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