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. “Organization” means any production, distribution, service redendering, 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 established.
   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 reliable information necessary for the proper management and administration of the Plans 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 Regulation of the Federal Government and report same to the Council;
   3. Undertake a financial and performance audits of the Offices and organization of the Federal Government;
   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 engaged in accounting and audit professions;
   6. draw up a standard of auditing by which accounts of the offices and organizations of the Federal Government shall be examined and follow up the implementation of the 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, between 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 al the powers necessary for the performance of its functions. 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 special grants extended by the federal government to regional Government;
   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, programmed and efficiency audit or performance audit in order to ensure that the performance of Federal Government offices & organization 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 People's 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 employed 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 necessary, 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 booked, documents, ledgers, vouchers and other material related to such account;
   11. Give the necessary advice 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 Governments 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:
       1. Organizations which are under the ownership of the Federal Government;
       2. Public organizations which are, by law, under the common ownership of the Federal and Regional Governments;
       3. Activities over which the Federal Government has the right to control;
       4. Sectors over which the Federal Government has been assigned by law, with the responsibility and authority to administer;
       5. 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 session, to the president of the Federal Republic:
   2. Review the annual report which the Ministry of Finance submits to it concerning the Federal Government 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 proclamation in the report indicating 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 according 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
      1. Assists the Federal Auditor General in planning, organizing guiding and coordinating the activities of the office of the Federal Auditor General.
      2. 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. Budget and Auditing
    1. A proportionate quarterly appropriations of the operational budget of the approved budget of the office of the Federal Auditor General shall be deposited in advance in the National Bank of Ethiopia in an account opened in the name of the Office of the Federal Auditor General.
    2. The Accounts of the Office of the Federal Auditor General shall be audited by a body to be designated by the Council of Peoples' Representatives or by the president of the Federal Republic , where the Council is not in session, as the case may be.
11. Audit Procedure and Period of Limitation
    1. The Federal Auditor General may audit accounts in full or by a system of spot-checking which-ever he deems it appropriate in a given case provided, however, that any report which he submits, in accordance with sub-Articles (1) and (2) of Article 8 of this Proclamation concerning the results of Audits of the accounts, shall contain a statement describing the nature and extent of the audit performed with respect to each account.
    2. The Federal Auditor General shall not perform audits covering beyond a period of two fiscal years prior to the fiscal year upon which the audit is to be performed unless he believes that a crime has been committed.
12. Duties of Persons to be Audited
    1. Any individual, employees or an official, upon request by the Federal Auditor General, Auditors of the Office of the Federal Auditor (General or Representatives of the Federal Auditor General, shall, forthwith, make available correct and complete books, documents, ledgers, vouchers and all other documentary or oral evidence which the Auditors deemed it useful and necessary for auditing
    2. Any person who has had in his custody or has paid or has expended or is in charge of the accounts of the money and property of the organs auditable by the office of the Federal Auditor General under the provision of this proclamation, shall, upon request, have the obligation to have his accounts audited.
    3. Auditee entities are obliged to take corrective measures, within 30 days from the date of delivery on recommendations and comments included in the audit reports sent to them by the Federal Auditor General; if they are unable to take such measures shall inform the same and the reasons there of to the Federal Auditor General within the period specified herein.
    4. The head of any audited office whose weaknesses were commented in the report of the Federal Auditor General submitted to the Council of peoples Representatives, Shall have the duty to take appropriate remedial measures and inform same to the Council of Peoples' Representative and the Federal Auditor General
13. Duty to Notify
    The Federal Auditor General shall notify to the Ministry of Justice and the head of the audited Federal government Office or Organization concerned where, in the course of his auditing, he has reasons to believe that an offence has been committed.
14. Offences and Penalty
    1. Any Person who:
       1. fails to produce or make available books, documents, ledgers, vouchers or any other documentary or oral evidence which the Federal Auditor General Directly or through his employees or his representatives requires for auditing; or
       2. Gives to the Federal Auditor General, the Auditors of the office of the Federal Auditor General or its representatives any information which he knows to be false or which he has no reason to believe to be true; or
       3. Obstructs the proper carrying out of the functions of the Federal Auditor General; or
       4. Fails to, take measures, within 30 days from the date of delivery, on recommendations and comments included in the audit report of the Federal Auditor General; or fails to comply with the provisions of this Proclamation when he is required to do so;
       5. Shall be punished with imprisonment from 5 to 7 years or with a fine of Birr 10,000 (ten thousand Birr) or with both such fine and imprisonment.
    2. Any Auditor who:
       1. in consideration for the performance or for the omission of an act in violation of the duties proper to his office solicits, exacts a promise of or receives a gift, money or any other advantage; or
       2. accepts any auditable document as genuine where he knows that is not or unduly rejects any valuable document submitted to him by the one to be audited; or
       3. defrauds or cooperates with others by creating conducive conditions so that they can defraud or conspires in defrauding money of the federal Government; or
       4. with intent to obtain or procure undue advantage for himself or to a third person or to cause a harm on any other person, causes to disappear or falsify or cause to be falsified or forges any books, documents, ledgers, vouchers or any other evidence submitted to him by the one to be audited:
       5. shall be punished with imprisonment from 5 to 10 years and with a fine from 10,000 up to Birr 15,000 (ten thousand up to fifteen thousand Birr.)
15. Repeal and Non-applicability
    1. The Proclamation to Establish the Office of the Auditor General Proclamation No.13/1987, is hereby repealed.
    2. Any Laws and Regulations which are inconsistent with this Proclamation shall not apply to matters provided for in this Proclamation.
16. Effective Date
    This Proclamation shall enter into force as of the 6th day of March, 1997.
    Done at Addis Ababa , this 6 th day of March, 1997.