OFFICE OF THE AUDITOR GENERAL

The National Audit Act gives effect to Articles 154 (3) and 163 of the Constitution by further providing for the tenure, removal and mandate of the Auditor general; and establishing the Office of the Auditor General. The Act establishes the office of the Auditor General as a body corporate and also provides for staff of the Office. The terms and conditions of OAG staff are further prescribed in the National Audit (Terms and Conditions of Staff) Regulations,2011.

The Act provides for the auditing of accounts of central Government, local Government councils, administrative units, public organizations, private organizations and bodies. The Act gives the Auditor General right of access to all documents and information relevant to the performance of his or her functions; and for other related matters in the exercise of his functions.

The Auditor General is required to report on all accounts examined and audited within a period of six months or such longer period as Parliament may by resolution determine after the financial year to which such accounts were examined and audited. The Act in its totality takes supremacy over all existing Acts relating to the Office of the Auditor General, or to the functions and powers of the Auditor General and any Act in contradiction with the National Audit Act is modified to conform to the provisions of the Act.

Section 86. Accounts
Every local government council and administrative unit shall keep proper books of account and other records in relation thereto and shall balance its accounts for that year and produce statements of final accounts within four months from the end of each financial year.
Section 87. Audit of accounts
(1)The accounts of every local government council and administrative unit shall be audited by the Auditor General or an auditor appointed by him or her.
(2)The Auditor General may carry out surprise audits, investigations or any other audit considered necessary.
(3)The Auditor General shall give the report of the audited accounts to—
(a)Parliament;
(b)the Minister responsible for finance;
(c)the Minister;
(d)the local government or administrative unit to which the audit relates;
(e)the local government public accounts committee;
(f)the Local Government Finance Commission;
(g)the Inspector General of Government; And
(h)the resident district commissioner.

Section 31 of the Public Finance Management Act, 2015
Grants of credit on the Consolidated Fund
(1)The Minister shall on the advice of the Accountant General, request the Auditor-General to issue a grant of credit on the Consolidated Fund.
(2)A grant of credit issued under subsection (1) shall be for the funds that are payable for—
(a) statutory expenditure, during a financial year;
And (b) services to be rendered during a financial year where the funds are—
(i) authorized by an Appropriation Act or Supplementary Appropriation Act; or
(ii) required for investment.
Section 32. Withdrawals from the Consolidated Fund
(1)Money contained in the Consolidated Fund shall not be withdrawn except upon the authority of a warrant issued by the Minister, to the Accountant-General.
(2)The Minister shall not issue a warrant under subsection (1) except where a grant of credit is issued by the Auditor-General under section 31.
(3)The Minister shall issue a warrant for expenditure that is—
(a)authorised for the financial year during which the withdrawal is to take place by an Appropriation Act or a Supplementary Appropriation Act;
(b)a statutory expenditure;
(c)for repaying money received in error by the Consolidated Fund;
Or
(d)for paying sums required for an advance, refund, rebate or drawback where the payment of the advance, refund, rebate or drawback is provided for in this or any other
Act.
(4)The Minister may suspend, withdraw, limit or place conditions on a warrant under this section where the Minister determines that it is necessary due to a financial exigency or that it is in public interest to do so.
Section 51. Annual accounts
(1)An Accounting Officer of a vote and an Accounting Officer of a local government, shall within two months after the end of each financial year, prepare and submit to the Auditor-General, and the Accountant-General, the accounts and information set out in paragraph 2 of Schedule 5 to this Act.
(2)The Accounting Officer of a public corporation shall, within two months after the end of each financial year, using the format prescribed by the Accountant-General, prepare and submit to the Accountant-General, a summary statement of financial performance of the public corporation and give a copy of the summary statement to the Secretary to the Treasury.
(3)The accounts submitted under this section shall—
(a)be prepared in accordance with generally accepted accounting practices and in accordance with instructions issued by the Accountant General;
(b)identify any significant departures from generally accepted accounting practice and state the reasons for the departures;
(c)state the basis of accounting used in the preparation of the accounts, identify any significant departures from that basis of accounting and the reasons for the departure; and
(d)state the action taken by the vote on the recommendations of Parliament on the report of the Auditor General.
(4)The Auditor General shall, in accordance with the National Audit Act, examine and audit the accounts submitted under this section.
Section 54. Accounting for classified expenditure
(1)The Accounting Officer of a vote to which section 24 applies, shall prepare the accounts of the vote in the format to be prescribed by the Accountant General.
(2)The Accounting Officer of a vote to which section 24 applies, shall submit the financial statements required under section 51 to the Minister, the Auditor
General, and the Accountant General.
(3)The Auditor General shall, in accordance with the National Audit Act, examine and audit the accounts submitted under this section.
Section 58. Withdrawals from the Petroleum Fund
Withdrawals from the Petroleum Fund shall only be made under authority granted by an Appropriation Act and a warrant of the Auditor General—
(a) to the Consolidated Fund, to support the annual budget;
And
(b)to the Petroleum Revenue Investment Reserve, for investments to be undertaken in accordance with section 63.
Section 62. The Petroleum Revenue Investment Reserve
(2)The withdrawal of money from the Petroleum Fund to the Petroleum Revenue Investment Reserve, in a financial year, shall be by warrant of the Auditor General.
Section 26. The Contingencies Fund
(15)The Accountant General shall, for every financial year, prepare and submit to the Auditor-General, the accounts of the Contingencies Fund.
(16)The Auditor General shall in accordance with the National Audit Act, make a report to the Parliament, on the accounts of the Contingencies Fund.