1
Constitution and Administration
The Director of Audit carries out two types of audit: regularity audits and value for money audits. Regularity audits are intended to provide an overall assurance of the general accuracy and propriety of the financial and accounting transactions of the government and other audited bodies. The Audit Ordinance gives the director statutory authority to conduct regularity audits.
Value for money audits are intended to provide independent information, advice and assurance about the economy, efficiency and effectiveness with which any government bureau, department, agency, other public body, public office or audited organisation has discharged its functions. Except for some public organisations where the Director of Audit has statutory authority to conduct value for money audits, these audits are carried out according to a set of guidelines agreed by the Director of Audit, the Public Accounts Committee and the government and tabled in the Provisional Legislative Council in 1998.
After the Director of Audit's report has been submitted to the President of the Legislative Council and laid before the council, it is considered by the Public Accounts Committee. In 2014, the director submitted three reports: one on the audit certification of the government's accounts for the preceding financial year and two on the results of value for money audits. (Report No 62 of April 2014 and Report No 63 of October 2014).
Three of Report No 62's eight chapters were selected by the Public Accounts Committee for public hearing:
Planning, construction and redevelopment of public rental housing flats;
• Mega Events Fund; and.
• Promoting the development of social enterprises.
Four of Report No 63's 10 chapters were selected by the Public Accounts Committee for public hearing:
• Provision of long-term care services for the elderly;
• Provision of health services for the elderly;
• New Civil Aviation Department Headquarters; and
• Administration of the air traffic control and related services
The value for money audit reports attracted considerable public interest. The audit recommendations were accepted by the audited bodies.
The Director of Audit's reports on the accounts of other public bodies are submitted to the relevant authority in accordance with the legislation governing those bodies' operation.
18