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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Children and Young Persons (Care and
Protection) Amendment (Auditing of
Out-of-Home Care Providers) Bill 2017
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
Overview of Bill
The object of this Bill is to require the Auditor-General to conduct performance audits of
non-government agencies that receive State government funding to arrange for children or young
persons to be placed in out-of-home care.
The following are the features of the proposed scheme:
(a) The Minister is required to ensure that the Auditor-General conducts performance audits of
the exercise of publicly funded placement functions under an agreement between the
Department of Family and Community Services and a designated agency that is a
non-government body.
(b) The Auditor-General is required to conduct such audits and report to the Minister before the
agreement under which they are provided is renewed or, if the agreement is not renewed,
within 3 months after the relevant agreement ends.
(c) The Minister is required to table any such report in Parliament.
(d) The Auditor-General and certain authorised persons may require information in relation to
a performance audit and it is an offence to fail to comply with such a requirement.
(e) Non-government designated agencies are required to pay the costs of any audit of their
functions.
(f) An agreement with a non-government designated agency for the provision of publicly
funded placement functions cannot be renewed unless the exercise of the functions has been
audited and the Auditor-General's report has been considered by the Secretary.
b2017-025.d06
Children and Young Persons (Care and Protection) Amendment (Auditing of Out-of-Home Care Providers)
Bill 2017 [NSW]
Explanatory note
Outline of provisions
Clause 1 sets out the name (also called the short title) of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on the date of assent to the
proposed Act.
Schedule 1 Amendment of Children and Young Persons
(Care and Protection) Act 1998 No 157
Schedule 1 [1] inserts a note about the proposed provisions.
Schedule 1 [2] inserts a new Part containing the following provisions about the performance
auditing of non-government designated agencies:
(a) Proposed section 172B defines publicly funded placement functions as functions exercised
by a designated agency (that is, an organisation that arranges the provision of out-of-home
care and is accredited under the regulations), where those functions:
(i) involve arranging the placement of a child or young person in out-of-home care
(whether statutory, supported or voluntary out-of-home care), and
(ii) are paid for by the Department by agreement with that designated agency.
(b) Proposed section 172C requires the Minister to ensure that the Auditor-General conducts a
performance audit of the exercise of the publicly funded placement functions of a
non-government designated agency before the agreement under which they are provided is
renewed or after an agreement that is not renewed ends.
(c) Proposed section 172D requires the Auditor-General to conduct those performance audits
before any renewal or within 3 months of the relevant agreement ending.
(d) Proposed section 172E provides for the conduct of performance audits.
(e) Proposed section 172F provides for the Auditor-General to provide reports to the Minister
on the results of any performance audit conducted.
(f) Proposed section 172G requires the Minister to table in Parliament any report of a
performance audit received by the Minister.
(g) Proposed section 172H provides for the Auditor-General and certain authorised persons to
require information in relation to a performance audit dealing with a publicly funded private
designated agency.
(h) Proposed section 172I makes it an offence to obstruct the Auditor-General's conduct of a
performance audit.
(i) Proposed section 172J requires non-government designated agencies to pay the costs of the
performance audit of their functions.
(j) Proposed section 172K prevents an agreement with a non-government designated agency
for the provision by that agency of publicly funded placement functions from being
renewed unless the Secretary of the Department has had regard to the Auditor-General's
report about the exercise of functions under the existing agreement.
Page 2
Introduced by Ms Tania Mihailuk, MP First print
New South Wales
Children and Young Persons (Care and
Protection) Amendment (Auditing of
Out-of-Home Care Providers) Bill 2017
Contents
Page
1 Name of Act 2
2 Commencement 2
Schedule 1 Amendment of Children and Young Persons (Care and Protection)
Act 1998 No 157 3
b2017-025.d06
New South Wales
Children and Young Persons (Care and
Protection) Amendment (Auditing of
Out-of-Home Care Providers) Bill 2017
No , 2017
A Bill for
An Act to amend the Children and Young Persons (Care and Protection) Act 1998 to require the
Auditor-General to conduct performance audits of non-government agencies that receive State
government funding to arrange for children or young persons to be placed in out-of-home care.
Children and Young Persons (Care and Protection) Amendment (Auditing of Out-of-Home Care Providers)
Bill 2017 [NSW]
The Legislature of New South Wales enacts: 1
1 Name of Act 2
This Act is the Children and Young Persons (Care and Protection) Amendment 3
(Auditing of Out-of-Home Care Providers) Act 2017. 4
2 Commencement 5
This Act commences on the date of assent to this Act. 6
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Children and Young Persons (Care and Protection) Amendment (Auditing of Out-of-Home Care Providers)
Bill 2017 [NSW]
Schedule 1 Amendment of Children and Young Persons (Care and Protection) Act 1998 No 157
Schedule 1 Amendment of Children and Young Persons 1
(Care and Protection) Act 1998 No 157 2
[1] Section 139 Designated agencies 3
Insert at the end of the section: 4
Note. Part 8 of this Chapter makes provision for the Auditor-General to audit the 5
exercise of the publicly funded placement functions of non-government designated 6
agencies. 7
[2] Chapter 8, Part 8 8
Insert after Part 7: 9
Part 8 Auditing of publicly funded placement functions 10
172B Definitions 11
In this Part: 12
non-government designated agency means a designated agency that is not a 13
Public Service agency. 14
performance audit--see section 172C. 15
publicly funded placement functions means functions exercised by a 16
designated agency: 17
(a) that involve arranging the placement of a child or young person in 18
out-of-home care (whether statutory, supported or voluntary 19
out-of-home care), and 20
(b) that are paid for by the Department by agreement with that designated 21
agency. 22
172C Minister to ensure performance auditing of publicly funded placement 23
functions 24
(1) The Minister must ensure that the Auditor-General conducts a performance 25
audit of the exercise of the publicly funded placement functions of each 26
non-government designated agency, to: 27
(a) determine whether that agency exercised those functions effectively, 28
economically and efficiently and in compliance with this Act, the 29
regulations and all other relevant laws, and 30
(b) identify opportunities for improvement in the effective, economical and 31
efficient exercise of those functions. 32
(2) The Minister must ensure that such a performance audit is completed: 33
(a) in the case of a performance audit of the exercise of functions under an 34
agreement with the Department that is proposed to be renewed, before 35
that agreement is renewed, or 36
(b) in the case of a performance audit of the exercise of functions under an 37
agreement with the Department that has expired without being renewed, 38
or that has been terminated, within 3 months after that expiry or 39
termination. 40
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Children and Young Persons (Care and Protection) Amendment (Auditing of Out-of-Home Care Providers)
Bill 2017 [NSW]
Schedule 1 Amendment of Children and Young Persons (Care and Protection) Act 1998 No 157
172D Auditor-General to conduct performance audits 1
(1) The Auditor-General is to conduct a performance audit of the exercise of the 2
publicly funded placement functions of a non-government designated agency 3
within the period required under section 172C (2). 4
(2) Without limiting the factors to which the Auditor-General may have regard in 5
such an audit, the Auditor-General must have regard to any matters specified 6
by the Minister. 7
172E Conduct of performance audits 8
(1) The Minister is to ensure that the Auditor-General has access to such 9
information as may be necessary to enable the Auditor-General to conduct the 10
performance audit. 11
(2) The Auditor-General must not make a report of a performance audit under this 12
Part unless, at least 28 days before making the report, the Auditor-General has 13
given the chief executive of the designated agency concerned a summary of 14
findings and proposed recommendations in relation to the audit. 15
(3) The Auditor-General may make a report of a performance audit under this Part 16
before the expiration of that 28-day period if the chief executive of the 17
designated agency concerned has provided to the Auditor-General any 18
submissions or comments he or she wishes to make. 19
(4) The regulations may make further provision for or with respect to performance 20
audits under this Part. 21
(5) This Part does not limit any other function of the Auditor-General under any 22
other law. 23
172F Reports of performance audits 24
(1) The Auditor-General is to report to the Minister as to the results of each 25
performance audit under this Part. 26
(2) A report on a performance audit: 27
(a) is to include any submissions or comments made by the chief executive 28
of the designated agency concerned in response to the findings of the 29
audit, and 30
(b) may refer to any irregularities or other matters that the Auditor-General 31
considers call for special notice, and 32
(c) may include any other information that the Auditor-General thinks 33
desirable in relation to the functions the subject of the audit. 34
(3) If the Auditor-General is of the opinion that a non-government designated 35
agency could, in the future, exercise publicly funded placement functions in a 36
more effective, economical and efficient manner, the Auditor-General may 37
make recommendations to the Minister on appropriate remedial actions to be 38
taken. 39
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Children and Young Persons (Care and Protection) Amendment (Auditing of Out-of-Home Care Providers)
Bill 2017 [NSW]
Schedule 1 Amendment of Children and Young Persons (Care and Protection) Act 1998 No 157
172G Tabling of reports of performance audits 1
(1) The Minister must cause the reports provided to the Minister under this Part to 2
be tabled in each House of Parliament within 1 month of receiving the report. 3
(2) If a House of Parliament is not sitting when the Minister seeks to present the 4
report, the Minister is to present the report to the Clerk of the House 5
concerned. 6
172H Auditor-General and others may require information 7
(1) The Auditor-General or a person authorised by the Auditor-General may 8
require a non-government designated agency that is subject to a performance 9
audit under this Part: 10
(a) to produce, or cause to be produced, any material required for the 11
performance audit, or 12
(b) to answer any question required for the performance audit. 13
(2) The material may include any books, accounts, agreements, vouchers, letters 14
or other documents kept or held by the designated agency that relates to any 15
publicly funded placement function. 16
(3) A person must not fail, without lawful excuse, when required to do so by the 17
Auditor-General or by a person authorised by the Auditor-General, to produce 18
any account, book or record in the person's possession or under the person's 19
control or to answer any question. 20
Maximum penalty: 50 penalty units. 21
(4) A person is not guilty of an offence under subsection (3) unless it is established 22
that the Auditor-General or person authorised by the Auditor-General: 23
(a) identified himself or herself as the Auditor-General or as a person so 24
authorised, and 25
(b) showed the person the subject of the requirement his or her 26
identification card as the Auditor-General or as a person so authorised 27
(if requested to do so), and 28
(c) warned the person that failure to comply with the requirement is an 29
offence. 30
172I Offence of obstructing Auditor-General 31
A person must not obstruct the Auditor-General, or any other person acting on 32
behalf of the Auditor-General, in the exercise of functions under this Part. 33
Maximum penalty: 50 penalty units. 34
172J Costs of performance audits 35
(1) A non-government designated agency must pay to the Auditor-General any 36
amount that the Minister determines in writing is required to be paid towards 37
defraying the costs and expenses of any performance audit under this Part that 38
relates to that agency. 39
(2) An amount required to be paid under this section may be recovered by the 40
Auditor-General as a debt due in a court of competent jurisdiction. 41
172K Secretary must consider Auditor-General's report before renewing agreement 42
The Secretary is to ensure that an agreement with a non-government 43
designated agency for the provision by that agency of publicly funded 44
placement functions is not renewed unless: 45
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Children and Young Persons (Care and Protection) Amendment (Auditing of Out-of-Home Care Providers)
Bill 2017 [NSW]
Schedule 1 Amendment of Children and Young Persons (Care and Protection) Act 1998 No 157
(a) the Minister has been provided by the Auditor-General with a report on 1
a performance audit of the exercise of such functions under the 2
agreement proposed to be renewed, and 3
(b) the Secretary has had regard to that report and to any recommendations 4
made by the Auditor-General in that report. 5
Page 6
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