MODEL NATIONAL AUDIT OFFICE ACT

This is a rehearsal of a general act which has not been made specific for a particular country. In the event that a country might wish to use this draft as the basis for its own legislation, it is important that its provisions are all subject to expert legal the context of the constitution, legal system and other traditions of the particular country concerned. This will mean that all or some of the sections may not be found to be appropriate or acceptable. Further advice is available from Andy Wynne, andywynne@btinternet.com This document was developed from a draft national audit office act which was written for the Co-operative Republic of Guyana by Mrs Linda L Weeks working for the Inter-American Development Bank. We thank the IADB and Mrs Weeks for permission to use their work from which we have developed this good practice.

NATIONAL AUDIT OFFICE ACT

ARRANGEMENT SECTION PART I Preliminary 1. 2. 3. Short title and repealing sections in Financial Audit and Administration Act Purpose of the act Interpretation PART II The Auditor-General and the Office of the Auditor-General 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Establishment of the Office of the Auditor-General Objectives of the Office of the Auditor-General Audit of statutory corporations Functions of the Auditor-General and the Office of the Auditor-General Authority of the Auditor-General Appointment of the Auditor-General Independence of the Auditor-General Conditions of Service for the Auditor-General Resignation of the Auditor-General Designation of an Acting Auditor-General Removal of the Auditor-General Seal
OF

SECTIONS

PART III Appointments to the Office of the Auditor-General (Staff) 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. Staff for the Office of the Auditor-General Exception from Public Service Commission Hiring and promotion practices Crediting service for accountant certification Actions related to senior staff Conditions of employment Applicability of pension schemes Employment of contractors Contracts with accounting firms Guidelines for contracting Obligations and requirements for contractors Length of contracts with accounting firms Limitations on services provided by accounting firms Authority granted to accounting firms Reimbursement for contracted services Cost-recovery fees for the Auditor-General PART
IV

Auditing and Reporting

32. 33. 34. 35. 36. 37. 38. 39.

Audits of public bodies Investigations of fraud Annual reports Special reports Presenting reports to the Speaker of Parliament Tabling audit reports in Parliament Reports as public documents Public Accounts Committee review of all audit reports PART
V

Auditing Standards and Access to Information

40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50.

Audit standards Access to people, documents and property Requirement for bodies to provide information Access to internal audit reports Power to obtain information from public bodies and employees Power to obtain information from others Power to examine under oath Power to inspect bank accounts Access to premises Responses to draft reports Disclosure of information PART
VI

Offences

51. 52. 53.

Definition of offence Requests for prosecution Penalties for committing offences PART
VII

Financial and Other Provisions

54. 55. 56.

Funds of the Office of the Auditor-General Application of funds Exemption from taxation
PART VIII

Accountability of the Office of the Auditor-General

57. 58. 59. 60. 61. 62. 63.

Presentation of a draft annual plan and a proposed budget Review of the proposed annual plan and budget Approval of the annual plan and budget Periodic reports to the Public Accounts Committee Submission of a performance and financial report Independent audit Status as a public body PART IX Disengagement and Transition

64. 65.

Continuation of the Auditor-General Transfer of employees

66. 67. 68. 69. 70. 71.

Establishing conditions of employment New employees Eligibility under the Pension Act Registration and transfer of property Legal proceedings Liabilities

An act to ensure greater government accountability for the receipt, disbursement and control of public moneys, to promote greater economy, efficiency and effectiveness in the use of such moneys by conferring independent corporate status on the Office of the Auditor-General; to consolidate into one statute all aspects of the responsibilities and authority of the Auditor-General; to repeal and replace the relevant sections of the Public Finance and Audit Act; and to strengthen Parliamentary oversight of the work of the Office of the Auditor-General.

PART I PRELIMINARY 1. This act may be cited as the National Audit Act. It repeals and supersedes certain sections of the Public Finance and Short Title and repealing Audit Act 19XX. sections in
the Public Finance and Audit Act

2.

The purpose of this act is: a. to reform and establish, in a consolidated act, all aspects of the power, duties, roles, responsibilities and authority of the Auditor-General b. to establish the Office of the Auditor-General as an independent corporate body c. to emphasise the Public Accounts Committees oversight role and d. to provide for the disengagement of the existing Audit Office.

Purpose of the Act

3.

(1) In this act, unless the context states otherwise the following interpretations apply. a. Accounting officer means any person designated as such by the Secretary to the Treasury and charged with the duty of accounting for expenditure on any service in respect of which moneys have been appropriated under any act.

Interpretati on

b.

Appropriate Minister means, in relation to a statutory body, the Minister exercising authority under any law in respect of such statutory body. Appropriation Act means any act appropriating revenue in relation to a financial year for such services as are specified in such act Audit Office and Supreme Audit Institution are terms which may be used synonymously with the Office of the Auditor-General. Document means any record of information and includes: - anything on which there is writing or an image - anything on which there are marks, figures, symbols or perforations that have a meaning for persons qualified to interpret them, and - anything from which sounds, images or writing can be reproduced or extracted with or without the aid of anything else.

c.

d.

e.

f.

Expenditure means payments of public moneys authorised by Parliament through appropriation acts or resolutions, by the Ministry of Finance, or by the Constitution. Financial Audit means the work undertaken by the Auditor-General to form an opinion on the truth and fairness of the public accounts of XXXXX, and the probity, regularity and value for money with which public bodies have been managed. Officer means any person in the employ of the government. Principal Receiver of Revenue means an officer designated as such by the Secretary to the Treasury and charged with the duty of assessing, collecting and accounting for revenue. Public Accounts Committee means the Public Accounts Committee established by the Standing Orders of Parliament. Public Accounts include the accounts of - all central and local government bodies

g.

h. i.

j.

k.

- all bodies in which the State has a controlling interest and - all projects funded by way of loans or grants by any foreign state or international organisation. l. Public Bodies means all central and local government bodies and all bodies in which the state has a controlling interest. This will include the courts, universities and any other public corporation or institution established by an act of Parliament. Public money includes all money that comes into the possession of, or is distributed by, a public body, and money raised by a private body where it is doing so under statutory authority. Thus public money includes: - all money received by a public body, from whatever source - all money received from a public body by a nonpublic body and - revenues and any trust or other money held, temporarily or otherwise, by an officer in his/her official capacity, either alone or jointly with any other person, whether an officer or not. Additionally, public accountability may exist for private money where that money is raised under statutory authority. n. Revenue means all tolls, taxes, imposts, rates, duties, fees, fines, penalties, forfeitures, rents, dues, proceeds of sale and all other receipts of the government (from whatever source) over which Parliament has the power of appropriation, including the proceeds of all loans raised and all grants and gifts received by the government.

m.

(2) References in this act to a department include references to a ministry or a regional office. (3) References in this act to the Consolidated Fund include the growing produce thereof.

PART II THE AUDITOR-GENERAL AND THE OFFICE OF THE AUDITORGENERAL 4. There is hereby established the Office of the AuditorGeneral which shall be a body corporate.
Establishment of the Office of the AuditorGeneral Objectives of the Office of the Auditor-General

5.

(1) The objectives of the Office of the Auditor-General shall include providing an opinion on whether or not: a. the public accounts of XXXXX provide a true and fair view of the finances of the government and the individual public bodies to which they refer the financial transactions of the government and public bodies comply with relevant legislation, the authority of Parliament and regulations issued by any relevant competent body the financial affairs of the government and public bodies have been managed with due regard to probity, and that their statutory and ethical duties to Parliament and the public have been met in an open and even-handed manner the government, public bodies and public money have been managed with due regard to value for money and that officers have made the best use of the resources for which they are responsible.

b.

c.

d.

(2) The Office of the Auditor-General will provide recommendations and advice to Parliament on significant issues which the Auditor-General has discovered in the course of his/her work.

6.

(1) In respect of the accounts of a statutory corporation, a state enterprise or a public commercial institution operating under its own enactment, the Auditor-General or any person appointed by him/her shall upon examination of the accounts of the body express his/her opinion as to whether the accounts present fairly the financial information in accordance with the applicable statutory provisions and stated accounting policies of the government, are in accordance with generally accepted accounting practice, and are essentially consistent with those of

Audit of statutory corporations

the preceding year. (2) The Auditor-General or any person appointed by him/her to audit the accounts of a statutory corporation shall, in addition to the audit report, draw attention to the following: a. the profitability, liquidity, stability and solvency of the corporation and also the performance of the shares of the corporation on the capital markets, where relevant whether there was any delay in payment of the governments portion, if any, of any declared dividend in to the Consolidated Fund any significant cases of fraud or losses and, if so, their underlying causes any internal control weaknesses which were identified and the general corporate performance indicating - achievement against set targets and objectives and - whether the finances of the body have been conducted with due regard to economy, efficiency and effectiveness, having regard to the resources utilised.

b.

c. d. e.

7.

(1) The duly appointed Auditor-General is an officer of Parliament, and the external auditor for the public sector. (2) He/she shall have complete discretion in discharging the external auditors responsibilities to examine and report on the receipt, disbursement and control of public moneys and to promote greater economy, efficiency and effectiveness in the use of such money. (3) In the exercise of these functions, the AuditorGeneral shall not be subject to the direction or control of any person or authority. (4) The Auditor-General shall be the accounting officer and the chief executive of the Office of the Auditor-General. (5) The Auditor-General shall represent the Office of the Auditor-General as the head of the Supreme Audit Institution of the Republic with the International Organisation of Supreme Audit Institutions (INTOSAI), the Commonwealth Auditors-General, and other international accounting and auditing organisations and standard-setting bodies.

Functions of the Auditor-General and the Office of the AuditorGeneral

8.

For the purpose of discharging the functions of the Office, the Auditor-General, subject to the provisions of this act, may do anything and enter into any transactions necessary to ensure the proper performance of these functions. This shall include, but not be limited to: a. b. appointing such staff as he/she considers necessary to discharge these functions establishing and implementing a comprehensive human resource management system and policies for managing such staff developing and maintaining such systems, whether by computer or other means, for the collection, storage, analysis and retrieval of relevant information and promulgating procedures for conducting audit work.

Authority of the Auditor-General

c.

d. 9.

(1) The Auditor-General is deemed to be permanently appointed to serve as the Auditor-General until

Appointment of the

reaching a mandatory retirement age of 65. (2) He/she shall be appointed through a three-tiered process. a. The Public Accounts Committee shall, after appropriate public advertisement, draw up a list of three qualified candidates and submit their names to the Speaker of Parliament. Parliament shall select one candidate from that list to forward to the President/Prime Minister as its nominee for the post of Auditor-General. The President/Prime Minister shall, within 30 days, ratify Parliaments nominee for the post of Auditor-General.

Auditor-General

b.

c.

(3) In identifying qualified candidates for the AuditorGenerals position, the Public Accounts Committee shall ensure that each candidate: a. b. c. d. e. f. is a citizen of XXXXX is suitably qualified and experienced for the post must not have been convicted of any crime involving dishonesty in any country is an auditor according to the Auditor Act 200X has fulfilled all tax obligations under the laws of XXXX and should be a member of a recognised accounting body.

(4) Once appointed, the Auditor-General shall not hold a political position or have a direct or indirect official role in any private or professional body or activity that the Auditor-General could profit from or influence through the powers of or position with the Office of the Auditor-General. The Auditor-General shall divest himself/herself of any commitments, obligations or investments which would present a real or perceived conflict of interest. (5) The Auditor-General may act as an officer of, collaborate with, or participate in the activities of professional auditing or accounting organisations and standard-setting bodies whose activities are not in

conflict with the roles and operations of the audit office. 10. (1) The Auditor-General shall act independently in the exercise and performance of his/her functions, duties, and powers. (2) The Auditor-General shall be immune from legal prosecution in the normal discharge of his/her duties during the period of his/her office or after he/she has left office. (3) Before undertaking his/her duties, the AuditorGeneral shall take an oath, administered by the Speaker of Parliament, pledging to perform honestly and impartially the duties of the office, abide by the laws of XXXXX, and uphold the Constitution. 11. The salary, superannuation, benefits and other conditions of service for the Auditor-General shall be the same as those for the Chief Justice of XXXXX. 12. Should an Auditor-General elect to resign before the mandatory retirement age, he/she shall provide notice at least six-months before the proposed separation date so that the Public Accounts Committee, the President/Prime Minister, and Parliament have sufficient time to select a qualified successor according to the requirements of section 9. 13. Should an Auditor-General be unable to fulfil his/her duties owing, for example, to the need to be abroad for more than one month, to accept a temporary international assignment, to seek medical treatment, or to fulfil other personal or professional obligations, he/she shall, with the concurrence of the Public Accounts Committee, designate an Acting AuditorGeneral and submit that persons name to the President/Prime Minister for confirmation. This temporary appointment may be in effect for a period of up to one year, and may be renewed on the recommendation of the Auditor-General and the Public Accounts Committee. 14. (1) The Auditor-General may be removed from his/her office only by the provisions of this section. (2) The Auditor-General may be removed from office only on the grounds of inability to discharge the functions of his/her office (whether arising from infirmity of body or mind or any other cause
Conditions of service for the Auditor-General Resignation of the Auditor-General Independence of the Auditor-General

Designation of an Acting AuditorGeneral

Removal of the Auditor-General

whatsoever) or for misconduct. (3) The Auditor-General shall be removed from office by the President/Prime Minister if the question of his/her removal from office has been referred to a Parliamentary tribunal appointed under this article and the tribunal has recommended to Parliament that the Auditor-General ought to be removed from office for inability as aforesaid or for misconduct. (4) If the Chair of the Public Accounts Committee advises that the question of removing the AuditorGeneral from office under this article ought to be investigated then:
a.

Parliament shall appoint a tribunal which shall consist of a Chairman and no fewer than two other members, selected by Parliament after consultation with the Judicial Service Commission from among persons who hold or have held office as a judge of a court having unlimited jurisdiction in civil and criminal matters in some part of the Commonwealth, or a court having jurisdiction in appeals from any such court or who are qualified to be admitted to practise in XXXXX as attorneys-at-law and have been so qualified for such period as is prescribed by the Public Tribunals Act and that tribunal shall enquire into the matter and report on the facts thereof to Parliament and recommend whether the Auditor-General ought to be removed.

b.

(5) The provisions of the Public Tribunals Act shall apply in relation to tribunals appointed under this section. (6) If the question of removing the Auditor-General from office has been referred to a tribunal under this article, the President/Prime Minister, acting in accordance with the advice of the prescribed authority, may suspend him/her from performing the functions of the office, and any such suspension may at any time be revoked by the President/Prime Minister, acting in accordance with such advice as aforesaid, and shall in any case cease to have effect if the tribunal recommends to the President/Prime Minister that the officer should not be removed from office. 15. The Auditor-General shall maintain the seal of the
Seal

Office of the Auditor-General and shall determine under what circumstances it shall be used.

Part III Appointments to the Office of the Auditor-General (Staff) 16. The Auditor-General shall employ such persons as are necessary for efficiently and effectively executing the Auditor-Generals functions, duties and powers. Within the framework of the budget approved for the Office of the Auditor-General, the Auditor-General has the authority to assess staffing needs and appoint, train, assign, pay, promote, reward and dismiss staff. 17. Employees in the Office of the Auditor-General shall be considered to be in an excepted service. They are not part of the public service nor are they subject to any of the rules, regulations or procedures promulgated by Public Service Commission. 18. The Auditor-General shall establish job descriptions with clearly defined responsibilities, qualifications and performance expectations for all positions in the Audit Office. The staff of the Office of the AuditorGeneral shall be managed to ensure that: a. b. there is fair, open and equal treatment of individuals applying for or being offered positions staff appointments and advancement decisions are made on the qualification and merit of all individuals eligible for consideration and disciplinary, removal or other adverse actions are done in accordance with clear, established and consistently applied criteria and processes.
Crediting service for obtaining accountant certification Actions related to senior staff Staff for the Office of the Auditor-General

Exception from Public Service Commis sion

Hiring and promotion practices

c.

19. Employment with the Office of the Auditor-General shall be deemed to meet the requirements established in the Accountants Act 200X for the purposes of obtaining a practising certificate. 20. The Auditor-Generals appointments to and/or dismissals from senior level positions (audit directors and audit managers) shall be subject to ratification by the Public Accounts Committee. 21. The staff shall be appointed at such remuneration and on such other terms and conditions as the Auditor-General may decide. In so deciding, the Auditor-General shall consider the terms and conditions determined by the Public Services Commission. 22. (1) Employment as a member of the staff of the Office of the Auditor-General shall be included among the

Conditions of employment

Applicability of pension schemes

kinds of employment to which the governments pension scheme may apply. (2) The Auditor-General may establish provisions for the payment of a gratuity or other allowance in respect of the service of the officers employed on a contractual basis. (3) When an individual employed by the government transfers into the Office of the Auditor-General, such person shall be entitled to have his/her previous service counted for the purpose of superannuation benefits, and on retirement shall be entitled to receive such benefits calculated in accordance with the Pensions Acts in respect of such aggregate service. 23. In the discharge of his/her duties, the Auditor-General may engage the services of specially qualified individuals or accounting or other firms to serve on a contract basis for limited engagements including those required as part of agreements with international organisations, but all audit opinions shall remain those of the Auditor-General. 24. Authority to contract with accounting firms to provide external audit services, conduct evaluations, and review programmes and projects for public sector bodies shall be vested completely and solely with the Auditor-General. Accounting firms in public practice are precluded from providing any audit services to public sector bodies except as designated in this act. 25. In contracting with technical experts or accountants from private firms, the Auditor-General shall take the following steps: a. b. recruiting and setting their terms of employment and remuneration chairing and consulting with a review committee comprising the Secretary of the Treasury, a representative of the Institute of Accountants of XXXXX (who is not in private practice), the Head of the Department of Accounting at the University of XXXXX, and the Accountant General, or comparable alternatives, to make a selection awarding the contract
Employment of contractors

Contracts with accounting firms

Guidelines for contracting

c.

d. e. f. g.

determining the manner in which the required work shall be completed approving the audit plan and audit procedures (scope and methodology) for the assignment reviewing the work-papers and reports prepared by the contractor and requesting additional work (if he/she deems that to be necessary to satisfy the terms of the contract).
Obligations and requirements for contractors

26. In executing their responsibilities, persons engaged under contract with the Office of the Auditor-General shall be required to follow auditing standards approved for use by the Auditor-General and shall be subject to the policies and procedures of his/her Office. 27. Accounting firms shall not serve on contract as auditors for the same body for more than six consecutive years.

Length of contra cts with accou nting firms Limitations on services provided by accounting firms Authority granted to accounting firms

28. Accounting firms or their associated bodies shall not provide any other services, including tax or accounting advice or management consulting services, to any body for which they serve as an external auditor. 29. Individuals or firms acting under contract with the Auditor-General shall execute their contractual obligations in a professional manner, adhering to the terms of their contract and according to their professional code of conduct and ethics. Accordingly, they shall be deemed to have the same authority and responsibilities as the Auditor-General and his/her staff with respect to access to information, production of documents, inspection of bank accounts and disclosure of information. 30. When the Office of the Auditor-General contracts with accounting firms to meet requirements of donors, international organisations or foreign bodies, the fees for such contracted services shall be paid by the agency receiving such services. 31. When the Auditor-General renders a service to bodies other than central government agencies or a foreignfunded project, he/she may charge a cost-recovery

Reimbursement for contracted services

Cost-recovery fees for the Auditor-

fee and such fees shall be paid into the Consolidated Fund.

General

PART IV AUDITING AND REPORTING 32. (1) The Auditor-General is the external auditor of every public body, and has the responsibility and authority to perform financial, compliance and performance audits. (2) In completing financial and compliance audits, the Auditor-General shall examine in such manner as he/she deems necessary the accounts of all accounting officers and principal receivers of revenue and of all persons entrusted with the collection, receipt, custody, issue, sale, transfer or delivery of any stamps, securities, stores or other government property and any other officers which he/she considers necessary. In the conduct of his/her examinations, the Auditor-General shall ascertain whether: a. b. the accounting records have been faithfully and properly maintained the rules, procedures and internal controls are sufficient to secure effective control of the assessment, collection and proper allocation of revenues all money expended and charged to an appropriation account has been applied to the purpose or purposes for which Parliament intended and with due regard to ensuring effective internal control and internal controls, rules and procedures established and applied are sufficient to safeguard the control of stores and other public assets.
Audits of public bodies

c.

d.

(3) In completing performance audits or value-formoney audits, the Auditor-General shall examine the extent to which a public body is applying its resources and carrying outs its activities economically, efficiently and effectively. (4) When the Auditor-General reports on any confidential, secret or classified information he or

she: a. must have due regard for the special nature of the information and may, after consulting the President, the Minister of Finance and the Minister responsible for the information, limit the audit report on such information to the necessary extent.

b.

(5) Subsection (4) does not prevent the disclosure of any audit finding by the Auditor-General on any unauthorised or irregular expenditure, or any other irregular or criminal conduct relating to the financial affairs of the ministry responsible, but any such disclosure may not include facts the disclosure of which would harm the national interest. 33. (1) The Auditor-General shall, upon the implementation of this act, establish a Special Investigations Unit within the Office of the Auditor-General to deal with issues of fraud. The Auditor-General shall engage staff for this unit with specific responsibility for investigating alleged cases of fraud and corruption and ensuring that appropriate standards of criminal and audit evidence are achieved. (2) When, in the course of completing a financial, compliance or performance audit, staff from the Office of the Auditor-General, or auditors appointed under this act, discover what they believe to be criminal fraud and corruption, they shall immediately notify the Auditor-General and the head of the Special Investigations Unit. (3) The Auditor-General shall determine if the case should be assigned to the Special Investigations Unit for further examination. (4) After completing their examinations, if the officers of the Special Investigation Unit determine that sufficient evidence exists to warrant criminal investigation and prosecution, they shall ask the Auditor-General to refer the case to the Police and appropriate judicial authorities. 34. (1) The Accountant-General shall, within six months after the end of each financial year, sign and submit to the Auditor-General the public accounts of each
Annual reports Investigations of fraud

public body. The Auditor-General shall report at least annually, as soon as possible after the financial year end but no later than two months after his/her receipt of the public accounts from the Accountant-General, on the results of the audit work of his/her office. (2) The Auditor-General shall include in his/her annual report: a. his/her opinion on the truth and fairness of the public accounts of XXXXX such significant findings and recommendations which he/she considers should be brought to the notice of Parliament including - any act or omission by any officer relating to the probity, regularity or value for money with which public money has been managed - any deficiencies which have been identified in the internal control system of any public body - details of essential records that have not been maintained or the rules and procedures applied that have been insufficient to safeguard and control public assets, to secure an effective check on the assessment, collection and proper allocation of revenue and to ensure that expenditures have been made only as authorised, or - any money that has been expended without due regard to economy or efficiency (3) the extent to which recommendations contained in reports from the Public Accounts Committee, which were accepted by Parliament in the previous year, have been implemented by accounting officers.

b.

35. (1) During the course of the year, the Auditor-General may choose to conduct special audits and at his/her discretion prepare special reports as audit work is completed. (2) The Auditor-General may submit reports on such work individually to Parliament or the report of such work may be included in his/her annual report. 36. The Auditor-General shall present his/her reports directly to the Speaker of Parliament. The reports may include comments from the relevant accounting officers, but the Auditor-General has full editorial control over his/her reports. 37. The Speaker of the House shall table all audit reports in Parliament within five working days of their receipt, when Parliament is in session. Should an audit report be presented to the Speaker of the House when Parliament is not in session, the Speaker will table that report within two weeks of the reconvening of Parliament. 38. (1) All reports issued by the Auditor-General shall be considered public documents when the reports are presented to Parliament. As public documents they shall be made available to the public for a minimal cost-recovery fee. (2) The Auditor-General may make his/her reports publicly available in electronic format on the Internet. (3) The Auditor-General shall provide copies of his/her published reports to: - the Government Archivist - all public and University libraries in XXXXX - the National Broadcasting Corporation - the press. (4) The Auditor-General or his/her staff may provide comments and interviews to the press or other media on the subject of any published audit reports. 39. (1) The Public Accounts Committee shall consider each report from the Auditor-General which is tabled in Parliament. This consideration may include questioning the accounting officer from the relevant public body, explanations from the Auditor-General

Special reports

Presenting reports to the Speaker of Parliament Tabling audit reports in Parliament

Reports as public documents

Public Accounts Commit tee review of all audit

and official responses from the government. The Public Accounts Committee shall make recommendations on the basis of this consideration and shall monitor their implementation. The actions of the Public Accounts Committee shall be governed by the Standing Orders of Parliament. (2) The Public Accounts Committee shall have the power to summon accounting officers and other public officials to be questioned about the AuditorGenerals findings. Ministers, their advisers, other specialists and civil society groups may also be summoned to appear before the Public Accounts Committee during its consideration of the AuditorGenerals reports.(c) The Public Accounts Committee shall normally hold its hearings in public. The Public Accounts Committee may choose to hold all or part of its hearings in private session. (3) The Public Accounts Committee shall prepare a report to Parliament, which may include comment and recommendations, at the end of its review of each of the Auditor-Generals reports. (4) Parliament shall debate each of the reports from the Public Accounts Committee. At the end of each debate Parliament shall vote to approve or reject the report.

reports

PART V AUDITING STANDARDS AND ACCESS TO INFORMATION 40. The Auditor-General shall determine which auditing standards should be applied and may establish auditing standards and a code of ethics specific to the audits performed by the Office of the Auditor-General. In applying generally accepted governmental auditing standards: a. the auditing standards and code of ethics published by the International Organisation of Supreme Audit Institutions (INTOSAI) and the International Auditing and Assurance Standards Board may be used for conducting audits of central government bodies the auditing standards and code of ethics published by the International Federation of Accountants (IFAC) may be used for conducting audits of public enterprises and other recognised or required standards issued or accepted by funding or donor organisations may be used in conducting audits of their projects.
Access to people, documents and propert y Audit standards

b.

c.

41. The Auditor-General and his/her staff shall have unrestricted access to such people, documents, computers and other information systems, and assets as the Auditor-General considers necessary for the proper fulfilment of his/her functions, duties and powers. 42. The accounting officer and/or governing body of a public body shall ensure that the Auditor-General has access at all reasonable times to the documents of the body relating to the performance and exercise of the Auditor-Generals functions, duties, and powers. Staff of the Office of the Auditor-General shall be provided with reasonable, suitable and secure space in which to conduct their work. The accounting officer and/or governing body of a public body shall also furnish the Auditor-General from time to time or at regular intervals with the accounts of the transactions of the public body as specified by the AuditorGeneral. 43. The internal auditor of any body which is subject to audit by the Auditor-General shall submit a copy of

Requirement for bodies to provide informa tion

Access to internal audit

each the final internal audit reports he/she issues to the Auditor-General. 44. For the purpose of exercising or performing the Auditor-Generals functions, duties or powers, the Auditor-General may require a public body or any person employed by the public body: a. b. to produce any document in the bodys or persons custody, care or control and to provide the Auditor-General with information or an explanation about any information, system or asset.

reports

Power to obtain information from public bodies and employees

45. The Auditor-General may also obtain such information as he/she considers necessary to fulfil his/her functions, duties and powers from a person who is not a member, employee or office holder of the public body. To do this, the Auditor-General shall: a. b. c. advise the person in writing of the nature of the information and why it is needed state that the information is required under this act and reimburse the individual for any reasonable costs associated with producing such information providing that such information shall not be used by the individual for any other purpose.

Power to obtain information from others

46. (1) The Auditor-General may, in the course of fulfilling his/her functions, duties or powers, require a person to give evidence either orally or in writing. (2) For the purpose of examining a person, the Auditor-General may administer an oath, and sanctions relating to perjury are applicable in these situations. 47. (1) For the purpose of exercising or performing the Auditor-Generals functions, duties or powers, he/she may examine or audit the account of any person in any bank if the Auditor-General has reason to believe that the money belonging to a public body has been fraudulently or wrongfully paid into such persons account.

Power to examine under oath

Power to inspect bank accounts

(2) To exercise this authority the Auditor-General shall establish that information obtained shall not be used for any purpose other than legally intended, and shall first obtain a warrant from the court authorising such examination. (3) When presented with the warrant, the bank officer shall produce any documents or provide requested information relating to the account in the banks custody or control. (4) The Auditor-General may make copies of any documents so produced. 48. For the purpose of obtaining documents, information, or other evidence relevant to any matter arising in the performance of the Auditor-Generals functions, duties, or powers, the Auditor-General or any officer so authorised by him/her may, at all reasonable times and with proper identification: a. b. enter into and remain on a public bodys premises enter into and remain on any other premises if so authorised by a warrant issued by the court on the grounds that there is reason to believe that documents or other information relating to the activities of a public body may be held at those premises and carry out a search for any document which the Auditor-General considers necessary for his/her work, examine the document, and/or make copies of the document.
Responses to draft reports Access to premise s

c.

49. At the conclusion of audit work, the Auditor-General shall provide the relevant accounting officer or governing body with a draft report including findings and recommendations, and the accounting officer or governing body shall provide a written response to the Auditor-General within 30 days. 50. No person shall, without the written consent of the Auditor-General, publish or disclose information obtained in the course of an audit to any person (other than in the course of his/her duties or when lawfully required to do so by a court). Only the

Disclosure of informa tion

Auditor-General, after giving due consideration to the public interest and an auditors professional obligations concerning confidentiality of information, may determine what information, beyond the publicly available report, can appropriately be disclosed.

PART VI OFFENCES 51. (1) Any person commits an offence who, without lawful justification or excuse: a. b. c. intentionally obstructs, hinders or resists the Auditor-General intentionally refuses or fails to comply with any lawful requirement of the Auditor-General makes a statement or gives information to the Auditor-General knowing or reckless to the fact that the statement or information is false or misleading wilfully suppresses any information required by the Auditor-General in the performance of his/her duties or represents directly or indirectly that the person holds any authority under this act when the person knowingly does not hold that authority.
Definition of offence

d.

e.

(2) For the purpose of subsection (a), the AuditorGeneral includes any member of the AuditorGenerals staff or other auditor acting with the Auditor-Generals authority. (3) Any member of the Auditor-Generals staff or other auditor acting with his/her authority commits an offence if he/she: a. demands or takes any bribe, gratuity, recompense or reward for the neglect or nonperformance of his/her duty wilfully fails to report to the Auditor-General any abuse or irregularity that comes to his/her notice in the course of his/her auditing duties or makes any report to the Auditor-General which he/she knows to be false or has no reason to believe to be true.
Requests for prosecution

b.

c.

52. If the Auditor-General has reason to believe that an offence has occurred, he/she shall request that the Director of Public Prosecutions take appropriate action to prosecute the offender(s). 53. A person who is convicted of committing an offence

Penalties for

as stated in Section 51 is liable, on summary conviction, to a fine not to exceed $X,000 and/or to imprisonment for a term not to exceed five years. An organisation which commits such an offence is liable, on summary conviction, to an unlimited fine.

committing offen ces

PART VII FINANCIAL AND OTHER PROVISIONS 54. To ensure the independence of the Auditor-General and the Office of the Auditor-General, the budget for the Office shall be financed as a direct charge on the Consolidated Fund. This subvention shall be included in the allocation of the Parliamentary Office. 55. The Auditor-General shall manage the Offices subvention in such manner as he/she deems fit for the efficient discharge of his/her functions, duties or powers, in conformity with sound financial practices. Expenses to be paid from this subvention shall include, but not be limited to: a. b. c. d. the salary and allowances payable to the Auditor-General salaries and allowances of the Office of the Auditor-Generals staff costs for training and professional development activities the moneys for reasonable travelling, transportation and subsistence needed by staff engaged in conducting Office of the AuditorGeneral business and the administrative expenses of Office of the Auditor-General.
Exemption from taxatio n Funds of the Office of the Auditor-General

Application of funds

e.

56. As an organisation, the Office of the Auditor-General, its assets, property, income from its operations and transactions, as authorised by the act, shall be exempt from all taxation, including customs duties, consumption tax, corporation tax, property tax and purchase tax. The Auditor-General and his/her individual staff, however, are not granted any special exemption.

PART VIII ACCOUNTABILITY OF OFFICE OF THE AUDITOR-GENERAL 57. At least 90 days before the beginning of each financial year, the Auditor-General shall prepare and submit to the Public Accounts Committee a draft annual plan that describes the Auditor-Generals proposed work programme for that year, together with a detailed budget in support of the annual plan. 58. The Public Accounts Committee shall review the draft plan and budget and, within 60 days of receiving them, provide comments for consideration by the Auditor-General. The comments may include priorities from the Public Accounts Committee, the Speaker of Parliament, other committees of Parliament and/or requests for special examinations not included in the original plan. 59. (1) After considering comments from the Public Accounts Committee, the Auditor-General shall finalise the annual plan and detailed budget for approval by the Public Accounts Committee and submission to Parliament. (2) The Auditor-General shall have the right to address the Public Accounts Committee or Parliament directly should it not approve the annual budget of the Office of the Auditor-General without amendment. 60. The Auditor-General shall prepare and submit to the Public Accounts Committee, on a quarterly basis, a report on the performance and operation of the Office of the Auditor-General. 61. The Auditor-General shall submit annually to the Public Accounts Committee a copy of an Annual Performance and Financial Audit Report with respect to the Office of the Auditor-General. The report shall include a report on the extent to which the AuditorGeneral achieved his/her annual plan and the audited financial statements of the Office of the AuditorGeneral. 62. The Public Accounts Committee shall, in respect of each financial year, appoint an independent auditor to audit and report on the financial statements,
Periodic reports to the Public Accounts Commit tee Submission of performance and financial report Presentation of a draft annual plan and a proposed budget

Review of the proposed annual plan and budget

Approval of the annual plan and budget

Independent audit

accounts, and other information relating to the performance of the Auditor-General in that year. This may include awarding the contract to an international firm. 63. For the purpose of this independent audit engagement, the Auditor-General and the Office of the Auditor-General shall be regarded as a public body described under this act. The firm so appointed shall, for the purposes of this audit engagement, have the same powers as the Auditor-General.
Status as a public body

PART IX DISENGAGEMENT AND TRANSITION 64. The Auditor-General holding office at the time of the enactment of this act shall continue in office. Upon his/her resignation or retirement, a new AuditorGeneral shall be appointed through the process and under the terms and conditions outlined in this act. 65. Every person employed in the Audit Office immediately before the date of commencement of this act shall have an option to a. b. remain with the Office of the Auditor-General or request and receive a transfer to another public service position.
Establishing conditions of employment Continuation of the Auditor-General

Transfer of employees

66. The Auditor-General shall evaluate the terms and conditions of each employees appointment and shall establish new terms and conditions as appropriate. 67. Employees hired on the day of or subsequent to the enactment of this act shall be employed under such terms and conditions as are established by this act. 68. If a person employed by the Audit Office immediately before the date of commencement of this act was covered under the Pension Act, that person shall be regarded as being employed in the government service for so long as the person continues to be employed by the Office of the Auditor-General, and that person shall be considered eligible for all benefits arising from this service. .

New employees

Eligibility under the Pensio n Act

69. On the date of commencement of this act, the activities, property space, equipment, files, records, liabilities and obligations of the Auditor-General and the existing Audit Office shall be transferred to the Auditor-General and the Office of the Auditor-General as established by this act. Such transfers shall be duly registered by the Office of the Auditor-General with the appropriate authorities. Where appropriate, certificates of title, endorsements to deeds and other required documents shall be issued and no registration fees, stamp duty or other duties shall be payable in respect of these transfers. 70. By virtue of this act and without prejudice to other provisions of this act, where any right, liability or obligation vests in or subsists against the AuditorGeneral and staff of the Office of the Auditor-General, they shall have the same rights, powers and remedies (and in particular the same rights as to conducting audit engagements and the instituting or defending of legal proceedings) as they would have had if the act had at all times been in force. 71. After the date this act commences, proceedings in respect of any right which was vested in, held by or enjoyed by the Audit Office may be instituted by the Office of the Auditor-General. Action for any liability or obligation suffered by, incurred against or subsisted by the Audit Office may continue to be brought despite its replacement by the Office of the Auditor-General.

Registration and transfer of property

Legal proceedings

Liabilities