Our Office is committed to the highest standards of corporate governance - managing our resources, managing our people and managing our relationships as befits a leader in public sector audit.

The Auditor General

The Auditor General is an appropriately qualified independent statutory officer appointed by the Governor under the Auditor General Act 2006 (AG Act) and is appointed for a non-renewable term of ten years, unless suspended by the Governor and removed from office by a resolution of both Houses of Parliament. He is also the Accountable Authority and Chief Executive Officer of the Office of the Auditor General, a department of the public service of the State under the Public Sector Management Act 1994. For the purpose of executive administration, the Office currently falls within the ministerial portfolio of the Treasurer.

As the Accountable Authority, the Auditor General must discharge responsibilities under the Financial Management Act 2006. As Chief Executive Officer, the Auditor General is also responsible for a range of staffing functions under the Public Sector Management Act 1994.

Role

The Auditor General scrutinises the public sector to see there has not been waste of taxpayers' resources and that government agencies deliver services in an equitable, efficient and effective manner to the benefit of all Western Australians.

The Auditor General is thereby an 'ally of the People and Parliament'. He must act, and be seen to be acting, independently in carrying out all his powers and duties. This independence is the cornerstone of public sector audit, and therefore to properly discharge his responsibilities the Auditor General must be free from pressure, influence or interference from any source that may erode that independence.

Accountability and Authority

Accountability within the public sector is traditionally established when Parliament confers responsibility on public sector agencies, subject to control of a Minister of the Crown, to account through that Minister for all that is done in the exercise of their authority, the manner in which it is done and the ends sought to be achieved.

The Auditor General's responsibility, conferred by Parliament, is to audit and report upon the manner in which conferred responsibilities have been discharged by agencies. As such the Auditor General has a responsibility to the community generally and his role is superimposed on the accountability relationship between the responsible Minister and Parliament. The interrelationships can best be demonstrated diagrammatically by the 'accountability triangle' shown below.

Serving the Public Interest

Independent and forthright reports tabled in Parliament by the Auditor General assist Parliamentarians and the public to have a better understanding of the performance of public sector agencies. Together with advice provided to agencies, they assist agency management to improve the cost effectiveness and responsiveness of their services. The information provided by the Auditor General also reassures the public that an independent watchdog is serving the public interest. Collectively, these commitments contribute to improving community confidence in the public sector.

To fulfil the Office of the Auditor General's Purpose of Serving the Public Interest, the Office:

Performance Auditing

Performance Auditing is a total audit service, encompassing: auditing public sector agencies' financial statements and performance indicators; ensuring controls within agencies are adequate and that all relevant legislation has been complied with; and importantly, direct examinations into the efficiency, effectiveness and economy of agency operations or programs.

Elements fundamental to the provision and ultimate success of this service are independence, integrity, objectivity, professional and technical skills, and a broad understanding of public sector operations.

Improving Financial Management and Accountability

The operations of the Assurance Services and Compliance and IS Audit divisions serve a two-fold purpose - providing Parliament with opinions on the integrity of public sector agency financial statements, performance indicators and related legislative controls, whilst concurrently generating greater agency accountability in the use of public resources through the conduct of Controls, Compliance and Accountability audits.

Whilst focused on achieving the corporate outcomes and divisional objectives sought by the Office, the scope and nature of the work and the results delivered have an impact beyond simply ensuring that the 'books balance' and agencies comply with the rules. At a wider level it is about serving the public interest, through providing Parliament with quality information through reports tabled in Parliament that identify matters of significance. Such information can then be factored into Parliament's decision-making when resourcing agencies to deliver programs and services.

Hence operations have the potential to initially improve financial management and accountability across the public sector, increase the transparency of public sector operations, and thus ultimately provide Parliament with assurance about public administration. In turn that assurance, complemented by our scrutiny of any changes in public sector strategic direction, has the propensity to build public trust in the process of government and improve public confidence in government.

Improving Public Sector Performance

The role of the Auditor General is not simply about ensuring public money is spent according to the rules - it is also about ensuring that the community receives value for its tax dollars. The Performance Review Division therefore conducts comprehensive examinations of government activities to ensure they are both efficient and effective. Examinations do not question the objectives of government programs, but focus on whether stated objectives are being met. Ultimately they deliver reports to Parliament detailing findings, identifying matters of significance and making recommendations for changes that will improve public sector performance.

By highlighting examples of good practice in these reports, Parliament becomes better informed in assessing government performance. To make sure such reviews are adding value to government activities, the Division conducts follow-up reviews of selected examinations, usually two years after the original report. Most of the recommendations are accepted and implemented by government.

Monitoring Quality and Performance

The services of the Standards and Quality Division involve the development and adoption of standards relating to the Office's assurance services and performance review functions, and the monitoring of performance against these standards. Technical support and advice is given to audit staff on audit policies, practices and procedures, and on developments in auditing, accounting standards and Treasurer's Instructions. A key part of this work entails providing advice to agencies to assist them in the development of Key Performance Indicators.

Enhancing the Relevance and Timeliness of Services

The challenge for the Strategy, Policy and Innovation Division is firstly to support the Auditor General and ensure his Reports and his wider role in the community best address the needs of Parliament and public for independent information on public sector performance and accountability. The second challenge is to enhance the relevance, technical quality and timeliness of the Office's products and services.

The policy work of the Division entails the provision of strategic advice, monitoring and analysing issues and trends, and liaising with key stakeholders in the Office's operations.

Topic selection is a key task, with ideas and suggestions for Controls, Compliance and Accountability and Performance Examination projects being constantly generated.

A range of editorial and communications services is provided to the Auditor General to ensure that both staff and external clients, such as Parliament and the media, are fully informed of Office policy, practice and operations.