The Audit Office (SAI Mauritius) is established under the Constitution . The Head of the SAI is Director of Audit and is appointed by the Government - Public Service Commission acting after consultation with the Prime Minister and the Leader of the Opposition. The Director of Audit can be removed from office either for inability to discharge the functions of his office or for misbehaviour. Procedures are in accordance with the Constitution.
The qualifications prescribed for appointment of the Head of the SAI are: associate of the Association of Certified Accountants or an alternative qualification acceptable to the Public Service Commission. The Director of Audit is an established officer and as such his retirement age is 60. However the Director can also be in office on contract in which case, he holds office for 4 years.
The conditions of service of the head of the SAI to secure independence of the SAI are:
The Government Audit Office is more a servant of the Legislature than the Executive. The Finance and Audit Act provides that the Director of Audit shall submit his report to the Minister of Finance who shall as soon as possible lay these documents before National Assembly. The same Act provides that where the Minister fails, within a reasonable time, to lay the Report before the Assembly, the Director of Audit shall send such report to the Speaker of the Assembly to be by him presented to the Assembly.
The SAI does not have financial independence. The amount of money required by the SAI must in the first instance be approved by the Ministry of Finance and ultimately by the National Assembly. The SAI has no control over that process. There is no mechanism to secure accountability of the SAI. The SAI does not have any external auditor who audits the accounts of the SAI. However, the idea of having the SAI audited by an external auditor is being envisaged.
The SAI's jurisdiction extends to following:
The Board of Directors of several Statutory Bodies and Private Companies wholly or partly owned by Government are free to choose their own auditors. In some cases, they choose private firms of accountants.
The SAI's jurisdiction extends over regulatory bodies (e.g. Telecommunication Authority) and the agencies to whom performance and delivery of public services is contracted out (e.g. the Central Water Authority contracts out certain services it offers to the public).
The SAI has the powers of requisitioning all records of the auditee departments/organisations to discharge its mandate. These powers are provided in the Constitution, the Finance and Audit Act, the Statutory Bodies (Accounts & Audit) Act and the Local Government Act. Whenever the SAI has to enforce or initiate enforcement action to secure access to needed records which are not produced, we actually seek the advice of the Attorney-General office and we stand guided by any such advice received.
The SAI does not have the powers to seal, search and seize documents and other related items considered necessary for audit and inspection. It does not have the powers to seek testimonials of the persons concerned (appearances and answers) of the persons concerned or those who are deemed to have been involved in the matter subject to audit and inspection. As regards the powers to seek co-operation of persons other than agencies subject to audit and inspection, the SAI contracts in consultants in particular fields where the office lacks expertise. The SAI mentions only at the end of its report that further enquiries are required and it remains upon the Ministry concerned or the Government to refer the matter to any government investigating agencies for the investigation.
The SAI does not have the authority to re-examine its own adjudication. The SAI cannot decide on claims of interested persons in connection with official actions, duties and behaviour of persons subject to audit and inspection. The procedure followed in such cases is follow-up action taken by auditees. 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. It does not have powers to take punitive action and/or impose surcharges.
The SAI has powers to access the computer systems of the auditees and to download and use electronic data either in site of off site. Further it can also review the development of computer systems of the auditees and suggest/enforce any controls.
The SAI does not have any role in the appointment of other external auditors engaged by the auditees for meeting statutory requirements.
The SAI prescribes Financial, Compliance, Performance and EDP Audits in its scope of Audit. The Finance and Audit Act requires the SAI to satisfy himself that the revenue has been properly accounted for, financial instructions are duly observed, that money voted by Parliament has been used as intended and that adequate instructions exist for the guidance of public officers. With the amendment of the Finance and Audit Act in June this year, the Director of Audit is required to satisfy himself that satisfactory management measures have been and are taken to ensure that resources are processed economically and utilised efficiently and effectively.
The SAI conducts Pre-audit and Special audits. For pre-audits, the SAI verifies the computation of gratuities and pension of officers of the Local Government Authorities. Special audits were carried out on Leakage in the Portable Water Storage and Distribution System in Mauritius for Civil Service Affairs, and in the Island of Rodriguez, the Auto-Erosion Programme and Assistance to Professional Fishermen. Financial audit is focused on high risk areas. CAATS including WINIDEA are used to analyse data and to extract a sample for indpeth verification taking into consideration materiality and risk areas. Performance audit are carried out on topical issues.
The SAI does not discharge judicial functions. Regarding the procedures in following up and enforcement of audit findings, follow-up actions are taken at the next audit to see whether matters have been set right. Otherwise the matter is reported again.
The SAI is required to follow INTOSAI/SADCOSAI standards and also the Mauritius Accounting Standards (MAS). The SAI can consult and/or collaborate with other countries/SAIs and international organisations on matters relating to audit e.g. Audit of the accounts of the OAU (Organisation of African Unity), SADC (South African Development Community), IORC (Indian Ocean Rim Commission). All these are regional organisations.
The SAI can engage consultants; actually the SAI has obtained the services of two ITEC Experts on IT Audit, and the office also obtains technical services from the University of Mauritius, the Mauritius Standards Bureau and Materials Testing Laboratory of the Ministry of Public Infrastructure.
The SAI can report on acts that infringe upon State economic interests like mass embezzlement of state assets, serious losses and wastes. The SAI requires that any fraud or embezzlement be reported mandatorly by the auditees. Normally all such cases are reported to this office and these are followed to completion. The SAI is not empowered to oversea the ultimate disposal of these cases.
Regarding the SAI's reporting procedure, management letter sent to the Accounting officer (the auditee). Annual Report submitted to the Minister of Finance to be presented by him to the National Assembly.
The SAI does not present an interim report before rendering an annual report on the examination of the closing of accounts of the Federal, Provincial and local governments. The SAI does not have powers to share its audit reports with the public and media. In case of Financial Statements audit, the SAI does not have the powers to amend accounts. However, a request can be made to the auditee to amend the accounts and if the accounts are not amended, the audit report is qualified with any shortcomings noted. The SAI does not have advisory role.
The SAI is constituted as an audit office with monocratic status. The Constitution mentions only that 'There shall be a Director of Audit whose office shall be a public office'.
The SAI is empowered to engage consultants as required.
The SAI can expend resources budgeted independently. The SAI is like any other Government Department so far as the budgeted resources are concerned. Funds are provided by the National Assembly. It has full independence in forming its workplan.
For the recruitment of audit staff, the selection exercise is done by the Public Service Commission (PSC) and the Director of Audit or his representative is co-opted to form part of the interviewing panel. However, the final decision rests with the PSC. Schemes of service for each grade is prepared by the Audit Office and submitted to the Ministry of Civil Service Affairs and Administrative Reforms and subsequently to the PSC for final approval.
The SAI is not subject to an independent audit; but the SAI is planning to have external auditors to audit SAI's accounts. It is not required to submit a report on its activities.