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Federal Negarit Gazeta

Proclamation No. 68/1997

Office of the Federal Auditor General Establishment Proclamation

WHEREAS, strengthening the audit system in the country plays an important role in providing reliable data useful for the effective management and administration of the national economy;

WHEREAS, it is necessary to ascertain that the financial management of the Federal Government offices and enterprises in various developmental and administrative activities follow proper accounting procedures, that the manner of revenue collection, fund disbursement and property management is in accordance with government rules and regulations, and that their plan and Programmes are carried out efficently and economically with a view to attaining their objectives;

WHEREAS, audit is an effective instrument in reflecting the new democratic system by ensuring proper accountability in the various Federal Government offices and organizations within the State structure;

WHEREAS, it is necessary that the Ethiopian Federal Democratic Republic new economic policy be supported by a modern and reliable audit system in order to ascertain proper implementation through effective monitoring of administrative, developmental and service rendering institutions in the Federal Public Sector;

WHEREAS, in order to realize the objectives of the aforementioned it is necessary to strengthen and establish the Office of the Federal Auditor General;

NOW, THEREFORE, in accordance with Article 55 (1) of the Constitution, it is hereby proclaimed as follows:

PART ONE

General

1. Short Title

This Proclamation may be cited as the “Office of the Federal Auditor General Establishment Proclamation No. 68/1997.”

2. Definition

In this Proclamation: 1. “Government Office” means Ministry, Commission, Authority, Institution or any other Federal Government Office; 2. “Organizaiton” means any production, distribution, service redndering, regulatory or any other trading organization wholly or partially owned by the Federal Government.

3. Establishment

1. The Office of the Auditor General of the Federal Government of Ethiopia (hereinafter "the Office of the Federal Auditor General") as provided for in sub-Article (4) of Article 101 of the Constitution of the Federal Democratic Republic of Ethiopia, is hereby estabished.
2. The Head Office of the Federal Auditor General shall be in Addis Ababa and may have branch offices elsewhere as may be necessary.

4. Objectives of the Office

1. strengthen an audit system required for a relibale information necessary for the proper management and administration of the palns and budget of the Federal Government;
2. ascertain that all receivable money and property of the Federal Government are collected, preserved and used properly, in accordance with the laws and Regulations of the Federal Government, and report same to the Council;
3. undertake a financial and performance audits of the offices and organizations of the Federal Govern- ment;
4. make efforts, in cooperation with concerned organs, to promote and strengthen accounting and audit professions;
5. give professional assistance and advice to Regional and Federal Civil servants and organizations en- gaged in accounting and audit professions;
6. draw up a standard of auditing by which accounts of the offices and organizations of the Federal Govern- ment shall be examined and follow up the implemen- tation of same.

5. Appointment and Accountability of the Federal Auditor General

1. The Federal Auditor General who heads the Office of the Federal Auditor General shall be appointed by the Council of Peoples' Representatives upon recommendation by the Prime Minister.
2. The Federal Auditor General shall be accountable to the Council of Peoples' Representatives and, be- tween sessions shall be accountable to the President of the Federal Republic.

6. Appointment of the Federal Deputy Auditor General

There shall be a Federal Deputy Auditor General who shall be appointed by the Council of Peoples’ Representatives upon recommendation by the Prime Minister and who shall assist the Federal Auditor General and be responsible for the direction of the activities of the Office of the Federal Auditor General in his absence.

PART TWO

POWERS AND DUTIES OF THE OFFICE

OF THE FEDERAL AUDITOR GENERAL

7. Powers and Duties of the Office of the Federal Auditor General

The office of the Federal Auditor General shall have all the powers necessary for the performance of its func- tions. Without limiting the generality of the foregoing, the Office of the Federal Auditor General shall: 1. audit or cause to be audited the accounts of the Federal Government offices and organizations; 2. audit or cause to be audited accounts involving budgetary subsidies and any speical grants extended by the Federal Government to Regional Govern- ments; 3. audit the accounts of private contractors relating to the Federal Government contractual work which involves a sum exceeding Birr 500,000 (Birr five hundred thousand); 4. Carry out or cause to be carried out, as may be necessary, programme and efficiency audit or per- formance audit in order to ensure that the perfor- mance of Federal Government offices and or- ganizations is in accordance with the law, economically sound and has attained the desired objectives; 5. report audit findings to the head of the audited Federal Government office and organization, as the case may be, the result of the audits performed in accordance with sub-Articles, (1),(2),(3),and (4) of this Article, the result of the audits performed shall also be immediately submitted to the Council of Peoples’ Representatives, where it indicates the commission of a crime; 6. issue directives, in cooperation with other offices concerned, regarding accounts and property auditing procedures and standards; 7. issue certificates of competence to internal auditors to be empolyed by any Federal Government offices and organizations; 8. where it deems it necessary, require internal auditors of any Federal Government offices to audit the accounts and property of their offices and report the findings; 9. where it deems it necessery, train internal auditors in cooperation with concerned organs; 10. where it has reasons to believe that any account has been kept in a criminal and dishonest manner, impound such books, documents, ledgers, vouchers and other materials related to such account; 11. give the necessary adivce on the financial and accounting regulations to be prepared by the Ministry of Finance. 12. make efforts, in cooperation with other concerned Government Offices, with a view to promote the Accounting and Auditing Profession; take appropriate measures to ensure that the development of the Accounting and Auditing Profession of the Federal Government is in the right direction; 13. maintain close contact and cooperation with the Audit and Control Offices of Regional Govern- ments with a view to enhance the development of auditing; 14. issue, renew, suspend and cancel certificates of competence of private auditors and accountants who provide auditing and accounting services to: * organizations which are under the ownership of the Federal Government; * public organizations which are, by law, under the common ownership of the Federal and Regional Governments; * activities over which the Federal Government has the right to control; * sectors over which the Federal Government s been assigned by law, with the respon- sibility and authority to administer; * joint ventures organized under the partnership of the Federal and Regional Governments, the Federal Government and foreign or local investors, other areas of activities where the Federal Government has undertaken the responsibility for their execution. 15. Charge fees for the issuance and renewal of such certificates in accordance with regulations issued by the Council of Peoples’ Representatives.

PART THREE

POWERS AND DUTIES OF THE FEDERAL

AUDITOR GENERAL

AND DEPUTY AUDITOR GENERAL

8. Powers and Duties of the Federal Auditor General

The Federal Auditor General shall be the head of the Office of the Federal Auditor General and shall, in addition to implementing the powers and duties of the office of the Federal Auditor General provided for under Article 7 of this Proclamation, have the following powers and duties: 1. submit a consolidated annual audit report performed under sub-Articles (1), (2), (3)and(4) of Article 7 and on the activities of the Office of the Federal Auditor General to the Council of Peoples’ Representatives and between sessions, to the president of the Federal Republic; 2. review the annual report which the Ministry of Finance submits to it concerning the Federal Gover- nment receipts and expenditures, assets and liabilities as well as the financial statistical data within four months of receipt, and submit his comments theron to the Ministry; include same in his annual report to be submitted to the Council of Peoples Representatives. 3. include the objections and comments raised by the organs notified under sub-Article(5) of Article 7 of this Proclamtion in the report indicated in sub- Article (1) of this Article where they appear to him unsatisfactory; 4. organize the office of the Federal Auditor General so as to properly carry out his duties; 5. Prepare and submit the budget of the office of the Federal Auditor General to the Council of Peoples’ Representatives and implement same upon approval; 6. employ, administer the personnel necessary for the office in accordance with regulations issued by the Council of Peoples’ Representatives following the basic principles of federal civil service laws; 7. where he deems if necessary, delegate with the necessary instruction, private auditors or other professionals to carry out audits.

9. Powers and Duties of the Deputy Auditor General

1. Following the directives given to him by the Federal Auditor General:
    * assists the Federal Auditor General in planning, organizing, guiding and coordinating the ac- tivities of the office of the Federal Auditor General:
    * carries out the duties of the Federal Auditor General in the absence of the latter.
2. carries out other activities assigned to him by the Federal Auditor General.

PART FOUR

MISCELLANEOUS PROVISIONS

10. Buget and Auditing

1. A proportionate quarterly appropriations of the operational budget of the approved budget of the office of the Federal Auditor General