The Court of Accounts (SAI Uruguay) is established under the Constitution (Art. 208). The Head of the Court of Accounts is appointed by the Parliament by two thirds of the votes of all its members. The procedure for terminating the appointment of the Head of the Court of Accounts is as follows:
The prescribed qualification for appointment of the Head of Court of Accounts is same as Senators; native or seven-year legal citizenship and thirty years of age (Constitution, Art. 208).
The various conditions of service of the Head of the Court of Accounts to secure independence of the Court of Accounts are:
Regarding the relationship of the Court of Accounts with other branches of the government, the Court of Accounts is an integral part of the State and works in coordination with the Legislative, Executive and the Judiciary Powers, although it is independent and has no operational subordination to them. (Constitution, Art. 210)
The Court of Accounts produces its own budget, which has to be submitted for approval to the Parliament, but the Court of Accounts has also the chance to give arguments to support it (Constitution, Art. 211, Lit. G). It is financed by the support of the Central Government and also by means of some incomes emerging from services the Court of Accounts is able to fulfill. To a great extend the Court of Accounts keeps the control and decisions to be taken about expenses related to its own annual budget.
As regards the mechanism to secure accountability of the Court of Accounts, the Court of Accounts has to submit to the Planning and Budget Office (which depends from the Executive Power) information on the physical and financial results, according to the methodology and periodically established by the latter (Art. 144 and following of the Accounts and Financial Administration Law - TOCAF).
The Court of Accounts jurisdiction extends to following and there no limitations imposed on this.
The Court of Accounts jurisdiction extends over Public utility/agencies providing public services even if they are privately funded and managed and Regulatory bodies (e.g. Privatisation, Environment, Pollution Control, telecom etc.)
The Court of Accounts has powers of requisitioning all records of the auditee departments/organisations to discharge its mandate. The law obliges the auditees to provide all the information requested by the Court of Accounts (Art. 99, TOCAF). It has powers to enforce or initiate enforcement action to secure access to needed records, which are not produced. The Court of Accounts has power to search documents and other related items but they cannot be seized. It has 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.
The Court of Accounts does not have powers of instructing government investigating agencies to perform activities considered necessary. There are not government investigating agencies in Uruguay. But according to Art. 211, Li. E of the Constitution, the Court of Accounts has to report all the irregularities to the corresponding authorities (Legislative, Executive and Judiciary Powers), when public funds were used and infractions appear in connection with budget law and accountability law. These are regulated by the TOCAF (Art. 64).
The Court of Accounts has the authority to re-examine its own adjudication (Art. 211, Li. B of the Constitution). It is limited to one occasion only. The Court of Accounts can not decide on claims of interested persons in connection with official actions, duties and behaviour of persons subject to audit and inspection. The opinion of Court of Accounts is requested when administrative responsibilities appear to be present. It has no powers to take punitive action and/or impose surcharges. The Court of Accounts 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 Court of Accounts 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 Court of Accounts does not have any role in the appointment of other external auditors engaged by the auditees for meeting statutory requirements. Further if such external auditors are engaged, the Court of Accounts does not have powers to supervise and regulate their work.
The Court of Accounts prescribes Financial, Compliance, Performance & EDP Audits in its scope of Audit. The powers to perform these audits are mandated by the Constitution and TOCAF. The Court of Accounts conducts Pre-audit, Concurrent and Special audit; the details are as follows:
The legal ongoing dispositions and international standards are applied, specially those issued by the INTOSAI. The Court of Accounts does not discharge judicial functions. The following up on the recommendations given in the audit reports, which were issued the years before, is made in order to prove whether the auditee has fulfilled the latter or whether it is necessary to insist on them or to take another kind of provisions.
The Court of Accounts is required to follow specific standards, practices and guidelines in conducting audit and reporting. Regarding engaging consultants and/or obtain professional services in conducting audit, Court of Accounts feels that such matters should be confined to its own staff members.
The Court of Accounts can report on acts that infringe upon State economic interests like mass embezzlement of state assets, serious losses and wastes. According to Art. 211, Lit. E of the Constitution, the Court of Accounts has to report all the irregularities to the corresponding authority, when public funds were used and infractions appear in connection with the budget law and accountability law. These are regulated by the TOCAF (Art.94).
The Court of Accounts not only reports to the auditees the results of its audits, but also submits recommendations in order to make improvements. Likewise, it submits to the General Assembly a copy of the resolutions taken accordingly to the auditings that were performed (TOCAF, Art. 94 in fine).
The Court of Accounts does not have any role on the disposal or the action taken on the audit findings. The Court of Accounts 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 Reports are shared with public and media mainly after the formal reporting process. In case of Financial Statements audit, the Court of Accounts does not have the powers to amend accounts.
The Court of Accounts has an advisory role. for example
The Court of Accounts is constituted as a Court/ Tribunal of Audit/Accounts and is a Court of accounts/Audit. The seven members have the same status. Once they are appointed, the President of the Court of Accounts is elected among and by its members. The conditions of service of the members guarantee their independence.
The Court of Accounts does not have Provincial Audit Offices. The Court of Accounts is not empowered to engage external auditors/ agencies/ consultants as required.
The Court of Accounts can expend resources budgeted independently; but depends on some kind of controls (Art. 114, TOCAF). It has full independence in forming its workplan. The Court of Accounts has powers in the recruitment of audit and other staff, in determining remuneration scales/levels and to promote employees. The Court of Accounts is not subject to an independent audit, and is not required to submit a report on its activities.