THE PUBLIC AUDIT ACT, 2008

ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY PROVISIONS

Section Title
1. Short title and commencement.
2. Application.
3. Interpretation.

PART II
THE CONTROLLER AND AUDITOR-GENERAL

4. Appointment of the Controller and Auditor-General.

5. Constitutional mandates.
6. Tenure of office.
7. Removal from office.
8. Appointment of Acting Controller and Auditor-General.
9. Responsibilities of the Controller and Auditor-General.
10. Functions of the Controller and Auditor-General.
11. Powers of the Controller and Auditor-General.
12. Power to make recommendations.
13. Independence and status.
14. Immunity from legal proceedings
15. Access to information.
16. Engagement of experts.
17. Scope of audit.
18. Audit standards and code of ethics.
19. Audit fees

PART III
THE NATIONAL AUDIT OFFICE

20. National Audit Office

21. Common Seal
22. Functions of the National Audit Office
23. Independence of officers and employees.
24. Employment and Management of Officers.
25. Obligations of Officers

PART IV
TYPES OF AUDITS

26. Regularity audit.

27. Forensic audit.
28. Performance audit.
29. Other audits.

PART V
AUDIT OF PUBLIC AUTHORITIES AND OTHER BODIES

30. Public authorities and other bodies.

31. Submission of the accounts.
32. Audit of public authorities or bodies.
33. Contracting of audits.

PART VI
REPORTING OF AUDITS

34. Annual audit reports.

35. Reports on forensic and performance audits.
36. Special audit reports.
37. Reports on audit of public authorities and other
bodies.
38. Parliamentary Oversight Committees.
39. Reports as public documents.
40. Response to reports of the Controller and Auditor-
General

PART VII
FINANCES AND AUDIT

41. Funds for the National Audit Office.

42. Appointment of the accounting officer.
43. Annual reports and financial statements.
44. Estimates of revenue and expenditure.
45. Accountability.
46. Audit of accounts.

PART VIII
MISCELLANEOUS PROVISIONS

47. Offences and penalties.

48. Oath on appointment.
49. Regulations.

PART IX
CONSEQUENTIAL AMENDMENTS

50. Construction.
51. General repeals and savings.
SCHEDULE
 THE UNITED REPUBLIC OF TANZANIA

No. 11 OF 2008

I ASSENT
JAKAYA MRISHO KIKWETE
President

4th July, 2008

PREAMBLE

WHEREAS the Constitution of the United Republic of Tanzania

establishes the office of the Controller and Auditor-General and charges
the holder with mandate of authorizing the use of money to be paid out
of the Consolidated Fund upon being satisfied that Article 136 of the
Constitution has or shall be complied with, ensuring the money
authorized to be charged on the Consolidated Fund or the money the
use of which is authorized by law, examining how government resources
have been spent for purposes connected and incurred in accordance
with authorization and auditing and reporting on the accounts, financial
statements and financial management of the Government Ministries,
Independent Departments, Executive Agencies, Public Authorities, the
Judiciary and the National Assembly;

AND WHEREAS the discharge of the mandate of Controller and

Auditor- General is intended to promote accountable democratic
institutions by preventing financial malpractice, corruption, delivery of
information to taxpayers about the carrying out of government policies
and programmes;

AND WHEREAS the effective supreme audit institution promote and

enhance transparency accountability and predictability of government
performance;

AND WHEREAS the performance of functions and exercise of powers

of the Controller and Auditor-General requires a strong institutional
framework equipped with tools of modern technology, trained and skilled
personnel supported by comprehensive legal regime;
 NOW THEREFORE, be it ENACTED by Parliament of the United
Republic of the United Republic of Tanzania as follows:

PART 1
PRELIMINARY PROVISIONS

1. Short title and commencement

(1) This Act may be cited as the Public Audit Act, 2008.
(2) This Act shall come into operation on such date as the Minister
may, by notice published in the Gazette, appoint.

2. Application
This Act shall apply in relation to the conduct of any audit and other
operations under the jurisdiction of the Controller and Auditor-General
provided for under the Constitution and any other laws.

3. Interpretations
In this Act, unless the context requires otherwise-
“accounting officer” means any officer appointed by the Paymaster
General or by relevant laws and charged with the duty of accounting
for any service in respect of which money have been appropriated by
the National Assembly or any person to whom issues are made from
Consolidated Fund;

“appropriate minister” means a Minister responsible for audited

sector;

“Attorney-General” means the Officer referred to in Article 59 of the

Constitution;

“audit standards” means standards issued by Local and International

Audit and Accounting bodies determined by the Controller and Auditor-
General to be applied in the conduct of his functions;

“auditee” means an entity or body audited under this Act;

“code of ethics and conduct” means a code of ethics and conduct

for the Public Service and shall include the relevant Professional Codes
of Ethics and Conduct and as well the code of ethics and conduct
developed by the National Audit Office for its staff;
“Consolidated Fund” means the Consolidated Fund of the
Government of the United Republic referred to under Article 135 of the
Constitution;

“Constitution” means the Constitution of the United Republic of

Tanzania of 1977;

“Controller and Auditor-General” means the Officer referred to in

Article 143 of the Constitution;

“financial year” means in relation to-

(a) Central and Local Government, a period of twelve months ending
on 30th June o each year;
(b) a public authority or other body, the period specified by or under
the relevant law or instrument relating to that authority or body or
as shall be determined by the competent authority of that authority
or body;
“Forensic audit” means audit aiming at prevention and detection of
irregularities, such as fraud, embezzlement and corruption, and
application of auditing skills to situations that have legal
consequences;

“generally accepted accounting principles” means accounting

principles and procedures recognized by accounting professional
bodies as appropriate for reporting financial information relating to
Government, Ministry, local government authority or department, a
Fund, an Agency or other reporting unit being principles and
procedures that are consistent with this Act and any other appropriate
Act;

“independent department” means a separate part of the central

government which is not assigned to any Ministry;

“local government authority” means the Authority established

under Article 145 of the Constitution;

“Minister” means the Minister responsible for matters relating to

finance;

“National Audit Office” means the supreme audit institution of the

United Republic of Tanzania referred to under section 20 of this Act;
 “officer” or “public officer” means a civil servant employed by the
Government or any officer of a Government authority, public
authorities and other bodies;

“Paymaster General” means the officer referred to in Public Finance

Act and vested with the powers to control the issue of public money to
accounting officers;

“public authority” means a body of persons whether or not

corporate established by or under any written laws, other than the
Companies Act, whose functions are of public nature and are exercised
in furtherance of the public policy determined by the Government;

“public monies” include:

(a) the public revenues of the United Republic;
(b) any trust or other money held, whether temporarily or otherwise,
by an officer in his official capacity either alone or jointly with any
other person, whether an officer or not;

“resources” includes monies, stores, property, assets, loans and

investment.

PART II
THE CONTROLLER AND AUDITOR-GENERAL

4. Appointment of the Controller and Auditor-General

(1) The Controller and Auditor-General shall be appointed by the
President from among the citizens of the United Republic of
Tanzania by birth.

(2) On appointment of the Controller and Auditor-General, the

President shall consider relevant professional qualifications,
experience and leadership skills suitable for appointment to the
post.

(3) Upon appointment of the Controller and Auditor-General, shall

subscribe to the oath before the President.
 (4) The Controller and Auditor-General shall, in addition to the terms
and conditions specified in the Constitution, hold office on such
other terms and conditions as may be provided in any written law.

5. Constitutional Mandates
The Constitutional mandates of the Controller and Auditor-General
shall be to-
(a) authorize the use of money to be paid out of the Consolidated
Fund upon being satisfied that Article 136 of the Constitution
has been or shall be complied with;

(b) ensure the money authorized to be charged on the

Consolidated Fund or the money the use of which is
authorized by law, have been spent for purposes connected
and incurred in accordance with authorization; and

(c) audit and report on the accounts, financial statements and

financial management of –

(i) the Government of the United Republic, that is to say,

Ministries, Independent Departments, Executive
Agencies, Public Authorities and Other Bodies and
Donor Funded Projects;
(ii) the local government authorities;
(iii) the Judiciary; and
(iv) the National Assembly.

6. Tenure of office
(1) The Controller and Auditor-General shall hold office for the fixed
term of five years and shall be eligible for renewal for one term
only.
(2) Unless the question of removal becomes the subject of
investigation in terms of Article 144(3) of the Constitution, the
Controller and Auditor-General shall vacate office-
(a) upon attaining the age of sixty five years;
(b) if the Controller and Auditor-General resigns-

(i) on account of medical grounds or any other grounds

which the President considers sufficient; or
(ii) by giving six months’ notice to the President.
7. Removal from office
The Controller and Auditor General may be removed from his office for
reasons and procedures provided for under Article 144 of the
Constitution.

8. Appointment of Acting Controller and Auditor General

(1) Where the post of the Controller and Auditor-General becomes
vacant, the President may appoint a person to that office within
sixty days of the post becoming vacant.

(2) The President shall appoint a qualified person to act as Controller

and Auditor-General if-

(a) the absence due to incapacity of the Controller and

Auditor-General is expected or intended to or may last
more than three months;

(b) the Controller and Auditor-General is suspended from

office in connection with proceedings for his removal; or

(c) the office of Controller and Auditor-General becomes

vacant due to any other reasons.

9. Responsibilities of the Controller and Auditor General

In addition to the functions assigned to the Controller and Auditor-
General by the Constitution, the Controller and Auditor-General shall
be-
(a) responsible for examining, inquiring into, auditing
reporting on the accounts of-

(i) all Ministries, Independent Departments of

Government, Agencies and their accounting officers;

(ii) local Government Authorities and their accounting

officers;

(iii) all persons entrusted with the collection, receipt,

custody, issue, sale, transfer or delivery of any stamps,
securities, stores or other public properties;

(iv)all public authorities and other bodies;

 (v) any public authority or public body which receives
funds from the Consolidated Fund or from public
monies for a public purpose;

(vi)any public authority or public body which is authorized

by law to receive money for a public purpose; and

(vii) any public authority or public body required by law to

be audited by the Controller and Auditor-General.

(b) Conducting any other audit as provided in this law or other

written laws.

10. Functions of the Controller and Auditor General

(1) The Controller and Auditor-General shall, on behalf of the National
Assembly, examine, inquire into and audit the accounts submitted
to him as required under the Public Finance Act, Local Government
Finances Act and any other written laws and perform any other
functions which he is authorized to perform by or under this Act.

(2) In exercising his functions or inquiry, examination and audit of

accounts, the Controller and Auditor-General shall, in addition to
satisfying himself as to the matters specified in that behalf in the
Constitution and any other law, satisfy himself that-

(a) all accounts referred to in subsection (1) have been kept

in accordance with generally accepted accounting
principles as required by relevant laws;

(b) all reasonable precautions have been taken to safeguard-

(i) the collection of revenue; and
(ii) the receipt, custody, disposal, issue and proper
use of public property, and that the laws,
directions and instructions applicable thereto have
been duly observed.

(c) all expenditure of public monies has been properly

authorized and applied to the purposes for which they
were appropriated and that the laws, directions and
instructions applicable thereto have been duly observed
and provide an effective check of the assessment and
collection of revenue; and
 (d) economy, efficiency and effectiveness have been achieved
in the use of public resources.

11. Powers of Controller and Auditor-General

(1) In the performance of his functions and responsibilities, the
Controller and Auditor-General may

(a) call upon any public officer for any explanation and information
which the Controller and Auditor-General may require in order
to enable him to perform those functions and responsibilities;

(b) summon and examine under oath any person as he may

determine in connection with the receipt or expenditure of
public monies or the receipt or issue of any public property
affected by the provisions of this Act and in connection with any
matter necessary for the proper performance of his functions;

(c) authorize any person eligible to be appointed as an auditor as

the requirements of the Accountants and Auditors (Registration)
Act, to conduct an inquiry, examination or audit on his behalf
and that person or officer shall report to him;

(d) without payment of any fee, cause search to be made in and

extracts to be taken from any book, document or record in any
public office;

(e) seek the professional opinion or advice of the Attorney-General

or any other qualified person on matters of a legal nature or of
any qualified person on any accounting, auditing or other
matter;
(f) accept as correct without further examination, or rely upon a
certificate of any other person as hi thinks fit, on the accounts
of any other person entrusted with the collection, receipt,
custody, control or payment of public monies or public property
or with the issue, sale, transfer or delivery of public property;

(g) from time to time acquire the services of any person as

provided for under section 16 of this Act.

(2) In evaluating and examining the public procurement processes and

procedures, the Controller and Auditor-General may use the Public
Procurement Regulatory Authority and stock verifier’s findings as
guidance in reaching conclusions necessary for the performance of
his duties.
(3) Where at any time it appears to the Controller and Auditor-General
that-

(a) any payment has been made without due authority

according to law;
(b) any irregularity has occurred in the receipt, custody,
control, issue, transfer or delivery of any public property;
(c) any deficiency or loss occasioned by negligence,
misconduct, fraud, or corruption has occurred;
(d) any failure to observe a principle of the highest thrift has
occurred; or
(e) any sum which ought to have been, has not been, brought
to account;

he shall-
(i) in the case of expenditure of or by the
Government, the Judiciary or National Assembly,
disallow the expenditure as a charge on public
funds; or
(ii) in any other case, call in question the sum
concerned.

(4) Where any of the matters referred to in paragraphs (a) to (e) of

subsection (3) relates to expenditure of or by the Government, the
Judiciary or the National Assembly, the Controller and Auditor-
General shall submit to the President every report he makes, and
the provisions Article 143(4) of the Constitution shall apply to every
such report, but nothing in this subsection shall be construed as
preventing the Controller and Auditor-General from submitting a
report to the President of any audit matter relating to any public
authority or other body.

(5) In every case, where the Controller and Auditor-General makes a

report under this section, he shall notify the Paymaster-General or
the appropriate accounting officer or authority whether it is
appropriate that the person involved in the use of public funds or
property entailing any of the matters in subsection (3) should make
good the loss or deficiency resulting therefore and whether
disciplinary, surcharge, or legal proceedings, or all of them, should
be instituted against the person concerned.
 (6) In the exercise of powers, the Controller and Auditor-General or
any person duly authorized by him in writing shall have access to
information as under section 15 of this Act.

(7) Subject to any duty imposed on him by any written law, the
Controller and Auditor-General shall have complete discretion in the
discharge of his functions and, in particular, in determining whether
to carry out an examination under Part V of this Act and as to the
manner in which such examination is carried out.

(8) Notwithstanding subsection (7), in determining whether to carry

out any such examination he shall take into account any directives
made by the Public Accounts Committee, the Local Authorities
Accounts Committee, the Parastatal Organizations Accounts
Committee and any other Committee of the National Assembly.

12. Power to make recommendations

The Controller and Auditor-General may for the purpose of-
(a) preventing or minimizing unproductive expenditure of
public monies;
(b) maximizing the collection of public revenues;
(c) averting loss by negligence, carelessness, theft,
dishonesty, fraud, corruption relating to public monies and
resources, make such recommendations and submit such
proposals to the Minister or appropriate Minister as he
considers necessary for better management of public
monies and resources including the revision of any
regulations, directives or instructions issued under relevant
laws.

13. Independence and status

The independence and status of the Office of the Controller and
Auditor-General shall be as provided for under Article 143 of the
Constitution.

14. Immunity from legal proceedings

No action or other proceedings shall lie against the Controller and
Auditor-General or any public officer, audit firm or expert authorized
by him for or in respect of the findings of any audit examination or
inspection carried out by him in good faith in the exercise or purported
exercise of powers under this Act.
15. Access to information
(1) The Controller and Auditor-General or his representative shall have
unrestricted access to such people, documents, computers and
other information systems and assets as the Controller and Auditor-
General reasonably considers necessary for the proper performance
of his functions, carrying on responsibilities and the exercise of
powers.

(2) The accounting officer of the auditee shall ensure that the
Controller and Auditor-General has access all reasonable times to
the documents of the auditee relating to the performance of
functions, responsibilities and the exercise of powers by the
Controller and Auditor-General.

(3) The internal auditor of an auditee who is the subject of audit by the
Controller and Auditor-General shall submit to the Controller and
Auditor-General quarterly copies of internal audit report before the
beginning of the next quarter.

(4) For the purpose of performing by the Controller and Auditor-

General of his functions and responsibilities and the exercise of his
powers, the Controller and Auditor-General may require an auditee
or any person employed by the auditee to-

(a) produce any document in the auditee’s or other person’s

custody, care or control; and
(b) provide the Controller and Auditor-General with
information or an explanation about any information,
system or asset.

(5) The Controller and Auditor-General may also obtain such

information as he considers necessary to fulfill the performance of
his functions, responsibilities and the exercise of his powers from
any person who is not a member, employee or office of the
auditee.

(6) In obtaining information pursuant to subsection (5), the Controller

and Auditor-General shall-
(a) advise the person in writing of the nature of the
information; and
(b) state that the information is required under this Act.
16. Engagement of experts
In carrying out his responsibilities and in the performance of his
function, the Controller and Auditor-General may engage an expert or
specially qualified person, whether or not that person is a public officer
for the purpose and on such terms and conditions as may be agreed
upon.

17. Scope of audit

The Controller and Auditor-General shall determine the scope and
extent of the examination or inspection of the accounts or any other
audit of each auditee under this Act, which he considers desirable in
carrying on his responsibilities and functions specified under Part II of
this Act.

18. Audit Standards and Code of Ethics

(1) The Controller and Auditor-General in discharging his functions and
responsibilities, shall determine which auditing standards should be
applied and may issue auditing standards and code of ethics and
Conduct specific to the audits performed by the National Audit
Office.

(2) Pursuant to subsection (1), the Controller and Auditor-General may

be guided by international auditing standards or other auditing
standards as he may deem fit.

19. Audit fees

(1) The Controller and Auditor General may charge fees for auditing
the accounts of any person or body.

(2) Pursuant to subsection (1), the Controller and Auditor-General or

his representative shall have regard on-
(a) the nature and extent of the services provided;
(b) the requirements of auditing standards;
(c) the qualification and experience of the persons necessarily
engaged in providing the services; and
(d) any other matters the Controller and Auditor-General
deems fit.

(3) The Public Authority or bodies shall pay the audit fees to the
National Audit Office..

(4) The provisions of this section shall not apply to the accounts of
central government and local government authorities.
 PART III
THE NATIONAL AUDIT OFFICE

20. National Audit Office

(1) There shall continue to exist the National Audit Office headed by
the Controller and Auditor-General.

(2) The National Audit Office shall-

(a) be the supreme audit institution of the United Republic of
Tanzania;

(b) conduct the types of audits specified under Part IV; and

(c) perform functions, carry on responsibilities and exercise

powers of the Controller and Auditor-General stipulated
under Article 143(2) of the Constitution.

21. Common Seal

The National Audit Office shall have common seal which shall be
judicially noticed and be dully affixed if witnessed under the hand of
the Controller and Auditor-General, and officers authorized in that
behalf.

22. Functions of the National Audit Office

The functions of the National Audit Office shall be as stated under
section 10 of this Act.

23. Independence of National Audit Office and its staff.

(1) The National Audit Office shall perform its functions impartially,
without fear, favour or prejudice and shall exercise its powers
independently subject to the provisions of the Constitution, the
provisions of this Act and any other written law.

(2) The independence of the Controller and Auditor-General provided

for under section 13 shall equally apply to the National Audit Office
and its staff.

24. Employment and management of Officers

(1) The Controller and Auditor-General shall employ, appoint promote
and control discipline of such number and categories of officers and
employees of such qualifications as may be considered necessary
to assist him in the performance of the functions, carrying on
responsibilities and the exercise of his powers.
 (2) In discharging the duty imposed by subsection (1), the Controller
and Auditor-General shall, with necessary variations, be guided by
the laws governing employment in the public service.

(3) Any person who, immediately before the commencement of this

Act, holds or is acting in any capacity within the National Audit
Office shall, upon the commencement of this Act be deemed to
have been appointed to or to act in that office in accordance with
the provisions of this Act.

(4) The Controller and Auditor-General shall, on advice of the relevant

authorities, determine remuneration of officers appointed pursuant
to sub-section (1).

25. Obligation of officers

(1) The Officers of the National Auditor Office shall posses the
professional knowledge and skills commensurate with the audit
work they engage in.

(2) In handling audit matters an officer shall not take part in the audit
if he has an interest in the auditee or the matters thereon.

(3) The officer shall not divulge any information which relates to the
business secret of the auditee which comes to theirs knowledge in
the course of audit.

(4) It is the obligation of every officer of the National Audit Office to

observe the professional code of ethics and conduct under section
18.

PART IV
TYPES OF AUDITS

26. Regularity audit

The regularity audit conducted by the Controller and Auditor-General
shall include the evaluation and examination of-
(a) financial statements and the underlying records;
(b) internal control systems and other checks;
(c) public procurement procedures and process;
(d) compliance with applicable laws, regulations and policies;
and
(e) any other matter as the Controller and Auditor-General
may consider necessary.
27. Forensic audit
Where, in the course of forensic audit or any other type of audit, the
officer of the National Audit Office suspect frauds, they shall
immediately notify the matter to the Controller and Auditor-General
who shall determine if and how the audit shall proceed as the matter
may have to be reported to law enforcement organs.

28. Performance audit

The Controller and Auditor-General shall, for the purposes of
establishing the economy, efficiency and effectiveness of any
expenditure or use of resources of the entities, enquire into, examine,
investigate and report, in so far as he considers necessary, on-
(a) the expenditure of public monies and the use of resources
by such Ministries, departments, agencies, local authorities
and all such public authorities and other bodies.
(b) the conduct of and performance of functions by
accounting officers, head of department and chief
executive officers of all such entities stipulated in section
5(c) of this Act;
(c) compliance with environmental laws, regulations and
internal environmental policies and standards; or
(d) any other activity undertaken by such entities.

29. Other audits

(1) The Controller and Auditor-General may undertake any other type
of audit as he may deem fit.
(2) The Controller and Auditor-General may, on request by any person,
institution, public authorities, Ministries, departments, agencies,
local government authorities and such other bodies to undertake
any special audit.

PART V
AUDIT OF PUBLIC AUTHORITIES AND OTHER BODIES

30. Public authorities and other bodies

(1) For each financial year, each public authority or body shall prepare
and submit for audit its financial statements to the Controller and
Auditor-General

(2) The financial statements shall include-

(a) a balance sheet;
(b) income statement;
(c) a cash flow statement;
(d) statement of changes in equity;
 (e) notes and schedules to the accounts;
(f) any other statement and accounts that may be necessary
to full disclose the financial position of the public authority
or body.

(3) The public authority or body shall include any authority or bodies-
(a) established by written law or other instrument which is in
receipt of a contribution from, or the operations of which
may, under the law or instrument relating thereto, impose
or create a liability upon, public funds;

(b) which the Government has invested its monies;

(c) executing a Government project in respect of which a

foreign provides, any money, goods or services, whether
or not it is specifically provided in relevant agreement for
the project that the accounts of the public authority or
body are subject to audit by the Controller and Auditor-
General;

(d) whose accounts are, by or under a written law, required to

be audited, or are open to inspection, by the Controller
and Auditor-General;

(e) in which the Government is the majority shareholder;

(f) which has, in any of its financial years, received more that
half of its income from public funds.

(4) The Treasury Registrar shall avail to Controller and Auditor-General

the annual audit report of bodies in which the government is a
minority shareholder for review and to advice the Government.

31. Submission of accounts

The public authority or body shall submit its financial statements to the
Controller and Auditor-General within three months after the end of
the financial year to which the accounts relate.

32. Audit of public authorities or bodies

(1) In the exercise of his powers and duties under this Part, the
Controller and Auditor-General shall have the same powers in
relation to the monies, stamps, securities, stores and other
property of the bodies referred to under section 12 of this Act.
 (2) Where the functions of the Controller and Auditor-General in
connection to any authority or body referred to under section 30(2)
are by the relevant law or agreement restricted to particular
activities of the authority or body, any examination under this
section in respect of that authority shall be correspondingly
restricted.

(3) Notwithstanding to the contrary in any written law in force, the

financial statements of any body to which this section applies shall
be audited by the Controller and Auditor-General.

(4) Upon receipt of the financial statements prescribed in section 31(1)

of this Act, the Controller and Auditor-General shall cause them to
be audited and shall within a period of six months or such longer
period as the National Assembly may by resolution appoint issue
the report thereon.

33. Contracting of audits

(1) The Controller and Auditor-General may authorize any person
eligible to be appointed or contracted as an auditor of a company
or any qualified person to inspect, examine or audit on his behalf
the books and accounts of any body which the Controller and
Auditor-General may required to audit pursuant to the provisions of
this Act and such person, officer of firm shall conduct the audit and
report thereon to the Controller and Auditor-General in such
manner as the Controller and Auditor-General may direct.

(2) The appointed or contracted auditors under subsection (1), shall be

bound by the provision of sub-section (3) of section 25.

(3) Notwithstanding subsection (1), the audit opinion shall remain the
sole responsibility of the Controller and Auditor-General.

PART VI
REPORTING OF AUDIT

34. Annual reports

(1) On receipt of the accounts prescribed in relevant laws, the
Controller and Auditor-General shall cause the accounts to be
examined and audited and shall, within a period of nine months
or such longer period as the National Assembly may by
resolution appoint after the end of the year to which the
accounts relate-
 (a) express professional opinion, in respect of each account
and the results of the examination and audit;
(b) prepare a report upon the examination and audit of all
such accounts; and
(c) submit a report to the President and the Minister or
appropriate Minister.

(2) The final report issued under this section shall be laid by the
Minister or appropriate Minister to the National Assembly within
seven days of the next sitting of the Assembly after he has
received it.

35. Reports on forensic and performance audits

(1) Where the audit is conducted in accordance with section 27 or
28, the appropriate Minister to whom the report is submitted,
shall lay the report before the National Assembly after receiving
the Report within seven days of the sitting of the next session
of the National Assembly.

(2) Where the appropriate Minister fails to lay the report before the
National Assembly as required under sub section(1), the
Controller and Auditor-General shall forthwith submit a copy of
the report to the Speaker who shall lay it before the National
Assembly.

36. Special reports

(1) Where at any time it appears to the Controller and Auditor
General desirable that any matter relating to public monies or
public property should be drawn to the attention of the National
Assembly without undue delay, he shall prepare a special report
relating to such matter and submit the report to the President.

(2) A special report in terms of subsection (1) may be made in

relation to any matter incidental to the powers and duties of the
Controller and Auditor-General under Part II of this Act or any
other written law.

(3) The provisions of Article 143 of the Constitution shall apply to

the submission of report under this Section.

37. Reports on audit of public authorities or bodies

(1) The Controller and Auditor-General shall prepare a report on the
audit of the accounts referred to in this Part and shall submit
 the same to management of the audited body for the replies
and comments.

(2) Upon receipt of the observations from the Controller and

Auditor-General, the accounting officer shall within twenty one
days reply to the observations.

(3) The final report issued in respect to sub section (2) shall be laid
by the appropriate Minister to the National Assembly.

38. Parliamentary Oversight Committee

(1) The Public Accounts Committee, Local Authorities Accounts
Committee and Parastatal Organisations Accounts Committee
shall discuss the reports of the Controller and Auditor-General
after they have been tabled in the National Assembly.

(2) Upon completion of hearings, the Parliamentary Oversight

Committees shall prepare and submit to the National Assembly
reports which may include comments and recommendations.

39. Reports as public documents

All statutory audit reports issued by the Controller and Auditor General
shall be public documents after being tabled in the National Assembly.

40. Response to reports of the Controller and Auditor-General

(1) The accounting officers shall respond to the Controller and
Auditor-General’s annual audit reports and prepare action plan
of the intended remedial actions for submission to the
Paymaster General.

(2) On receipt of the responses and action plans, the Paymaster-

General shall submit to the-
(a) Minister who shall lay it before the National Assembly in
the next session; and
(b) Controller and Auditor-General a copy of the
consolidated responses and action plan.

(3) In preparing the responses and action plan, the Paymaster-

General and the accounting officer shall take into account the
observations and recommendations of the oversight committee
on financial affairs established by the National Assembly.
 (4) The Controller and Auditor-General shall include an
implementation status of the action plan in the next annual
audit report.

PART VII
FINANCES AND AUDIT

41. Funds for National Audit Office

(1) The funds and resource for the National Audit Office shall
consist of monies-
(a) appropriated by Parliament for the purposes of the
National Audit Office;
(b) earned in connection with the services rendered in
accordance with this Act or any other law;
(c) earned from investments;
(d) which are donations or bequests and the terms of
which are acceptable to the Controller and Auditor-
General; and
(e) accruing to the National Audit Office from any other
source.

(2) The full amount of monies from time to time appropriated by

Parliament under paragraph (a) of subsection (1) shall be paid
by the Treasury out of the Consolidated Fund into an Audit
Revenue Fund, into which all other monies received by, or
accruing to the Office shall be paid; and the Fund shall be
independent of the control of any person or authority other than
the Controller and Auditor-General or any other person or body
acting on that behalf.

42. Appointment of the accounting officer

The Paymaster General shall appoint the accounting officer of the
National Audit Office who shall control and be accountable for the
expenditure of money applied to National Audit Office by an
Appropriation Act and for all revenues and other public monies
received, held or disposed of, by or on account or service for which the
office provides.

43. Annual reports and financial statements

The accounting officer of the National Audit Office shall, within a
period of three months after the end of each financial year prepared
and submit to the appointed auditor in respect of the past financial
year and in respect, of expenditures and revenues for which he is
responsible-

(a) an Appropriation account signed by the accounting officer

showing the services for which the monies expended were
voted, the sums actually expended on each service, and the
state of each vote compared with the amount appropriated for
that vote by the National Assembly;

(b) a statement signed by the accounting officer and in such form

as the Paymaster-General may direct containing the amount of
commitments outstanding for the supply of goods and services
at the end of the financial year and such other information as
the Minister may require;

(c) a statement of revenues received and signed by the accounting

officer and in such form as the Paymaster General may direct
showing the amount contained in the estimates of revenue for
each source of revenue and the amount actually collected and
contained an explanation for any variation between the
revenues actually collected and the amount estimated;

(d) a statement of arrears of revenue signed by the accounting

officer showing the amount outstanding at the end of the
financial year for each source of revenue and containing such
information and in such form as the Paymaster General may
direct, and where appropriate, a nil return be submitted;

(e) a statement of assets signed by the accounting officer

containing details and values of all unallocated stores under his
control at the end of the financial year together with the details
and values of such other classes of assets under the control of
the accounting officer as the Paymaster General may from time
to time determine;

(f) a statement of performance in providing each class of outputs

provided during the year by the accounting officer being a
statement that-
(i) compares that performance with the forecast of the
performance contained in the estimates laid before the
National Assembly pursuant to the Public Finance Act; and
 (ii) gives particulars of the extent to which the performance
criteria specified in those estimates in relation to the
provision of those outputs were satisfied.

44. Estimates of revenue and expenditure

(1) The Controller and Auditor-General shall, in respect of the first
financial year of the National Audit Office and for each
subsequent financial year, prepare estimates of the revenues
and expenditure of the National Audit Office.

(2) On completion of preparing the estimates of revenues and

expenditure, the Controller and Auditor-General shall present
the same to consultative meeting of the Minister and the Public
Accounts Committee.

(3) The Minister shall submit to the National Assembly, the

estimates of the revenues and expenditure of the National Audit
Office for approval.

45. Accountability
The account officer of the National Audit Office shall:-
(a) keep full and proper records of all revenue and
expenditure and of all the assets, liabilities and financial
transactions of the National Audit Office;

(b) satisfy himself that all reasonable management

measures, have been taken to ensure that resources
which are necessary for achieving the objectives of the
National Audit Office are, as far as possible, obtained
safeguarded and utilized in the most economic, efficient
and effective manner; and

(c) prepare financial statements for the National Audit

Office in accordance with the provisions of Public
Finance Act.

46. Audit of accounts

(1) The accounts of the National Audit Office shall be audited, at
least once in every financial year, by a person appointed by the
Public Accounts Committee from amongst persons who are
registered as auditors under the Auditors and Accountants
(Registration) Act or possessing such other qualifications as the
Public Accounts Committee may determine, at such
 remuneration and, on such other terms and, conditions as the
Public Accounts Committee may determine.

(2) The remuneration of the auditor appointed under subsection (1)

shall be defrayed from the funds of the National Audit Office.

(3) In the performance of his functions the auditor shall have the
same powers as the Controller and Auditor-General has in
respect of the audit of public authorities and other bodies.

(4) Upon completion of examination of the accounts of the National

Audit Office, the auditor shall express a professional opinion on
the accounts and submit the report to the Public Accounts
Committee.

(5) The Public Accounts Committee shall consider the report and
submit the same to the Minister with or without comment.

(6) Upon receipt of the report, the Minister shall submit the report
in the next session of the National Assembly together with the
responses of the Management.

PART VIII
MISCELLANEOUS PROVISIONS

47. Offences and penalties

(1) A person commits an offence against this Act if-
(a) without reasonable cause fails to provide the Controller
and Auditor-General may reasonably require under
section 15 of the Act;

(b) fails to provide the Controller and Auditor-General or a

person authorized by him with all such explanation and
information as the Controller and Auditor-General or
that person may reasonably required;

(c) without reasonable course, fails to provide, or willfully

obstructs access to any item as required by section 15;

(d) obstruct or resists the Controller and Auditor-General or

any public officer, agent or specialist consultant
authorized by him in the exercise of his power of
access, or power to call for relevant information, under
this Act;
 (e) without written consent of the Controller and Auditor-
General, publis or disclose information obtained in the
cause of an audit to any person other then in the cause
of duties or when required to do so by a court of law;
or

(f) interferes with or exerts undue influence on any officer

or employee of the National Audit Office or on any
person authorized by the Controller and Auditor-
General to perform functions under this Act.

(2) Any staff of the National Audit Office, an auditor and an expert
acting on behalf of the Controller and Auditor-General commits
an offence if he-
(a) demands or takes bribe, recompense or reward for the
neglect or non-performance of duty;

(b) willfully fails to report to the Controller and Auditor-

General any abuse or irregularity that comes to his
notice in the course of auditing duties;

(c) makes any report to the Controller and Auditor-General

which he knows to be false or has no reason to believe
it to be true;

(d) abuses his powers, engages in malpractices for

personal gains, neglects duties or divulge State’s or
auditee’s business secrets; or

(e) any other matter as the Controller and Auditor-General

may consider an offense.

(3) When the Controller and Auditor-General has reason to believe

that an offence has occurred, he shall refer the matter to the
Director of Public Prosecutions for appropriate action.

(4) Any person convicted of an offence under this Act shall be liable
to a fine not exceeding five million shillings or to imprisonment
for a term not exceeding two years or to both.

48. Oath on appointment

(1) Every public officer serving in the National Audit Office and
every audit form under section 33 or an expert engaged under
the provisions of section 16 shall, before entering in the office,
 subscribe to the oath set out in the Schedule before the State
Attorney.

(2) The provisions of subsection (1) shall not apply to any public
officer, audit firm and an expert who entered in duties before
the commencement of this Act.

(3) Where a person required to subscribe to an oath under the

provisions of subsection (1)-
(a) has no religious belief; or
(b) the taking of an oath is contrary to his religious belief,
that person may make a solemn declaration in the form
set out in the Schedule.

49. Regulations
(1) The Minister may make regulations for the better carrying on
the provisions of this Act.

(2) Without prejudice to the generality of subsection (1), such

regulations may include rules, policies and procedural manuals
regarding the management and operation of the conduct of
audits by, and the standards by which such audits shall be
conducted by the National Audit Office.

PART IX
CONSEQUENTIAL AMENDMENTS

50. Construction
This Part shall be read as one with Public Finance Act, hereinafter
referred to as the “principle Act”.

51. General Repels and savings

(1) the Principal Act is amended by repealing Sections 26 to 42 and
paragraphs (d), (e) and (f) of section 44(1)

(2) notwithstanding subsection (1), all directions and orders issued,

made or given under the repealed sections shall be deemed to
be directions and orders issued , given or made under this Act
and shall remain valid, in force and apply, with necessary
variations, until revoked by a direction or order issued given or
made under that Act.
I ……………………..having been appointed to perform the functions and exercise
the powers of the Controller and Auditor-General swear/ affirm/solemnly and
sincere declare that I will, without fear, fear, favor, affection or ill-will, perform
the functions and exercise the power of my office/ engagement and that I will
not directly or indirectly reveal matters relating to such function or powers
otherwise than in course of duty.

SO HELP ME GOD

Sworn/Affirmed/Declared before me this………day of………………………

…………………………………….
STATE ATTORNEY

Passed in the National Assembly on the 11th June, 2008.

DR. THOMAS D. KASHILILLAH

Acting Clerk of the National Assembly