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PROCLAMATION No. 982/2016

 

A PROCLAMATION TO RE-ESTABLSIH 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 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 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, there is a need for further improving and enhancing the independence of the Federal Auditor General and his Office;  

NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:

 

PART ONE

General

  1. Short Title

This Proclamation may be cited as the "the amendment of Proclamation of the Federal Auditor General Proclamation No. 982/2016.

 

  1. Definition

In this Proclamation:

1/ "Council" means House of the Peoples' Representatives of the Federal Democratic Republic of Ethiopia;

2/ "Federal Auditor General" means a person appointed as Auditor General of Federal Democratic Republic of Ethiopia as provided in sub article (4) of Article 101 of the Constitution of Federal Democratic Republic of Ethiopia;

3/ "Office" means the Office of the Federal Auditor General.

4/ "Federal Government Offices" mean 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/ "donors and lenders account" means donation or support received in cash or in kind from donors or lenders by federal government offices or organizations;

  1. "Ministry" means Ministry of Finance and Economic Cooperation;

8/ "Region" means any state specified under Article 47(1) of the Constitution of the Federal Democratic Republic of Ethiopia and includes the Addis Ababa and Dire Dawa city administrations;

9/ "person" means any natural or juridical person;

10/ any expression in the masculine gender includes the feminine;

 

  1. Amendment of the Proclamation 669/2010 issued to establish the Office of the Federal Auditor General

 

1/ Proclamation No.669/2010 issued to establish the Office of the Federal Auditor General of the Federal Democratic Republic of Ethiopia (hereinafter "the Office of the Federal Auditor General") as provided in Article 101 (4) of the Constitution of the Federal Democratic Republic of Ethiopia, is hereby amended.

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.

 

  1. Objectives of the Office

 

The office has the following objectives:

1/ strengthen an 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 receivable 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 same to the council;

3/undertake financial, performance, environment, information technology, control, special and other audits of the offices and organizations of the federal government

4/ make efforts, in cooperation with concerned other organs, to promote and strengthen accounting and audit profession.

5/ give professional assistance and advice to regional and federal offices and organizations engaged in accounting and audit professions;

6/ draw up a standard of auditing by which accounts of the offices of the federal government shall be examined and follow up the implementation of same.

 

PART TWO

 

POWERS AND DUTIES OF THE OFFICE OF THE FEDERAL AUDITOR GENERAL

 

  1. Duties of the Office of the Federal Auditor General

 

In accordance with Article 5 of the Re-establishment Proclamation No. 982/2016 of the Office of the Federal Auditor General, the Office shall have the following duties:

The Office of the Federal Auditor General shall have all the powers necessary for the performance of its functions. Without limiting the generality of the foregoing, the Office of the Federal Auditor General shall:

1/ audit or cause to be audited the accounts of the federal government offices and organizations;

2/ audit or cause to be audited the information technology systems, utilization and administration of the offices of the federal government and organizations;

3/ audit or cause to be carried out, 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;

4/ audit or cause to be audited, as may be necessary accounts of private or public organizations to protect Government and public interest;

5/ audit or cause to be audited donations, grants and loans made to federal government offices and organizations;

6/ report audit finding to the head of the audited federal government office and organization, as the case may be, the result of the audits performed in accordance with of sub-articles (1), (2), (3), (4) and (5) of this Article, the result of the audits performed shall also be immediately submitted to the concerned body, where it indicates the commission of a crime;

7/ issue directives, in cooperation with other concerned offices regarding accounts and property auditing procedures and standards;

8/where it is necessary, require internal auditors of any federal government offices to audit the accounts and property of their offices and report the finding;

9/where it is necessary, train internal auditors in cooperation with concerned organs;

10/where it has reason to believe that any account has been kept in a criminal and dishonest manner, impound such books, documents, ledgers, vouchers and other materials related to such account;

11/shall give the necessary advice on the financial and accounting regulations to be prepared by the Ministry of Finance and Economic Cooperation;

12/make efforts, in cooperation with other concerned federal and regional offices, with a view to promote the accounting and auditing profession; and ensure that the development of the accounting and auditing profession of the federal government is in the right direction;

13/maintain closer contact and cooperation with the audit and control offices of the regional governments with a view to enhance the development of auditing;

14/where the Office of the Federal Auditor General cause an audit as per sub-articles (1),(2),(3),(5),(6) and (7) of this Article by recruiting competent authorized auditors; it shall assume responsibility for the quality of audit carried out under such arrangement. The Office of Federal Auditor General shall issue detailed directive for implementation of this provision.

15/shall establish professional auditors training center;

 

PART THREE

 

  1. Appointment and Accountability of the Federal Auditor General

 

l/ The Federal Auditor General who heads the Office of the Federal Auditor General shall be appointed by the Council of the House of Peoples' Representatives upon recommendation by the Prime Minister;

2/ The Federal Auditor General shall be accountable to the Council of the House of Peoples' Representatives and, between sessions shall be accountable to the president of the Federal Republic.

 

  1. Appointment of the Deputy Federal Auditor Generals

 

There shall be four Deputy Federal Auditor Generals who shall be appointed by the Council of the House of Peoples' Representatives upon recommendation by the Prime Minister and who shall assist the Federal Auditor General. These shall be Deputy Auditor General for Regularity Audit, Deputy Auditor General for Performance Audit, Deputy Auditor General for Audit Quality, Research and Training and Deputy Auditor General for Support Service.

 

  1. Criteria for Appointment

 

The following are criteria for appointment:

 1/ shall be an Ethiopian citizen;

2/ committed to abide by the provisions of 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 against for criminal proceedings;

6/ is in good condition of health to carry out his duties;

7/ political neutrality.

 

  1. Being Assigned in Government Offices

 

Upon vacating their offices at the end of their term appointees shall be assigned to work in government offices and organizations provided that they have not attained pension age.

 

  1. Tenure of Service

 

1/ The term of Office of the Federal Auditor General and his deputies shall be six years.

2/ Notwithstanding sub-article (1) of this Article the Federal Auditor General and his deputies may be appointed for another term.

 

  1. Removal of the Federal Auditor General and his Deputies

 

The Federal Auditor General and his deputies may be removed from Office under the following conditions:

 

1/ inability to perform their duties due to apparent health condition;

2/ incompetence;

3/ lack of commitment to discharge their responsibilities and for reasons of unethical practice;

4/ involvement in corruption and/or committing unlawful act;

5/ attained pension age;

6/ end of tenure of service;

7/ written request for resignation due to prolonged poor health and other sufficient reason;

8/ the provisions of sub articles 1-4 and 7 of this Article shall be effected upon investigation and confirmation by the committee of the House constituted for this purpose and when decided by 2/3 vote of the House of Peoples' Representatives.

 

  1. Vacancies

 

1/ Regularity Audit Operations, Performance Audit Operations, Audit Quality and Research Operations Deputy Auditor Generals shall respectively serve as acting Auditor General for a maximum of three months if the position of Auditor General is vacant due to the reasons mentioned in Article 11 above and for reasons of death.

2/ In the absence of the Audit Operations Deputy Auditors General, the Support Services Deputy Auditor General shall act as Auditor General for the duration mentioned in sub-article (1) above.

3/ In the absence of all Deputies the Speaker of the House of the Peoples' Representatives shall select and assign from amongst the Audit Directors for the duration mentioned in sub-article (1) above.

 

PART FOUR

POWERS AND DUTIES OF THE FEDERAL AUDITOR

GENERAL AND DEPUTY AUDITOR GENERALS

 

  1. 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 and on the activities of the Office of the Federal Auditor General to the Council of the House of Peoples' Representatives and between sessions, to the President of the Federal Republic;

2/ review the annual report which the Ministry of Finance and Economic Co-operation shall submit to it, within six months from the end of budget year, concerning the federal government receipts and expenditures, assets and liabilities as well as the financial statistical data;

3/ the Auditor General shall comment on the annual report within four months of receipt, and submit his comments thereon to the Ministry; include same in his annual report to be submitted to the Council of the House of Peoples' Representatives,

4/ include the objections and comments raised by the organs notified under Article 5(7) of this Proclamation in the report indicated in sub-article (1) of this Article where they appear to him unsatisfactory

5/ organize the office of the Federal Auditor General so as to properly carry out his duties;

6/ Prepare and submit the budget of the Office of the Federal Auditor General to the Council of the House of Peoples' Representative and implement same upon approval;

7/ shall prepare and submit the organizational structure and salary scale of the Office and effect payment of their salary and benefits when approved by the House of the Peoples' Representative; the House of People's Representative shall issue regulation for implementation of this provision.

8/ hire and administer the necessary staff based on the rules and regulations enacted by the House of the Peoples' Representatives and based on the basic objectives of the Federal Public Service.

9/ where it is necessary, delegate with the necessary instruction, private auditors or other professionals to carry out audits;

10/ design and implement cost effective government audit practices and carry out inter-regional audit in cooperation with concerned audit offices when necessary.

 

  1. Powers and Duties of Deputy Auditor Generals

 

1/ Powers and Duties of Regularity Audit Operation Sector Deputy Auditor General:

 

  1. a) shall assist the Federal Auditor General by planning, organizing, leading, coordinating and supervising regularity audit activities of the office;
  2. b) shall carryout duties of the Auditor General in his absence except signing of the audit report on the consolidated account of the government and annual performance report of the office to be presented for the parliament.
  3. c) shall carryout other duties assigned by the Federal Auditor General.

2/ Powers and Duties of Performance Audit Operation Branch Deputy Auditor General:

 

  1. shall assist the Federal Auditor General by planning, organizing, leading, coordinating  and supervising performance audit activities of the office;
  2. b) shall carryout duties of the Auditor General in his absence except signing of the audit report on the consolidated account of the government and annual performance report of the office to be presented for the parliament;
  3. c) shall carryout other duties assigned by the Federal Auditor General.

3/ Powers and Duties of Audit Quality and Research Operation Branch Deputy Auditor General:

 

  1. a) shall assist the Federal Auditor General by planning, organizing, leading, coordinating and supervising Audit Quality and Research activities of the office;
  2. b) shall carryout duties of the Auditor General in his absence except signing of the audit report on the consolidated account of the government and annual performance report of the office to be presented for the parliament.
  3. c) shall carryout other duties assigned by the Federal Auditor General.

4/ Powers and Duties of Support Operation Branch Deputy Auditor General:

  shall assist the Federal Auditor General by planning organizing, leading, coordinating and supervising Support Operation Branch of the office,

  1. b) shall carryout duties of 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 to be presented for the parliament;
  2. c) shall carryout other duties assigned by the Federal Auditor General.

 

PART FIVE

 

MISCELLANEOUS PROVISIONS

 

  1. Budget and Auditing

 

1/ 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 Council of House of the Peoples' Representatives or by the president of the Federal Republic, where the Council is not in session, as the case may be.

 

  1. 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 of Supreme Audit Institutions.

 

  1. 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 under the provisions of this proclamation, shall, upon request, have the obligation to have his accounts audited.

3/ auditee 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 Council of the House of Peoples' Representatives, shall have the duty to take appropriate remedial measures and inform same to the Council of the House of Peoples' Representatives and the Federal Auditor General.

5/ all audit entities shall prepare and provide office for the staff of Federal Auditor General to discharge duties and responsibilities of their office.

 

  1. Duty to Co-operate

 

All offices and person shall co-operate in providing necessary support to enable the office to exercise its power and discharge its responsibility.

  1. Code of conduct and protection from liability of Auditor General and staff of the Office of the Federal Auditor General

1/ all auditors of the office shall discharge their duties, adhering to professional code of conduct issued by the Federal Auditor General

2/ Auditor General Deputy Auditors General and other auditors of the office shall not be liable for the audit activities they have conducted in good faith.

3/ all report of the Auditor General published for the benefit of parliament shall be treated as parliamentary report and shall enjoy all privilege accorded to parliamentary report. No civil or criminal proceedings shall be instituted on the basis of this reports against the Auditor General or its staff

  1. Duty to Notify

 

1/ the Federal Auditor General shall notify House of Peoples’ Representatives, Ethics and Anti-Corruption Commission, Attorney General and the head of the audited federal government office or organization concerned where, in the course of his auditing, he has reasons to believe that an offence has been committed.

2/ Office of the Federal Auditor General shall immediately be notified upon the following situation:

  1. a) When regulations or directives are issued in relation to government budget, accounting, receipt and payment systems by federal or regional governments.
  2. b) When Federal government related agreement are established, modified or terminated,
  3. c) Upon establishing budget administration related agreement between Federal and regional governments or with non-federal or regional related entities.
  4. d) When the organs of the federal government intend to implement organizational or other measures that could fundamentally alter the financial management system.

 

  1. Offences and Penalty

 

1/ any person who:

  1. 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
  2. b) gives to the Federal Auditor General, the auditors of the Office of the Federal Auditor General or its representatives any information which he knows to be false or which he has no reason to believe to be true; or
  3. c) obstructs the proper carrying out of the functions of the Federal Auditor General; or
  4. d) fails to take measures, within in a reasonable time from the date of delivery, 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; shall be punished with imprisonment from 5 to 7 years or with a fine or Birr 10,000 to 30, 000 (ten thousand Birr to thirty thousand Birr) or with both such fine and imprisonment.

 

2/ any Auditor who:

  1. 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
  2. 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
  3. 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
  4. d) with intent to obtain or procure undue advantage for himself or to a third person or to cause a 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 be audited shall be punished with imprisonment from 5 to 7 years or with a fine or Bin 10,000 to 40, 000 (ten thousand Birr to forty thousand Birr) or with both such fine and imprisonment.

 

  1. Power to Issue Regulation and Directives

 

1/ the House of Peoples' Representatives may issue regulation for the effective implementation of this proclamation.

2/ for effective implementation of this proclamation the Office of Federal Auditor General may issue all the necessary directives.

 

  1. Repeal and Non-Applicability

 

1/ the Proclamation to establish the Office of the Auditor General Proclamation No. 669/2010 is hereby repealed.

 

2/ any law and regulation which are inconsistent with this Proclamation shall not apply to matters provided for in this Proclamation.

 

  1. Effective Date

 

This Proclamation shall enter into force up on the date of publication in the Federal Negarit Gazeta.

 

Done at Addis Ababa, this 21's day of September, 2016

 

MULATU TESHOME (DR.)

 

PRESIDENT OF THE FEDERAL DEMOCRATIC

REPUBLIC OF ETHIOPIA