TNAG-1486-FCO40-2040-Public-finance-in-Hong-Kong-1986 — Page 59

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sittings of the Legislative Council, the Committee have very little time in which to hold their public hearings and come to their conclusions. This puts a considerable burden on members of the Committee, not to mention their Secretariat, and the resultant danger is that the Committee may not have the time in which to give matters the detailed scrutiny they deserve. The Committee therefore consider there would be merit in splitting its annual cycle into two phases each involving the examination of reports by the Director of Audit and a subsequent response by the Committee.

8.4 The Committee understand that it would take at least two years for the Director of Audit to reorganize the Audit Department to cope with such an alteration in the Committee's procedures. Meanwhile, the Committee recommend that consideration should be given to the need for amendments to the Audit Ordinance in order to accommodate such a change.

8.5 The Controlling Officers' response towards the Director of Audit's Report. On a number of occasions Controlling Officers summoned before the Committee have given the impression that they felt that the Director of Audit's annual report was designed simply to impugn their competence as managers. The Committee do not believe that this is, or ever has been, the intention behind the Director of Audit's report. The audit process in the Hong Kong Government is essentially constructive in concept and the Public Accounts Committee is an integral part of this process. The objective of both the Director of Audit and the Public Accounts Committee is to maintain and improve the high standards of accounting which the Hong Kong Government has achieved, and to learn from past mistakes in order to improve control over expenditure and to ensure that every cent of public funds is spent with due regard to economy, efficiency and effectiveness. It is the earnest wish of the Committee that in future years Controlling Officers do not allow their personal sensitivities to detract from the spirit behind the Director of Audit's annual report and the hearings of the Public Accounts Committee.

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CHEN Shou-lum (Chairman)

CHAN Kam-chuen

Stephen CHEONG Kam-chuen

Peter Poon Wing-cheung

Ho Sai-chu

Allen LEE Peng-fei

LEE Yu-tai

A. L. LANG (Secretary)

7 January 1986

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