ENG-1989 — Page 53

CONSTITUTION AND ADMINISTRATION

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Between the period March 1 to December 31, 1989, a total of 162 complaints were received by the office. Of these, 110 cases were completed. 73 of the total complaints received were found to be wholly or partly within the commissioner's jurisdiction and were investigated. In 42 cases the complaints were found to be justified to some extent. Recommendations for remedial action were made in 50 instances and accepted by departments in all cases. During the same period, a total of 205 enquiries were also received, some of which could lead to formal complaints being lodged to the office at a later date.

In September 1989, a staffing review' of the office was carried out to determine both the staffing levels and the method of filling the posts in the longer term. Subject to funds being available, the review recommendations, if approved, are expected to be implemented by mid-1990.

Office of the Director of Audit

The necessity for an audit presence was recognised in the very early days of Hong Kong and the Audit Department is in fact one of the oldest departments, an Auditor-General having been first appointed in 1844, only three years after the cession of the territory.

Presently, the audit of the accounts of the Hong Kong Government is carried out under the terms of the Audit Ordinance enacted in 1971, which provides for the appointment, security of tenure, duties and powers of the Director of Audit, for the submission of annual - statements by the Director of Accounting Services, for the examination and audit of those statements by the Director of Audit, and for the submission of his report thereon to the Governor as President of the Legislative Council. Certain specific duties relating to the examination, audit, reporting and certification of the government's accounts, are prescribed in the ordinance and wide powers are given to the director regarding his access to books, documents and records, and the explanations which he may require: Moreover, as in the performance of his duties and the exercise of his powers the director is not subject to the direction or control of any other person or authority, considerable discretion is given to him in the conduct of his inquiries and he is free to report publicly as he sees fit. Therefore, the director functions independently of the Administration.

The audit of all the government's accounts is carried out by the Director of Audit and his staff. He also audits the accounts of the Urban Council, the Regional Council, the Vocational Training Council, the Housing Authority and more than 50 statutory and non-statutory funds and other public bodies, as well as reviewing the financial aspect of the operations of the multifarious government-subvented organisations working in Hong Kong.

Government auditing practised in Hong Kong falls into two main categories, respectively termed 'regularity' audit and 'value-for-money' audit. The regularity audit, which is intended to provide an overall assurance of the general accuracy and propriety of the government's financial and accounting transactions, is carried out by means of selective test checks and reviews designed to indicate possible areas of weakness. The audit is designed to ensure as far as reasonably possible that the accounts are accurate and correct, although, with the considerable volume and variety of government revenue and expenditure, it cannot hope to disclose every accounting error or financial irregularity. Value-for-money audit is carried out according to guidelines tabled in the Legislative Council by the chairman of the Public Accounts Committee on November 19, 1986. The audit is intended to ascertain that prudence and economy have been exercised in the management of public funds and that good value has been obtained for expenditure