Oversight of Independent Statutory Roles-Is it time for more comprehensive codification?

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Oversight of Independent Statutory Roles-Is it
time for more comprehensive codification?

• Des Pearson
• Former Auditor-General of Western Australia and
  Victoria

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Speaking to paper

• Given that oversight is Non Negotiable
• Oversight entirely appropriate
• Should however be Relevant Appropriate
• Used Auditor General Role as a case study

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Key Considerations

• Nature and context of function
• One size doesnt fit all roles
• Approaches available and in use
• Other jurisdictions
• Private sector comparison
• Oversight shouldnt compromise function

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Nature ContextAuditor-General Role

• Focus is Resource Management Administrative
  Systems-Opinions Only
• Non Personal
• Well Developed Professional Standards,
  Methodology and Approach
• All Work is Transparent
• Reports tabled in Parliament

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Approaches In Use

• Westminster System
• UK, Canada Australia
• Notable differences
• Intensity of approach
• Nature of approach
• Even across Australia
• Compared to ASIC approach

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Conclusions

• Risk that Oversight Mitigates against
  Complementary Role
• Oversight important, BUT
• Follow up is critical
• Scope for Conflict
• Quality of consultation
• Judge Jury v Complete Independence

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Better Practice - 1

• More Routine Oversight by Qualified Professional
• Eg ANAO approach
• Approach cf Performance Agreement
• Clarity of expectations

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Better Practice - 2

• Leverage Complementary Role
• Applied check of relevance and reliability of
  audit work
• Provides a litmus test of quality of Audit
• Parliamentary Follow-up of Audit reports is
  Critical

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Better Practice - 3

• Suggest Oversight Role now has critical mass
• Range of Independent Statutory Roles
• Possibly Warrants Specialist Oversight
  Committee
• Cross Membership for Functional Familiarity
• Separating Oversight from Follow-up should
  improve objectivity and mitigate risk of
  intrusion

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The Way Ahead

• Regardless
• Open Communication/Consultation is Key
• Understanding Operational Context, Professional
  Standards in Place, etc
• Regular engagement
• Inform relationship
• Very Much The How
• Much is already within our control
• Revolves around approach!!!

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Comments/Questions