The Auditor General (SAI Guyana) is established under the constitution by an act of the Parliament/ Legislative body. Head of State appoints the Head of the SAI. The Head of SAI should be a professionally qualified accountant. The Head of the SAI appointment has no fixed term with an age limit of 65 years which can be extended by the government. Head of SAI can be terminated for misdemeanor, if found guilty by a tribunal set up to have the charges heard or if he is found to be of unsound mind.
The various conditions of service of the Head of the SAI to secure independence are:
All the branches of the government are subject to audit and review by the SAI in a business like manner. The SAI has cordial and working relations with other braches of the government. Ministry of Finance determines the budget of SAI, however the SAI makes its budgetary proposals which are submitted to the national assembly, which are generally accepted. At present there is no mechanism to secure accountability of the SAI.
The SAI's jurisdiction extends to following with a limitation of minority interest by government in its investments.
SAI also has Jurisdiction over
The SAI has powers of requisitioning all records of the auditee departments/organisations to discharge its mandate as per financial administration and audit act, chap 73.01 of the law of Guyana. The SAI has powers to enforce or initiate enforcement action to secure access to needed records which are not produced as per financial administration and audit act, chap 73.01 of the law of Guyana. The SAI has power to seal, search and seize documents and other related items considered necessary for audit and inspection. Further, SAI has powers to seek testimonials of the persons concerned as per section 28 of the financial administration and audit act, chap 73.01 of the law of Guyana. The SAI is empowered to seek co-operation of persons other than the agencies subject to audit and inspection, only if the third parties are contacted by the agencies or by the Government.
The SAI does not have powers to instruct government investigating agencies to perform activities considered necessary, but it can persuade them to follow acceptable accounting norms. The SAI has authority to re-examine its own jurisdiction at the public accounts committee level and this is one-off examination. The SAI has powers to decide on claims of interested persons in connection with official actions, duties and behaviour of persons subject to audit and inspection.
The SAI has no powers to take punitive action and/or impose surcharges, only the secretary to the Treasury can impose surcharges, on the recommendations of the losses board. The SAI has the powers to access the computer systems of the auditees and download and use electronic data either in site or off site. The SAI has the powers to review the development of computer systems by the auditees and suggest controls. The SAI has a role in the appointment or supervision of the other external auditors engaged by auditees for meeting the statutory requirements, but only for contracted audits.
The SAI prescribes Financial, Compliance, and Performance Audits in its scope of Audit. The powers to perform these audits are mandated in a new audit act. The SAI conducts Pre Audit, Concurrent Audit and Special Audit. The type of transactions and activities are
1. Superannuating benefits and contract awards.
2. Central and Local government and other statutory audits
3. Special Investigations
Audit procedure for each main type of audit is
1. For Super - Annuation Benefits - mainly verification of records of
services
2. Central and Local government and other statutory audits - System
documentation, Audi plans and Programmes, " walk through", Compliance
and substantive test etc.
3. Investigative Procedure
The SAI does not discharge judicial functions. The SAI is required to follow specific standards, practices and guidelines in conducting audit and reporting eg. INTOSAI audit standards, Professional Auditing and accounting standards etc. The SAI can consult and/or collaborate with other countries/SAIs and international organisations on matters relating to audit e.g.
The SAI can engage consultants and/or obtain professional services in conducting audit. It reports on acts that infringe upon state economic interests like mass embezzlement of state assets etc. The SAI requires that any fraud or embezzlement be reported mandatorly by the auditees. The SAI plays an active role on the disposal on audit findings by ensuring that the recommendation of the PAC are carried out ,and if not , to report accordingly in the next annual report.
The SAI has powers to share its audit reports with public or media after tabling the report to the Parliament. The SAI can not amend accounts in case of financial statement audits. The SAI has an advisory role but the government can consult the SAI before taking any decision involving substantial consequences.
The SAI is constituted as an audit office with monocratic status ie. with an auditor general or equivalent as head. The SAI is empowered to engage external auditors/agencies/consultants.
The SAI can not expend resources independently , the budget has to be approved by the Ministry of finance. Monthly request are the made to Ministry of Finance for approval. The SAI has full independence in forming its workplan. At present SAI can appoint a clerk up to semi-senior level which ultimately would be notified by the public work commission. All other appointments are made by Public Service Commission. The SAI is not subject to an independent audit. The SAI is required to submit a report on its activities to the Public Services Ministry on or before 30th April.