to Consolidated Fund

Omit the section.

[42[#93] Section 60 Recovery of money and value of property

Omit the section.

[43[#93] Section 61 Misappropriation of money or property

Omit the section.

[44[#93] Section 62 Offences--generally

Omit the section.

[45[#93] Section 63

Omit the section. Insert instead--

63 Nature of proceedings for offences Proceedings for an offence under this Act may be dealt with summarily before the Local Court.

[46[#93] Section 63A Reference of matters to Public Accounts Committee

Omit the section.

[47[#93] Section 63B Notification of controlled entities

Omit the section.

[48[#93] Section 63F Status of Workers Compensation Insurance Fund

Omit the section.

[49[#93] Section 64 Regulations

Omit section 64 (1A). Insert instead--

(1A) Without limiting subsection (1), a regulation may shorten the time for compliance with a provision of section 49 (2), 51 (1) or 52A (1), despite the provision.

[50[#93] Section 64 (2)

Omit the subsection.

[51[#93] Schedule 2 Statutory bodies

Omit the Schedule.

[52[#93] Schedule 3 Departments

Omit the Schedule.

[53[#93] Schedule 4 Savings, transitional and other provisions

Insert at the end of the Schedule, with appropriate Part and clause numbering--

Part - Provisions consequent on enactment of Government Sector Finance Legislation (Repeal and Amendment) Act 2018

Definition In this Part--

"amending Act" means the Government Sector Finance Legislation (Repeal and Amendment) Act 2018 .
Completion of pending audits or audit-related services
(1) The Auditor-General may, despite the commencement of the amending Act, complete any audit or audit-related service that the Auditor-General was requested or required to undertake before that commencement.
(2) Subject to the regulations, the provisions of this Act and the regulations, as in force immediately before the commencement of the amending Act, continue to apply in relation to any such audit or audit-related service.



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