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Public Audit Act 2001

Audits and reports - Audits of public entities

16: Performance audit

You could also call this:

"The Auditor-General checks if government departments and schools are working well and following the rules."

Illustration for Public Audit Act 2001

The Auditor-General can check how well a public entity is doing its job. You can think of a public entity like a government department or a school. The Auditor-General checks if the entity is working effectively and efficiently, which means doing things well and not wasting time or money.

The Auditor-General can also check if a public entity is following the rules it is supposed to follow. This includes checking for any mistakes or bad decisions that might have wasted money or resources. The Auditor-General can even check if someone in the entity has not been honest or responsible with money.

If the Auditor-General is checking how well an entity is working, they will only look at how it is following the rules and policies that apply to it. For example, if there is a government policy that says how something should be done, the Auditor-General will check if the entity is doing it that way. However, some entities, like registered banks, are not always checked in the same way, as defined in section 2(1) of the Banking (Prudential Supervision) Act 1989.

The Auditor-General can check one or more public entities at a time. This means they can look at one entity or several entities to see how they are working.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM88598.

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Part 3Audits and reports
Audits of public entities

16Performance audit

  1. The Auditor-General may at any time examine—

  2. the extent to which a public entity is carrying out its activities effectively and efficiently:
    1. a public entity’s compliance with its statutory obligations:
      1. any act or omission of a public entity, in order to determine whether waste has resulted or may have resulted or may result:
        1. any act or omission showing or appearing to show a lack of probity or financial prudence by a public entity or 1 or more of its members, office holders, and employees.

          1. An audit under this section may relate to 1 or more public entities.

          2. Subsection (1)(a) does not apply to any registered bank (as defined in section 2(1) of the Banking (Prudential Supervision) Act 1989).

          3. If subsection (1)(a) applies and there is an applicable government or local authority policy to which the public entity is required to adhere, the examination is to be limited to the extent to which activities are being carried out effectively and efficiently in a manner consistent with that policy.

          Notes
          • Section 16(3): replaced, on , by section 300(1) of the Reserve Bank of New Zealand Act 2021 (2021 No 31).