Public Audit Reform – Consultation on recommendations made by the Tynwald Auditor General

The Treasury sought views on the way to implement in the most appropriate and proportionate manner some of the technical recommendations made by the Tynwald Auditor General ('TAG') in his report 'Public Audit Isle of Man'.

The areas of interest were:

• The expansion of the TAG’s remit over private entities receiving significant public funding
   
• The expansion of the TAG’s access to information and documents
   
• The principle of giving the TAG powers to issue guidance to ensure regulatory compliance both in terms of preparation and inspection of accounts
   
• The transfer of post-audit enforcement powers to the TAG

22 responses were received.

Overall, most respondents were supportive of expanding the TAG’s remit over private entities receiving significant public funding and widening his access to information but warned about putting safeguards in place to ensure proportionality and clarity of scope in the use of new powers. The possible adverse impacts identified were:

• Deterioration of commercial relationships with contractors and suppliers due to perception of extended inspection exposure, leading to fewer choice and increased prices
   
• Access to sensitive information in instances where it may not strictly be warranted to assess whether public resources are used economically, effectively and efficiently
   
• Increase in administrative costs for the entities within the TAG’s remit to ensure compliance (in addition to the necessary increase of the TAG’s administrative costs to support this expansion)
   
• Double regulation for charities

A few respondents felt quite strongly against the recommendations, stating that the TAG should focus on the public sector above all else.

The vast majority of respondents also supported the principle of giving the TAG the power to issue guidance in to ensure regulatory compliance.

The Treasury would like to thank everyone who has taken the time to contribute to this consultation, online and offline.

A Consultation Response document has been prepared which provides a summary of responses.

Treasury Minister will be making a statement before Tynwald in March 2026 setting out the next steps the Treasury intends to take following this engagement.