The SAI is Established under a constitution. The head of SAI is appointed by Government / Head of State. In the terms of the constitution of the Portuguese Republic the appointment and exoneration of the president of the court of Auditors is under the scope of the president of the Portuguese republic, following proposal from the Government. There ere no specific qualifications and the tenure is for a period of 4 (four) years, which can be renewed. There is a general prescribed age limit for civil servants (70 years old). The various conditions of service of head SAI or features of the mandate to secure independence are:
The Parliament and the Government may request the SAI the execution of audits of any type or nature. Under the terms of constitution and the law Parliament is the preferred addressee of the SAI's reports. The Public Prosecution Service intervene before the "Tribunal decontas" (Court of Auditor), represented by the Attorney General. The court of Auditors and its regional chambers are granted administrative autonomy. The Installation and operating costs of the court including those of the regional chambers, shall be paid by the state, through the respective budget. The examination of the accounts of the court of Auditors is subject to the terms of the law for all individuals hearing financial liability. In particular
- Integration of the respective accounts in relation to the execution of the state budget in the state accounts.
- Annual external verification of the accounts of the coffers and possible of financial liabilities, by the relevant
sub-chambers and chamber of court.
- submission of the courts management to an audit by a specialised auditing firm chosen by tender whose report
will be published together with the accounts..
The SAI's extends to following and there are no limitation imposed on the jurisdiction:
The SAI have jurisdiction over
(a) Regulatory bodies (eg. Privatisation, Environment, Pollution Control, telecom etc.)
(b) Agencies to whom performance and delivery of public services is contracted out.
In the exercise of its functions, the Court of Auditors has the right to the co-operation of all public and private entities, by the same terms as judicial courts. All these entities shall provides the court with information on the breaches of law which the court should appreciate and which they shall recognize in the exercise of their functions. The SAI has the powers to enforce or initiate enforcement action to secure access to needed records, which are not produced. The SAI has power to seal, search and seize documents and other related items where it is considered necessary for its audit and inspection. The court may levy fines in an unjustified absence to provide requested information, to send requested documents or to make a statement. The SAI has power to seek co-operation of persons other than the agencies subject to audit and inspection for presenting material or provide testimonials necessary for its audit and inspection. The President of the court of Auditors may meet with national inspectors and auditors of the Public Administration in order to promote the exchange of information concerning the respective annual and multi-annual programmes of activities the organisation of the criteria for internal and external controls.
The final decision of refusal, granting and exemption of a seal approval as well as decisions concerning the enrolments, including those imposed by the regional chambers may be contested by an appeal to the 1st chamber. An extraordinary appeals may be made if in the same legislative domain two decisions were made in different proceedings. The SAI have the power to decide on claim of interested persons in connection with official actions, duties and behaviours of person to audit and inspection. The general plenary of the 2nd chamber may set the annual amount of revenue or expenditure below which the entities submit to the control of the SAI are dispensed from sending the accounts to the courts. The plenary of the 2nd chamber may annually deliberate upon the same kind of dispense. In the event of arrears, embezzlements of money or of public assets and also of improper payments, the SAI may condemn the responsible to restitute the sums comprised by the infringement. The SAI may also levy fines in several cases such as the non settlement, collection or delivery of revenues owed to the coffers of the state. The SAI has power to access the computer systems of the auditees to review the development of the computer systems of auditees and suggest/enforce any controls. The SAI has power to regulate and supervise their work of the external auditors engaged by the appointees but has no role in their appointment..
The SAI prescribes the Financial , Compliance, Performance and EDP Audit in its scope Audits. Yes. The Portuguese Court of Auditors has jurisdiction and power of the financial control within the Portuguese legal systems to the Law governing SAI. Several kind of entities (such as the state and its services) are subject to the SAI jurisdiction and financial control. The SAI conducts Pre-audit, Concurrent audit and Special audit. The examination of financial control function comprises the application of power of "a priori" control, concomitant control and successive or "a posteriori" control. The court has recourses to various types of auditing financial audits, operational or performance audits, integrated audits, guided audits, audits of project and programmes, systems audits, environmental audits. The court has been concerned with defining the guiding norms which guarantee the highest technical quality. They integrate the Auditing mannual of the court, and reflect general auditing principles internationally accepted and defined. The SAI discharges judicial functions with regard to Audits of entities which are submitted to the jurisdictional powers of the court. The court may levy fine in the cases when there is unjustified absence to provide requested information, to send requested documents or to make a statement. Disobedience regarding the courts orders may be the cause of sanctionary liability and may even be considered a situation of grave qualified disobedience. The failure to fulfill the order may constitute a crime and the public prosecutor is responsible for initiating proceedings.
The court may condemn the responsible to the restitute the sums comprised by the infringement, in spite of the possibility of criminal proceedings. Audit reports include conclusions/findings and recommendations, which are discussed in meetings with the auditees. Performance audit has the main purpose of evaluating the managements of an entity; the assessment consists of the appreciation of the results regarding the purposes/objectives which have been set up. Also the security of decisions and resources allocated in the actions as well as compliance with law. When audits reports are presented to Parliament, they include the finding of audits, however, inspite of the fact that the Parliament is the preferred addressees of the court's audit reports, they are not all sent to Parliament. The SAI is required to follow specific standards, practice and guidelines in conducting audit and reporting. There are several matters within the scope of the European Union in which the Portuguese Court collaborate in matters relating to audit, such as: state aid; structural funds; communication resources. When ever it proves necessary the Court of Auditors may use the services of auditing firms or technical consultants in order to carry out tasks which are indispensable for the exercise of its duties.
In cases of where the acts infringe upon state economic interests like mass embezzlements of state assets etc. the Court of Auditors collaborates with the Public Prosecutor and the authorities of investigation of crime. The SAI does not require that any fraud or embezzlement be reported mandatorly by auditees. Such cases are ultimately judged by the common courts of law, after the intervention of the Public Prosecutor and the authorities of investigation of crime. The SAI has the role in disposal or the action taken on audit finding and SAI has the power to share its audit reports with the public and the media but after the formal reporting. The SAI have an advisory role in the government but government is not required to consult the SAI before taking decisions involving substantial consequences.
The SAI is constituted as Court/Tribunal Audit/Accounts. The SAI is Court of accounts/Audit. The system for appointing and exonerating the President of the Court stems directly from the Constitution of the Portuguese republic. The President and the other members are judges who have a category, rights and prerogative identical to those of the supreme court of justice. The members of the court are recruited by competing in a public examination before a Jury whose composition is set in the law and are appointed by the President of the court. The body has "opinion" functions, regarding matters such as the state Accounting, and also "a priori" and "a posterior" control; also as regards financial liabilities. The Court has technical and administrative support service responsible for the functioning. The SAI has jurisdiction over both Federal and Provincial governments and organic links between the Central Audit office and the Provincial Audit office. The SAI is empowered to engage in external auditors/agencies/consultants.
The Court has Administrative Council which exercise the competency of financial administration, which includes the normal management of the support services (in the Headquarters and in the Autonomous Regions). They authorise the expenditures which do not require the authorization of the President, among other financial duties. The SAI has full independence in forming its workplan
The definition of material competency, of the organisation and of the functions of the departments of the court and their auditors and other staff (this includes processes of recruitment), which comprise support services falls upon the President's competency, taking into account the organisation and operation guidelines established by the Court. The SAI is subject to an independent audit. This audit is done by a specialised auditing from, chosen by tender, whose report will be published together with the accounts of the Court of Auditors.
The SAI is required to submit a report on its activities to the President of the Republic, the Parliament, the Central Government and the Governments of the Autonomous Regions (in this case, regarding the activity of the Regional Chambers).