Comptroller and Auditor General (Amendment) Act , 1993

1. Interpretation.

1.—(1)In this Act—

“accounting officer” means an officer referred to in section 22 of the Act of 1866 to whom the duty of preparing the appropriation accounts of a Department is assigned under that section;

“appropriation accounts” means the accounts referred to in section 22 of the Act of 1866;

“the Act of 1866” means the Exchequer and Audit Departments Act, 1866;

“the Act of 1963” means the Companies Act, 1963;

“the Central Bank” means the Central Bank of Ireland and, during any time that, and for so long only as, the account of the Exchequer at the Central Bank stands transferred under section 2 (2) of the State Financial Transactions (Special Provisions) Act, 1984, to a commercial bank or other institution, references in the subsequent sections of this Act to the Central Bank shall be construed as references to that commercial bank or other institution;

“Civil Service” has the meaning assigned to it by the Civil Service Commissioners Act, 1956;

“company” has the meaning assigned to it by the Act of 1963;

“the Departments” means the Departments of State and the other offices by or in respect of which appropriation accounts are required by the Act of 1866 to be prepared and “Department” shall be construed accordingly;

“local authority” means a local authority for the purposes of the Local Government Act, 1941;

“the Minister” means the Minister for Finance;

“subsidiary” has the meaning assigned to it by section 155 of the Act of 1963.

(2)In this Act—

(a)a reference to a section is a reference to a section of this Act, unless it is indicated that reference to some other enactment is intended,

(b)a reference to a subsection, paragraph or subparagraph is a reference to the subsection, paragraph or subparagraph of the provision in which the reference occurs, unless it is indicated that reference to some other provision is intended,

(c)a reference to an enactment shall be construed as a reference to that enactment as amended or extended by or under any subsequent enactment including this Act.

2. Control of disbursements by Comptroller and Auditor General.

2.—(1)Upon receipt of a requisition in that behalf from the Minister, the Comptroller and Auditor General shall, if he is satisfied as to the correctness thereof, grant to the Minister, on the account of the Exchequer at the Central Bank or on the growing balance thereof, credits—

(a)that are to meet disbursements in respect of supply services and do not exceed the amounts authorised by the Central Fund (Permanent Provisions) Act, 1965, or, as the case may be, voted by Dáil Éireann, for any supply service for the financial year to which the requisition relates, or

(b)(i)that are to meet disbursements in respect of Central Fund services the making of which is certified by the Minister to fall due during the period of 3 months commencing with the commencement of the period in respect of which the credits are sought,

(ii)that are of the amounts estimated to be required for the purpose specified in subparagraph (i) (being amounts not exceeding in aggregate any relevant limits specified by or under any enactment), and

(iii)that comply in all other respects with the provisions of the enactments relating to them.

(2)A requisition under subsection (1) shall be signed by the Minister or an officer of the Minister or of the National Treasury Management Agency authorised by the Minister in that behalf.

(3)A credit granted under this section shall be used only for a purpose specified in the requisition therefor from the Minister.

(4)A credit under this section granted for the purpose specified in subsection (1) (b) (i) shall, if not used during the period of 3 months for which the credit was granted, lapse.

(5)Issues or transfers of money from the account of the Exchequer aforesaid required for the time being to meet disbursements referred to in subsection (1) shall be made on the authority of credits under this section upon orders issued in writing or by means of an electronic funds transfer system to the Central Bank—

(a)in the case of disbursements referred to in paragraph (a) of subsection (1), by an officer of the Minister, authorised in that behalf by the Minister, and

(b)in the case of disbursements referred to in paragraph (b) of subsection (1), by an officer of the Minister or of the National Treasury Management Agency so authorised.

(6)A daily account of all issues or transfers made from the account of the Exchequer at the Central Bank shall be sent by the Central Bank to the Comptroller and Auditor General.

(7)Where the account of the Exchequer at the Central Bank has been operated to a material extent otherwise than in accordance with this section, the Comptroller and Auditor General shall, as soon as practicable—

(a)draw up a report in writing of that fact, and

(b)cause the report to be laid before Dáil Éireann.

3. Audit of accounts of moneys administered by or under control of Oireachtas.

3.—(1)The Comptroller and Auditor General shall in each year—

(a)audit the appropriation accounts for the previous financial year prepared by the Departments and submitted to him under section 22 of the Act of 1866,

(b)in the course of the audit of such an account, carry out such audit tests as he considers appropriate to satisfy himself as to—

(i)whether the receipts and expenditure recorded in the account are supported by substantiating documentation,

(ii)whether the amounts expended have been applied by the Department concerned for the purposes for which the appropriation made by the Oireachtas was intended, and

(iii)whether the transactions recorded in the account conform with the authority under which they purport to have been carried out.

(2)If, in the course of the audit of an appropriation account, the Comptroller and Auditor General becomes of opinion that a transaction recorded therein is not properly chargeable to the account, the Comptroller and Auditor General—

(a)shall raise the question with the accounting officer concerned and, if it is not answered to his satisfaction, he shall refer the matter to the Minister in writing and the Minister shall determine how the transaction shall be accounted for, and

(b)may, if he considers it appropriate to do so, draw up a report in writing in relation to the transaction and the determination and cause a copy thereof to be laid before Dáil Éireann.

(3)If it appears to the Comptroller and Auditor General that a Department has incurred any material expenditure the incurring of which required but did not receive the authorisation of the Minister, he shall report that fact in writing to the Minister and, unless the Minister, after investigation of the matter, ratifies the expenditure and so notifies the Comptroller and Auditor General, it shall be regarded as not being properly chargeable to an appropriation account and the Comptroller and Auditor General shall draw up a report on the matter in writing and cause it to be laid before Dáil Éireann.

(4)If the Minister has reasonable cause to believe that material expenditure has been incurred by a Department which required but did not receive his authorisation, the Comptroller and Auditor General shall, if so requested by the Minister, investigate the matter and report the result of the investigation in writing to the Minister and, if, following the investigation, it appears to the Comptroller and Auditor General that such material expenditure was incurred and that it required but did not receive the authorisation of the Minister, he shall, unless the Minister ratifies the expenditure, draw up a report on the matter in writing and cause it to be laid before Dáil Éireann.

(5)Upon the completion of his audit of an appropriation account, the Comptroller and Auditor General shall attach to the account a certificate stating whether, in his opinion, the account properly presents the receipts and expenditure of the Department concerned and refer to any material case in which—

(a)a Department has failed to apply expenditure recorded in the account for the purpose or purposes for which the appropriations made by the Oireachtas were intended, or

(b)transactions recorded in the account do not conform to the authority under which they purport to have been carried out.

(6)(a)Where stocks or stores of any kind (including stocks of securities or stamps) held by a Department are of such a character or transactions in relation to them are carried out in such volume as, in the opinion of the Minister, to require the keeping of records of the stocks or stores or of the transactions, the Minister may direct the Department to keep such records in relation to the stocks or stores or the transactions, and to keep them in such form, as he may specify and the Department shall comply with such a direction.

(b)The Comptroller and Auditor General shall carry out such examinations as he considers appropriate in order to satisfy himself as to—

(i)whether any record kept pursuant to a direction under paragraph (a) is accurate, and

(ii)whether the systems, procedures and practices (including the system of stock-taking) employed by the Department concerned for controlling the stocks or stores to which the record relates are adequate and whether the manner in which the systems, procedures and practices are employed and applied is adequate.

(7)(a)The Comptroller and Auditor General shall examine the accounts of the receipt of revenue of the State collected by the Revenue Commissioners and the accounts of such other persons who receive money which is by law payable into the Exchequer as he considers appropriate.

(b)The Comptroller and Auditor General shall carry out such examinations as he considers appropriate of the accounts aforesaid in order to satisfy himself as to whether they are complete and accurate.

(c)The Comptroller and Auditor General shall carry out such examinations as he considers appropriate in order—

(i)to ascertain whether systems, procedures and practices have been established that are adequate to secure an effective check on the assessment, collection and proper allocation of the revenue aforesaid, and

(ii)to satisfy himself as to whether the manner in which the systems, procedures and practices have been employed and applied is adequate.

(8)(a)For any financial year in which a Department is carrying on a manufacturing, commercial or trading undertaking, it shall, if the Minister so directs, keep, in such form as the Minister may specify or approve, a profit and loss account, a balance sheet and such other (if any) accounts as the Minister may specify.

(b)Accounts kept pursuant to paragraph (a) shall be submitted to and audited by the Comptroller and Auditor General and he shall attach to the accounts a certificate stating whether, in his opinion, they properly present the profit or loss of the undertaking and its balances at the end of the financial year concerned.

(9)An appropriation account, an account referred to in subsection (7) and an account referred to in subsection (8) shall be submitted to the Comptroller and Auditor General before the 1st day of April in the year following the financial year to which they relate.

(10)The Comptroller and Auditor General shall in each year prepare a report in writing on—

(a)such matters as he considers it appropriate to report on arising from the audits carried out by him of the appropriation accounts for the previous financial year and accounts kept pursuant to subsection (8),

(b)such matters as he considers it appropriate to report on arising from his examinations in relation to that year or the previous financial year of the internal accounting controls operated by the Departments in order to ensure—

(i)the regularity of their financial transactions,

(ii)the correctness of their payments and receipts,

(iii)the reliability and completeness of their accounting records, and

(iv)the safeguarding of the assets owned or controlled by them,

(c)the results of the examinations carried out by him under subsections (6) and (7) in relation to that year or the previous financial year, and

(d)any substantial change made by him in relation to the extent or character of the audits, audit tests or examinations carried out by him under this section and the effects of any such change.

(11)Upon the completion of the audit of the appropriation accounts or accounts kept pursuant to subsection (8) and not later than the 30th day of September in the year following the financial year to which the accounts relate or, if Dáil Éireann then stands dissolved, the date that is one week after the first meeting of the next Dáil Éireann, the Comptroller and Auditor General shall cause to be laid before Dáil Éireann copies of the accounts aforesaid together with his certificates under subsections (5) and (8) and report under subsection (10).

(12)The Minister may by order vary one or more of the dates standing specified for the time being in subsections (9) and (11) and those subsections shall have effect in accordance with the provisions of any order under this subsection for the time being in force.

(13)Subsections (9) and (11) shall have effect as respects financial years beginning not less than 3 months after the commencement of this section.

4. Keeping and audit of Finance Accounts.

4.—(1)The Minister shall cause the Finance Accounts to be kept, in such form as he may specify, in respect of the financial year beginning not less than 3 months after the commencement of this section and each subsequent financial year and shall cause them to be transmitted, not later than the 30th day of June following the end of the financial year to which they relate, to the Comptroller and Auditor General.

(2)The Comptroller and Auditor General shall audit the Finance Accounts transmitted to him pursuant to subsection (1).

(3)Upon completion of the audit of the Finance Accounts, the Comptroller and Auditor General shall prepare a report in writing in relation to them and shall submit a copy of the report together with a copy of the said Finance Accounts to the Minister not later than the 31st day of August in the year following the financial year to which they relate and the Minister shall cause copies of the report and the said Finance Accounts to be laid before Dáil Éireann not later than the 30th day of September in that year or if Dáil Éireann then stands dissolved, the date that is one week after the first meeting of the next Dáil Éireann.

(4)The Minister may by order vary one or more of the dates standing specified for the time being in subsections (1) and (3) and those subsections shall have effect in accordance with the provisions of any order under this section for the time being in force.

(5)In this section “the Finance Accounts”, in relation to a financial year, means—

(a)an account showing the payments into and out of the Central Fund in that year, and

(b)such other, if any, accounts and statements as the Minister considers appropriate and specifies to the Comptroller and Auditor General.

5. Conferral of additional audit functions on Comptroller and Auditor General.

5.—(1)(a)The Comptroller and Auditor General shall, in addition to the accounts which he is required by other sections of this Act or by or under any other enactment to audit, audit—

(i)the accounts for each financial year of the persons specified in the First Schedule,

(ii)the accounts for each financial year of any fund owned, or operated or controlled by or for, or held in trust by or for, a Minister of the Government or a Department (other than a fund under the control of the Courts),

(iii)the accounts for each financial year of any fund owned, or operated or controlled by or for, or held in trust by or for, a person (other than a person specified in the Second Schedule or a subsidiary of such a person) whose accounts are audited by the Comptroller and Auditor General under this Act (other than subsection (2)) or any other enactment, being a fund which includes—

(I)moneys paid directly or indirectly to the fund out of moneys provided by the Oireachtas, or the Central Fund or the growing produce thereof, or

(II)moneys which have been collected or received on behalf of the Exchequer, a Department or a fund specified in sub-paragraph (ii),

(iv)the accounts of the transactions in the State in each financial year of the Guarantee section of the European Guidance and Guarantee Fund set up under Article 40 of the Treaty establishing the European Economic Community, signed at Rome on the 25th day of March, 1957, and

(v)the accounts for each financial year of a subsidiary if it is so determined by the Minister and any other Minister of the Government upon whom functions in relation to the person or a person who is a member of the subsidiary stand conferred by or under an Act of the Oireachtas by specific reference to the person or persons.

(b)The Comptroller and Auditor General may, if he so thinks fit, audit or inspect the accounts for any financial year of any fund owned, or operated or controlled by or for, or held in trust by or for, a person (other than a person specified in the Second Schedule or a subsidiary of such a person) whose accounts are audited by the Comptroller and Auditor General under this Act (other than subsection (2)) or any other enactment, being a fund which includes money paid into it by that person.

(c)In this subsection “subsidiary” means a subsidiary of a person (other than of a person specified in the Second Schedule or a subsidiary of such a person) whose accounts are audited by the Comptroller and Auditor General under this Act (other than subsection (2)) or under any other enactment (referred to subsequently in this paragraph as “a specified person”) and includes a company of which more than one specified person are members if the specified persons—

(i)control the composition of its board of directors,

(ii)hold more than half in nominal value of its equity share capital, or

(iii)hold more than half in nominal value of its shares carrying voting rights (other than voting rights which arise only in specified circumstances),

and subsection (2) of section 155 of the Act of 1963 shall apply for the purpose of determining whether the specified persons control the composition of the board of directors of the company.

(2)(a)In addition to auditing the accounts of the persons referred to in subsection (1), the Comptroller and Auditor General may, in pursuance of an agreement in that behalf made between the Comptroller and Auditor General and any other person and with the consent of the Minister, audit the accounts of such person and the accounts of any fund the auditor of which is appointed by such person.