More than numbers... 200 years of audit impact
Since 1824, the Parliament of New South Wales has relied upon the role of the Auditor-General to hold the executive government to account for its use of public resources.
Today, the Audit Office of New South Wales conducts audits on behalf of the Auditor-General. The Audit Office is a professional, contemporary and diverse organisation with a strong culture and a commitment to integrity and accountability in the public sector.
There were 1,166 financial audits and other assurance reviews of state entities, local government councils and universities completed in 2022–23. In addition, 15 financial audit reports and 20 performance audit reports were tabled in Parliament. Financial audit reports summarise the outcomes of individual financial audits and highlight controls and governance risks. Performance audit reports assess whether activities are conducted effectively, economically, efficiently and in compliance with relevant laws.
The Auditor-General’s Reports to Parliament are followed up by the Public Accounts Committee (PAC) to ensure recommendations are appropriately addressed. The PAC is responsible for undertaking an independent review of the Audit Office every four years.
From 1824 to 2024
William Lithgow appointed Colonial Auditor-General to compile and examine the colony’s accounts and report on government departments to the Governor.
The UK Constitution Act 1855 formalised government in New South Wales, and the Auditor-General made a member of the government.
Powers and duties of the Auditor-General first set in legislation, in the Audit Act 1870.
Audit Act 1902 prohibited the Auditor-General from being a member of the Executive Council or of Parliament.
Audit (Amendment) Act 1929 changed the tenure of office of the Auditor-General from life to ceasing at 65.
Public Finance and Audit Act 1983 established the Auditor-General’s Office (6 January 1984).
Auditor-General’s Office declared a statutory body, allowing it to be more independent.
The Public Finance and Audit Act 1983 expanded the Auditor-General’s role to include performance audits, limited tenure to seven years, and prevented acceptance of any other post in the NSW public service.
Auditor-General’s role expanded to reporting on issues of waste, probity and financial judgement.
Auditor-General given power to employ staff directly, and set wages and conditions.
Tenure of Auditor-General extended to eight years.
The Local Government Act 1993 expanded the Auditor-General’s mandate to include financial and performance auditing of local councils and council entities.
The Public Finance and Audit Act 1983 renamed the Government Sector Audit Act 1983. As part of this, a new principal object was added which specifically provides that the Auditor-General is an independent and accountable statutory officer.
The Government Sector Audit Act 1983 and the Local Government Act 1993 expanded the Auditor-General’s mandate to include ‘follow the dollar’ powers, the power to access cabinet information and information subject to legal professional privilege, and to make the Auditor-General an independent officer of the Parliament.