PUBLIC ACCOUNTS COMMITTEE Review of Reporting and Audit Requirements for Small Agencies. Terms of Reference The Public Accounts Committee of the New South Wales Parliament has determined that it will review the effectiveness and efficiency of the requirements for financial reporting and auditing for small agencies under the Public Finance and Audit Act 1983. The 2000 review of the Audit Office identified the requirement to audit small agencies as a potential source of inefficiency. The committee will examine the requirements for reporting and auditing in the relevant legislation and accounting standards and report on: a) The appropriate balance for small agencies between the costs of reporting and auditing and accountability for public money and assets; b) Relevant issues, such as size, mission and risk profile, for establishing whether agencies should be separate entities required to prepare reports and be audited; c) Alternative arrangements for agencies where the cost of reporting is disproportionate to their size, including differential reporting requirements or concise financial reports; d) Appropriate criteria for reviewing whether organisations not otherwise covered by the requirements for auditing should be continue to be on the “invited audit” list; and e) Any other relevant issue. The Committee welcomes submissions addressing the terms of reference. They should be forwarded by Friday14 October 2005 to: Committee Manager Public Accounts Committee Parliament House Macquarie Street SYDNEY NSW 2000