214Compliance audits

#### 214 Compliance audits Scope (1) This section applies if: (a) a person is, or has been, the project proponent for an eligible offsets project; and (b) the Regulator has reasonable grounds to suspect that the person has contravened, is contravening, or is proposing to contravene, this Act or the associated provisions. Audit (2) The Regulator may, by written notice given to the person, require the person to: (a) appoint as an audit team leader: (i) a registered greenhouse and energy auditor of the person’s choice; or (ii) if the Regulator specifies a registered greenhouse and energy auditor in the notice—that auditor; or (iii) if the Regulator specifies more than one registered greenhouse and energy auditor in the notice—any one of those auditors; and (b) arrange for the audit team leader to carry out an audit on one or more aspects of the person’s compliance with this Act or the associated provisions; and (c) arrange for the audit team leader to give the person a written report setting out the results of the audit; and (d) give the Regulator a copy of the audit report on or before the day specified in the notice. > Note: For the conduct of an audit under this section, see section 75 of the National Greenhouse and Energy Reporting Act 2007. (3) The notice must specify: (a) the type of audit to be carried out; and (b) the matters to be covered by the audit; and (c) the form of the audit report and the kinds of details it is to contain. (4) A person must provide the audit team leader, and any persons assisting the audit team leader, with all reasonable facilities and assistance necessary for the effective exercise of the audit team leader’s duties under this Act. (5) If the Regulator gives a person written notice under subsection (2), the person must comply with the requirements of the notice. Ancillary contraventions (6) A person must not: (a) aid, abet, counsel or procure a contravention of subsection (4) or (5); or (b) induce, whether by threats or promises or otherwise, a contravention of subsection (4) or (5); or (c) be in any way, directly or indirectly, knowingly concerned in, or party to, a contravention of subsection (4) or (5); or (d) conspire with others to effect a contravention of subsection (4) or (5). Civil penalty provisions (7) Subsections (4), (5) and (6) are civil penalty provisions. > Note: Part 21 provides for pecuniary penalties for breaches of civil penalty provisions. Reimbursement (8) If: (a) the Regulator gives a person a notice under subsection (2); and (b) in complying with that notice, the person arranges for an audit team leader to carry out an audit on one or more aspects of the person’s compliance with this Act or the associated provisions; and (c) the audit report does not indicate that there is evidence of non‑compliance by the person with this Act or the associated provisions; and (d) the person requests the Regulator to reimburse the person for reasonable costs incurred by the person in complying with the notice; and (e) the Regulator is satisfied that the person would suffer financial hardship if the person were not reimbursed for those costs; the Regulator may, on behalf of the Commonwealth, reimburse the person for those costs. (9) A request under paragraph (8)(d) must: (a) be in writing; and (b) be in a form approved, in writing, by the Regulator; and (c) be accompanied by such information as is specified in the regulations or the legislative rules; and (d) be accompanied by such documents (if any) as are specified in the regulations or the legislative rules. (10) The approved form of request may provide for verification by statutory declaration of statements in requests.