The Auditor General (SAI Sri Lanka) is established under the constitution. Head of State appoints the Head of the SAI . The Head of the SAI can be removed by President on account of ill health or physical or mental infirmity or upon an address of the parliaments. The Head of SAI does not require any specific qualifications. There is no fixed tenure but an age limit of 60 years.
The various conditions of service of the Head of the SAI to secure independence are:
The SAI and the Branches of government have Auditor - Auditee Relationship. The SAI is not fully financially independent. As the general Treasury coming under the Ministry of Finance decides such Budgetary resources for the SAI, curtailment on such budgetary allocations could be made by them. Similar audit procedures applied for other government Ministries/Departments are being applied in conducting the audit of the SAI, by specially appointed team from the SAI charged with the responsibility to carry out audit of the institutions not grouped under Ministries.
The SAI's jurisdiction extends to following and there are no limitations imposed on this jurisdiction.
SAI also has Jurisdiction over fallowing if government owned
The SAI has powers of requisitioning all records of the auditee departments/organisations to discharge its mandate as per
a) The Constitution
b) Incorporation Enactments of Public enterprises
c) Local government Ordinance & Enactments for local authorities
The SAI has powers to enforce or initiate enforcement action to secure access to needed records which are not produced. The SAI has power to seal, search and seize documents and other related items considered necessary for audit and inspection. It also has power to seek testimonials of the persons concerned as per
a) Finance act No. 38 of 1971 in relation to public enterprise
b) Local government Ordinance & Enactments for local authorities
But it can not seek co-operation of persons other than agencies subject to audit.
The SAI does not have powers to instruct government investigating agencies to perform activities considered necessary. It can only inform police Department for further action. 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. 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. These powers are confined to Local authorities and Universities. 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, Performance and EDP Audits in its scope of Audit. Provisions in the Constitution Covers wide scope of audit. Finance act No. 38 of 1971specifically provides for performance of such audits in respect of Public enterprises. Sri Lanka auditing standards & procedures adopted by the Institute of chartered accountants of Sri Lanka, as approved by an act of Parliament constitutes the audit procedures/methdology. The SAI does not discharge judicial functions. The audit findings are examined by parliamentary Committees and their reports are sent to the Treasury for taking follow up actions. The SAI is required to follow specific standards, practices and guidelines in conducting audit and reporting.
The SAI can not consult and/or collaborate with other countries/SAIs and international organisations on matters relating to audit. 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 communicates its findings and any proposals to the Parliament. It presents an interim report on the examination of closing of accounts of Central, Provincial and Local governments, if there is a delay in rendering accounts or whenever necessary. After formal reporting such audit reports are printed and published to make it available to the general public. It does not have powers to amend accounts in case of financial statements.
The SAI is constituted as an audit office with monocratic status ie. with an auditor general or equivalent as head. Its Statute provides jurisdiction over both Central and Provincial governments. Its empowered to engage external auditors/agencies/consultants as required.
The General Treasury can curtail resources made available to the SAI. It has independence in forming its workplan subject to resource constraints. Recruitment and the administration of the staff is subject to the supervision of an organ of the central govt.. Conditions of the services of the staff are guided by conditions for other public servants. The SAI is not subject to an independent audit. The SAI is required to submit a report on its activities to the Parliament.