The SAI Lesotho is established under the constitution by an act of Parliament. Head of the SAI is appointed by Head of State on the advise of the Prime Minister. The Head of the SAI can be terminated on the recommendation of the Tribunal Appointed by the Head of State( article 142(5) of constitution. The Head of SAI is appointed for a fixed 2 year tenure with a age limit of 55years. The Head of SAI is not eligible for Reappointment.
The various conditions of service of the Head of the SAI to secure independence are:
The SAI has cordial working relation with other branches of the government. Annual Budget Presented to Parliament by the Minister of Finance contains allocation for SAI which is arrived at by the mutual discussion between the minister of finance and Auditor General. Audit Reports are discussed by the Public Accounts Committee of the Parliament..
The SAI's jurisdiction extends to following.
Certain State Entities and projects are outside the review of Auditor General - section 5 of statuary bodies act of 1973). SAI also has Jurisdiction over fallowing
The SAI has powers of requisitioning all records of the auditee departments/organisations to discharge its mandate. At all reasonable time to have access to and require the production of books, records and keep them for such time as he may require them- S.12(1) of audit act of 1973.
The SAI does not have powers to enforce or initiate enforcement action to secure access to needed records which are not produced except that it can report the matter to the Minister concerned and qualify the report accordingly. The SAI has power to seal, search and seize documents and other related items considered necessary for audit and inspection. Further, it has power to seek testimonials of the persons concerned. Power to call upon any public officer for any explanation and information it may require - S-12(3) of Audit act of 1973. It can seek co-operation of persons other than agencies subject to audit and inspection. It can call upon any accounting officer to give information - Authorise any public officer to conduct on his behalf any inquiry, examination or audit - S-12(3) & (4) of the audit act of 1973.
The SAI has powers to instruct government investigating agencies to perform activities considered necessary. The SAI does not have powers to decide on claims of interested persons in connection with official actions, duties and behaviour of persons subject to audit and inspection. Claims of interested 3rd parties for compensation are handled by the Law office, whereas behaviour etc. of the staff are handled by Ministry of public service. The SAI does not have the authority to dispense with, in whole or part, the audit of Federal, Provincial and local Governments accounts and other related matters. The SAI does not have powers to take punitive action and/or impose surcharges. 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 no role in the appointment and supervision of the other external auditors engaged by auditees for meeting the statutory requirements. External Auditors shall report to the auditor general in such manner as the Auditor General may direct - S- 15 (B) of the Audit act of 1973.
The SAI prescribes Financial, Compliance and Performance Audits in its scope of Audit. The powers to perform these audits are mandated by the law - S 117 of the constitution and S- 5 of Audit act of 1973. The SAI conducts Special audit . The audit of SAI is conducted on the basis of Compliance and substantive testing value for money. The SAI does not discharge judicial functions. Audit findings are reported to the Head of Department and serious ones are included as a para in the annual audit report presented to the parliament through the Minister of Finance. The SAI is required to follow INTOSAI guidelines in conducting audit and reporting.
The SAI can consult and/or collaborate with other countries/SAIs and international organisations on matters relating to audit eg. in conducting Performance Audit, assistance of Swedish audit office is sought as and when required. The SAI can engage consultants and/or obtain professional services in conducting audit. The SAI reports on the acts that infringe upon State economic interests like mass embezzlements of state assets etc. The SAI is required to report any fraud or embezzlement by the auditees with no power to oversee the ultimate disposal of such cases. The SAI can not share audit reports with public and media. It does not have powers to amend accounts of financial statement audits. It has an advisory role.
The SAI is constituted as an audit office with monocratic status ie. with an auditor general or equivalent as head. S.117(6) of constitution specifically states that in exercise of his function Auditor General shall not be subject to the direction or control of any other person or authority. The main Function of the SAI is to undertake audit of public accounts as stipulated in S.117 of the constitution and audit act of 1973. Auditor General is responsible for the day to day function of the office. The SAI can engage external auditors/ agencies/consultants as required.
Man Power resources are provided by the Ministry of public service and financial resources are provided by Ministry of Finance in consultation with Auditor General. Office of the Auditor General is part and parcel of civil service. It has full independence in forming its workplan. Staff are recruited by Public service commission and falls under general service rules. The SAI is not subject to an independent audit. The SAI is not required to submit a report on its activities.