Public Audit Bill, 2003

Introductory remarks by Shauket Fakie,

(Ad hoc committee on Audit legislation, 10 September 2003)

Why the new Public Audit Bill To align both existing statutes (i.e. AG Act and

Audit Arrangements) with: Constitution, 1996 PFMA, 1999 Labour Relations Act, 1995 Other Legislation[eg. MFMB]

To consolidate the AG Act and AA Act To provide a modern framework for governance,

financial management and best practice HR management

To enhance the public sector audit provisions/ function

Guiding principles and benchmarks

Legal context (Constitution & other Legislation)

International audit legislation and best practice

South African benchmark legislation (e.g. Gender Commission, Public Protector)

2nd King Report on Corporate Governance

Consultation: Process

Various stakeholders at beginning who preferred to comment once Bill was published

Audit Commission (on AG Act amendments), Dec 2000

All staff, especially HR issues, Jan - March 2002 Speakers and Deputy Speaker, April 2002 (process

only) Audit Commission on Public Audit Bill May 2002 Minister of Finance April 2003 Public comments subsequent to Gazetted Bill Assessment of comments received

organigram

Feedback - some common views

Independence of Auditor-General: accountability v/s independence

Audit Commission an effective oversight mechanism of the Office of the Auditor-General

Primary purpose of the AG - structural arrangements to reflect this

Align PFMA and Public Audit Bill

Feedback - some common views (cont.)

Quality & nature of reporting to the Audit Commission improvement

AC - responsibilities - e.g. ensure high quality, cost-effective audit reports timeously

Continuity on the Audit Commission

Bill must enable AG to conduct transversal audits

Financial independence of AG must be provided but must be reasonable

Overview of AG Bill - main changes and enhancements

Functions of AG aligned with Constitution and streamlined

Alignment with PFMA and MFMB, enhancing mandate with regard to public entities

Clarification of relationship between AG, AC and Audit Office

Enhancing appointment of the AC & providing a charter for clarification of functions

Overview of AG Bill - changes and enhancements (cont.)

Providing Office with an enhanced governance structure by placing Auditor-General in overall control of his/her Office

Consolidating the financial and operational independence of AG, tightened-up cost recovery

Clarifying the service conditions of the AG & the related role of the Audit Commission

Way forward Workshop Bill with Committee (clause by

clause), if required Public hearings Presentation of proposed refinements to Bill

(arising out of public comment) Parliamentary process Implementation