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Public Audit Bill

Government Bill

As Reported from the Finance and Expenditure Committee

Commentary

Go to Table of Contents for the Bill

Recommendation

The Finance and Expenditure Committee has examined the Public Audit Bill and recommends that it be passed with the amendments shown.

Introduction

The Public Audit Bill (the bill) seeks to reform and restate the law relating to the auditing of public sector organisations. This reform has been under consideration since the passage of the Public Finance Act 1989 and the Finance and Expenditure Committee's 1989 Inquiry into Officers of Parliament. More specifically, the bill has arisen from the previous Finance and Expenditure Committee's Inquiry into Audit Office Legislation conducted in 1998.

The bill raised a number of important issues, which we considered carefully. This commentary focuses on the major issues we considered. These were:

  • whether statutory provision for a Deputy Auditor-General to be appointed by the House is necessary and appropriate
  • the appropriateness of the House's proposed power to direct on the Auditor-General's work programme priorities
  • whether it is desirable for State enterprises (SOEs) to be subject to effectiveness and efficiency audit by the Auditor-General
  • the sufficiency of the Auditor-General's powers to audit and inquire into matters concerning the provision of public services by Non-Government organisations
  • whether the Auditor-General should be the auditor of the Reserve Bank of New Zealand and the Overseas Investment Commission
  • whether the Auditor-General should be the auditor of energy trusts and other trusts
  • the prospect of greater co-ordination between the Auditor-General and the Parliamentary Commissioner for the Environment in the use of their resources
  • the proposed replacement of the Auditor-General's surcharge powers by an amendment to the Local Government Act 1974
  • Triple Bottom Line reporting
  • The Auditor-General's auditing standards
  • The need for criteria for new entities to be made subject to the Auditor-General's mandate by Order in Council
  • whether the New Zealand Local Government Association should be excluded from the Auditor-General's mandate
  • the adequacy of the procedural provisions in the bill.

Statutory provision for a Deputy Auditor-General to be appointed by the House

We were requested by the House, when the bill was referred to us, to consider the issue of the statutory provision for the Deputy Auditor-General to be appointed by the House. Accordingly, we have considered the issue and feel that the clause that provides for the statutory appointment of the Deputy Auditor-General should be retained. The bill establishes the Auditor-General as a corporation sole who, as a result, has perpetual succession. Therefore, it is not strictly necessary to provide for the statutory appointment of a Deputy Auditor-General for periods where the Auditor-General is absent from office. However, due to the constitutional significance of the position, and the powers exercised by a Deputy Auditor-General in periods where the Auditor-General is absent, we felt it desirable that the Deputy Auditor-General should be appointed by the House. Not all of us agreed with this however.

While it is expected that some of the work of the Office of the Controller and Auditor-General will be delegated to specialist providers, we agree that the Auditor-General should retain signing-off rights.

The appropriateness of the House's proposed power to direct on the Auditor-General's work programme priorities

A major issue the House requested we consider was the appropriateness of the House's proposed power to direct on the Auditor-General's work programme priorities. The bill as introduced enabled the Auditor-General's annual plan to be the subject of consultation with the Speaker and a committee of the House before being tabled. The House would then have the power, by resolution, to direct the Auditor-General as to the work programme priorities.

The Auditor-General's role as an officer of Parliament creates a tension between being accountable to Parliament while recognising that Parliament is best served by an Auditor-General free from any political interference. The Auditor-General considers that clauses 36 to 38 of the bill provide a sound basis for parliamentary scrutiny of his activities. However, he argued that clause 36(4), which gives the House the power to pass a "resolution directing the Auditor-General to amend the provisions of a plan that relate to or are consequential on the Auditor-General's work programme priorities, the Auditor-General must amend the plan as directed", is unnecessary and impinges on the Auditor-General's independence. There are no equivalent powers to direct in the United Kingdom, Canada or Australia. However, many of these jurisdictions have dedicated Public Accounts Committees, whose functions are to interact with the Auditor-General on Parliament's behalf. These relationships are generally based on consultation and cooperation rather than direction. We recognise that while the Auditor-General is accountable to Parliament, Parliament has no power to exercise that accountability other than through the appointment process.

We agree that without clause 36(4) the bill strikes a balance between the Auditor-General's need for independence while remaining accountable to Parliament. There remains considerable ex ante and ex post involvement by Parliament as the Auditor-General is required to table an annual plan and report on the implementation of the plan in the annual report. The Auditor-General is also subject to select committee scrutiny through the estimates and financial review processes. Accordingly, we recommend that the bill be amended to exclude clause 36(4).

We hope to develop further the relationship between Parliament and the Auditor-General through our recently established Sub-committee.

State enterprises subject to effectiveness and efficiency audits

An issue that the Minister in charge of the Office of the Controller and Auditor-General suggested the committee consider, was whether the bill should give the Auditor-General the ability to do effectiveness and efficiency audits of SOEs. We gave this issue serious consideration

The majority of us felt that it is desirable to allow effectiveness and efficiency audits of SOEs. Parliament, as the representative of the owners of SOEs, the New Zealand public, should have the ability to scrutinise SOEs in the most comprehensive manner possible if there are issues of public concern within an SOE. The Auditor-General, as an officer of Parliament, will undertake this task on Parliament's behalf in a neutral, non-partisan manner. We understand that this type of audit would only be undertaken when necessary, and trust that the Auditor-General would use this power with the utmost sensitivity in light of SOEs' commercial imperatives and other relevant purchase and performance agreements.

National and Act members were more persuaded by The Treasury recommendations than the Auditor-General's on the requirement that SOEs be subject to an effectiveness and efficiency audit regime by the Auditor-General.

SOEs operate in a purely commercial environment subject to the Companies Act 1993 where primary responsibility for the effectiveness of the SOE is a responsibility of the directors. Governments' redress for any perceived or real deficiency in SOE performance is to replace the board of directors. The directors can, under the protocols between the relevant SOE Minister and the SOE, as well as the State-Owned Enterprises Act 1986, be required to conduct independent assessments of performance. To do so through these governance arrangements, where the commercial imperatives are assessed independently, is a far more efficient mechanism than the Auditor-General having the power to conduct effectiveness and efficiency audits.

National and Act believe that the Office of the Controller and Auditor-General has no particular expertise in assessing the effectiveness and efficiency of commercial activities.

The Auditor-General's powers to audit or inquire into services provided by non-government organisations

A particular issue that arose during the First Reading debate on the bill was the sufficiency of the Auditor-General's powers to inquire into services provided by non-government organisations (NGOs). Given the significant sums of public money spent on contracts with NGOs we are concerned to ensure the best possible accountability arrangements in this area. The Auditor-General can currently "follow" taxpayer funds into an NGO by seeking information from the organisation about whether it has performed a contract or provided services. This power can only be exercised for the purpose of an audit of, or inquiry concerning, the public entity that made the funds available to the NGO. However, it would be a much bigger step for the Auditor-General to be given the power to audit NGOs' expenditure. An NGO will usually have its own financial auditor. It would not be appropriate to supplant that role, either in whole or in part, without a strong justification.

The key to securing accountability of an NGO is in the design of the instrument under which taxpayer funds are provided. Contract design must strike a balance between over specification, which can lead to unnecessary costs for both parties, and imprecise specification where inadequate performance against the purchaser's intentions may go undetected or unremedied. In addition, the optimal balance may be influenced by the prevailing level of public and political expectation. We consider that Parliament's major interest is in focusing on the public entity that provides funds to NGOs. Parliament should expect that these public entities should have sound practices in respect of:

  • design of policy on service delivery
  • choice of the method of service delivery
  • appointment of the service provider
  • specification of monitoring and enforcement provisions in the contract, arrangement or grant (to the extent that the choice of service delivery permits)
  • actual performance in monitoring and enforcement
  • evaluation of the impact of the actual service delivery.

The Treasury is currently developing guidelines for contracting with NGOs to facilitate best practice in this area. We consider that this is the most appropriate manner in which to deal with the issues that arise from NGOs' use of public money. Thus, we do not consider that the bill should be amended to extend the Auditor-General's powers with regard to NGOs. However, when The Treasury has completed its guidelines for contracting with NGOs we suggest that it brief select committees on the subject to assist Parliament's scrutiny of these processes.

Officials suggested that an alternative approach to extending the Auditor-General's powers with regard to NGOs would be to clarify his powers in the bill. However, on balance we consider that the bill as drafted is sufficiently clear on this issue. In addition, greater specification of the Auditor-General's powers could have unintended consequences, for example, if the courts interpret the scope of a general non-specific power with reference to a specific power. Thus, we consider that greater specification is undesirable.

The treatment of the Reserve Bank of New Zealand and the Overseas Investment Commission

The Reserve Bank of New Zealand (the Bank) is listed in Schedule 2 of the bill as introduced, making the Auditor-General the Bank's financial auditor and enabling effectiveness and efficiency audits of the Bank's performance consistent with government policy. Currently, under section 166 of the Reserve Bank Act 1989, the Treasurer appoints the Bank's auditors. It is the only significant part of the Crown estate that is not within the Auditor-General's mandate. The Bank argued that this change could be seen to decrease its operational independence. The Bank's major concern was the fact that it could be subjected to an effectiveness and efficiency audit. The Bank felt that this could possibly be used to inquire into the Bank's techniques for implementing monetary policy. This could seriously undermine the Bank's independence.

We consider that the inclusion of the Bank in the Auditor-General's financial auditing mandate does not raise concerns about the perceived independence of the Bank. It reflects Parliament's interest in holding the Executive to account for the use of public money. In relation to the effectiveness and efficiency audits, we note that under section 167 of the Reserve Bank Act 1989 the Treasurer can initiate an assessment of the Bank's performance in exercising its powers and functions. Accordingly, we recommend that the Bank be exempt from effectiveness and efficiency audits initiated under clause 16 (1)(a) of the bill and inquiries under clause 18. We note that the Auditor-General could be appointed as the Bank's auditor by the Treasurer under section 167 of the Reserve Bank Act 1989. The existing performance audit mechanisms in section 167 of the Reserve Bank Act 1989 should be retained. The Bank will remain in Schedule 2 of the bill making the Auditor-General the Bank's financial auditor and enabling audits under clause 16(1)(b)-(d).

We also sought information from officials on how the proposed treatment of the Bank will affect the Overseas Investment Commission (OIC). The Bank currently provides for the Commission Secretariat and pays for costs not met by the application fees the OIC collects. The OIC is not a body corporate and does not currently exist as a financial reporting entity in its own right. Its finances are audited as part of the financial audit of the Bank. Due to this arrangement, the OIC would be subject to the exemption from effectiveness and efficiency audits. Accordingly, we recommend that the OIC be listed on schedule 2 of the bill. This would mean that the Auditor-General will at any time be able to conduct a performance audit of, or inquiry concerning, the OIC. If, in future, the OIC was to produce its own financial statements, and be required to have them audited, the Auditor-General would be the auditor of those statements in accordance with clause 15 of the bill.

The treatment of energy trusts and other trusts

We were interested in the Auditor-General's powers in relation to various types of community trusts, particularly energy trusts. Trusts can come under the Auditor-General's mandate in one of three ways.

  • As a class of entity included in Schedule 1. This schedule sets out classes of entity that are considered public entities for the purposes of the Auditor-General's mandate. Several classes of trust are included on the schedule, for example licensing trusts, Maori Trust Boards and community trusts established under section 225D of the Local Government Act 1974.
  • As a public entity listed in Schedule 2. Schedule 2 lists the public entities that do not fall into any of the classes listed in Schedule 1. Examples of trusts listed in Schedule 2 are the Canterbury Museum Trust Board and the Mori Soldiers Trust. A newly formed trust can be added either by its establishing legislation, if there is any, or by Order in Council, provided for in clause 44(a) of the bill.
  • Through the 'control' test in clause 5 of the bill. Clause 5(1)(f) of the bill makes an entity subject to the Auditor-General's mandate if it is controlled by one or more of:
  • the Crown
  • an Office of Parliament
  • an entity of a class listed in Schedule 1
  • an entity listed in Schedule 2
  • an entity in respect of which the Auditor-General is the auditor under an enactment.

In practice this test will cover three categories of trust:

  • non-statutory trusts established by the Crown
  • trusts established by statutory bodies, in exercise of their statutory powers
  • trusts established by local authorities.

The coverage of these trusts under existing law is very uneven. Under the bill, most will be caught by the 'control' test and therefore be 'public entities'.

However, there are two types of trust that are not caught under these provisions, Trustee Bank Community Trusts and Energy Trusts. Trustee Bank Community Trusts were set up by the Crown under the Trustee Banks Restructuring Act 1988. Their purpose was to hold shares in the reconstituted trustee banks, and apply property vested in them for purposes beneficial to their communities. The Minister of Finance appointed the first trustees of each trust. Thereafter, trustees were appointed in the manner set out in each trust deed. Trustee bank community trusts are now covered by the Community Trusts Act 1999. The appointment of trustees is still covered by each trust deed, but we understand that in practice all appointments are made by the Minister. The Community Trusts Act 1999 is silent on the audit arrangements for the trusts. However, the control test in the bill will make the Auditor-General the auditor, as the trust deed enables the Crown to control the composition of the trust board, provided for in clause 5(2)(c). In order to clarify and standardise the Auditor-General's powers in relation to these trusts we recommend that they are included in Schedule 1 as a class of public entity.

Energy trusts are entities that were formed to hold shares in energy companies, on behalf of the public, under the Energy Companies Act 1992. This Act required each energy authority to prepare an establishment plan for approval by the Minister of Energy. Each plan had to identify any person to whom voting equity securities in an energy company would be allocated. Several plans provided for the creation of a community trust for this purpose. These trusts have become known as energy trusts. The Audit Office is not currently the auditor of energy trusts. We note the Report of the Ministerial Inquiry into the Electricity Industry, which argued that there was a need to strengthen the accountability arrangements in relation to these trusts. The Officials' report responding to the Ministerial Inquiry agreed with this view and the Government has expressed its intention to include these trusts within the Auditor-General's mandate. Accordingly, we recommend that energy trusts be included on the appropriate schedule of the bill and become subject to the Auditor-General's mandate.

Co-ordination between the Auditor-General and the Parliamentary Commissioner for the Environment

In the first reading of the bill, the Minister in charge of the Audit Department requested that we consider how the work of the Auditor-General and the Parliamentary Commissioner for the Environment could be more effectively co-ordinated. The two offices currently work closely in a number of areas, including performance audits concerning local government and environmental issues. It is not envisaged that the autonomy or independence of either office would be affected were they to share resources more closely, or co-operate more generally in their work. We consider that no legislative change is necessary to achieve greater co-ordination between the Auditor-General and the Parliamentary Commissioner for the Environment and encourage these organisations to work together where appropriate.

Replacement of surcharge powers and amendment to the Local Government Act 1974

The bill repeals the existing powers in the Public Finance Act 1977 where the Auditor-General can surcharge members of public bodies for losses incurred by unlawful actions, and replaces the power to surcharge local authority members with a mechanism for local authorities (in the first instance) or the Crown (in the second instance) to initiate legal action to recover losses. The new requirements are to be incorporated in the Local Government Act 1974. The objective of the new provisions is to encourage local authorities to recover losses. We understand that the Department of Internal Affairs has been consulted about the provisions and agrees with them in principle. The Law Society noted in its submission that the new provision imposes significant personal liability on members of local authorities and that the burden of this liability is more onerous than that on Ministers of the Crown. This differential treatment prompted the Law Society to suggest that the new mechanism to recover losses should be withdrawn for reconsideration. We recommend that the provisions remain. We note that submissions from Local Government New Zealand and Christchurch City Council did not oppose the new mechanism. In addition, the current review of the Local Government Act 1974 provides an opportunity for the nature of local authority members' liabilities to be reassessed in the future.

Issues arose from the specification of how the new mechanism would work in practice. The Christchurch City Council argued that the bill should reflect that, in practice, the Crown will be called on to initiate proceedings to recover losses on behalf of local authorities. We support this approach and recommend that the Minister of Local Government be made responsible for recovering losses on behalf of the Crown. Drafting improvements will be made to the bill to reflect this responsibility. In addition, we agree with the recommendation of the Department of Internal Affairs, supported by advice from the Crown Law Office, that ministerial action to recover losses be subject to objective criteria. The Crown Law Office's advice was that it would be appropriate to provide that the Minister of Local Government's decision should be dependent upon the Auditor-General having reported and expressed a view that a loss has occurred. We agree with this view and recommend that the bill be amended to reflect this.

Triple Bottom Line reporting

The New Zealand Businesses for Social Responsibility asserted in its submission that public entities should report on not only financial performance but also social and environmental measures. The legislation relating to reporting does not limit departments and other agencies to reporting only financial information, and in fact usually requires reporting on other matters, notably the nature of outputs that have been produced.

We do not consider this bill to be the most appropriate vehicle for addressing reporting requirements of public entities. Currently the most important Act in terms of reporting by Government organisations is the Public Finance Act 1989, which contains requirements for both ex ante and ex post reporting by departments and Crown entities, as well as consolidated reporting by the Crown. The requirements of the Public Finance Act 1989 go wider than narrow financial reporting and include reporting on outputs, and some limited ex ante reporting on outcomes. Other legislation that covers reporting includes the State Sector Act 1988, the State-owned Enterprises Act 1986 (reporting by SOEs), and the Fiscal Responsibility Act 1993 (high level fiscal and economic reporting). Legislation establishing a particular agency may also include reporting requirements. In respect of local government, additional reporting requirements are a matter for the Local Government Act 1974.

We recognise that there is international precedent for developing measures of environmental and social performance and for public bodies to report on these alongside financial measures. We encourage public entities to report on the social and environmental impacts of their activities. We further encourage select committees to inquire into these impacts, where appropriate, through the financial review process and estimates examination. No change to the bill is necessary for this to occur.

Auditing standards

The Institute of Chartered Accountants New Zealand (the Institute) submitted that clause 23 of the bill should be amended so the Auditor-General has a statutory duty to comply with auditing standards developed by the Institute. The Institute considered that Parliament would receive the best possible assurance of the accuracy of the accountability information it receives from the Executive if audit standards are developed and published independently of the Auditor-General. The Institute also argued that granting parallel powers to the Auditor-General is unnecessary and inefficient and that the Auditor-General can provide for any additional requirement for his own purposes through a practice manual. However, the Auditor-General opposes mandatory compliance with auditing standards developed by an external private body primarily because he cannot be certain of the future direction of the Institute's auditing standards. Allied to this uncertainty is the concern that mandatory compliance with standards that the Auditor-General does not control conflicts with the notion that the Auditor-General is accountable for all aspects of public audit. The Auditor-General also noted that there are areas of public audit where the Institute's standards are silent. Thus by necessity the Auditor-General has had to develop standards in these areas.

We accept the Auditor-General's arguments and note that the bill provides that the Auditor-General is accountable for the standards used in audits through the publication mechanism in clause 23. This ensures that the standards applied are transparent. Accordingly, we recommend that no change be made to clause 23.

Criteria for adding new entities to the Auditor-General's mandate

Submissions from both the Institute of Chartered Accountants of New Zealand and the Law Society recommended that there be listed in the bill an explicit set of criteria for determining whether an entity should be added to Schedule 2 by Order in Council in the future.

Clause 19 of the bill contains a set of criteria for 'audit by arrangement'. These criteria are based on the principles set out in the previous Finance and Expenditure Committee's 1998 report on its Inquiry into Audit Office legislation. They provide a useful guide for deciding whether an entity should be included as a public entity in Schedule 2 of the bill. The criteria contained in clause 19 are:

  • the entity exists for a public purpose, and
  • the entity is, or ought reasonably to be, accountable to any or all of the Crown, the House of Representatives, the public, or a section to the public for the exercise of its functions and the management of its resources, and
  • no practical means exist for those to whom the entity is, or ought reasonably to be, accountable to appoint an auditor of the entity, and
  • it is practicable and in the public interest that the Auditor-General accepts the appointment.

We accept officials' advice that, in the penultimate point above, the words "no practical means exist" be replaced with "it is not practicable". We recommend that the bill be amended to provide entities be added to Schedule 2 of the bill through an Order in Council made on the recommendation of the Minister of Finance, and having regard to the criteria set out in clause 19(2).

Exclusion of New Zealand Local Government Association

The New Zealand Local Government Association (the Association) sought to be excluded from the Auditor-General's mandate. The Association falls under the control test in clause 5(2) of the bill. The Association made its submission on the ground that making it subject to the Auditor-General's mandate may affect perceptions of the independence of national representative bodies. However, we consider that there is no reason in principle why national representative bodies ought to be excluded from the Auditor-General's mandate, as long as they are controlled by the public entities they represent. Therefore, we recommend that the New Zealand Local Government Association not be excluded from the bill.

Procedural provisions

The Law Society submitted that there is a need for procedural safeguards for those who are subject to audits and inquiries by the Auditor-General. In particular, the Society submitted that persons affected by an audit or inquiry should have a right to legal counsel, and that legal professional privilege should be available. We agree that procedural safeguards are important. However, we are advised that section 27 of the New Zealand Bill of Rights Act applies to all the procedures of the Auditor-General and that, accordingly, no specific provision needs to be made in this bill. Therefore, we recommend no change in these respects.

Conclusion

We believe that this bill is a significant step in terms of clarifying the Auditor-General's constitutional position, guaranteeing his independence and providing a broad mandate to play his role effectively. We believe that it will assist us, as members of Parliament, to ensure that public money is spent in the most effective and efficient manner.

Appendix

Committee process

The Public Audit Bill was referred to the committee on 28 May 2000. The closing date for submissions was 12 May 2000. We received and considered eight submissions from interested groups and individuals. We heard five submissions orally. Hearing evidence took two hours and 47 minutes and consideration took one hour and 56 minutes./p>

We received advice from the Office of the Controller and Auditor-General and The Treasury.

Committee membership

  • Mark Peck (Chairperson)
  • David Cunliffe
  • Luamanuvao Winnie Laban
  • Annabel Young
  • Hon Peter Dunne (Deputy Chairperson)
  • Rod Donald
  • Rt Hon Winston Peters
  • Hon Max Bradford
  • Hon Bill English
  • John Tamihere
  • Clayton Cosgrove
  • Rodney Hide
  • John Wright

Public Audit Bill

Government Bill

Contents

1. Title
Part 1: Preliminary
2. Commencement
3. Purpose of this Act
4. Interpretation
5. Entities to which this Act applies
6. Act to bind the Crown
Part 2: Controller and Auditor-General and Deputy Controller and Auditor-General
7. Controller and Auditor-General
8. Auditor-General to hold no other office
9. Duty to act independently
10. Corporate status
11. Deputy Controller and Auditor-General
12. Functions, duties, and powers of Deputy Auditor-General
13. Administrative provisions applying to Auditor-General, Deputy Auditor-General, and Auditor-General's employees
Part 3: Audits and reports
Audits of public entities
14. Auditor of public entities
15. Financial report audit
16. Performance audit
17. Other auditing services
18. Inquiries by Auditor-General Audits of other entities
19. Auditor of other entities Reports
20. Reports to House of Representatives
21. Reports to Minister, committees, etc
22. Publication of Auditor-General's report relating to public entity named or described in Local Government Official Information and Meetings Act 1987
23. Publication of auditing standards
Part 4: Information gathering powers and disclosure of information
24. Access to information
25. Power of Auditor-General to obtain information
26. Power to examine on oath
27. Power to inspect bank accounts
28. Protection for persons supplying information
29. Access to premises
30. Disclosure by Auditor-General
31. Self-incrimination
Part 5: Appointments and delegations
Appointment of auditors
32. Appointment of auditors for financial report audit
33. Appointment of auditors for performance audit or inquiries
34. Powers of appointed auditor
Delegations
35. Delegation of powers
Part 6: Accountability
36. Annual plan of Auditor-General
37. Annual report of Auditor-General
38. Independent auditor to audit Auditor-General
Part 7: Miscellaneous provisions
39. Offences
40. Time for commencing proceedings
41. Protection from liability
42. Audit fees
43. Exemption from income tax
44. Amendments to Schedule 2
Part 8: Amendments, repeals, revocations, and savings
Amendments to Local Government Act 1974
44A Returns of expenditure
45. Assessment of tax
46. Failure to comply with financial reporting requirements
47. Person carrying on transport or ferry service may sell undertaking to territorial authority
48. New section 594ZC substituted 594ZC Auditor-General to be auditor of local authority trading enterprises and subsidiaries
Recovery of losses incurred by local authorities
49. New heading and sections 706A - 706C inserted
706A Report by Auditor-General on loss incurred by local authority
706B Local authority to respond to Auditor-General
706C Members of local authority liable for loss
50. Infrastructure Auckland to be local authority for certain purposes
Consequential amendments
51. References to Audit Department and Audit Office
52. Consequential amendments to enactments
53. Consequential amendment to Hop Marketing Regulations 1939
Consequential repeals and revocation
54. Consequential repeals and revocation
Part 9: Transitional provisions
Continuation of offices
55. Controller and Auditor-General and Deputy Controller and Auditor-General
Audit Department
56. Audit Department
57. Transfer of Crown assets and liabilities to Auditor-General
58. Rights and liabilities of the Crown and third parties following transfer or grant
Employees in Audit Department to be employees of Auditor-General
59. Transitional provisions in respect of employees of Audit Department
60. Protection of conditions of employment
61. No compensation for technical redundancy
62. Membership of Government Superannuation Fund
Transitional Audits
63. Audits for financial years ending before commencement of Act

Schedules

Schedule 1

Classes of public entities
Schedule 2

Specific public entities not falling within any class
Schedule 3

Provisions applying in respect of Auditor-General, Deputy Auditor-General,and employees of Auditor-General
Schedule 4

Consequential amendments and repeals

The Parliament of New Zealand enacts as follows:

1. Title

This Act is the Public Audit Act 2000.

Part 1: Preliminary

2. Commencement

This Act comes into force on 1 July 2000.

3. Purpose of this Act

The purpose of this Act is to

  1. establish the Controller and Auditor-General as an Officer of Parliament; and
  2. reform and restate the law relating to the audit of public sector organisations.

4. Interpretation

In this Act, unless the context otherwise requires,:

approved applicable financial reporting standard has the same meaning as in section 2(1) of the Financial Reporting Act 1993 appointed auditor means an auditor appointed under either of section 32 or section 33

Auditor-General means the Controller and Auditor-General appointed under section 7 and, in sections 24, 25, 27(1), 28, and 30 21 and 24 to 30 includes every employee of the Controller and Auditor-General or every appointed auditor who has been authorised under this Act to act under the section concerned

Crown:

(a) means Her Majesty the Queen in right of New Zealand; and

(b) includes all Ministers of the Crown and all departments; but

(c) does not include:

(i) an Office of Parliament; or

(ii) a Crown entity; or

(iii) a State enterprise named in the First Schedule of the State-Owned Enterprises Act 1986

Crown entity has the same meaning as in section 2 (1) of the Public Finance Act 1989

Deputy Auditor-General means the Deputy Controller and Auditor-General appointed under section 11

document means any record of information; and includes:

(a) anything on which there is writing or any image; and

(b) anything on which there are marks, figures, symbols, or perforations having a meaning for persons qualified to interpret them; and

(c) anything from which sounds, images, or writing can be reproduced, with or without the aid of anything else

employee, in section 16, includes any person who is engaged to work, or works, under a contract of service or contract for services

entity means any person, whether corporate or unincorporate

local authority has the same meaning as in section 2(1) of the Local Government Act 1974

office of Parliament has the same meaning as in section 2(1) of the Public Finance Act 1989

public entity means any of the entities described in section 5

State enterprise means an entity that is a State enterprise within the meaning of section 2 of the State-Owned Enterprises Act 1986

subsidiary:

(a) means a subsidiary within the meaning of sections 5 to 8 of the Companies Act 1993; and

(b) includes an entity that is classified as a subsidiary in any relevant approved applicable financial reporting standard.

5. Entities to which this Act applies

(1) This Act applies to:

(a) the Crown:

(b) each office of Parliament, except where another auditor has been appointed for that office under section 40(b) of the Public Finance Act 1989:

(c) an entity of a class described in Schedule 1:

(d) an entity listed in Schedule 2:

(e) an entity in respect of which the Auditor-General is the auditor under any other enactment (other than section 19):

(f) an entity which is controlled by 1 or more entities of the kinds referred to in paragraphs (a) to (e).

(2) For the purposes of subsection (1) (f) this Act, an entity is controlled by 1 or more other entities if:

(a) the entity is a subsidiary of any of those other entities; or

(b) the other entity is controlled by 1 or more of these other or entities together control the entity within the meaning of any relevant approved applicable financial reporting standard; or

(c) the other entity or entities can together control the directly or indirectly composition of the board of the entity within the meaning of sections 7 and 8 of the Companies Act 1993 (which, for the purposes of this paragraph, are to be read with all necessary modifications).

6. Act to bind the Crown

This Act binds the Crown.

Part 2: Controller and Auditor-General and Deputy Controller and Auditor-General

Auditor-General

7. Controller and Auditor-General

(1) There is an officer of Parliament called the Controller and Auditor-General.

(2) The Controller and Auditor-General is appointed by the Governor-General on the recommendation of the House of Representatives.

8. Auditor-General to hold no other office

The Auditor-General is not capable of being a member of Parliament or of a local authority and must not, without the approval of the Speaker of the House of Representatives, hold any other office or take on any other occupation.

9. Duty to act independently

The Auditor-General must act independently in the exercise and performance of the Auditor-General's functions, duties, and powers.

10. Corporate status

(1) The Auditor-General is a corporation sole with perpetual succession and a seal of office.

(2) The Auditor-General has and may exercise all the rights, powers, and privileges and incur all the liabilities and obligations of a body corporate of full capacity.

Deputy Auditor-General

11. Deputy Controller and Auditor-General

(1) There is an officer of Parliament called the Deputy Controller and Auditor-General.

(2) The Deputy Controller and Auditor-General is appointed by the Governor-General on the recommendation of the House of Representatives.

(3) Sections 8 and 9 apply to the Deputy Auditor-General as if references in those sections to the Auditor-General were references to the Deputy Auditor-General.

12. Functions, duties, and powers of Deputy Auditor-General

(1) The Deputy Auditor-General has and may exercise, to the same extent as the Auditor-General, all the functions, duties, and powers of the Auditor-General.

(2) The exercise by the Deputy Auditor-General of the Auditor-General's functions, duties, and powers is subject to the control of the Auditor-General.

(3) If there is a vacancy in the office of the Auditor-General, or if the Auditor-General is absent from duty for any reason, the Deputy Auditor-General has and may exercise all the functions, duties, and powers of the Auditor-General for as long as the vacancy or absence continues.

(4) The fact that the Deputy Auditor-General exercises any function, duty, or power of the Auditor-General is, in the absence of evidence to the contrary, conclusive evidence of the Deputy Auditor-General's authority to do so.

Administrative provisions

13. Administrative provisions applying to Auditor-General, Deputy Auditor-General, and Auditor-General's employees

The provisions set out in Schedule 3 apply to the Auditor-General, Deputy Auditor-General, and employees of the Auditor-General.

Part 3: Audits and reports
Audits of public entities

14. Auditor of public entities

(1) The Auditor-General is the auditor of every public entity.

(2) Nothing in sections 15 to 19 limits subsection (1).

15. Financial report audit

The Auditor-General must from time to time audit the financial statements, accounts, and other information that a public entity is required to have audited.

16. Performance audit

(1) The Auditor-General may at any time examine:

(a) the extent to which a public entity is carrying out its activities effectively and efficiently:

(b) a public entity's compliance with its statutory obligations:

(c) any act or omission of a public entity, in order to determine whether waste has resulted or may have resulted or may result:

(d) any act or omission showing or appearing to show a lack of probity or financial prudence by a public entity or 1 or more of its members, office holders, employees, and contractors.

(2) An audit under this section may relate to 1 or more public entities.

(3) Subsection (1)(a) does not apply to a State enterprise the Reserve Bank of New Zealand.

(4) If subsection (1)(a) applies
then,:(a) if the entity is the Crown or a Crown entity, the examination is to be limited to the extent to which activities are being carried out effectively and efficiently in a manner consistent with any applicable government policy:(b) if the entity is a local authority, the examination is limited to the extent to which activities are being carried out effectively and efficiently in a manner consistent with any and there is an applicable government or local government policy to which (b) if the public entity is required to adhere, the examination is limited to the extent to which activities are being carried out effectively and efficiently in a manner consistent with that any applicable policy of the governing body of the local authority.

17. Other auditing services

The Auditor-General may, with the agreement of a public entity, perform for that entity any services of a kind that it is reasonable and appropriate for an auditor to perform.

18. Inquiries by Auditor-General

The Auditor-General may inquire, either on request or on the Auditor-General's own initiative, into any matter concerning a public entity's use of its resources.

  1. Subsection (1) does not apply to the Reserve Bank of New Zealand.
  2. If subsection (1) applies and there is an applicable government or local authority policy to which the public entity is required to adhere, the inquiry is to be limited to the extent to which the public entity is using its resources in a manner consistent with that policy.

Audits of other entities

19. Auditor of other entities

(1) At the request of an entity that is not a public entity, the Auditor-General may enter into an arrangement with that entity to be its auditor.

(2) Before entering into an arrangement, the Auditor-General must be satisfied that:

(a) the entity exists for a public purpose; and

(b) the entity is, or ought reasonably to be, accountable to any or all of the Crown, the House of Representatives, the public, or a section of the public for the exercise of its functions and the management of its resources; and

(c) it is not practicable no practical means exist for those to whom the entity is, or ought reasonably to be, accountable to appoint an auditor of the entity; and

(d) it is practicable and in the public interest that the Auditor-General accepts the appointment.

(3) An arrangement may be for any term not exceeding 3 years and may be renewed from time to time.

(4) The following sections and Parts apply to an entity audited by arrangement as if references in those sections to a public entity were references to the entity and with any other necessary modifications:

(a) section 15 (financial report audit):

(b) section 17 (other auditing services):

(c) section 21 (reports to Minister, committees, etc):

(d) section 23 (publication of auditing standards):

(e) Part 4 (information gathering powers and disclosure of information):

(f) Part 5 (appointments and delegations):

(g) section 41 (protection from liability):

(h) section 42 (audit fees).

Reports

20. Reports to House of Representatives

In addition to the annual report prepared under section 37, the Auditor-General must report at least once every calendar year to the House of Representatives on matters arising out of the performance and exercise of the Auditor-General's functions, duties, and powers.

21. Reports to Minister, committees, etc

The Auditor-General may report to a Minister, a committee of the House of Representatives, a public entity, or any person on any matter arising out of the performance and exercise of the Auditor-General's functions, duties, and powers that the Auditor-General considers it desirable to report on.

22. Publication of Auditor-General's report relating to public entity named or described in Local Government Official Information and Meetings Act 1987

If the Auditor-General has prepared a report under section 20 or section 21 relating to a public entity named or described in the First or Second Schedules of the Local Government Official Information and Meetings Act 1987,:

(a) the Auditor-General may direct the public entity to table the report during a meeting of the public entity that is open to the public; and

(b) the public entity must do so as soon as practicable at the next such meeting.

23. Publication of auditing standards

(1) The Auditor-General must publish, by way of a report to the House of Representatives, the general auditing standards that the Auditor-General applies, or intends to apply, to the conduct of audits and inquiries, and the provisions of other auditing services, under this Part.

(2) A report under subsection (1) must be prepared at least once every 3 years.

(3) If requested to do so by any person, the Auditor-General must supply a copy of any report under subsection (1) to that person on payment by that person of a reasonable fee determined by the Auditor-General.

(4) In each annual report prepared under section 37, the Auditor-General must include a description of any significant changes made to the general auditing standards during the year covered by that annual report.

Part 4: Information gathering powers and disclosure of information

24. Access to information

The chief executive and the governing body of a public entity must ensure that the Auditor-General has access at all times to the documents of the entity relating to the performance and exercise of the Auditor-General's functions, duties, and powers.

25. Power of Auditor-General to obtain information

(1) For the purposes of exercising or performing the Auditor-General's functions, duties, or powers, the Auditor-General may require a public entity or any person to:

(a) produce to the Auditor-General a document in the entity's or person's custody, care, or control:

(b) provide the Auditor-General with information or an explanation about any information.

(2) If any information is required from a person who is not a member, employee, or office holder of the public entity, the Auditor-General must:

(a) advise the person in writing of the nature of the information; and

(b) state that it is required under this section; and

(c) if the person is an individual and the information required is personal information about that individual, comply with information privacy principle 3 of the Privacy Act 1993.

(3) The Auditor-General may pay the person referred to in subsection (2) the reasonable costs and disbursements of providing the information and may recover those costs and disbursements from the public entity to which the information relates.

26. Power to examine on oath

(1) The Auditor-General may, in the course of the exercise or performance of the Auditor-General's functions, duties, or powers require a person to give evidence.

(2) The Auditor-General may require the evidence to be given either orally or in writing.

(3) For the purpose of examining a person, the Auditor-General may administer an oath.

(4) Section 108 of the Crimes Act 1961 (which relates to perjury) applies to an examination under this section.

(5) The Auditor-General may pay a person the reasonable costs and expenses incurred by that person in giving evidence to the Auditor-General.

(6) The Auditor-General may recover those costs and expenses from the public entity to which the evidence relates.

27. Power to inspect bank accounts

(1) For the purpose of exercising or performing the Auditor-General's functions, duties, or powers, the Auditor-General may examine or audit the account of any person in any bank and, for that purpose, may:

(a) require any officer of the bank to produce any document or provide any information relating to that account in the bank's custody, care, or control; and

(b) take copies of any document so produced.

(2) The powers conferred on the Auditor-General by subsection (1) must not be exercised unless the Auditor-General is authorised to do so by warrant issued by a District Court Judge on the grounds that the Auditor-General has reason to believe that money belonging to a public entity has been fraudulently or wrongfully paid into the person's account.

28. Protection for persons supplying information

(1) A person who is required by any enactment to maintain secrecy or not to disclose information relating to a matter may be required by the Auditor-General to do any of the things referred to in sections 25, 26, and 27 even though the person would otherwise be in breach of that person's obligation of secrecy or non-disclosure.

(2) Compliance with a requirement of the Auditor-General under the sections referred to in subsection (1) is not a breach of the relevant obligation of secrecy or non-disclosure or of the enactment by which that obligation is imposed.

29. Access to premises

For the purpose of obtaining documents, information, or other evidence relevant to any matter arising in the exercise or performance of the Auditor-General's functions, duties, or powers the Auditor-General may, at all reasonable times,:

(a) enter into and remain on:

(i) a public entity's premises; or

(ii) any other premises if so authorised by warrant issued by a District Court Judge on the grounds that there is reasonable cause to suspect that documents, information, or other evidence relating to the activities of that public entity are or may be held at those premises.

(b) carry out a search for a document, examine a document, and make copies of a document or parts of a document.

30. Disclosure by Auditor-General

(1) This section applies to the disclosure of information by the Auditor-General.

(2) The Auditor-General may disclose such information as the Auditor-General considers appropriate to disclose in the exercise of his or her functions, duties, or powers.

(3) Before disclosing any information, the Auditor-General must consider:

(a) the public interest:

(b) an auditor's professional obligations concerning confidentiality of information:

(c) the interests described in sections 6, 7, and 9(2) of the Official Information Act 1982.

(4) This section does not affect an individual's entitlement to request access to information under information privacy principle 6 of the Privacy Act 1993.

31. Self-incrimination

(1) A person is not excused from answering a question or giving any information or document under this Act on the ground that to do so may incriminate or tend to incriminate that person.

(2) A self-incriminating statement or document made or given under this Act is not admissible as evidence in criminal proceedings against that person except on the prosecution of that person for an offence against section 108 of the Crimes Act 1961 or section 379(1)(c) of this Act in relation to that statement or document.

Part 5: Appointments and delegations
Appointment of auditors

32. Appointment of auditors for financial report audit

(1) The Auditor-General may from time to time appoint any of the following persons or bodies to act as an auditor and to carry out 1 or more audits of entities under section 15, or to provide a specific service under section 17, on the Auditor-General's behalf:

(a) an employee of the Auditor-General:

(b) a person qualified to be an auditor of a company under section 199 of the Companies Act 1993, regardless of whether the entity concerned is a company:

(c) subject to subsection (2), a partnership, if all or some of the partners are persons who are qualified to be appointed as auditors of a company under section 199 of the Companies Act 1993.

(2) If a partnership is appointed under subsection (1)(c),:

(a) the appointment of the partnership is to be treated as an appointment of all the persons who are partners in the firm from time to time; and

(b) if the partnership includes persons who are not qualified to be appointed as auditors of a company under section 199 of the Companies Act 1993, the persons who are not qualified to be appointed as auditors must not act as auditors.

(3) An appointment must be in writing and may be made subject to any restrictions and conditions that the Auditor-General thinks fit.

33. Appointment of auditors for performance audit or inquiries

(1) The Auditor-General may from time to time appoint to carry out 1 or more performance audits under section 16 or inquiries under section 18 any person who, in the opinion of the Auditor-General, is suitably qualified for the purpose.

(2) An appointment may be made for 1 or more public entities and for any period of time.

(3) An appointment must be in writing and may be made subject to any restrictions and conditions that the Auditor-General thinks fit.

34. Powers of appointed auditor

When appointing an auditor under section 32 or section 33, the Auditor-General may authorise the appointed auditor to exercise any such of the following powers of the Auditor-General in relation to the public entity concerned as the Auditor-General specifies:

(a)report under section 21:

b. have access to information under section 24:

(c) (b) require a public entity or other person to produce a document or to provide information under section 25(1):

(d) inspect bank accounts under section 27(1):

(e) apply section 28, which relates to the disclosure of information despite an obligation of secrecy or non-disclosure:

(f) exercise the powers under section 29:

(g) disclose information under section 30.

Delegations

35. Delegation of powers

(1) The Auditor-General may from time to time, either generally or particularly, delegate all or any of the Auditor-General's functions, duties, and powers (including this power of delegation) to an employee of the Auditor-General.

(2) However, the Auditor-General must not delegate:

(a) the power of appointment of auditors under section 32 or sections 33j; or power of delegation;

(b) the function of reporting to the House of Representatives; or

(c) the power to require the tabling of a public report by a local authority.

(3) A delegation:

(a) must be in writing; and

(b) may be made subject to any restrictions and conditions the Auditor-General thinks fit; and

(c) is revocable at any time, in writing; and

(d) does not prevent the performance or exercise of a duty, function, or power by the Auditor-General.

(4) A person to whom any functions, duties, or powers are delegated may perform and exercise them in the same manner and with the same effect as if they had been conferred directly by this Act and not by delegation.

(5) A person purporting to act under a delegation is presumed to be acting in accordance with its terms in the absence of evidence to the contrary.

Part 6: Accountability

36. Annual plan of Auditor-General

(1) At least 60 days before the beginning of each financial year, the Auditor-General must prepare and submit to the Speaker of the House of Representatives a draft annual plan that:

(a) describes the Auditor-General's proposed work programme for that year; and

(b) includes the report for that financial year required by section 34A of the Public Finance Act 1989.

(2) The Speaker must present the draft annual plan to the House of Representatives as soon as reasonably practicable.

(3) The Auditor-General, after considering any comments of the Speaker or any committee of the House of Representatives that considered the draft annual plan, may amend the plan as the Auditor-General thinks necessary but must indicate in the plan the nature of any changes to the Auditor-General's work programme priorities requested by the Speaker or any committee of the House of Representatives but not included in the plan.

(4) If, within 1 month of the Speaker presenting the draft annual plan to it, the House of Representatives passes a resolution directing the Auditor-General to amend the provisions of a plan that relate to or are consequential on the Auditor-General's work programme priorities, the Auditor-General must amend the plan as directed.

(45)The Auditor-General must present a completed annual plan to the Speaker before the beginning of each financial year and the Speaker must then present it to the House of Representatives.

37. Annual report of Auditor-General

(1) As soon as practicable after the end of each financial year, tThe Auditor-General must prepare and present an annual report to the House of Representatives.

(2) The report must include:

(a) the audited financial statements prepared in accordance with section 35 of the Public Finance Act 1989 and audited in accordance with section 39 of that Act; and

(b) an account of the implementation of the annual plan required under section 36; and

(c) a list of entities audited by the Auditor-General under an arrangement in accordance with section 19.

38. Independent auditor to audit Auditor-General

(1) The House of Representatives must, by resolution, in respect of each financial year appoint an independent auditor to audit the financial statements, accounts, and other information relating to that year and for this purpose the Auditor-General is to be regarded as a public entity under this Act.

(2) Parts 3 (except section 23) and 4 and section 420 apply in respect of each audit referred to in subsection (1) as if references in those provisions to the Auditor-General were references to the independent auditor and references to a public entity were references to the Auditor-General.

Part 7: Miscellaneous provisions

39. Offences

(1) Every person commits an offence who, without lawful justification or excuse,:

(a) intentionally obstructs, hinders, or resists the Auditor-General or any other person in the exercise of the Auditor-General's or other person's powers under this Act:

(b) intentionally refuses or fails to comply with any lawful requirement of the Auditor-General or any other person under this Act:

(c) makes a statement or gives information to the Auditor-General or any other person exercising powers under this Act, knowing that the statement or information is false or misleading:

(d) represents directly or indirectly that the person holds any authority under this Act when that person knowingly does not hold that authority.

(2) A person who commits an offence against subsection (1) is liable on summary conviction,:

(a) in the case of an individual, to a fine not exceeding $2,000:

(b) in the case of a person or organisation other than an individual, to a fine not exceeding $5,000.

40. Time for commencing proceedings

(1) Despite section 14 of the Summary Proceedings Act 1957, any information in respect of any offence against this Act may be laid at any time within 2 years from the time when the matter of the information arose.

(2) Despite the Summary Proceedings Act 1957 or any other Act, proceedings against any member of a local authority, as such, under any Act may be commenced at any time within 2 years after the commission of the act in respect of which the proceedings are taken.

41. Protection from liability

(1) This section applies to:

(a) the Auditor-General in his or her personal capacity; and

(b) the Deputy Auditor-General in his or her personal capacity; and

(c) every person employed by the Auditor-General, whether acting as an appointed auditor or not, in connection with the performance or exercise of the Auditor-General's functions, duties, or powers.

(2) No person to whom this section applies is personally liable for an act or omission in connection with performing or exercising a function, duty, or power under this Act, unless the act or omission was done in bad faith.

(3) Subsection (2) does not limit any disciplinary functions, powers, or duties of any person or body that apply to any of the persons to whom this section applies by virtue of their membership of a professional body.

42. Audit fees

(1) The Auditor-General may charge fees to a public entity for the provision of services under any of sections 14, 15, 16, 17, and 19.

(2) The fees must be reasonable, having regard to:

(a) the nature and extent of the services provided; and

(b) the requirements of auditing standards published under section 23; and

(c) the qualifications and experience of the persons necessarily engaged in providing the services; and

(d) any other matters the Auditor-General thinks fit.

(3) The Auditor-General may permit an appointed auditor to recover fees directly from the public entity.

(4) The public entity must pay any fees to the Auditor-General or to the appointed auditor on the completion of the whole or any part of the audit when requested to do so in writing.

(5) If the Auditor-General and the public entity fail to agree as to the reasonableness of a fee, the matter must be submitted to arbitration and the provisions of the Arbitration Act 1996 apply.

43. Exemption from income tax

For the purposes of section CB 3 of the Income Tax Act 1994, the Auditor-General is a public authority.

44. Amendments to Schedule 2

(1) The Governor-General may from time to time, by Order in Council on the recommendation of the Minister of Finance, amend Schedule 2:

(a) by adding the name of an entity that is to be a public entity; or

(b) by omitting the name of an entity that no longer exists; or

(c) by correcting the name of an entity.

(2) The Minister of Finance must not recommend the addition of the name of an entity to Schedule 2 unless the Minister of Finance is satisfied that paragraphs (a) to (d) of section 19(2) apply in respect of the entity.

Part 8: Amendments, repeals, revocations, and savings
Amendments to Local Government Act 1974

44A. Returns of expenditure

Section 37ZZZIE of the local Government Act 1974 is amended by repealing subsection (2), and substituting the following subsection:

"(2) Where the amount spent by a local authority on advertising to which a resolution made under section 37ZZZIC(2) relates is in excess of the amount specified in the resolution, the entire amount so spent is to be regarded as a loss that has been incurred by that local authority, and the provisions of sections 706A to 706C apply accordingly."

45. Assessment of tax

Section 190 of the Local Government Act 1974 is amended by repealing subsection (2), and substituting the following subsection:

"(2) For the purposes of this Part of this Act, the Auditor-General has, in respect of the records of wholesale distributors relating to petroleum sold, agreed to be sold, disposed of, delivered, or used by the local authority Auditor-General, the same powers as it has under the Public Audit Act 2000."

46. Failure to comply with financial reporting requirements

Section 223G of the Local Government Act 1974 is amended by repealing subsection (2), and substituting the following subsection:

"(2) Every person or firm appointed under subsection (1) has all the powers conferred on the Auditor-General under sections 24 and 25 of the Public Audit Act 2000 in the exercise of that person's or that firm's functions under that subsection."

47. Person carrying on transport or ferry service may sell undertaking to territorial authority

Section 589(3) of the Local Government Act 1974 is amended by repealing paragraph (d), and substituting the following paragraph:

"(d) despite sections 196 to 203 of the Companies Act 1993, every such company in which the territorial authority has an interest is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor:".

48. New section 594ZC substituted

The Local Government Act 1974 is amended by repealing section 594ZC, and substituting the following section:

"594ZC Auditor-General to be auditor of local authority trading enterprises and subsidiaries

Despite sections 196 to 203 of the Companies Act 1993, every local authority trading enterprise and every subsidiary of every local authority trading enterprise is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

49. New heading and sections 706A-706C inserted

The Local Government Act 1974 is amended by inserting, after section 706, the following heading and sections:

"Recovery of losses incurred by local authorities

"706A Report by Auditor-General on loss incurred by local authority

"(1) For the purposes of this section, and sections 706B and 706C, a local authority is to be regarded as having incurred a loss to the extent that any of the following actions and omissions has occurred and the local authority has not been fully compensated for the action or omission concerned:

"(a) money belonging to or administrable by a local authority has been unlawfully expended; or

"(b) an asset has been unlawfully sold or otherwise disposed of by the local authority; or

"(c) a liability has been unlawfully incurred by the local authority; or

"(d) a local authority has intentionally or negligently failed to enforce the collection of money it is lawfully entitled to receive.

"(2) If the Auditor-General is satisfied that a local authority has incurred a loss, the Auditor-General may make a report on the loss to the local authority, and may include in the report recommendations in relation to the recovery of the loss or the prevention of further loss as the Auditor-General thinks fit.

"(3) The Auditor-General must send copies of the report to the Minister and every member of the local authority.

"706B Local authority to respond to Auditor-General

"(1) On receipt of a report from the Auditor-General, the local authority must, within 20 working days, respond in writing to the Auditor-General, and send a copy of the response to the Minister.

"(2) The local authority's response must:

"(a) respond to each of the Auditor-General's recommendations; and

"(b) include a statement as to what action, if any, the local authority intends to take in respect of the loss.

"(3) The Minister may extend the period of time within which the local authority must forward its response.

"(4) An individual member of the local authority may respond to the Auditor-General:

"(a) by making a separate response to the Auditor-General, and sending a copy to the local authority and the Minister, within the time required for the local authority's response; or

"(b) with the consent of the local authority, by incorporating that member's response in the local authority's response.

"(5) The local authority must, as soon as practicable after the expiry of the time for forwarding its response, table in a meeting of the local authority that is open to the public a copy of the Auditor-General's report, the local authority's response, and any response of an individual member of the local authority not incorporated in the local authority's response.

"706C Members of local authority liable for loss

"(1) If the Auditor-General has made a report on a loss to a local authority under section 706A(2) then, without limiting any other person's liability for the loss, the loss is recoverable as a debt due to the Crown from each member of the local authority jointly or severally. Without limiting any other person's liability for a loss, a loss incurred by a local authority is recoverable as a debt due to the local authority from each member of the local authority jointly and severally.

"(2) If the members of the local authority or any other person or persons do not pay the amount of the loss to the Crown or the local authority within a reasonable time, the Crown may commence proceedings to recover the loss from any or all of those members.. If the local authority does not, within a reasonable time, commence proceedings to recover the loss under subsection (1), the Crown may commence proceedings to recover the loss under that subsection as if the loss were a debt due to the Crown.

"(3) Any amount recovered by the Crown under

subsection (2), less all costs incurred by the Crown in respect of the recovery, must be paid by the Crown to the local authority concerned.

"(4) It is a defence to any proceedings under subsection (1) if the defendant proves that the act or failure to act resulting in the loss occurred:

"(a) without the defendant's knowledge; or

"(b) with the defendant's knowledge but against the defendant's protest made at or before the time when it occurred; or

"(c) contrary to the manner in which the defendant voted on the issue at a meeting of the local authority; or

"(d) in circumstances that, although being a party to the act or failure to act, the defendant acted in good faith and in reliance on reports, statements, financial data, or other information prepared or supplied, or on professional or expert advice given, by any of the following persons:

"(i) an employee of the local authority whom the defendant believed on reasonable grounds to be reliable and competent in relation to the matters concerned:

"(ii) a professional adviser or expert in relation to matters which the defendant believed on reasonable grounds to be within the person's professional or expert competence."

50. Infrastructure Auckland to be local authority for certain purposes

Section 707ZZP(1) of the Local Government Act 1974 is amended by repealing paragraph (g), and substituting the following paragraph:

"(g) the Public Audit Act 2000:".

Consequential amendments

51. References to Audit Department and Audit Office

Every reference to the Audit Department or the Audit Office in any enactment is to be read as a reference to the Auditor-General.

52. Consequential amendments to enactments

The enactments listed in Schedule 4 are amended in the manner indicated in that schedule.

53. Consequential amendment to Hop Marketing Regulations 1939

The Hop Marketing Regulations 1939 (SR 1939/96) are amended by omitting from regulation 19 the words "public money within the meaning of the Public Finance Act 1977", and substituting the words "a public entity as defined in section 4 of the Public Audit Act 2000".

Consequential repeals and revocation

54. Consequential repeals and revocation

(1) The following enactments are repealed:

(a) Public Finance Act 1977 (1977 No 65):

(b) Public Finance Amendment Act 1994 (1994 No 18).

(2) The Public Finance (Poutama Trust Audit) Order 1990 (SR 1990/6) is revoked.

Part 9: Transitional provisions
Continuation of offices

55. Controller and Auditor-General and Deputy Controller and Auditor-General

Despite the enactment of this Act, each of the persons holding office as Controller and Auditor-General or Deputy Controller and Auditor-General immediately before the commencement of this Act continues, after that commencement, to hold office on the same terms and conditions as those on which they held office before that commencement.

Audit Department

56. Audit Department:

The Audit Department is abolished.

57 Transfer of Crown assets and liabilities to Auditor-General

(1) Despite any Act, rule of law, deed, or agreement, and for such consideration and on such terms and conditions as the Minister of Finance may agree with the Auditor-General, that Minister may, on behalf of the Crown,:

(a) transfer to the Auditor-General assets and liabilities of the Crown; and

(b) authorise the Auditor-General to act on behalf of the Crown in managing assets or liabilities of the Crown; and

(c) grant to the Auditor-General leases, licences, easements, permits, or rights of any kind in respect of any assets or liabilities of the Crown.

(2) The Minister of Finance must present to the House of Representatives any contract or other document entered into under subsection (1) within 12 sitting days after the date of that contract or document.

58. Rights and liabilities of the Crown and third parties following transfer or grant

(1) If there is a transfer or grant of any asset, liability, authority, or rights to the Auditor-General under any of paragraphs (a) to (c) of section 57(1),:

(a) the transfer or grant does not entitle any other person to terminate, alter, or in any way affect the rights or liabilities of the Crown or the Auditor-General under any Act or any deed or agreement:

(b) if the transfer or grant is registrable, the person responsible for keeping the register must register the transfer or grant immediately after written notice of the transfer or grant is received by that person from any person authorised for this purpose by the Minister of Finance:

(c) the presentation to the House of Representatives of any contract or other document relating to the transfer or grant is to be treated as notice of the transfer or grant and, after the date of the contract or document, any affected third party is to deal with the Auditor-General in place of the Crown:

(d) the Crown remains liable to any third party as if the transfer or grant had not been made, but the Auditor-General must indemnify the Crown in respect of any liability to the third party:

(e) any satisfaction or performance by the Auditor-General in respect of the asset, liability, authority, or rights is to be treated as also satisfaction or performance by the Crown:

(f) any satisfaction or performance in respect of the asset or liability, authority, or rights by any third party to the benefit of the Auditor-General is to be treated as also to the benefit of the Crown.

(2) No provision in any deed or agreement limiting the Crown's right to sell any assets to third parties, or for determining the consideration for the sale of any assets to third parties, or obliging the Crown to account to any person for the whole or part of the proceeds of sale by the Crown of any assets to third parties, or obliging the Crown to pay a greater price than otherwise by reason of or as a consequence of the sale of any assets to third parties, has any application or effect in respect of any contract or other document or transfer entered into or effected under this Act or under such a contract or other document or transfer.

(3) Any asset, liability, authority, or rights of the Crown may be transferred or granted to the Auditor-General under this Act whether or not any Act or deed or agreement relating to the asset, liability, authority, or rights permits such transfer or grant or requires any consent to such a transfer or grant.

Employees in Audit Department to be employees of Auditor-General

59. Transitional provisions in respect of employees of Audit Department

Every person employed in the Audit Department immediately before the date of commencement of this Act is, on and from that date, an employee of the Auditor-General and is employed under the same terms and conditions as applied to that employee immediately before that date.

60. Protection of conditions of employment

For the purposes of every enactment, law, contract, and agreement relating to the employment of a person referred to in section 59,:

(a) the contract of employment of that employee that applied immediately before the commencement of this Act in respect of that person's employment in the Audit Department is to be treated as unbroken; and

(b) the employee's period of service with the Audit Department and every other period of service of that employee that was recognised by the Audit Department as continuous service is to be treated as a period of service with the Auditor-General.

61. No compensation for technical redundancy

A person to whom section 59 applies is not entitled to any compensation for redundancy by reason only of the person ceasing to be employed in the Audit Department.

62. Membership of Government Superannuation Fund

If a person to whom section 59 applies was a contributor to the Government Superannuation Fund under the Government Superannuation Fund Act 1956 immediately before the date of commencement of this Act,:

(a) that person is to be regarded for the purposes of the Government Superannuation Fund Act 1956 as being employed in the Government service for so long as the person continues to be employed by the Auditor-General; and

(b) the Government Superannuation Fund Act 1956 is deemed to apply to the person in all respects as if the person's service with the Government service were continuous.

63. Audits for financial years ending before commencement of Act

Nothing in this Act -

a. limits or affects any duty or power that the Auditor-General had before the date of commencement of this Act to undertake and complete an audit of an entity for any financial year ending before that date; or

b. requires the Auditor-General to undertake or complete an audit of an entity for any financial year ending before that date if the Auditor-General was not the auditor of the entity before that date.

Schedule 1

s 5(1)(c)

Classes of public entities

Administering bodies established by the Reserves Act 1977, except Boards as defined in section 2 of that Act.

Airport companies authorised by the Airport Authorities Act 1966 to exercise the functions of a local authority.

Community trusts established by section 225D of the Local Government Act 1974.

Community trusts within the meaning of section 4 of the Community Trusts Act 1999.

Crown entities as defined in section 2 of the Public Finance Act 1989.

Departments of the public service as listed in the First Schedule of the State Sector Act 1988.

Electricity trusts that are customer trusts or community trusts, or both (as those terms are defined in sections 3 and 38 of the Electricity Industry Reform Act 1998).

Energy companies which are public entities under section 45(1) of the Energy Companies Act 1992.

Licensing trusts constituted by section 185 of the Sale of Liquor Act 1989.

Local authorities as defined in section 2 of the Local Government Act 1974.

Local authority trading enterprises as defined in section 594B of the Local Government Act 1974.

Maori Trust Boards as constituted by section 3 of the Maori Trust Boards Act 1955 but not subsidiaries of those Boards.

Marketing authorities as defined in section 2 of the Primary Products Marketing Act 1953.

Port companies as defined in section 2 of the Port Companies Act 1988.

Provincial Patriotic Councils constituted by section 15 of the Patriotic and Canteen Funds Act 1947.

Recognised bodies under section 322(2) of the Education Act 1989.

Security and intelligence departments as defined by section 70A of the Public Finance Act 1989.

Sinking Fund Commissioners whose establishment is preserved by section 21(1)(h) of the Local Government Amendment Act (No 3) 1996.

State enterprises as listed in the First Schedule of the State-Owned Enterprises Act 1986.

Trustees as defined in section 2 of the Burial and Cremation Act 1964.

Schedule 2

s 5(1)(d)

Specific public entities not falling within any class

Armed Forces Canteen Council

Arts boards

Auckland Aotea Centre Board of Management

Canterbury Museum Trust Board

Carter Observatory

Costley Training Institution

Council of Legal Education

Dempsey Trust

Electrical Workers Registration Board

Electricity Ashburton Limited

Engineering Associates Registration Board

Engineers Registration Board

Export Guarantee Office

Fishing Industry Board

Maori Purposes Fund Board

Maori Soldiers Trust

Maori Trustee

Masterton Trust Lands Trust

Museum of Transport and Technology

New Zealand Council for Educational Research

New Zealand Defence Force

New Zealand Historic Places Trust

New Zealand Horticulture Export Authority

New Zealand Maori Arts and Crafts Institute

New Zealand Vice Chancellors' Committee

Ngarimu V.C. and 28th (Maori) Battalion Memorial Scholarship Fund

Ngati Whakaue Education Endowment Trust Board

Nursing Council of New Zealand

Office of the Clerk of the House of Representatives

Otago Museum Trust Board

Otago Power Limited

Overseas Investment Commission

Pacific Islands Polynesian Education Foundation

Parliamentary Counsel Office

Parliamentary Service Commission

Patriotic and Canteen Funds Board

Plumbers, Gasfitters, and Drainlayers Board

Poutama Trust

Queen Elizabeth the Second National Trust

Reserve Bank of New Zealand

Riccarton Bush Trustees

Royal New Zealand Foundation for the Blind

Selwyn Plantation Board Limited

Survey Board of New Zealand

Taranaki Scholarships Trust Board

Taratahi Training Centre (Wairarapa) Trust Board

The New Zealand Police

Tokelau Administration

Treaty of Waitangi Fisheries Commission, but not a subsidiary of the Commission

Valuers Registration Board

Waitangi National Trust Board

War Pensions Advisory Board

Winston Churchill Memorial Trust

Schedule 3

s 13

Provisions applying in respect of Auditor-General, Deputy Auditor-General, and employees of Auditor-General Auditor-General and Deputy Auditor-General

1. Term of appointment of Auditor-General

(1) The Auditor-General is to be appointed for a term not exceeding 7 years.

(2) Despite subclause (1), where the term of office of an Auditor-General expires, that Auditor-General, unless sooner vacating office or being removed from office, continues to hold office until a successor to the Auditor-General is appointed.

(3) The Auditor-General may resign at any time by notice in writing to the Speaker of the House of Representatives, or to the Governor-General if there is no Speaker or the Speaker is absent from New Zealand.

(4) A person who has been appointed as Auditor-General must not be reappointed as Auditor-General.

2. Term of appointment of Deputy Auditor-General

(1) The Deputy Auditor-General is to be appointed for a term not exceeding 5 years.

(2) A person who has been appointed as Deputy Auditor-General may be reappointed as Deputy Auditor-General.

(3) Subclauses (2) and (3) of clause 1 apply, with the necessary modifications, in respect of the Deputy Auditor-General as if references to the Auditor-General were references to the Deputy Auditor-General.

3. Oath of office

(1) The Auditor-General and Deputy Auditor-General must each, before undertaking any duties as such, take an oath of office that he or she will honestly and impartially perform the duties of his or her office.

(2) The oath must be administered by the Speaker of the House of Representatives or the Clerk of the House of Representatives.

4. Removal or suspension from office

(1) The Auditor-General or Deputy Auditor-General may at any time be removed or suspended from office by the Governor-General, on an address from the House of Representatives, for disability affecting the performance of duty, bankruptcy, neglect of duty, or misconduct.

(2) At any time when Parliament is not in session, the Auditor-General or Deputy Auditor-General may be suspended from office by the Governor-General in Council for disability affecting the performance of duty, bankruptcy, neglect of duty, or misconduct proved to the satisfaction of the Governor-General; but any such suspension must not continue in force beyond 2 months after the beginning of the next session of Parliament.

5. Salary and other conditions of employment

(1) The Auditor-General and Deputy Auditor-General are each to be paid out of the Crown Bank Account, without further appropriation than this section,:

(a) a salary at such rate as the Higher Salaries Commission from time to time determines; and

(b) allowances that are determined from time to time by the Higher Salaries Commission.

(2) The salary of the Auditor-General, or of the Deputy Auditor-General, must not be reduced during the Auditor-General's, or Deputy Auditor-General's, appointment.

6. State Sector Act 1988 and Government Superannuation Fund Act 1956 not applicable to Auditor-General and Deputy Auditor-General

The Auditor-General and Deputy Auditor-General are not employed in the service of the Crown for the purposes of the State Sector Act 1988 or the Government Superannuation Fund Act 1956 by reason of their appointment as Auditor-General or Deputy Auditor-General.

7. Auditor-General not to borrow, etc, without approval of Minister of Finance

The Auditor-General must not do any of the following without the written approval of the Minister of Finance:

(a) raise a loan (as defined in section 2 of the Public Finance Act 1989):

(b) give a guarantee or indemnity:

(c) establish a subsidiary.

Employees of Auditor-General

8. Employees of Auditor-General

(1) The Auditor-General may employ such persons as are necessary for the performance of the Auditor-General's functions, duties, and powers.

(2) Except as otherwise stated in this Act, the terms and conditions of employment of any employee are as agreed by the Auditor-General with the employee.

9. Good employer principles

(1) The Auditor-General must operate a personnel policy that complies with the principle of being a good employer.

(2) A good employer is an employer who operates a personnel policy containing provisions generally accepted as necessary for the fair and proper treatment of employees in all aspects of their employment, including provisions requiring:

(a) good and safe working conditions; and

(b) an equal employment opportunities programme; and

(c) the impartial selection of suitably qualified persons for appointment; and

(d) recognition of:

(i) the aims and aspirations of the Maori people; and

(ii) the employment requirements of the Maori people; and

(iii) the need for greater involvement of the Maori people in the Public Service; and

(e) opportunities for the enhancement of the abilities of individual employees; and

(f) recognition of the aims and aspirations, and the cultural differences, of ethnic or minority groups; and

(g) recognition of the employment requirements of women; and

(h) recognition of the employment requirements of persons with disabilities.

(3) In addition to the requirements specified in subclauses (1) and (2), the Auditor-General must ensure that all employees maintain proper standards of integrity, conduct, and concern for the public interest.

10. Equal employment opportunities

(1) The Auditor-General must, in each year,:

(a) develop and publish an equal employment opportunities programme:

(b) ensure that the equal opportunities programme is complied with.

(2) The Auditor-General must include in the annual report of the Auditor-General:

(a) a summary of the equal employment opportunities programme for the year to which the report relates; and

(b) an account of the extent to which the Auditor-General was able to meet, during the year to which the report relates, the equal employment opportunities programme for that year.

(3) For the purposes of this clause and clause 8, an equal employment opportunities programme means a programme that is aimed at the identification and elimination of all aspects of policies, procedures, and other institutional barriers that cause or perpetuate, or tend to cause or perpetuate, inequality in respect to the employment of any persons or group of persons.

11. State Sector Act 1988 and Government Superannuation Fund Act 1956 not applicable to employees of Auditor-General

(1) This clause applies to employees to whom section 62 does not apply.

(2) An employee of the Auditor-General is not to be regarded as employed in the service of the Crown for the purposes of the State Sector Act 1988 or the Government Superannuation Fund Act 1956 by reason of his or her employment as such.

Schedule 4

s 52

Consequential amendments and repeals

Part 1 - Public Acts

Accident Insurance Act 1998 (1998 No 114)

Repeal section 347(3) and substitute:

"(3) The financial statements of the Corporation, its subsidiary companies, and the accounts must be prepared in accordance with generally accepted accounting practiceprinciples.

"(4) The Corporation is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Alcoholic Liquor Advisory Council Act 1976 (1976 No 143)

Repeal section 23(2) and substitute:

"(2) The Council is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Animal Control Products Limited Act 1991 (1991 No 36)

Repeal section 15(1)(d) and (e) and substitute:

"(d) despite sections 196 to 203 of the Companies Act 1993, the company and every subsidiary of the company is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor:".

Omit from section 15(1)(f) the words "paragraphs (d) and (e)" and substitute the words "paragraph (d)".

Architects Act 1963 (1963 No 12)

Repeal section 50(2) and substitute:

"(2) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Armed Forces Canteens Act 1948 (1948 No 51)

Omit from section 13(1) the words ", and its accounts and stores shall be subject to audit in the same manner in all respects as if the money and stores of the Council were public money and public stores within the meaning of the Public Finance Act 1977".

Insert in section 13, after subsection (1):

"(1A) The Council is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Arts Council of New Zealand Toi Aotearoa Act 1994 (1994 No 19)

Repeal clause 22 of the First Schedule and substitute:

"22 Audits

The Council is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Broadcasting Act 1989 (1989 No 25)

Repeal clause 13 of the First Schedule and substitute:

"13 Audit of accounts and financial statements

The Authority and the Commission are public entities as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is their auditor."

Burial and Cremation Act 1964 (1964 No 75)

Repeal section 29(3) and substitute:

"(3) Trustees are public entities as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is their auditor."

Carter Observatory Act 1938 (1938 No 9)

Repeal section 26(1) and substitute:

"(1) The Board must keep full and correct accounts of all money received and expended by it."

Add to section 26:

"(3) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Casino Control Act 1990 (1990 No 62)

Repeal clause 9(2) of the First Schedule and substitute:

"(2) The Authority is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Clerk of the House of Representatives Act 1988 (1988 No 126)

Repeal section 30 and substitute:

"30 Audit

The Office of the Clerk of the House of Representatives is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Commerce Act 1986 (1986 No 5)

Repeal section 22(2) and substitute:

"(2) The Commission is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Companies Act 1993 (1993 No 105)

Insert in section 196, after subsection (1):

"(1A) If a company is a public entity as defined in section 4 of the Public Audit Act 2000, the Auditor-General is its auditor in accordance with that Act, and subsection (2) does not apply in respect of that company."

Add to section 197:

"(d) If the auditor is the Auditor-General, in accordance with the Public Audit Act 2000."

Repeal paragraph (b) of section 199(1).

Conservation Act 1987 (1987 No 65)

Repeal section 26H(2) and substitute:

"(2) Each The Council is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Repeal section 26W(2) and substitute:

"(2) The Council is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Copyright Act 1994 (1994 No 143)

Repeal paragraph (c) of the definition of Office of Parliament in section 2(1) and substitute:

"(c) The Auditor-General:".

Crown Research Institutes Act 1992 (1992 No 47)

Repeal section 21 and substitute:

"21 Auditor-General to be auditor of Crown Research Institutes and subsidiaries

"(1) Despite sections 196 to 203 of the Companies Act 1993, every Crown Research Institute and every subsidiary of every Crown Research Institute is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor.

"(2) Without limiting subsection (1), the board of a Crown Research Institute may, after consultation with the Auditor-General and with the approval of the Minister, appoint a person or firm that is qualified for appointment as an auditor of a company to be an additional auditor of the Crown Research Institute or any subsidiary of the Crown Research Institute."

Earthquake Commission Act 1993 (1993 No 84)

Repeal section 11 and substitute:

"11 Auditor-General to be auditor of Commission

"(1) The Commission is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor.

"(2) Without limiting subsection (1), the Commission may, after consultation with the Auditor-General and with the approval of the Minister, appoint a person or firm that is qualified for appointment as an auditor of a company to be an additional auditor of the Commission."

Electoral Act 1993 (1993 No 87)

Repeal clause 13(2) of the First Schedule and substitute:

"(2) The Commission is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Energy Companies Act 1992 (1992 No 56)

Repeal section 45(1) and (2) and substitute:

"45 Auditor-General to be auditor of energy companies and subsidiaries

"(1) Despite sections 196 to 203 of the Companies Act 1993 and subject to subsection (3), every energy company and every subsidiary of every energy company is a public entity as defined in section 4 of the Public Audit Finance Act 2000 and, in accordance with that Act, the Auditor-General is its auditor.

"(2) Without limiting the provisions of this section, the directors of an energy company may, after consultation with the Auditor-General, appoint a person or firm that is qualified for appointment as an auditor of a company to be an additional auditor of the energy company or any subsidiary of it.

"(3) If, at any time, section 39 of this Act does not apply, or ceases to apply, in respect of an energy company,:"

"(a) the company is not or, as the case may be, ceases to be a public entity under subsection (1):

"(b) the Auditor-General is not to be or, as the case may be, will cease to be the auditor of the company:

"(c) the directors of the company and of every subsidiary of the company must appoint an auditor or auditors of the company and of every subsidiary of the company and, where such appointment is made consequent on the Auditor-General ceasing to be the auditor of the energy company, every such appointment must be treated as having been made by the directors to fill a casual vacancy in the office of auditor under section 196(4) of the Companies Act 1993, as the case may be.

"(4) Notwithstanding anything in subsection (3)(a), if, in respect of any energy company and its subsidiaries (if any), consolidated financial statements have been submitted to the Auditor-General for audit, the Auditor-General is to continue to be the auditor of the company and every subsidiary of the company until that audit has been completed.

"(5) If, at any time, an energy company is not, or ceases to be, a public entity under subsection (1), that subsection must, notwithstanding any subsequent change in the shareholding of the energy company,have no or, as the case may be, no further application to that company or any subsidiary of that energy company."

Engineering Associates Act 1961 (1961 No 70)

Repeal section 27(2) and substitute:

"(2) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Environment Act 1986 (1986 No 127)

Repeal section 26(2).

Export Guarantee Act 1964 (1964 No 50)

Repeal section 21B and substitute:

"21B Auditor-General to be auditor of Export Guarantee OfficeThe Export Guarantee Office is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Films, Videos, and Publications Classification Act 1993 (1993 No 94)

Repeal clause 14 of the First Schedule and substitute:

"14 Auditor-General to be auditor of Classification Office

The Classification Office is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Finance Act (No 2) 1949 (1949 No 52)

Repeal section 11(7) and substitute:

"(7) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is the auditor."

Financial Reporting Act 1993 (1993 No 106)

Add to section 15(2):

"(e) if the issuer is a public entity under the Public Audit Act 2000, by the Auditor-General."

Fire Service Act 1975 (1975 No 42)

Omit from section 4(7) the words "the Public Finance Act 1977,".

Repeal section 46(4A) and substitute:

"(4A) The Commission is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Fishing Industry Board Act 1963 (1963 No 70)

Repeal section 24(2) and substitute:

"(2) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Gaming and Lotteries Act 1977 (1977 No 84)

Repeal section 89(4) and substitute:

"(4) Every statement prepared under subsection (2) must be audited by the Auditor-General who, for that purpose, has and may exercise all such powers as the Auditor-General has under the Public Audit Act 2000."

Repeal section 114(3) and substitute:

"(3) The Commission is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Repeal section 116Y(3) and substitute:

"(3) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Government Superannuation Fund Act 1956 (1956 No 47)

Repeal section 93A(3) and substitute:

"(3) The Fund is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Hazardous Substances and New Organisms Act 1996 (1996 No 30)

Repeal clause 47 of the First Schedule and substitute:

"47 The Authority is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Health and Disability Commissioner Act 1994 (1994 No 88)

Repeal clause 11 of the Second Schedule and substitute:

"11 Auditor-General to be auditor of Commissioner's accounts

The Commissioner is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Health and Disability Services Act 1993 (1993 No 22)

Repeal section 23(2) and substitute:

"(2) The Health Funding Authority is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Repeal section 41 and substitute:

"41 Auditor-General to be auditor of hospital and health services and subsidiaries

"(1) Despite sections 196 to 203 of the Companies Act 1993, every hospital and health service and every subsidiary of every such service is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor.

"(2) Without limiting subsection (1), a hospital and health service may, after consultation with the Auditor-General and if the responsible Minister approves, appoint a person or firm that is qualified for appointment as an auditor of a company to be an additional auditor of the hospital and health service or any of its subsidiaries."

Housing Corporation Act 1974 (1974 No 19)

Repeal section 41A(2) and substitute:

"(2) The Corporation is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Housing Restructuring Act 1992 (1992 No 76)

Repeal section 20 and substitute:

"20 Auditor-General to be auditor of company and subsidiaries

"(1) Despite sections 196 to 203 of the Companies Act 1993, the company and every subsidiary of the company is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor.

"(2) Without limiting subsection (1), the board may, after consultation with the Auditor-General and if the responsible Minister so approves, appoint a person or firm that is qualified for appointment as an auditor of a company to be an additional auditor of the company or any subsidiary of the company."

Human Rights Act 1993 (1993 No 82)

Repeal clause 14(2) of the First Schedule and substitute:

"(2) The Commission and the Conciliator are public entities as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is their auditor."

Insolvency Act 1967 (1967 No 54)

Repeal section 132A and substitute:

"132A Auditor-General may audit Assignee's accounts

"(1) The Auditor-General may, at the Auditor-General's discretion, audit:

"(a) the books of account of the Assignee in respect of any bankruptcy:

"(b) any statement of accounts and statement of financial position prepared by the Assignee under section 132(3) of this Act:

"(c) any account maintained by the Assignee for the purposes of this Act.

"(2) For the purposes of this section, the Auditor-General has the same powers as the Auditor-General has under the Public Audit Act 2000 as if the Assignee were a public entity."

Land Act 1948 (1948 No 64)

Repeal section 47(6) and substitute:

"(6) For the purposes of this section, the expression `local authority' includes any public entity as defined in section 4 of the Public Audit Act 2000."

Law Commission Act 1985 (1985 No 151)

Repeal section 8(2)(c) and substitute:

"(c) The Auditor-General."

Repeal clause 11(2) of the First Schedule and substitute:

"(2) The Commission is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Licensing Fund Act 1989 (1989 No 61)

Omit from section 2(7) the words "and the Audit Office shall have the same duties and powers in respect of that money, and of every person dealing with it, as that Office has in respect of public money and accounts and of persons dealing with those" and substitute the words "and the Auditor-General has the same duties and powers in respect of that money, and of every person dealing with it, as if the Fund were a public entity as defined by section 4 of the Public Audit Act 2000".

Local Authorities Empowering Act 1915 (1915 No 10)

Omit from section 2 the words "has the same meaning as in the Public Finance Act 1977" and substitute the words "includes any public audited entity as defined in section 4 of the Public Audit Act 2000".

Maori Fisheries Act 1989 (1989 No 159)

Repeal clause 14(2) of the First Schedule and substitute:

"(2) The Commission, but not any subsidiary of the Commission, is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Maori Language Act 1987 (1987 No 176)

Repeal clause 13(2) of the Second Schedule and substitute:

"(2) The Commission is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Maori Soldiers Trust Act 1957 (1957 No 29)

Repeal section 16(2) and substitute:

"(2) The Trust is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Maori Trust Boards Act 1955 (1955 No 37)

Repeal section 31(2) and substitute:

"(2) The balance sheet, accounts, and statements must be audited by the Auditor-General."

Insert after section 30:

"30A Auditor-General to be auditor of Board

Every Board, but not any subsidiary of a Board, is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

National Library Act 1965 (1965 No 136)

Repeal section 25A and substitute:

"25A Auditor-General to be auditor of Trustees

The Trustees are a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

New Zealand Antarctic Institute Act 1996 (1996 No 38)

Repeal clause 23 of the First Schedule and substitute:

"23 Auditor-General to be auditor of Institute

The Institute is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

New Zealand Council for Educational Research Act 1972 (1972 No 35)

Repeal section 28(1) and substitute:

"(1) The Council must keep full and correct accounts of all money received and spent by it."

Add to section 28:

"(3) The Council is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

New Zealand Film Commission Act 1978 (1978 No 61)

Repeal section 31 and substitute:

"31 Auditor-General to be auditor of Commission

The Commission is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

New Zealand Horticulture Export Authority Act 1987 (1987 No 93)

Repeal section 57(2) and substitute:

"(2) The Authority is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

New Zealand Maori Arts and Crafts Institute Act 1963 (1963 No 51)

Repeal section 24(1) and substitute:

"(1) The Institute must keep full and correct accounts of all money received and expended by it."

Add to section 24:

"(3) The Institute is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

New Zealand Symphony Orchestra Act 1988 (1988 No 163)

Repeal section 7B and substitute:

"7B Auditor-General to be auditor of company and its subsidiaries

"(1) Despite sections 196 to 203 of the Companies Act 1993, the company and every subsidiary of the company is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor.

"(2) Without limiting subsection (1), the company or any subsidiary of the company may, after consultation with the Auditor-General and if the shareholding Ministers so approve, appoint a person or firm that is qualified for appointment as an auditor of a company to be an additional auditor of the company or any subsidiary of the company."

New Zealand Trade Development Board Act 1988 (1988 No 160)

Repeal clause 16 of the First Schedule and substitute:

"16 Auditor-General to be auditor of Board

The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Ngai Tahu Claims Settlement Act 1998 (1998 No 97)

Repeal section 349 and substitute:

"349 Auditor-General to be auditor of Trust

The Ngai Tahu Ancillary Claims Trust is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Ngarimu VC and 28th (Maori) Battalion Memorial Scholarship Fund Act 1945 (1945 No 33)

Repeal section 14(2) and substitute:

"(2) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Nurses Act 1977 (1977 No 53)

Repeal section 14(9) and substitute:

"(9) The Council is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Oaths and Declarations Act 1957 (1957 No 88)

Repeal section 25.

Repeal the Third Schedule.

Ombudsmen Act 1975 (1975 No 9)

Repeal section 31A and substitute:

"31A Audit

"(1) The House of Representatives must appoint an auditor to audit the Ombudsmen.

"(2) The provisions of the Public Audit Act 2000 apply to any audit carried out by an auditor appointed under this section.

"(3) In carrying out the functions conferred by this section, the auditor has the same functions, duties, and powers as the Auditor-General."

Omit from the First Schedule the item

"The Audit Department."

Pacific Islands Polynesian Education Foundation Act 1972 (1972 No 138)

Repeal subsection (2) of section 29.

Insert, after section 29:

"29A Auditor-General to be auditor of Board

The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Parliamentary Service Act 1985 (1985 No 128)

Repeal section 55 and substitute:

"55 Auditor-General to be auditor of Parliamentary Service Commission

The Parliamentary Service Commission is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Patriotic and Canteen Funds Act 1947 (1947 No 63)

Repeal section 40(1) and substitute:

"(1) The Board and each Council must keep full and correct accounts of all money received and expended by it."

Omit from section 40(1A) the words

"public money and public stores within the meaning of the Public Finance Act 1977" and substitute the words "the money and property of a public entity as defined in section 4 of the Public Audit Act 2000".

Add to section 40:

"(3) The Board and each Council are public entities as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is their auditor."

Omit from section 42(3) the words "according to the scale for the time being in force for the audit of local authorities' accounts under the Public Finance Act 1977,".

Plumbers, Gasfitters, and Drainlayers Act 1976 (1976 No 69)

Repeal section 15(9) and substitute:

"(9) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act,the Auditor-General is its auditor."

Police Complaints Authority Act 1988 (1988 No 2)

Repeal section 11C(1) and substitute:

"(1) The Authority must keep full and correct accounts of all its financial transactions, assets, liabilities, and funds."

"(2) The Authority is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Port Companies Act 1988(1988 No 91)

Repeal section 19 and substitute:

"19 Auditor-General to be auditor of port companies and subsidiaries

Despite sections 196 to 203 of the Companies Act 1993, every port company and every subsidiary of every port company is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Primary Products Marketing Act 1953 (1953 No 10)

Repeal section 12 and substitute:

"12 Auditor-General to be auditor of Marketing Authority

Every Marketing Authority is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Privacy Act 1993 (1993 No 28)

Repeal clause 10A of the First Schedule and substitute:

"10A Auditor-General to be auditor of Commissioner

The Commissioner is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Public Finance Act 1989 (1989 No 44)

Omit from the definition of Audit Office in section 2(1) the words "has the same meaning as in section 14 of the Public Finance Act 1977" and substitute the words "means the Controller and Auditor-General".

Omit from the definition of Office of Parliament the words "Audit Office (including the Audit Department)" and substitute the words "Auditor-General as defined in section 4 of the Public Audit Act 2000".

Repeal subsection (2) of section 30.

Insert after section 29A:

"29B Auditor-General to be auditor of Crown

For the purposes of this Act the Crown is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Omit from section 38(2) the words "Part II of the Public Finance Act 1977" and substitute the words "the Public Audit Act 2000".

Repeal section 41(3) and substitute:

"(3) The Crown entity must, not later than 90 days after the end of the financial year, forward the annual financial statements to the Auditor-General."

Repeal section 43.

Radio New Zealand Act 1995 (1995 No 52)

Repeal section 17 and substitute:

"17 Audit

Despite sections 196 to 203 of the Companies Act 1993, the public radio company and every subsidiary of the public radio company is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Reserve Bank of New Zealand Act 1989 (1989 No 157)

Repeal section 166 and substitute:

"166 Auditor-General to be auditor of Bank

The Bank is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Reserves Act 1977 (1977 No 66)

Repeal section 88(2) and substitute:

"(2) The Public Audit Act 2000 applies with respect to the audit of the accounts of every such administering body, as if it were a public entity as defined in section 4 of that Act."

Repeal section 88A(2) and substitute:

"(2) Every Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Reserves and Other Lands Disposal Act 1995 (1995 No 54)

Repeal section 10(2) and substitute:

"(2) Ngati Whakaue Education Endowment Trust Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Residential Tenancies Act 1986 (1986 No 120)

Repeal section 128 and substitute:

"128 Auditor-General to be auditor of residential tenancies trust account

"(1) The Residential Tenancies Trust Account is to be treated as a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor.

"(2) Without limiting subsection (1), the chief executive may, after consultation with the Auditor-General, appoint a person or firm that is qualified for appointment as an auditor to be an additional auditor of the Residential Tenancies Trust Account."

Retirement Income Act 1993 (1993 No 148)

Repeal section 15 and substitute:

"15 Auditor-General to be auditor of Retirement Commissioner

The Retirement Commissioner is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Royal New Zealand Foundation for the Blind Act 1963 (1963 No 26)

Repeal section 41(3) and substitute:

"(3) The Foundation is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Sale of Liquor Act 1989 (1989 No 63)

Repeal section 207(2) and substitute:

"(2) Every licensing trust is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Securities Act 1978 (1978 No 103)

Omit from paragraph (b) of section 2C(1) the words "an officer of the Audit Department authorised in writing by the Controller and Auditor-General to be an auditor for the purposes of this Act" and substitute the words "an auditor appointed by the Auditor-General under section 30 of the Public Audit Act 2000".

Repeal section 31C and substitute:

"31C Auditor-General to be auditor of Commission

"(1) The Commission must keep full and correct accounts of all its financial transactions, assets, liabilities, and funds.

"(2) The Commission is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Smoke-free Environments Act 1990 (1990 No 108)

Repeal section 62A(2) and substitute:

"(2) The Council is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Standards Act 1988 (1988 No 5)

Repeal section 19(3) and substitute:

"(3) The Council is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

State Sector Act 1988 (1988 No 20)

Repeal paragraph (b) of section 44(2).

Omit the item "Audit Department." from the First Schedule.

State-Owned Enterprises Act 1986 (1986 No 124)

Repeal section 19 and substitute:

"19 Auditor-General to be auditor of state enterprises and subsidiaries

"(1) Despite sections 196 to 203 of the Companies Act 1993, every state enterprise and every subsidiary of every state enterprise is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor.

"(2) Without limiting subsection (1), the board of a State enterprise may, after consultation with the Auditor-General and if its responsible Minister so approves, appoint a person or firm that is qualified for appointment as an auditor of a company to be an additional auditor of the State enterprise or any subsidiary of a State enterprise."

Survey Act 1986 (1986 No 123)

Repeal section 77(2) and substitute:

"(2) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Testing Laboratory Registration Act 1972 (1972 No 36)

Repeal section 20 and substitute:

"20 Accounts

"(1) The Council must keep full and correct accounts of all money received and expended by it.

"(2) The Council is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Taranaki Scholarships Trust Board Act 1957 (1957 No 108)

Repeal section 21(1) and substitute:

"(1) The Board must keep full and correct accounts of all money received and expended by it.

"(1A) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Valuation Department (Restructuring) Act 1998 (1998 No 70)

Repeal section 7 and substitute:

"7 Auditor-General to be auditor of Valuation New Zealand Limited

"(1) Despite sections 196 to 203 of the Companies Act 1993, Valuation New Zealand Limited and every subsidiary of Valuation New Zealand Limited is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor.

"(2) Without limiting subsection (1), Valuation New Zealand Limited, or any subsidiary of the company, may, after consultation with the Auditor-General and if the shareholding Ministers so approve, appoint a person or firm that is qualified for appointment as an auditor of a company to be an additional auditor of Valuation New Zealand Limited or the subsidiary."

Valuers Act 1948 (1948 No 63)

Repeal section 37(8) and substitute:

"(8) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

War Pensions Act 1954 (1954 No 54)

Repeal section 18O(1) and substitute:

"(1) The Advisory Board must at all times keep full and correct records and accounts of all its financial transactions and of its assets and liabilities.

"(1A) The Advisory Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Wildlife Act 1953 (1953 No 31)

Repeal section 44J(2) and substitute:

"(2) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Winston Churchill Memorial Trust Act 1965 (1965 No 39)

Repeal section 21(1) and substitute:

"(1) The Board must keep full and correct accounts of all money received and expended by it."

Add to section 21:

"(3) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Part 2 - Local and Private Acts

Auckland Aotea Centre Empowering Act 1985 (1985 No 9 (L))

Repeal section 9(5) and substitute:

"(5) The financial statements must be audited by the Auditor-General who for the purpose has and may exercise all the functions and powers of the Auditor-General under the Public Audit Act 2000."

Canterbury Museum Trust Board Act 1993 (1993 No 4 (L))

Omit from section 26 the words "section 31 of the Public Finance ct 1977," and substitute the words "Part X of the Local Government Act 974, which applies to the Board as f it were a local authority,".

Repeal section 27 and substitute:

"27 Audit of Board's accounts "(1) The Board must keep full and correct accounts of all money received and expended by it.

"(2) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance ith that Act, the Auditor-General is its auditor."

Masterton Trust Lands Act 1966 (1966 No 27 (L))

Omit from section 44(2) the words "Public Revenues Act 1953 in respect of public money and the audit of local authorities' accounts", and substitute the words "Public Audit Act 2000".

Museum of Transport and Technology (2000 No 1(P))

Repeal section 24(1) and substitute:

"(1) The Auditor-General is the Board's auditor; and, for the purpose of performing that function, has and may exercise and perform all the Auditor-General's functions, duties, and powers under the Public Audit Act 2000."

Otago Museum Trust Board Act 1996 (1996 No 1 (L))

Omit from section 26 the words "section 31 of the Public Finance Act 1977," and substitute the words "Part X of the Local Government Act 1974, which applies to the Board as if it were a local authority,".

Repeal section 27 and substitute:

"27 Audit of Board's accounts

"(1) The Board must keep full and correct accounts of all money received and expended by it."

"(2) The Board is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Selwyn Plantation Board Empowering Act 1992 (1992 No 4 (L))

Repeal section 18 and substitute:

"18 Auditor-General to be auditor of company

Despite sections 196 to 203 of the Companies Act 1993, the company and every subsidiary of the company is a public entity as defined in section 4 of the Public Audit Act 2000 and, in accordance with that Act, the Auditor-General is its auditor."

Page last updated: 15 January 2007

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