Qualifications prescribed for appointment of the head of SAI are
- A professional accounting qualification eg. ACCA
- A first class honours degree with experience in a related field.
There is no fixed tenure for the Head of SAI but has a compulsory retirement age of 55 years.
The various conditions of service of the Head of the SAI to secure independence are:
Generally the relationship of SAI with other branches of the government is cordial. All audit reports are submitted to the Minister of Finance who shall lay it in Parliament within 7 days of receipt or the first sitting there of. The SAI prepares draft budget for incorporation with the national budget. Parliament and Ministry of Finance exerts some form of control over SAI expenditure. Generally SAI does not have complete financial independence. SAI accountability is secured through the Ministry of Finance where all expenditure vouchers are sent for approval of payment and then it is incorporated in the annual accounts which are then audited and submitted to Parliament.
The SAI's jurisdiction extends to the followings with no limitation on its jurisdiction
The SAI has powers of requisitioning all records of the auditee departments/organisations to discharge its mandate under the Constitution/ Finance and Audit Act. The SAI does not have powers to enforce or initiate enforcement action to secure access to needed records which are not produced.
The SAI does not have powers to seal, seize and search documents and other related items where it is considered necessary for its audit and inspection. But the SAI has the power to seek testimonials of the persons concerned under section 82 (3) of Constitution and Finance and Audit Act. It can seek co-operation of persons other than agencies subject to audit and inspection. The SAI can and does request third party confirmation eg., bank account balances or other assets held on behalf of or liabilities owed by the auditee.
The SAI does not have powers of instructing government investigating agencies to perform activities considered necessary. However SAI accomplish such requirements by reporting to the relevant authorities and recommending that the investigating agencies to act. It has no authority to re-examine its own adjudication. Though it does not have powers to decide on claims of interested persons in connection with official actions, duties and behaviours of persons subject to audit and inspections, SAI can report any matter it considers necessary to the Public Service Commission or the Permanent Secretary, Finance who can discipline or even surcharge officers.
It can not take punitive actions and/or impose surcharges. SAI has powers to access the computer systems of the auditees and to download and use electronic data either in site or off site. It has power to review the development of computer systems by auditees and suggest any controls. It does not have any role in appointment or supervision of external auditors engaged by the auditees.
The SAI prescribes Financial, Compliance & Performance audit in its scope of audit. The powers to perform these audits are not mandated by the law governing the SAI. But SAI considers the resources available to it and the nature of the auditee's functions. The SAI conducts Pre-audit of pensions and gratuities and Special audit on request by government agencies that are normally outside the SAI's normal operations. For enforcement of audit findings SAI does follow-up inspections and reviews. The SAI consults CAROSAI members and seek advice from time to time. Fellow CAROSAI members were consulted when the SAI was developing bench mark qualification for its staff priorities. The SAI cannot engage consultants and/or obtain professional services in conducting audit, such matters are confirmed only to its own staff members. SAI can report on acts that infringe upon State economic interests like mass embezzlement of State assets, serious losses and wastes. SAI requires that all fraud embezzlement must be reported mandatorly by the auditees, but does not have the power to oversee the ultimate disposal of such cases.
Report on its findings goes to the Head of Auditee requesting a response. If unsatisfied with the response the findings are reported on in the annual report of Parliament. The SAI have the powers to share its audit reports with the public and media after the formal reporting process.
The SAI is constituted as an audit office with monocratic status i.e. with an Auditor General or equivalent as head. Head of SAI has great degree of independence. The only limiting factor being the control he has over his budget are shared with the Ministry of Finance. It is not empowered to engage external auditors/ agencies/ consultants as required.
SAI can expend resources budgeted independently. SAI prepares draft budget and submits to Ministry of Finance for incorporation in national budget. All expenditure of SAI must be sent to the Finance ministry for approval before being paid. The SAI has full independence in forming its workplan. The SAI interviews recruits and make recommendations to the Public Service Commission for approval. Generally the commissioners accepts SAI's recommendations but legally they do not have to. The SAI is not subject to an independent audit. The SAI is required to submit a report on its activities. The report is in the form of a workplan which is a summary of its activities for the coming year which are incorporated in the corporate report.