Proclamation No. 669/2010
A PROCLAMATION TO AMEND THE OFFICE
OF THE FEDERAL AUDITOR GENERAL
WHEREAS, strengthening the audit system in the country plays an important role in providing reliable data useful for the effective management and administration of the national economy;
WHEREAS, it is necessary to ascertain that the financial management of the federal government offices and organizations in various developmental and administrative activities follow proper accounting procedures, that the manner of revenue collection, fund disbursement and property management is in accordance with government rules and regulations, and that their plan and program are carried out and regulations, and that their plan and program are carried out efficiently and economically with a view to attaining their objectives;
WHEREAS, audit is an effective instrument in reflecting the new democratic system by ensuring proper accountability in the various federal government offices and organizations within the state structure;
WHEREAS, it is necessary that the government of the Federal Democratic Republic of Ethiopia economic policy be supported by a modern and reliable audit system in order to ascertain proper implementation through effective monitoring of administrative, developmental and service rendering institutions in the federal public sector;
WHEREAS, in order to realize the objectives of the aforementioned it has been shown in the recently undertaken Business Processing Re-engineering activity that it is necessary to further strengthening and improving the professional independency and competency of the Auditor General and the Office of the Federal Auditor General;
NOW, THEREFORE, in accordance with Article 55 sub article (1) of the Constitution of the Federal Democratic Republic of Ethiopia it is hereby proclaimed as follow:
1. Short Title
This Proclamation may be cited as the “Office of the Federal Auditor General Establishment /Amendment/ Proclamation No. 669/2010.”
In this Proclamation, unless the context otherwise requires:
1/ “House” means the House of Peoples’ Representatives of the Federal Democratic Republic of Ethiopia;
2/ “Federal Auditor General” means a person appointed as Auditor General of the Federal Democratic Republic of Ethiopia in accordance with sub article (1) of Article 101 of the Constitution of the Federal Democratic Republic of Ethiopia and Article 6 of this Proclamation;
3/ “the office” means the Office of the Federal Auditor General;
4/ “Federal Government Office” means Ministry, Commission, Agencies, Authority, Institutions, or any other federal government office;
5/ “Organization” means any production, distribution, service rendering, regulatory or any other trading organization wholly or partially owned by the federal government;
6/ “Donor Account” means donation or support received in cash or in kind from donors by federal government offices or organizations.
1/ The Office of the Federal Auditor General of the Federal Democratic Republic of Ethiopia (hereinafter referred as “the Office”) is hereby re-established as an autonomous body of the federal government in accordance with sub-article /4/ of Article 101 of the Constitution of the Federal Democratic Republic of Ethiopia.
2/ The Head Office of the Office of the Federal Auditor General shall be in Addis Ababa and may have branch offices elsewhere as may be necessary.
4. Objectives of the Office
The Office shall have the following objectives:
1/ strengthen the audit system required for a reliable information necessary for the proper management and administration of the plans and budget of the federal government;
2/ ascertain that all money and property of the federal government are collected, preserved and used properly, in accordance with the laws and regulations of the federal government and report the same to the House.
3/ undertake a financial, performance, environmental protection, control audit, special audit and other audits of the offices and organizations of the federal government;
4/ make efforts, in cooperation with concerned organs, to develop and strengthen accounting and audit profession;
5/ give professional assistance and advice to Regional and Federal Civil servants and organizations engaged in accounting and audit professions;
6/ draw up a standard of auditing by which accounts of the offices and organizations of the federal government shall be examined and follow up the implementation of the same.
POWERS AND DUTIES OF THE OFFICE OF
THE FEDERAL AUDITOR GENERAL
5. Powers and Duties of the Office of the Federal Auditor General
The Office of the Federal Auditor General shall have all the powers necessary for the performance of its functions granted by law. Without limiting to this generality, the Office of the Federal Auditor General shall:
1/ audit or cause to be audited the accounts of the federal government office and organizations;
2/ audit or cause to be audited accounts involving budgetary subsidies and any special grants extended by the federal government to regional states;
3/ audit the accounts of private contractors relating to the federal government contractual work which involves a sum exceeding 1,000,000 Birr (One Million Birr);
4/ audit or cause to be audited, as may be necessary, performance audit in order to ensure that the performance of federal government offices and organizations is in accordance with the law, economically sound and has attained the desired objectives;
5/ audit or cause to be audited accounts of private or public organizations with a view to protect government and public interest;
6/ audit or cause to be audited donations or grants made to federal government offices and organizations;
7/ notify its auditing findings, carried out in accordance with sub-article (1), (2), (3), (4), (5) and (6) or this Article, to the head of the audited office or organization as the case may be. Where the findings of the auditing result indicates that a crime has been committed, the Federal Auditor General shall immediately notify the same to the concerned body;
8/ issue directives, in consultation with the concerned offices and organizations, regarding accounts and property auditing procedures and standards;
9/ certify internal auditors of any federal government office and organization before appointment after ascertaining that the auditor has the required professional competency;
10/ where it finds necessary, require internal auditors of any federal government offices to audit the accounts and property of their offices and report the finding;
11/ train, as might be necessary, internal auditors in cooperation with concerned organs;
12/ where it has reason to believe that any account has been kept in a presence of criminal condition and dishonest manner, impound such books, documents, ledgers, vouchers and other materials related to such account;
13/ give the necessary advice on the financial control, maintenance of accounts and property administration regulations to be prepared by the Ministry of Finance and Economic Development;
14/ make efforts and take necessary measures, in cooperation with other concerned federal and regional offices, to ensure that the development of the accounting and auditing profession is in the right direction;
15/ maintain close contact and cooperation with the audit and control offices of regional states with a view to enhance the development of auditing;
16/ issue, renew, suspend and cancel certificates of competence of auditors and accountants with provide auditing and accounting services to:
a/ organizations which are under the ownership of the federal government;
b/ organizations which are, by law, under the joint ownership of the federal government and regional states;
c/ activities over which the federal government has the right to control;
d/ sectors over which the federal government has been assigned by law, with the responsibility and authority to administer,
e/ joint ventures organized under the partnership of the federal government and regional states, the federal government and foreign or local investors, other areas of activities where the federal government has undertaken the responsibility for their execution;
f/ private and non-governmental organizations.
17/ charge fees for the issuance and renewal of such certificates in accordance with directives to be issued by the House of Peoples’ Representatives.
18/ when the Office of the Federal Auditor General causes the auditing pursuant to sub-articles (1), (2), (4), (5) and (6) of this Article, it shall only cause the auditing of project and program accounts, however, provided that it shall have the responsibility to supervise and ascertain that the auditing is consistent with the standard.
APPOINTMENT AND ACCOUNTABILITY OF
THE FEDERAL AUDITOR GENERAL
6. Appointment and Accountability of the Federal Auditor General
1/ The Federal Auditor General who heads the Office of the Federal Auditor General shall be appointed by the House of Peoples’ Representatives upon recommendation by the Prime Minister.
2/ The Federal Auditor General shall be accountable to the House of Peoples’ Representatives and, between sessions shall be accountable to the President of the Federal Republic.
7. Appointment of the Federal Deputy Auditors General
There shall be two Federal Deputy Auditors General who assist the Federal Auditor General and who shall be appointed by the House of Peoples’ Representatives up on the recommendation of the Prime Minister; accordingly the one shall serve as Audit Operation Branch Deputy Auditor General, and the other shall serve as Support Operation Branch Deputy Auditor General.
8. Criteria for Appointment
The following shall be the criteria for appointment:
1/ shall be an Ethiopian citizen;
2/ committed to abide by the Constitution of the Federal Democratic Republic of Ethiopia.
3/ qualified in auditing or related field with extensive experience in and knowledge of public auditing and finance;
4/ a person of proven integrity, hardworking and good ethical behavior;
5/ no previous court ruling for criminal proceedings;
6/ be in good health condition to carry out his duties;
7/ be neutral from any political party.
9. Salary and Pension Benefits
1/ The salary, allowances and other benefits of the Auditors General and the Deputy Auditors General shall be determined in accordance with the Proclamation issued to provide for the benefits of government officials.
2/ Appointees shall be allowed to choose provident fund scheme if they are not previously covered by public pension.
3/ Upon vacating their offices at the end of their term appointees shall be given the opportunity to work in government offices and organizations provided that they have not attained pension age.
10. Tenure of Service
1/ The term of office of the Federal Auditor General and his Deputies shall be six years.
2/ When the term of office referred under sub-article (1) of this Article ends, the Federal Auditor General and his Deputies may be appointed for another one six years term, however, provided that, the Federal Auditor General and his Deputies shall not be allowed to serve for more than two terms.
11. Removal of the Federal Auditor General and his Deputies
The Federal Auditor General and the Deputies may be removed from office under the following conditions:
1/ inability to perform their duties due to apparent health condition;
3/ lack of commitment to discharge their responsibilities and for reasons of unethical practice;
4/ involvement in corruption or committing other unlawful act;
5/ attained pension age;
6/ end of tenure of service;
7/ requiring, in written from, resignation due to prolonged poor health and other sufficient reason;
8/ the provisions from sub article /1/ to /7/ of this Article shall be effected upon investigation and confirmation by the House committee constituted for this purpose and when decided by the House in accordance with its rules of decision procedure.
1/ Audit Operations Deputy Auditor General shall serve as acting Auditor General for a maximum of three months if the position of Auditor General is vacant due to the reasons referred in Article 11 of this Proclamation and for reasons of death.
2/ In the absence of Audit Operations Deputy Auditor General the Support Services Deputy Auditor General shall act as Auditor General for the duration referred in sub-article (1) of this Article.
3/ When the positions of the Auditor General and the Deputies are vacant of the same time, the Speaker of House shall assign from amongst the auditing directors for the duration referred in sub-article (1) of this Article.
POWERS AND DUTIES OF THE FEDERAL
AUDITOR GENERAL AND
DEPUTY AUDITORS GENERAL
13. Powers and Duties of the Federal Auditor General
The Federal Auditor General shall be the head of the Office of the Federal Auditor General and shall in addition to implementing the powers and duties of the Office of the Federal Auditor General provided for under Article 5 of this Proclamation, have the following powers and duties:
1/ submit a consolidated annual audit report performed under sub-articles (1), (2), (3), (4), (5) and (6) of Article 5 of this Proclamation and on the activities of the Office of the Federal Auditor General to the House of Peoples’ Representatives and when the House is not in sessions, to the President of the Federal Republic;
2/ review the annual report which the Ministry of Finance and Economic Development submits to it concerning the federal government receipts and expenditures, assets and liabilities as well as the financial statistical data within four months of receipt, and submit his comments thereon to the Ministry; include the same in his annual report to be submitted to the House of Peoples’ Representatives;
3/ include the objections and comments raised by the organs notified in accordance with sub-article (7) of Article 5 of this Proclamation where it appears to him unsatisfactory in the report referred in sub-article (1) of this Article.
4/ organize the office so as to enable him properly discharge his duties;
5/ prepare and submit the budget of the office to the House of Peoples’ Representatives and implement the same upon approval;
6/ prepare the structure and salary scale of the office and, up on approval by the House of Peoples’ Representatives, employ and administer the personnel necessary for the office and shall implement the salary and other benefits;
7/ where it is found necessary, delegate with the necessary instruction, and supervision, private auditors or other professionals to carry out audits;
8/ implement cost effective government audit practices and carry out transitional audits that includes more than one regional state and offices in cooperation with the concerned organs.
14. Powers and Duties of the Deputy Auditors General
1/ Powers and duties of Audit Operation Branch Deputy Auditor General:
a) shall assist the Federal Auditor General by planning, organizing, leading, coordinating and supervising audit activities of the office;
b) shall carryout duties of the Auditor General in his absence except signing of the audit report on the consolidated account of the government, annual performance report and special report of the office to be presented for the House.
c) shall carryout other duties assigned by the Federal Auditor General.
2/ Powers and duties of Support Operation Branch Deputy Auditor General:-
a) shall assist the Federal Auditor General by planning, organizing, leading, coordinating and supervising Support Operation Branch of the office;
b) shall carryout the duties of the Federal Auditor General and Audit Branch Deputy Auditor General in their absence except signing the audit report of consolidated account, annual performance report of the office and special reports to be presented for the House.
c) shall carryout other duties assigned by the Federal Auditor General.
15. Budget and Auditing
1/ A proportionate quarterly appropriations of the operational budget of the approved budget of the Office of the Federal Auditor General shall be deposited in advance in the bank account opened in the name of the Office of the Federal Auditor General.
2/ The accounts of the Office of the Federal Auditor General shall be audited by a body to be designated by the House of Peoples’ Representatives or by the President of the Federal Republic, where the House is not in session, as the case may be.
16. Audit Procedure and Period of Limitation
1/ The Federal Auditor General may audit accounts in full or by a system of spot-checking which-ever he deems it appropriate in a given case provided, however, that any report which he submits, in accordance with sub-articles (1) and (2) of Article 13 of this Proclamation concerning the results of audits of the accounts, shall contain a statement describing the nature and extent of the audit performed with respect to each account.
2/ The Federal Auditor General shall not perform audits covering beyond a period of two fiscal years prior to the fiscal year upon which the audit is to be performed unless he believes that a crime has been committed.
3/ The Federal Auditor General shall carry out audits based on international standard on auditing (ISA).
17. Duties of Persons to be Audited
1/ Any individual, employees or an official, upon request by the Federal Auditor General, Auditors of the Office of the Federal Auditor General or representatives of the Federal Auditor General, shall, forthwith, make available correct and complete books, documents, ledgers, vouchers and all other documentary or oral evidence which the Auditors deemed it useful and necessary for auditing.
2/ Any person who has had in his custody or has paid or has expended or is in charge of the accounts of the money and property of the organs auditable by the Office of the Federal Auditor General pursuant to the provisions of this Proclamation, shall, upon request, have the obligation to have his accounts audited.
3/ Auditable entities are obliged to take corrective measures, within 15 days from the date of delivery, on recommendations and comments included in the audit reports sent to them by the Federal Auditor General; if they are unable to take such measures, shall inform the same and the reasons thereof to the Federal Auditor General within the period specified herein.
4/ The head of any audited office, whose weaknesses were commented in the report of the Federal Auditor General submitted to the House of peoples’ Representatives, shall have the duty to take appropriate remedial measures and inform the same to the House and the Federal Auditor General.
5/ All auditable entitles shall prepare and provide appropriate office for the staff appointed by the Federal Auditor General in order to discharge its duties and responsibilities.
18. Duty to Co-operate
All offices and persons shall co-operate in providing necessary support to enable the office to exercise its power and responsibility.
19. Code of Conduct and Protection of Audit Professionals
1/ All auditors of the office shall discharge their duties, adhering to professional code of conduct issued by the Federal Auditor General.
2/ The Auditor General, Deputy Auditors General and other auditors of the office shall not be liable for the audit activities they have conducted compatible with the national laws and the professional etiquette.
3/ All report of the Auditor General published in the interest of the House shall be treated as report of the House. No civil or criminal proceedings shall be instituted on the basis of this reports against the Auditor General.
20. Duty to Notify
1/ The Federal Auditor General shall notify to the House of Peoples’ Representatives, the Federal Ethics and Anti-Corruption Commission as well as to the Ministry of Justice and the head of the audited office or organization concerned where, in the course of his auditing, he has reasons to believe that an offence has been committed.
2/ The Office of the Federal Auditor General shall immediately be notified up on the following situation:
a) when regulations or directives issued or implemented in relation to government budget, accounting, receipt and payment systems by organs of the federal government;
b) when federal government related agreements are established, modified fundamentally or terminated;
c) upon the signature of agreements related to federal budget administration between the federal government and organs outside the federal government or between the regional states and the federal government;
d) when the organs of the federal government intend to implement organizational or other measures that could fundamentally alter the financial management system.
21. Offences and Penalty
1/ Any person who:
a) fails to produce or make available books, documents, ledgers, vouchers or any other documentary or oral evidence which the Federal Auditor General directly or through his employees or his representatives requires for auditing; or
b) gives to the Federal Auditor General, the auditors of the office or its representatives any information which he knows to be false or which he has no reason to believe it to be true; or
c) obstructs the proper carrying out of the functions of the Federal Auditor General; or
d) fails to take measures, within the proper time, on recommendations and comments included in the audit report of the Federal Auditor General; or fails to comply with the provisions of this Proclamation when he is required to do so;
is punishable with imprisonment from five years to seven years or with a fine or Birr 10,000 (ten thousand Birr) or with both.
2/ Any Auditor who:
a) in consideration for the performance or for the omission of an act in violation of the duties proper to his office solicits, exacts a promise of or receives a gift, money or any other advantage; or
b) accepts any auditable document as genuine where he knows that it is not or unduly rejects any valuable document submitted to him by the one to be audited; or
c) defrauds or cooperates with others by creating conducive conditions so that they can defraud or conspires in defrauding money of the federal government; or
d) with intent to obtain or procure undue advantage for himself or to a third person or to cause harm on any other person, causes to disappear or falsify or cause to be falsified or forges any books, documents, ledgers, vouchers or any other evidence submitted to him by the one to audited;
is punishable with imprisonment from five years to ten years and with fine from 10,000 Birr to 15,000 Birr.
22. Power to issue directives
1/ The House of Peoples’ Representatives may issue regulations necessary for the implementation of this Proclamation.
2/ The office of the Federal Auditor General may issue directives necessary for the implementation of this Proclamation.
23. Repealed and Inapplicable Laws
1/ The Proclamation to Establish the Office of the Federal Auditor General Proclamation No. 68/1997 is hereby repealed.
2/ No laws or customary practice which are inconsistent with this Proclamation shall have effect with respect to matters provided for in this Proclamation.
24. Effective Date
This Proclamation shall enter into force up on the date of publication in the Federal Negarit Gazeta.
Done at Addis Ababa, this 11th day of May, 2010
PRESIDENT OF THE FEDERAL
DEMOCRATIC REPUBLIC OF ETHIOPIA