Public Audit in Jersey

Background

The functions of Auditors General vary between jurisdictions and are

enshrined in legislation. The Office of Comptroller and Auditor General

(C&AG) was established in Jersey in 2005 and, as in the United Kingdom and many Commonwealth jurisdictions, it embraces:

• the audit of financial statements; and
• wider considerations of the application of public funds, often expressed as ‘value for money’.

The effectiveness of the Office of C&AG is dependent on building and

maintaining the confidence of both the States of Jersey (‘the States’) and

the people of Jersey in the independence and effectiveness of the Office.

The former C&AG resigned in July 2012. The position remained unfilled

until 1 February 2013.

Scope

This review considers the remit, governance and management arrangements for the Office, with the following objectives:

• ensuring independence of the C&AG
• ensuing clarity in the remit of the C&AG
• ensuring good governance of the Office and accountability of the C&AG without compromising their independence
• securing effective management arrangements for the Office of the C&AG to ensure efficiency, resilience, good internal control and compliance with the Public Finances (Jersey) Law 2005 (‘the Law’); and
• reflecting the specific circumstances of the States of Jersey.

Conclusions

The review makes recommendations to improve the remit, governance and management arrangements for the Office of C&AG. These include:

• the establishment of a ‘Jersey Audit Office’ to strengthen the function of public audit in Jersey
• the establishment of a Board to ensure accountability of the C&AG; and
• consolidating, at a future opportunity, the Island’s public audit legislation in a separate Law.