Appendix 1: Terms of reference for our inquiry

The Auditor-General, Lyn Provost, has decided to carry out an inquiry into how the Accident Compensation Corporation (ACC) manages risk at the Board level of the organisation. This document sets out the terms of reference for our inquiry.

Background

During March 2012, concerns were raised about a significant breach of privacy by ACC, and about the interaction between ACC and a particular client (Ms Pullar). We received several requests for the Auditor-General to inquire into aspects of that interaction and into ACC's general operations.

The Privacy Commissioner and the Board of ACC have already begun to investigate the privacy breach and to assess ACC's policies and practices for the privacy and security of information. The Police are considering a complaint about a related matter.

The Auditor-General has decided to inquire into aspects of ACC's governance that will not be examined by the other investigations.

The inquiry

The inquiry into ACC will examine:

• the policies and practices at ACC for managing risks relating to conflicts of interest, legal compliance, and communications between Board members and clients and staff;
• the policies and practices that apply when claimants personally contact Board members;
• how any matters relating to Ms Pullar that came to the attention of the Board or individual Board members were dealt with; and
• any other matters that the Auditor-General considers it desirable to report on.

The inquiry is being carried out under section 18(1) of the Public Audit Act 2001. We will publish a report when the inquiry is completed.

Contact for queries

For media queries, please contact Tamar McKewen (Communications Advisor, Media) on (04) 917 1879.