Audit Law

1. Citation. This Law may be cited as the Audit Law.

2. Interpretation. In this Law unless the context otherwise requires - "Accountant-General" means the Accountant-General of Delta State; "Accounting Officer" means any officer charged with the responsibility of accounting for any service in respect of which moneys have been appropriated by the House of Assembly; "Attorney-General" means the Attorney-General of Delta State; "Auditor-General" means the Auditor-General of Delta State; "Commissioner" means the Commissioner in Delta State responsible for Finance; "Constitution" means the Constitution of the Federal Republic of Nigeria; "Consolidated Revenue Fund" means the consolidated Revenue Fund of the State established by the Constitution; "Financial year" means a period of twelve months beginning on the first day of January in any year; "Government" means the Government of Delta State; "Governor" means the Governor of Delta State; "House of Assembly" means the Delta State House of Assembly; "Public Accounts Committee" means the Public Accounts Committee of Delta State House of Assembly; "public money" includes - (a) the public revenue of the State Government, and/or Statutory bodies; (b) any trust, donations for whatever purpose, or other monies held by any officer in his official capacity whether temporarily or otherwise either alone or jointly with any other person whether that other person is an officer or not; "Public office" means any office of emolument in the Civil Service of the State, and/or Statutory bodies in the State; "Public officer" means the holder of any public office, including any person appointed to act in any such office.

3. Establishment of the Office of Auditor-General. (1) There is hereby established an office of the Auditor-General in the Public Service of Delta State. (2) The Auditor-General of the State shall be appointed by the Governor of the State on the recommendation of the State Civil Service Commission subject to confirmation by the House of Assembly of the State. (3) Power to appoint persons to act in the office of the Auditor-General shall vest in the Governor. (4) Except with the sanction of a resolution of the House of Assembly of the State, no person shall act in the office of the Auditor-General for a period exceeding 6 months.

4. Tenure of Office of Auditor-General and salary. (1) A person holding the office of the Auditor-General shall be removed from office by the Governor of the State acting on an address supported by two-thirds majority of the House of Assembly praying that he be so removed for inability to discharge the functions of his office (whether arising from infirmity of mind or body or any other cause) or for misconduct. (2) The Auditor-General shall not be removed from office before such retiring age as may be prescribed by law, save in accordance with the provisions of this section. (3) There shall be paid to the holder of the office of Auditor-General, of the State such salary and allowances as may be prescribed by the State House of Assembly. The salary and allowances payable to the Auditor-General shall be charged upon the Consolidated Revenue Fund of Delta State of Nigeria. Such salary payable to the holder of the office of Auditor-General of the State and his conditions of service other than allowances shall not be altered to his disadvantage after his appointment.

5. Duties of the Auditor-General (1) The public accounts of the State and of all offices, courts and authorities of the State, including all persons and bodies established by Law entrusted with the collection and administration of public moneys and assets, shall be audited and reported on by the Auditor-General; and for that purpose, the Auditor-General or any person authorised by him in that behalf shall have access to all books, records, returns and other documents relating to those accounts. (2) The Auditor-General shall satisfy himself:- (a) that all reasonable precautions have been taken to safeguard the collection of public moneys of the State and that the Law relating thereto has been duly observed and that all directions or instructions relating thereto have been obeyed; and (b) that all money appropriated or otherwise disbursed has been expended and applied for the purpose or purposes for which the grants made by the House of Assembly were intended to provide and that the expenditure conforms to the authority which governs it; and (c) that adequate financial laws and regulations exist for the guidance of accounting officer, store keepers and store accountants. (3) Anything which under the authority of this law, Constitution of the Federal Republic of Nigeria or any other Law in force at the commencement of this Law is directed to be done by the Auditor-General of the State other than the certifying of accounts and signing of reports as set out in section 10 of this law, may be done by any officer of his department so authorised by him. (4) The Auditor-General shall not be required to undertake any examination of accounts partaking of the nature of a pre-audit which involves acceptance by him of responsibility which would preclude him from full criticism of any accounting transactions after such transactions have been duly recorded. (5) The Auditor-General shall not be required to undertake any duties outside those appertaining to his post, if he considers that such duties are incompatible with the responsibilities of his office.

6. Accounts of statutory bodies. (1) Notwithstanding anything to the contrary in any Act or Law in force at the commencement of this law, the Auditor-General of the State shall audit the accounts of Statutory bodies in the State. (2) In the exercise of his duties under this section, the Auditor-General of the State- (a) shall have in relation to any such Statutory bodies as aforementioned and its members, officers and employees, the same discretion and powers as are conferred upon him by sections 5 and 8 of this Law in relation to public money, stamps, securities, stores or other property of Government; (b) may authorise any person publicly carrying on the profession of accountancy or any officer to inspect, examine or audit the books and accounts of any statutory body which he may be required to examine and audit pursuant to the provisions of this section and such person or officer shall report thereon to the Auditor-General of the State in such manner as the Auditor-General may direct. (3) Within three months after 31st December in each year or such longer period as the House of Assembly may by resolution appoint the Chief Executives of the Statutory bodies in the State shall transmit to the Auditor-General signed Annual Statements of Accounts showing the financial position of each Statutory body on the said 31st day of December which shall include- (a) a Statement of Assets and Liabilities together with detailed schedules; (b) a Statement of Income and Expenditure or a Statement/Summary of Revenue and Expenditure as applicable to each institution; (c) a Statement of Actual Revenue; (d) a Statement of Actual Expenditure. (4) Any Statutory bodies whose accounts have been audited under the provision of this Section shall in respect of such audit pay such fees as may be charged by the Auditor- General and such fees shall be credited to the Public Revenues of the State. Where a firm of Accountants/Auditors is appointed it may be paid such fees as the Auditor-Genera1 shall fix provided that such fees are not in excess of three quarters of the fees chargeable by the Auditor-General pursuant to this sub-section.

7. Submission of Audit Report. (1) The Auditor-General shall submit his Report in respect of his audit under sections 5, 6 and 10 of the Law to the House of Assembly and the House shall cause the reports to be considered by a Committee of the House responsible for Public Accounts. (2) In the exercise of his functions under this Law, the Auditor-General shall not be subject to the direction or control of any other person or authority.

8. Powers of Auditor General. (1) For the purpose of performing his functions under this Law or the Constitution, the Auditor-General shall have power- (a) to call upon any public officer for any explanation and information which the Auditor may require in order to enable him discharge his duties; (b) to authorise any officer of his department or any officer of any other Government in Nigeria to conduct on his behalf any inquiry, examination or audit; (c) without the payment of any fee, to cause search to be made in and extract to be taken from any book, document or record in any public office of the State; (d) to examine upon oath or affirmation (which oath or affirmation the Auditor- General or any person authorised by him is hereby empowered to administer) any person whom he may think fit to examine respecting the receipt or expenditure of money or the receipt or issue of any public stores, affected by provisions of the Constitution or this Law and respecting all other matters and things whatever necessary for the due performance and exercise of the duties and powers vested in him by the Constitution or by any other written law; (e) to investigate all matters relating to the receipts, disbursement and application of public funds and to make recommendations which will enhance the economy or efficiency in public expenditure; (f) to investigate and report any other matters as may be referred to him either by the House of Assembly or any Committee of the House or any person or authority having jurisdiction over revenue, appropriation or expenditure; (g) to disallow any item of expenditure that appears to him to be contrary to Law, irregular or unreasonable. He shall also have power to recommend to the House of Assembly any sum so disallowed to be surcharged against any public officer or person found responsible for any irregular payment or for incurring expenditure in excess of sums in the estimates approved by Law in the House of Assembly; and (h) to furnish the House of Assembly such aid and information as may be necessary. (2) The Auditor-General shall also have power to examine the books, records, documents etc. of any contractor including those of his sub-contractors to whom negotiated contracts are awarded by the State Government or its agencies. (3) Any person examined pursuant to the provisions of paragraph (d) of subsection (1) of this section who gives a false answer to any question put to him or makes a false statement on any matter not knowing or believing it to be true shall be deemed to be guilty of perjury and shall be liable to be prosecuted and punished accordingly.

9. Annual Accounts. (1) Within a period of six months after the 31st day of December in each year, or such longer period thereafter as the House of Assembly may, by resolution, appoint, the Accountant-General shall transmit to the Auditor-General, accounts showing the financial position of the State on the said 31st day of December which shall include- (a) a statement of assets and liabilities; (b) a statement showing the sums estimated to be issued out of the Consolidated Revenue Fund and the sums actually so issued in the period of account; (c) a statement showing the sums estimated to be issued out of the Capital Expenditure and Development Fund and the sums actually so received in the period of account; (d) such other statements as the House of Assembly may from time to time require. (2) Within a period of five months after the close of the financial year, an accounting officer shall make available to the Treasury appropriation account, as the Treasury may direct and the state of each vote compared with appropriation. Each such appropriation account shall contain an explanatory statement of any variation between the expenditure and the sums voted, and shall contain such other information and shall be in such form as the Treasury may direct and such statement as well as the appropriation account shall be signed by the accounting officer. When submitting an appropriation account to the Auditor- General, the accounting officer shall forward a copy to the Accountant-General. (3) Within a period of five months after the close of each financial year - (a) any officer charged by the Treasury with the administration of any fund established by Law in the State (other than the Capital Expenditure and Development Fund) shall in respect of such fund prepare, sign and transmit to the Auditor General an account relating to the period of account in such form as the Treasury may from time to time direct; (b) any officer charged by the Treasury with the administration of any fund or account not provided for in any, shall it so directed by House of Assembly prepare, sign and transmit to the Auditor-General an account of such fund or account in such form as the Treasury may from time to time direct.

10. Annual Certificate report of Auditor-General. Within nine months of the close of each financial year or within such longer period as the House of Assembly may by resolution appoint the Auditor-General shall transmit to the House of Assembly copies of the Accounts signed and presented by the Accountant- General of the State in pursuance of section 9 together with the certificate of audit and a report upon his examination and audit of all accounts relating to the public moneys, stamps, securities, stores and other property of the Government of the State.

11. Notification of irregularities. If at any time it appears to the Auditor-General that any major irregularities have occurred in receipt, custody or expenditure of public moneys, or in receipt, custody, issue, sale transfer or delivery of any stocks, security, public stores or property of Government, and/or Statutory bodies or in accounting of the same, he shall immediately bring the matter to the notice of the House of Assembly.

12. Liability of public officers for deficiencies in cash stores Where any public officer in the course of his official duties has possession of cash which is the property of the Government, and/or Statutory body and for any cause a deficiency occurs in the same whilst it is in his charge, he shall, unless proceedings are taken against him for surcharge under section 13, be liable by virtue of the provision of this section to make good the deficiency, and the amount thereof shall be a debt due from him to the Government and/or Statutory bodies whichever is applicable: Provided that the House of Assembly may, in any case, direct that the whole or any part of the liability of any person under this section shall be remitted.

13. Surcharge. (1) if it appears that, owing to negligence, breach of official duty or other misconduct, any public officer or any person who has been a public officer: (a) has failed to collect any monies owing to the Government, and/or Statutory bodies for the collection of which he is or was responsible; or (b) is or was responsible for any improper payment of public monies or for any payment of such monies which is not duly vouched; or (c) is or was responsible for any deficiency in, or for the destruction of any public monies, stamps, securities, public stores or other property of Government, and/or Statutory bodies, the appropriate Head of Department of Government, and/or Statutory bodies shall forthwith report the matter to the Auditor-General for recommendation and determination by the House of Assembly as to whether the public officer or person, as the case may be, should be surcharged. (2) If the House of Assembly determines that any person in respect of whom a report is made under subsection (1) of this section should be surcharged in any amount, the Auditor-General may cause a notice to be served on him, or on his legal representative in the case of his death, requiring him such time from the service of the notice as may be mentioned therein to payoff the amount surcharged. (3) Any amount notified as a surcharge in accordance with subsection (2) of this section shall be a debt due to the Government, and/or Statutory bodies from the person against whom the surcharge is made.

14. Recovery of surcharge. The amount of any sum due under section 12 or any surcharge made under section 13- (a) may be sued for and recovered in any court of competent jurisdiction at any suit of the Attorney-General; or (b) in the case of a public officer, may be recovered in equal monthly instalments, by deduction from the salary of such officer in such amounts, not exceeding one fourth of the monthly salary of such officer, as the House of Assembly shall authorise.

15. Deduction or setoff of public debt. Subject to the provision of section 12, where any person is indebted to the Government, and/or Statutory bodies in any specific sum of money certified by the Auditor-General the Treasury or the appropriate department of any such and/or Statutory body may retain by way of deduction or set-off, the amount of any such indebtedness out of any sum that may be due or payable by the Government, and/or Statutory bodies to such person.