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Constitution and Administration

the Independent Commission Against Corruption. The Ombudsman is also empowered to act as an independent review body in respect of an alleged breach of the code.

The Ombudsman received 12,545 enquiries and 5,029 complaints in the reporting year 2011- 2012, compared with 12,227 enquiries and 5,339 complaints in the reporting year 2010-11. Areas attracting a substantial number of complaints related to error, wrong advice or decision, delay, ineffective control, negligence, omission and staff attitude.

Although the Ombudsman has no authority to enforce recommendations, 89.3 per cent of the Ombudsman's recommendations have been accepted by the organisations concerned.

Audit Commission

The Audit Commission, headed by the Director of Audit, is established under the Basic Law which provides that it shall function independently and be accountable to the Chief Executive of the HKSAR.

The Audit Ordinance provides for the audit of the Government's accounts by the Director of Audit and for the submission of the director's report to the President of the Legislative Council. The director also audits the accounts of the Exchange Fund, the Hong Kong Housing Authority, five trading funds and more than 60 other funds. In addition, the director reviews the financial aspects of the operations of the multifarious government-subvented organisations.

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 Administration 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 2012, 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 58 of March 2012 and Report No 59 of October 2012).

Report No 58 contained eight chapters, two of which were selected by the Public Accounts Committee for public hearing:

• Unlawful occupation of government land; and

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