Appendix 1: Terms of reference for our inquiry

Inquiry into certain types of expenditure in Vote Ministerial Services

2 March 2010

The Auditor-General will conduct an inquiry into certain types of expenditure in Vote Ministerial Services, which is administered by the Department of Internal Affairs. The inquiry will look at expenses charged to credit cards, expense claims, and other related expenditure that provides or has the potential to provide private benefit to a Minister.

The inquiry is being carried out at the request of the Prime Minister, Mr Phil Heatley, and the Department of Internal Affairs.

The inquiry will:

1. Audit the relevant expenditure incurred by Mr Heatley's Ministerial office under Vote Ministerial Services from when he became a Minister in November 2008 to 25 February 2010. This will include examining whether the expenditure was incurred in accordance with the relevant rules, policies, and procedures.
2. Review the policies and procedures that control these types of expenditure incurred under Vote Ministerial Services to see if they are appropriate and effective. This will include looking at some other examples of Ministerial expenditure to test these policies and procedures. It will also include identifying improvements that can be made.
3. Consider any other matters that the Auditor-General considers relate to, or arise from, the above.

The inquiry will be conducted under sections 16(1) and 18 of the Public Audit Act 2001.

The Auditor-General will decide how to report during the course of the inquiry. She may choose to report her findings in stages.