A Model National Audit Office Act

7/31/2019 A Model National Audit Office Act

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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, [email protected]

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.
mailto:[email protected]:[email protected]


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NATIONAL AUDIT OFFICE ACT

ARRANGEMENTOF SECTIONS

SECTION

PART I Preliminary

1. Short title and repealing sections in Financial Audit and AdministrationAct

2. Purpose of the act3. Interpretation

PART II The Auditor-General and the Office of the Auditor-General

4. Establishment of the Office of the Auditor-General5. Objectives of the Office of the Auditor-General6. Audit of statutory corporations7. Functions of the Auditor-General and the Office of the Auditor-General8. Authority of the Auditor-General9. Appointment of the Auditor-General10. Independence of the Auditor-General11. Conditions of Service for the Auditor-General12. Resignation of the Auditor-General13. Designation of an Acting Auditor-General14. Removal of the Auditor-General

15. Seal

PART III Appointments to the Office of the Auditor-General (Staff)

16. Staff for the Office of the Auditor-General17. Exception from Public Service Commission18. Hiring and promotion practices19. Crediting service for accountant certification20. Actions related to senior staff21. Conditions of employment

22. Applicability of pension schemes23. Employment of contractors24. Contracts with accounting firms25. Guidelines for contracting26. Obligations and requirements for contractors27. Length of contracts with accounting firms28. Limitations on services provided by accounting firms29. Authority granted to accounting firms30. Reimbursement for contracted services31. Cost-recovery fees for the Auditor-General

PARTIV Auditing and Reporting


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32. Audits of public bodies33. Investigations of fraud34. Annual reports35. Special reports36. Presenting reports to the Speaker of Parliament37. Tabling audit reports in Parliament38. Reports as public documents39. Public Accounts Committee review of all audit reports

PARTV Auditing Standards and Access to Information

40. Audit standards41. Access to people, documents and property42. Requirement for bodies to provide information43. Access to internal audit reports44. Power to obtain information from public bodies and employees

45. Power to obtain information from others46. Power to examine under oath47. Power to inspect bank accounts48. Access to premises49. Responses to draft reports50. Disclosure of information

PARTVI Offences

51. Definition of offence

52. Requests for prosecution53. Penalties for committing offences

PARTVII Financial and Other Provisions

54. Funds of the Office of the Auditor-General55. Application of funds56. Exemption from taxation

PARTVIII Accountability of the Office of the Auditor-General

57. Presentation of a draft annual plan and a proposed budget58. Review of the proposed annual plan and budget59. Approval of the annual plan and budget60. Periodic reports to the Public Accounts Committee61. Submission of a performance and financial report62. Independent audit63. Status as a public body

PART IX Disengagement and Transition

64. Continuation of the Auditor-General65. Transfer of employees


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66. Establishing conditions of employment67. New employees68. Eligibility under the Pension Act69. Registration and transfer of property70. Legal proceedings71. 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 repealsand supersedes certain sections of the Public Finance andAudit Act 19XX.

Short Title andrepealing

sections inthe Public

Finance andAudit Act

2. The purpose of this act is:

a. to reform and establish, in a consolidated act, allaspects of the power, duties, roles, responsibilities andauthority of the Auditor-General

b. to establish the Office of the Auditor-General as anindependent corporate body

c. to emphasise the Public Accounts Committees

oversight role and

d. to provide for the disengagement of the existingAudit Office.

Purpose oftheAct

3. (1) In this act, unless the context states otherwise thefollowing interpretations apply.

a. Accounting officer means any person designatedas such by the Secretary to the Treasury and chargedwith the duty of accounting for expenditure on any

service in respect of which moneys have beenappropriated under any act.

Interpretation


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b. Appropriate Minister means, in relation to astatutory body, the Minister exercising authority underany law in respect of such statutory body.

c. Appropriation Act means any act appropriatingrevenue in relation to a financial year for such services

as are specified in such act

d. Audit Office and Supreme Audit Institution areterms which may be used synonymously with theOffice of the Auditor-General.

e. Document means any record of information andincludes:

- anything on which there is writing or an image

- anything on which there are marks, figures, symbolsor perforations that have a meaning for personsqualified to interpret them, and

- anything from which sounds, images or writing canbe reproduced or extracted with or without the aid ofanything else.

f. Expenditure means payments of public moneysauthorised by Parliament through appropriation acts or

resolutions, by the Ministry of Finance, or by theConstitution.

g. Financial Audit means the work undertaken by theAuditor-General to form an opinion on the truth andfairness of the public accounts of XXXXX, and theprobity, regularity and value for money with whichpublic bodies have been managed.

h. Officer means any person in the employ of thegovernment.

i. Principal Receiver of Revenue means an officerdesignated as such by the Secretary to the Treasuryand charged with the duty of assessing, collecting andaccounting for revenue.

j. Public Accounts Committee means the PublicAccounts Committee established by the StandingOrders of Parliament.

k. Public Accounts include the accounts of

- all central and local government bodies


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- all bodies in which the State has a controlling interestand

- all projects funded by way of loans or grants by anyforeign state or international organisation.

l. Public Bodies means all central and localgovernment bodies and all bodies in which the statehas a controlling interest. This will include the courts,universities and any other public corporation orinstitution established by an act of Parliament.

m. Public money includes all money that comes intothe possession of, or is distributed by, a public body,and money raised by a private body where it is doingso under statutory authority. Thus public moneyincludes:

- all money received by a public body, from whateversource

- all money received from a public body by a non-public body and

- revenues and any trust or other money held,temporarily or otherwise, by an officer in his/herofficial capacity, either alone or jointly with any other

person, whether an officer or not.

Additionally, public accountability may exist for privatemoney where that money is raised under statutoryauthority.

n. Revenue means all tolls, taxes, imposts, rates,duties, fees, fines, penalties, forfeitures, rents, dues,proceeds of sale and all other receipts of thegovernment (from whatever source) over whichParliament has the power of appropriation, including

the proceeds of all loans raised and all grants and giftsreceived by the government.

(2) References in this act to a department include referencesto a ministry or a regional office.

(3) References in this act to the Consolidated Fund include

the growing produce thereof.


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PART II THE AUDITOR-GENERAL AND THE OFFICE OF THE AUDITOR-

GENERAL

4. There is hereby established the Office of the Auditor-General which shall be a body corporate.

Establishment ofthe

Office

of theAuditor-General

5. (1) The objectives of the Office of the Auditor-Generalshall 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

b. the financial transactions of the government andpublic bodies comply with relevant legislation,

the authority of Parliament and regulations

issued by any relevant competent body

c. 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

d. 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.

(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.

Objectives of the

Office of the

Auditor-General

6. (1) In respect of the accounts of a statutorycorporation, a state enterprise or a public commercialinstitution operating under its own enactment, theAuditor-General or any person appointed by him/hershall upon examination of the accounts of the bodyexpress his/her opinion as to whether the accountspresent fairly the financial information in accordancewith the applicable statutory provisions and statedaccounting policies of the government, are in

accordance with generally accepted accountingpractice, and are essentially consistent with those of

Audit of

statutory

corporations


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the preceding year.

(2) The Auditor-General or any person appointed byhim/her to audit the accounts of a statutorycorporation shall, in addition to the audit report, drawattention to the following:

a. the profitability, liquidity, stability and solvency ofthe corporation and also the performance of theshares of the corporation on the capital markets,where relevant

b. whether there was any delay in payment of thegovernments portion, if any, of any declareddividend in to the Consolidated Fund

c. any significant cases of fraud or losses and, if so,

their underlying causes

d. any internal control weaknesses which wereidentified and

e. the general corporate performance indicating

- achievement against set targets and objectivesand

- whether the finances of the body have been

conducted with due regard to economy,efficiency and effectiveness, having regard tothe resources utilised.


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7. (1) The duly appointed Auditor-General is an officer ofParliament, and the external auditor for the publicsector.

(2) He/she shall have complete discretion indischarging the external auditors responsibilities toexamine and report on the receipt, disbursement andcontrol of public moneys and to promote greatereconomy, efficiency and effectiveness in the use ofsuch money.

(3) In the exercise of these functions, the Auditor-General shall not be subject to the direction or controlof any person or authority.

(4) The Auditor-General shall be the accounting

officer and the chief executive of the Office of theAuditor-General.

(5) The Auditor-General shall represent the Office ofthe Auditor-General as the head of the Supreme AuditInstitution of the Republic with the InternationalOrganisation of Supreme Audit Institutions (INTOSAI),the Commonwealth Auditors-General, and otherinternational accounting and auditing organisationsand standard-setting bodies.

Functions of the

Auditor-General

and the Office of

the Auditor-

General

8. For the purpose of discharging the functions of theOffice, the Auditor-General, subject to the provisionsof this act, may do anything and enter into anytransactions necessary to ensure the properperformance of these functions. This shall include, butnot be limited to:

a. appointing such staff as he/she considersnecessary to discharge these functions

b. establishing and implementing a comprehensivehuman resource management system andpolicies for managing such staff

c. developing and maintaining such systems,whether by computer or other means, for thecollection, storage, analysis and retrieval ofrelevant information and

d. promulgating procedures for conducting auditwork.

Authority of the

Auditor-General

9. (1) The Auditor-General is deemed to be permanentlyappointed to serve as the Auditor-General until

Appointment of

the


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reaching a mandatory retirement age of 65.

(2) He/she shall be appointed through a three-tieredprocess.

a. The Public Accounts Committee shall, after

appropriate public advertisement, draw up a listof three qualified candidates and submit theirnames to the Speaker of Parliament.

b. Parliament shall select one candidate from thatlist to forward to the President/Prime Minister asits nominee for the post of Auditor-General.

c. The President/Prime Minister shall, within 30days, ratify Parliaments nominee for the post ofAuditor-General.

(3) In identifying qualified candidates for the Auditor-

Generals position, the Public Accounts Committee

shall ensure that each candidate:

a. is a citizen of XXXXX

b. is suitably qualified and experienced for the post

c. must not have been convicted of any crime

involving dishonesty in any countryd. is an auditor according to the Auditor Act 200X

e. has fulfilled all tax obligations under the laws ofXXXX and

f. should be a member of a recognised accountingbody.

(4) Once appointed, the Auditor-General shall not

hold a political position or have a direct or indirectofficial 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 ofprofessional auditing or accounting organisations and

standard-setting bodies whose activities are not in

Auditor-General


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conflict with the roles and operations of the audit

office.

10. (1) The Auditor-General shall act independently in theexercise and performance of his/her functions, duties,and powers.

(2) The Auditor-General shall be immune from legalprosecution in the normal discharge of his/her dutiesduring the period of his/her office or after he/she hasleft office.

(3) Before undertaking his/her duties, the Auditor-General shall take an oath, administered by theSpeaker of Parliament, pledging to perform honestlyand impartially the duties of the office, abide by the

laws of XXXXX, and uphold the Constitution.

Independence of

the

Auditor-General

11. The salary, superannuation, benefits and otherconditions of service for the Auditor-General shall bethe same as those for the Chief Justice of XXXXX.

Conditions of

service for the

Auditor-General

12. Should an Auditor-General elect to resign before themandatory retirement age, he/she shall providenotice at least six-months before the proposedseparation date so that the Public AccountsCommittee, the President/Prime Minister, andParliament have sufficient time to select a qualifiedsuccessor according to the requirements of section 9.

Resignation of the

Auditor-General

13. Should an Auditor-General be unable to fulfil his/herduties owing, for example, to the need to be abroadfor more than one month, to accept a temporaryinternational assignment, to seek medical treatment,or to fulfil other personal or professional obligations,he/she shall, with the concurrence of the PublicAccounts Committee, designate an Acting Auditor-

General and submit that persons name to thePresident/Prime Minister for confirmation. Thistemporary appointment may be in effect for a periodof up to one year, and may be renewed on therecommendation of the Auditor-General and thePublic Accounts Committee.

Designation of an

Acting Auditor-

General

14. (1) The Auditor-General may be removed from his/heroffice only by the provisions of this section.

(2) The Auditor-General may be removed from office

only on the grounds of inability to discharge thefunctions of his/her office (whether arising frominfirmity of body or mind or any other cause

Removal of the

Auditor-General


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whatsoever) or for misconduct.

(3) The Auditor-General shall be removed from officeby the President/Prime Minister if the question ofhis/her removal from office has been referred to aParliamentary tribunal appointed under this articleand the tribunal has recommended to Parliament thatthe Auditor-General ought to be removed from officefor inability as aforesaid or for misconduct.

(4) If the Chair of the Public Accounts Committeeadvises that the question of removing the Auditor-General from office under this article ought to beinvestigated then:

a. Parliament shall appoint a tribunal which shall

consist of a Chairman and no fewer than twoother members, selected by Parliament afterconsultation with the Judicial Service Commissionfrom among persons who hold or have heldoffice as a judge of a court having unlimitedjurisdiction in civil and criminal matters in somepart of the Commonwealth, or a court havingjurisdiction in appeals from any such court orwho are qualified to be admitted to practise inXXXXX as attorneys-at-law and have been soqualified for such period as is prescribed by the

Public Tribunals Act and

b. that tribunal shall enquire into the matter andreport on the facts thereof to Parliament andrecommend whether the Auditor-General oughtto be removed.

(5) The provisions of the Public Tribunals Act shallapply in relation to tribunals appointed under thissection.

(6) If the question of removing the Auditor-Generalfrom office has been referred to a tribunal under thisarticle, the President/Prime Minister, acting inaccordance with the advice of the prescribedauthority, may suspend him/her from performing thefunctions of the office, and any such suspension mayat any time be revoked by the President/PrimeMinister, acting in accordance with such advice asaforesaid, and shall in any case cease to have effect ifthe tribunal recommends to the President/PrimeMinister that the officer should not be removed fromoffice.

15. The Auditor-General shall maintain the seal of the Seal


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


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Part III Appointments to the Office of the Auditor-General (Staff)

16. The Auditor-General shall employ such persons as arenecessary for efficiently and effectively executing theAuditor-Generals functions, duties and powers.Within the framework of the budget approved for theOffice of the Auditor-General, the Auditor-General hasthe authority to assess staffing needs and appoint,train, assign, pay, promote, reward and dismiss staff.

Staff for the

Office of the

Auditor-General

17. Employees in the Office of the Auditor-General shallbe considered to be in an excepted service. They arenot part of the public service nor are they subject toany of the rules, regulations or procedurespromulgated by Public Service Commission.

Exception fromPublic Service

Commission

18. The Auditor-General shall establish job descriptionswith clearly defined responsibilities, qualifications andperformance expectations for all positions in theAudit Office. The staff of the Office of the Auditor-General shall be managed to ensure that:

a. there is fair, open and equal treatment ofindividuals applying for or being offered positions

b. staff appointments and advancement decisionsare made on the qualification and merit of all

individuals eligible for consideration andc. disciplinary, removal or other adverse actions

are done in accordance with clear, establishedand consistently applied criteria and processes.

Hiring andpromotion

practices

19. Employment with the Office of the Auditor-Generalshall be deemed to meet the requirementsestablished in the Accountants Act 200X for thepurposes of obtaining a practising certificate.

Crediting servicefor

obtaining

accountant

certification

20. The Auditor-Generals appointments to and/ordismissals from senior level positions (audit directorsand audit managers) shall be subject to ratification bythe Public Accounts Committee.

Actions related tosenior staff

21. The staff shall be appointed at such remunerationand on such other terms and conditions as theAuditor-General may decide. In so deciding, theAuditor-General shall consider the terms andconditions determined by the Public ServicesCommission.

Conditions of

employment

22. (1) Employment as a member of the staff of the Officeof the Auditor-General shall be included among the

Applicability of

pension schemes


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kinds of employment to which the governmentspension 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 acontractual 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-Generalmay engage the services of specially qualifiedindividuals or accounting or other firms to serve on acontract basis for limited engagements includingthose required as part of agreements withinternational organisations, but all audit opinions shallremain those of the Auditor-General.

Employment of

contractors

24. Authority to contract with accounting firms to provide

external audit services, conduct evaluations, andreview programmes and projects for public sectorbodies shall be vested completely and solely with theAuditor-General. Accounting firms in public practiceare precluded from providing any audit services topublic sector bodies except as designated in this act.

Contracts with

accounting

firms

25. In contracting with technical experts or accountantsfrom private firms, the Auditor-General shall take thefollowing steps:

a. recruiting and setting their terms of employmentand remuneration

b. chairing and consulting with a review committeecomprising the Secretary of the Treasury, arepresentative of the Institute of Accountants ofXXXXX (who is not in private practice), the Headof the Department of Accounting at theUniversity of XXXXX, and the AccountantGeneral, or comparable alternatives, to make a

selection

c. awarding the contract

Guidelines for

contracting


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d. determining the manner in which the requiredwork shall be completed

e. approving the audit plan and audit procedures(scope and methodology) for the assignment

f. reviewing the work-papers and reports preparedby the contractor and

g. requesting additional work (if he/she deems thatto be necessary to satisfy the terms of thecontract).

26. In executing their responsibilities, persons engagedunder contract with the Office of the Auditor-Generalshall be required to follow auditing standardsapproved for use by the Auditor-General and shall be

subject to the policies and procedures of his/herOffice.

Obligations and

requirements for

contractors

27. Accounting firms shall not serve on contract asauditors for the same body for more than sixconsecutive years.

Length ofcontra

ctswith

accountingfirms

28. Accounting firms or their associated bodies shall notprovide any other services, including tax or

accounting advice or management consultingservices, to any body for which they serve as anexternal auditor.

Limitations on

servicesprovided by

accounting firms

29. Individuals or firms acting under contract with theAuditor-General shall execute their contractualobligations in a professional manner, adhering to theterms of their contract and according to theirprofessional code of conduct and ethics. Accordingly,they shall be deemed to have the same authority andresponsibilities as the Auditor-General and his/herstaff with respect to access to information, productionof documents, inspection of bank accounts anddisclosure of information.

Authority granted

to

accounting firms

30. When the Office of the Auditor-General contracts withaccounting firms to meet requirements of donors,international organisations or foreign bodies, the feesfor such contracted services shall be paid by theagency receiving such services.

Reimbursementfor

contractedservices

31. When the Auditor-General renders a service to bodiesother than central government agencies or a foreign-funded project, he/she may charge a cost-recovery

Cost-recoveryfees

for the Auditor-


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fee and such fees shall be paid into the ConsolidatedFund.

General

PART IV AUDITING AND REPORTING

32. (1) The Auditor-General is the external auditor ofevery public body, and has the responsibility andauthority to perform financial, compliance andperformance audits.

(2) In completing financial and compliance audits, theAuditor-General shall examine in such manner ashe/she deems necessary the accounts of allaccounting officers and principal receivers of revenue

and of all persons entrusted with the collection,receipt, custody, issue, sale, transfer or delivery ofany stamps, securities, stores or other governmentproperty and any other officers which he/sheconsiders necessary. In the conduct of his/herexaminations, the Auditor-General shall ascertainwhether:

a. the accounting records have been faithfully andproperly maintained

b. the rules, procedures and internal controls aresufficient to secure effective control of theassessment, collection and proper allocation ofrevenues

c. all money expended and charged to anappropriation account has been applied to thepurpose or purposes for which Parliamentintended and with due regard to ensuringeffective internal control and

d. internal controls, rules and proceduresestablished and applied are sufficient tosafeguard the control of stores and other publicassets.

(3) In completing performance audits or value-for-

money 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

Audits of publicbodies


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she:

a. must have due regard for the special nature ofthe information and

b. may, after consulting the President, the Ministerof Finance and the Minister responsible for theinformation, limit the audit report on suchinformation to the necessary extent.

(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 implementationof this act, establish a Special Investigations Unit withinthe Office of the Auditor-General to deal with issues offraud. The Auditor-General shall engage staff for thisunit with specific responsibility for investigating allegedcases of fraud and corruption and ensuring thatappropriate standards of criminal and audit evidence

are achieved.

(2) When, in the course of completing a financial,compliance or performance audit, staff from the Officeof the Auditor-General, or auditors appointed underthis act, discover what they believe to be criminalfraud and corruption, they shall immediately notify theAuditor-General and the head of the SpecialInvestigations Unit.

(3) The Auditor-General shall determine if the case

should be assigned to the Special Investigations Unitfor further examination.

(4) After completing their examinations, if the officersof the Special Investigation Unit determine thatsufficient evidence exists to warrant criminalinvestigation and prosecution, they shall ask theAuditor-General to refer the case to the Police andappropriate judicial authorities.

Investigations of

fraud

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


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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

b. 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 appliedthat 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.


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35. (1) During the course of the year, the Auditor-Generalmay choose to conduct special audits and at his/herdiscretion prepare special reports as audit work iscompleted.

(2) The Auditor-General may submit reports on suchwork individually to Parliament or the report of suchwork may be included in his/her annual report.

Special reports

36. The Auditor-General shall present his/her reportsdirectly to the Speaker of Parliament. The reportsmay include comments from the relevant accountingofficers, but the Auditor-General has full editorialcontrol over his/her reports.

Presenting

reports to the

Speaker of

Parliament

37. The Speaker of the House shall table all audit reportsin Parliament within five working days of their receipt,when Parliament is in session. Should an audit reportbe presented to the Speaker of the House whenParliament is not in session, the Speaker will tablethat report within two weeks of the reconvening ofParliament.

Tabling audit

reports inParliament

38. (1) All reports issued by the Auditor-General shall beconsidered public documents when the reports arepresented to Parliament. As public documents theyshall be made available to the public for a minimal

cost-recovery fee.

(2) The Auditor-General may make his/her reportspublicly available in electronic format on the Internet.

(3) The Auditor-General shall provide copies of his/herpublished 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 providecomments and interviews to the press or other mediaon the subject of any published audit reports.

Reports as

public documents

39. (1) The Public Accounts Committee shall considereach report from the Auditor-General which is tabledin Parliament. This consideration may includequestioning the accounting officer from the relevantpublic body, explanations from the Auditor-General

Public AccountsCommit

teereview

of allaudit


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and official responses from the government. ThePublic Accounts Committee shall makerecommendations on the basis of this considerationand shall monitor their implementation. The actionsof the Public Accounts Committee shall be governedby the Standing Orders of Parliament.

(2) The Public Accounts Committee shall have thepower to summon accounting officers and otherpublic officials to be questioned about the Auditor-Generals findings. Ministers, their advisers, otherspecialists and civil society groups may also besummoned to appear before the Public AccountsCommittee during its consideration of the Auditor-Generals reports.(c) The Public Accounts Committeeshall normally hold its hearings in public. The Public

Accounts Committee may choose to hold all or part ofits hearings in private session.

(3) The Public Accounts Committee shall prepare areport to Parliament, which may include commentand recommendations, at the end of its review ofeach of the Auditor-Generals reports.

(4) Parliament shall debate each of the reports fromthe Public Accounts Committee. At the end of eachdebate Parliament shall vote to approve or reject the

report.

reports


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PART V AUDITING STANDARDS AND ACCESS TO INFORMATION

40. The Auditor-General shall determine which auditingstandards should be applied and may establishauditing standards and a code of ethics specific to theaudits performed by the Office of the Auditor-General.In applying generally accepted governmental auditingstandards:

a. the auditing standards and code of ethicspublished by the International Organisation ofSupreme Audit Institutions (INTOSAI) and theInternational Auditing and Assurance StandardsBoard may be used for conducting audits ofcentral government bodies

b. the auditing standards and code of ethicspublished by the International Federation ofAccountants (IFAC) may be used for conductingaudits of public enterprises and

c. other recognised or required standards issued oraccepted by funding or donor organisations maybe used in conducting audits of their projects.

Audit standards

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.

Access to people,documents and

property

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 Auditor-

General.

Requirement forbodies

to provideinforma

tion

43. The internal auditor of any body which is subject to

audit by the Auditor-General shall submit a copy of

Access to internal

audit


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each the final internal audit reports he/she issues to

the Auditor-General.

reports

44. For the purpose of exercising or performing the

Auditor-Generals functions, duties or powers, the

Auditor-General may require a public body or anyperson employed by the public body:

a. to produce any document in the bodys orpersons custody, care or control and

b. to provide the Auditor-General with informationor an explanation about any information, systemor asset.

Power to obtain

information

from publicbodies

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. advise the person in writing of the nature of theinformation and why it is needed

b. state that the information is required under thisact and

c. reimburse the individual for any reasonable costsassociated with producing such informationproviding that such information shall not be usedby 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, theAuditor-General may administer an oath, and

sanctions relating to perjury are applicable in these

situations.

Power to examine

under oath

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 personsaccount.

Power to inspect

bank accounts


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(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. enter into and remain on a public bodyspremises

b. enter into and remain on any other premises ifso authorised by a warrant issued by the courton the grounds that there is reason to believethat documents or other information relating tothe activities of a public body may be held atthose premises and

c. carry out a search for any document which theAuditor-General considers necessary for his/herwork, examine the document, and/or makecopies of the document.

Access to

premises

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.

Responses to draftreports

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 ofinforma

tion


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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.


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PART VI OFFENCES

51. (1) Any person commits an offence who, without

lawful justification or excuse:

a. intentionally obstructs, hinders or resists theAuditor-General

b. intentionally refuses or fails to comply with anylawful requirement of the Auditor-General

c. makes a statement or gives information to theAuditor-General knowing or reckless to the factthat the statement or information is false ormisleading

d. wilfully suppresses any information required bythe Auditor-General in the performance of his/herduties or

e. represents directly or indirectly that the personholds any authority under this act when theperson knowingly does not hold that authority.

(2) For the purpose of subsection (a), the Auditor-

General includes any member of the Auditor-

Generals 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 non-performance of his/her duty

b. wilfully fails to report to the Auditor-General anyabuse or irregularity that comes to his/her noticein the course of his/her auditing duties or

c. makes any report to the Auditor-General whichhe/she knows to be false or has no reason tobelieve to be true.

Definition ofoffence

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).

Requests for

prosecution

53. A person who is convicted of committing an offence Penalties for


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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.

committingoffen

ces


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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 includedin the allocation of the Parliamentary Office.

Funds of theOffice

of theAuditor-General

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. the salary and allowances payable to theAuditor-General

b. salaries and allowances of the Office of theAuditor-Generals staff

c. costs for training and professional developmentactivities

d. the moneys for reasonable travelling,transportation and subsistence needed by staff

engaged in conducting Office of the Auditor-General business and

e. the administrative expenses of Office of theAuditor-General.

Application of

funds

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 andpurchase tax. The Auditor-General and his/her

individual staff, however, are not granted any special

exemption.

Exemption fromtaxatio

n


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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-Generalsproposed work programme for that year, together

with a detailed budget in support of the annual plan.

Presentation of adraft

annual plan and a

proposed budget

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.

Review of the

proposed annual

plan and budget

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 toaddress the Public Accounts Committee or Parliament

directly should it not approve the annual budget of

the Office of the Auditor-General without amendment.

Approval of the

annual plan and

budget

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.

Periodic reports tothe

Public AccountsCommit

tee

61. The Auditor-General shall submit annually to thePublic 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 Auditor-

General achieved his/her annual plan and the audited

financial statements of the Office of the Auditor-

General.

Submission of

performance

and financial

report

62. The Public Accounts Committee shall, in respect of

each financial year, appoint an independent auditor

to audit and report on the financial statements,

Independent audit


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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 auditengagement, 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 publicbody


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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 Auditor-

General shall be appointed through the process andunder the terms and conditions outlined in this act.

Continuation of

the

Auditor-General

65. Every person employed in the Audit Office

immediately before the date of commencement of

this act shall have an option to

a. remain with the Office of the Auditor-General or

b. request and receive a transfer to another publicservice position.

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.

Establishing

conditions

of employment

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.

New employees

68. If a person employed by the Audit Office immediatelybefore 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. .

Eligibility underthePensio

n Act


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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 beduly 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.

Registration andtransfer

ofproperty

70. By virtue of this act and without prejudice to other

provisions of this act, where any right, liability orobligation vests in or subsists against the Auditor-

General 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.

Legal proceedings

71. After the date this act commences, proceedings in

respect of any right which was vested in, held by orenjoyed 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.

Liabilities

Documents

A Model National Audit Office Act