ENG-1988 — Page 39

CONSTITUTION AND ADMINISTRATION

Public Accounts Committee

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The Public Accounts Committee, established by resolution of the Legislative Council on May 10, 1978, is a standing committee of the Legislative Council consisting of a chairman and six members, none of whom is an official member of the council. The main function is to examine and report on the findings of the Director of Audit's Report on the audit of the government's annual statements of account prepared by the Director of Accounting Services, on any matter relating to the performance of his duties and the exercise of his powers under the Audit Ordinance, and on any matter relating to value-for-money audits carried out by the Director of Audit. Value-for-money audits are carried out under a set of guidelines tabled in the Legislative Council by the chairman of the Public Accounts Committee on November 19, 1986. The guidelines were agreed between the committee and the Director of Audit and have been accepted by the administration. The prime concerns of the committee are to see that public expenditure has not been incurred for purposes other than those for which the money was granted, that full value has been obtained for the sums expended, and that the administration has not been faulty or negligent in its conduct of financial affairs.

The annual cycle of the Public Accounts Committee has been split into two phases. With effect from 1988, the Director of Audit submits two reports to the Legislative Council in each year. The first is a combined report dealing with regularity audits and value-for-money audits. The second deals with value-for-money audits only. The first report is tabled in the Legislative Council in November and the second report in April each year. In each case, after tabling of the Director of Audit's report, the committee meets in public and the controlling officers of different heads of expenditure give evidence on the different aspects of public expenditure covered in the Director of Audit's report. The committee's report is laid on the table of the Legislative Council within three months of the laying of the Director of Audit's report. The government's response to the report of the committee is contained in the government minute, which describes the measures taken to give effect to the commit- tee's recommendations or the reasons why acceptance of those recommendations is not considered appropriate. The minute is also laid on the table of the Legislative Council within three months of the laying of the Public Accounts Committee's report.

Select Committees

The Legislative Council may appoint select committees to consider matters or bills which the council may refer to the committee. The purpose is to enable a small group of members to examine a problem usually by the taking of evidence, and to report their findings and recommendations to the council. In recent years select committees have been appointed to consider such diverse subjects as the trial of complex commercial crimes and the future management of the Hong Kong War Memorial Fund. No select committee was appointed in the last two years.

OMELCO

OMELCO, which stands for Office of the Members of the Executive and Legislative Councils, is the office of members (other than official members) of the two councils. Members play a significant role in the administration of Hong Kong. They advise on formulation of and change to government policy; scrutinise, process and enact legislation; consider complaints from members of the public; control public expenditure, and monitor the effectiveness of public administration.