The Public Auditor (SAI Palau) is established under the constitution by an act of Parliament/ Legislative body. Head of the SAI is appointed by Parliament, Government and Head of State. The Head of the SAI can be terminated by the President for good cause and must be consented by 2/3's of congress. The Head of SAI must be a CPA or its equivalent or a college degree in finance, accounting and related field with a minimum experience of 10 years in government audit. The Head of SAI is appointed for a fixed 6 year tenure subject to reappointment.
The various conditions of service of the Head of the SAI to secure independence are:
The SAI reports to the President of Republic and head of congress. Public Auditor prepares the budget for his office and submits to the president as do all budget activities. The President must submit to congress the Public Auditor's budget, as transmitted, for its consideration and action. The Public Auditing Act holds the SAI accountable for substandard work and for expenditure of Public Auditor's budget.
The SAI's jurisdiction extends to following and there are no limitations imposed on this jurisdiction.
SAI also has Jurisdiction over fallowing
The SAI has powers of requisitioning all records of the auditee departments/organisations to discharge its mandate. Subsection 272 " The Public Auditor in carrying out the provisions of this chapter shall have access to all records, reports, audits, reviews, papers, books, documents, correspondence, and any other data and material that is maintained by, or available to any agency which in any way related to the activities to which the Public Auditor has duties and responsibilities...."
The SAI has powers to enforce or initiate enforcement action to secure access to needed records which are not produced. as per subsection 272(c) " The Public Auditor may require by summons the production of all records, reports, audits, reviews, papers, books, documents, correspondence, and any other data and material relevant to any matter under audit or investigation....". 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 under sub section 276 "whenever the Public Auditor has reasonable basis for believing that a person has information with respect to any matter which is with in its jurisdiction to investigate, he may require by summons the attendance and testimony under oath. It can seek co-operation of persons other than agencies subject to audit and inspection as per subsection 272 " The Public Auditor shall request such information, cooperation, and assistance from any agency as may be necessary.....".
The SAI has powers to instruct government investigating agencies to perform activities considered necessary by request to the office of ministry of Justice or to the office of the special Prosecutor. 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 does 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 have powers to take punitive action and/or impose surcharges. The Public Auditor through the office of the Attorney General or Special Prosecutor may initiate criminal action. 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 role in the appointment and supervision of the other external auditors engaged by auditees for meeting the statutory requirements.
The SAI prescribes Financial, Compliance and Performance Audits in its scope of Audit. The powers to perform these audits are mandated by the law Subsection 203(b) Audits include financial, performance and program audits or any combination of the audits the public Auditor may deem appropriate. The SAI conducts Concurrent and Special audit. The SAI performs audits in accordance with Government Auditing Standards of USA. The SAI does not discharge judicial functions. The SAI tracks audit recommendations and report to the president and Congress of the recommendations not implemented. The SAI is required to follow specific 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. membership in SPASAI. 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 requires that any fraud or embezzlement be reported by the auditees mandatorly. The SAI reports fraudulent activities to the office of the Attorney General or the Special Prosecutor. It has a role in disposal or action taken on audit findings. The SAI can share audit reports with public and media simultaneously. 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. Public Prosecutor is responsible for SAI's day to day functioning. The SAI has jurisdiction over both federal and local governments. The SAI can engage external auditors/ agencies/consultants as required.
The SAI can expend resources budgeted independently and it has full independence in forming its workplan.. Public Auditor has sole control over recruitment of staff. The SAI is not subject to an independent audit. The SAI is required to submit a report on its activities to the President and heads of bi-cameral congress..