The Controller function
Although the New Zealand Government decides what it wants to spend New Zealanders' taxes on, it cannot spend public money without Parliament's approval.
The approved decisions about what the Government can spend money on are recorded in what are known as “appropriations”. Those appropriations become law, so spending that doesn't fit within an appropriation (because too much was spent or money was spent on activities that the appropriation didn't cover) is unlawful.
The checks that take place
During annual audits of government departments, auditors check that spending is in keeping with the amounts and the types of activity set out in the appropriations. If something doesn't look right, auditors raise that with us (the Controller and Auditor-General) and with those in charge of the department.
The response to these matters depends on whether the spending was, or risks being, too high or on the wrong sort of activity. Dealing with these sorts of errors, or potential errors, can be complicated but the fix must be done correctly because these are matters of law.
As well as these checks during the audits, the Treasury sends us monthly reports to review. We get highly detailed spreadsheets of government expenditure, and we check them.
We then report on what we've found.
The Controller's powers
If the Controller is not satisfied with the steps that a government department is taking to fix an appropriation error, he can stop the government department from receiving money.
The Controller can also direct a Minister to report to Parliament about the wrongful spending.
This power is a very important part of New Zealand's system of democracy. It means that someone is watching government spending and can "turn off the money tap" if that spending isn't lawful.
Page last updated: 28 November 2023