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~1-o&-1A ~ ;J~+ ;J1tt1J

FEDERAL NEGARIT GAZET A
OF THE FEDERAL bEMOCRA TIC REPUBLIC OF E1HIOPIA

,-1\.,.;;: ~ODT 4r1'C n 3MYear No. 26

"Jtl\ "nil - fl1-tT n +, Iif°/tii f 4C..1..t.I\If -'t 'l"ht.ltflf
Oh. ""'V-A' ~ T-fl l\.h ADDIS
.
ABABA - 6th March, 1997
f ih1l1l .,.dJt]V-1- 9'"hC fl."'" mq<t~""'fdJll)

OJl&Mi CONTENTS
h'P:E- -k-rC :s~/:riifitii 'i'''''
Proclamation No. 68/l~7
fA..1..t-A 'Ptjt& "Jt+C uor~f o.T OJf**OU Office of the Federal Auditor General Establishment
h'P:E- .,X- ffit?; Proclamation """""" Page 385

h'P:E- ck-rc :S~/Iiifitii PROCLAMA TIQN NO. 68/1997 .

~-"t:r-kf A..1..t-~'£ Jt'l"ht.f\''e ~T-ol\.h f4..1..t-A A PROCLAMA TION TO ESTABLSIH THE OFFICE
'Ptjt& "Jt+C uor~f fl.T'} /\07**,.. flDtI) h'P:E- OF THE FEDERAL A UDIT01? GENERAL
f "Jt T r C'iT'} 0JfmtjhC fO., ~1:' 1\.ti~""l. (11'"1."
q , WHEREAS; strengthenirig the' audit system in the
i (\OII"'t-Ttj /\OJfil+~"C fOJf..filLA.,t&') hh+07"'~ 0II~)f country plays an iniportantroleih provitHng reliable data
00Jf..,1''''' ~.,!: hfj;""~ hil+'PX-" f/\t& 00ll1f).; useful forlheeffective management and administration of
,
OAf., A~ fA",""tj hil+~"c OIIilltT f+ftOJf~ the national economy;
WHEREAS, it is necessary to ascertain that the
fA..1..t-A uo'}..,r"" uor~f fl."'Ttj !:C:E-"'T f.,'},,-o
financial management of the Federal Government offices and
hh+~"c +.,flt&1 f"t..,-o hf 111 JPC'iT f+h+/\ f.,o.
enterprises in various developmental and administrative
hflqftqTt& t flDaI. hL"+~Tt&tj n-o~"" hil+~"t.Tt&
activities follow proper accounting procedures) that the
fOll'}..,r"" ih..,tj uouo~f +h""f\- f+LROII OIIIf).tj ~~ f:tj
manner of'revenue collection, fund disbursement and
T~..,t.OJfTt&'}'" O~A-rfj;'i' ~tj 1\.l1ifOJf..f'e {Ur~ 0II'}.,f: property management is in accordance with government rules
OOJfhtjlD'} fOJf..mO~qTt&'} ..,-0 OJf".'tl\:1'Tt&' OJf~;J"1' .
and regulations, and that their plan and Programmes are
hilLI\... 00ll1f)' ; carried out efficently and economically with a view to
0 OIl'}'" r T h 1Dft>+C 0 f "~)f IlJo'A..1..t-I\ 'e tIP'}'"r"" attaining their objectives;
00r ~f fl..fT ~ Ii !:C:t:"'T I\.if C fOJf...,q ID"'} +mfct ~..,. WHEREAS, audit is an effective instrument in reflec-
0"7 ~;j"1'f Jt IlDht-ll '} r C'i"" 1\0JfilL '} ~Jt ..,. 'i f, ~+~ ting the new democr~tic system by en,suringproper accoun-
OII"'~f nUOIf)' ; tability in the various. Fegeral Government offices and
f 1\.4f..Jt~ OIl'}'"r"" h Jt"" f 1\.it tf 0Jf..;r I\. II '} 0 0Jf..
.,q organizations within the State structure;
.,...,qt-'£.OJff:~"'.r.rA "1f: 04f..1..t-I\'e UO'}..,rT f,JI:1' ilC WHEREAS, it is n~ce'ss'P'Ythat the Ethio'pian Federal
fOJf...,,:.fhil"'~"C t fAOJfTtj fh.,A..,f\-"" .,.*OJfT'} 0-0""" Democratic Republic new economic policy be supported by a
modem and reliable audit system in order to ascertain proper
1\OD~tI)mC 0 "'tI1'ih~ tj tlt'IIdi'e 0 If ~ f "Jt"" .,...,1}C 00:1'.,,, '"
implementation through effective monitoring of adminis;;
'/\0"" OODIf)' ; trative, developmental and service tendering institutions in
the Federal Public Sector;
n~ '1';1 ~;JtT ;1tLllJ 7"",.<1:. iti'f..li
.
Umt PriCt;
.
3~O ' } Negarit G.P.O.Box 80,001
;,. rf-n 1.1.~,A ~;M.}- ;Jlt.1IJ c n rt]i;.}- n +1 !!ifTII 'I~'" Federal Negarit Gazeta - No. 26 6thMarch 1997 - Page 386

iULlJ "''''I1&-ce~.}- f ~1.&-1A tp'i~ 1-Jl.,.C tIP JP /,1 WHEREAS, in order to realize the objectives of the
o..}-'} 1\m'ihc> 0?**9'" OO?iM.t\1- ; aforementioned it is necessary to strengthen and establish the
0a.100'}..,JP'I: 1\'}+1\ ~l; (li) OOIPI..}-f"'l.h.,.t\~ Office of the Federal Auditor General;
NOW; THEREFORE, in accordance with Article 55 (1)
~~~IA :: o( the Constitution, it is hereby proclaimed as follows:
ht;:1A 1\ '} f:
PART ONE
General
m:"I\I\ f:'};11. 1. Short Title
This Proclamation may be cited as the' 'Office of the
li' 1\6f."CCMt Federal Auditor General Establishment Proclamation
1-U 1\CP~ "f~1.&-1A CP'i~ 1-Jl"'C OOJP/,1 o..'},
No. 68/1997."
O?**OU1\CP~ cklJ'C ~~/Iififi." -HIt\- t\.m+ll 2. Definition
1-"fl\1A 1: . In this Proclamation:
I' .}-C~DI1 1. "Government Office" means MinistrY, Commis-
OtLU 1\tp~ ~1l1J' ; sion, Authority, Institution or any other Federal
Government Office;
li- "f oo'}.., JP:" 00 JP/,1 o..}-" O?t\ .}- o'U.ll-f:C t 2. "Organizaiton" means any production, distribution,
i10?1i'} t I1t\JPlAtI)'} t "'*9'" lD1-9'"O?'iT~9'" t\.I\
service redndering, regulatqry or any other trading
f ~1.&-1A oo,..,, }- 00JP/,1 o..}- ~~ ; organization wholly or partially owned by" the
I' "f:C~.}-" O?t\.}- O?'iT~9'" 01lD"ft-OJ1-9'"OhLIA Federal Government. .
}
f~1.1r1A oo'}..,JP.}- ftr~ fO?9'"I.:J= fO?h4.Ll t 3. Establishment
f1\"11A,ito.}-..,(a6f."OJf,'F'"'1\ f'}..,f: f:C~.}- ~~ :: 1) The Office of th~ Auditor General of the Federal
[, 00**9'" Government of Ethiopia (hereinafter' 'the Office of
a.?oo'}..,jP.}- 1\'}+1\ lifli '}o-ll 1\'}+1\ (!!) the Federal Auditor General") as provided for in
li' Ott.~Jl/'
o.,.oot\h"'~ OOIPI..}- ftt..}-r-kl ~1.&-I\ee oo'} sub-Article (4) of Article 101 of the Constitution of
the Federal Democratic Republic of Ethiopia, is
"'P"'''' CP'i~ 1-Jl+C ooJP/,1 o..}-'I(htLLI 0:\1\ hereby estabished. .

"f~1.&-1A CP'i~ l-Jl.,.C ooJP/,1 o..}-" ~f"'llt\ 2) The Head Office of the Federal Auditor General
flll/.m&-) OtLU 1\CP~ .,.*<k":l.1A:: shall be in Addis Ababa and may have branch offices
I- f~1.&-1A 1''i"1D-1-Jl.,.C CP'i ooJP/,1 o..}- 1\Jlll 1\011 elsewhere as may be necessary.
(ftj t\JP &-~ 1\1l'{.I\1. otr~ {1~ v.ft- :"C'}6li.lJ: 4. Objectives of the Office
ooF/,1 o."'"f 1-';'~~1A ':: 1) strengthen an audit system required for a relibale
information necessary for the proper management
!!, fooF/,1 0.'1: 'il\0?~"f and administration of the paIns and budget of the
li' f ~1.&-ft-,} oo'}"'F.}- b:" f-."f'i 01:.}- 0111/.1,11 t\00'F' Federal Government;
&-.}-'i ,t\O?ll"'.';~C flll/.l11LIA1~'} 1\llTO?O?~ 2) .
~scertain that all receivable mOI~eyand property of
tlDl.)f t\0?"'1.}- flll/.l.~ f1-Jl:" FCf}.}-'} O?m'ihC ; the Federal Government are collected, preserved and
used properly, in accordance with the laws and
I- f ~1.&-1A OO'}"'F'''' 1'}H-nc; '}-nl..}- na.'H-n Regulations of the Federal Government, and report
"'lD'1r-"f 9'"hC o..}- 0 OJm.}- a.1 "f'i I.'} {1~ 00 IPI..}- same to the Council; .

t1D(a.n(a~'} . oomOck'}'i 01\"'1l~ r'&- 1\1- OOCPft-,} 3) undertake a financial and performance audits of the
0?1.;111J''i f1.I.(aO~'} ~m..}- A'F'hC 0.'1: /,;rc.}- offices and organizations of the Federal Govern-
O?:"I.'O ; .
ment;
[, 0~1.&-1A OO'}"'F.}- OOF/,1 o..y."f'i f:C~.y."f 4) m~e efforts, in cooperation with concerned organs,
f4.1-'i,}ll'ifh'}CP~ 1-Jl.}- O?'1~f: ; to promote and strengthen accounting and audit
!!, ""'Il-n;~.}- '1I\T~ 1\'1I\.}- ;1C OOO.,.IlOC f"£..,l1 professions;
5) give professional assistance and advice to Regional
1\1.f'H'i f1-Jl.}- IID"I ~,}JlIf:"''i ~,}Jlm'ihC 1'1..}-
O?1:1.'" ;
and Federal Civil servants and organizations en-
gaged in accounting and audit professions;
l;' 0"£""0 1\11'H'i O"Jl.}- lID"1 1\1- t\.,.IP"'i~.}- 6) draw up a standard of auditing by which accounts of
,,'hlAlA'.' t\~1.11'1A oo'..,F.}- 1P&-.,.7f"f'i f:C~.y."f the offices and organizations of the Federal Govern-
lID"lee ~1tf'i 'F'hc OOllm.}- ; ment shall be examined and follow up the implemen-"
f~Yo&-1A OO'}..,F.}- ooF/,1 o..y."f'i f:C~.y."f tation of same.
i'
"£""0 flll/.OOI.OOCO.}-' f1-Jl.}- l.l)f (~ll~,}.';Cf:) 5. Appointment and Accountability of'the FederaJAuditor
"'i ~tI).}-'i .,...,11&-ee 00 tr~ '} t1Dh~"'1A :: General
1) The Federal Auditor General who heads the Office
li' llt\~1.&-1A CP'i~ 1-Jl.t-c 1\!( !('F''i "'m/'~.}- of the Federal Auditor General shall be appointed by
li' f~1.IdA. CP'i~1-.Jl"'C ooF/,1 o..}-'} flllloo&- the Council of Peoples' Representatives upon
tp'i~ 1-Jl"'C Om~I\,e, lIIJ.tit""~ "~lro.~.}-
:: recommendation by the Prime Minister.
0a.1I-fi +lD'1f"1'- 9'"hC o..}- 1-l'07IA
2) The Federal Auditor General shall be accountable to
I' f ~1.&-IA' CP'i~ 1-Jl"'~ "'m/' H: t\a.'H-n +OJ'1f-"f the Council of Peoples' Representatives and, be-
'F'hC o..}- 1-tr'i IA :: f a.'H-n +OJ'1r-"f 'F'hC o..}- tween sessions shall be accountable to the President
OF II' 1\1- O"'i1-tr'}O.}- 1.tJ. +tn/""': t\~1.&-1A of the Federal Republic.
/'1"'01\.& Tl..tL.';'}.}-1-tr'iIA::
 'l"" rf.~ I...~.':-A~;M:r- ;JfJ.1lJ c n rtti:T n +, !ifTitq.9".Federal Negarit Gazeta ,--
March 1997 - Page 387
- No. 26 6111
I. ,,1\ fOh'}-~\ 'fJ~~ 1.""+C 1t!(!(fO 6. Appointment of the Federal Deputy Auditor General
f~1u&.A If'e;fI1'' ,,1t't-r1: f~l~C: ACft. Ot\,t\ 1.11. There shall be a Federal Deputy Auditor General who
f~1u&./.\ tpqOJo "lt1-C ODF(,1 shall be appointed by the Council of Peoples' Represen-
a.""''} F&. fO?OD&.
Om:"".e. ~~Mi- h~&-fl~'}- ~1I.g tatives upon recommendation by the Prime Minister and
+m""T fOhc a..}-
f~i'fO 1,')1; f4.F.IrA. fUb.}-/A'Pe;lD-"lt1-C f,1f &.IA:: 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.
hlJ;1A fJ-A:t
f4,.Io(l./,\ 'Pe;0J0"lt1-C oDF(,1 a..}- FAtfJ'}e; .,...,IlC PART TWO
~. f4.1u~1A 'Pe;0J0"1t.,.C IJiIF&J' a..}- FlAtfJ1e; POWERS AND DUTIES OF THE OFFICE
"''''IlC OF THE FEDERAL AUDITOR GENERAL
ft..Io&./A .pe;0J0 A-t,1-C oDF(,1 a..}- Olh.., f1-ltm(De'} 7. Powers and Duties of the Office of the Federal Auditor
"...,iJc t\D7ht;lD'} fO?litt.1A1(De FlAtfJ'} fJ-/t- f,'f l'PIA:: General
01t1J hm.4>I\.e. h~;J1C ltf,mlt'} f~1..&.1A 'Pt;(De"1l.,.C The office of the Federal Auditor General shall have all
ODF(,1 a..}- :; the powers necessary for the performance of its func-
~. f~1..&.1A OD1..,F.}- ODF(,1 tions. Without limiting' the generC\lityof the foregoing,
a."'T'} 'h'l X"C~"'T'}
~"'11 "It.}- If..C;J1A ~ Illf..C;J1A :; the Office of the Federal Auditor General shall:
I' f t..1..&./t- qo')..,F.}- t\b IAIA OD'}.., F :f".}- fO?lt 1) audit or cause to be audited the accounts of the
m(De'} f01:.}- 1;;J.rt.e; Federal Government offices and organizations;
A' X"1l11J9'T'}"Il.}- 11. 2) audit or cause to be audited accounts involving
C;JIA ~ Ill1.C;J1A !
r. f ~~&.IA OD'}..,F.}- hl1C ~f itlJ (hfOll.}- budgetary subsidie.sand any speical grants extended
OD'" itlJ by the Federal Government to Regional Govern-
-OC) Ol\.e. fO?m.e.:" F&. f..,1A F&. .,.9:&.CfibT
A'}ltlP-r Om-A flttO A,}f..If~ f,1J'}). fOD'}"'F.}- Hl
ments;
3) audit the .accounts of private contractors relating to
flf~ f..,1AF&. 1-9:?-CfibTYo..,l1 "1t.}-I1.C;J1A !
g. f~1..&.1A OD'}..,F.}- ODF(,1 the Federal Government contractual work which
a."'T'I X"C~"'T involves a sum exceeding Birr 500,000 (Birr five
Ill11-.}- m-m..}- lh.,.'} f1-h1-t\ ~ h.tlIfO?I~ fllf~
hundred thousand);
hlP&.C f1-t.~OD ODIf).'}e; -tt.I\1.m-'} ..,11 4) Carry out or cause to be carried out, as may be
OD?,":f"-I:'} t\ lIIJl;J11' 'h'}1.1, IIt.I\ .(-1: fi C:..,&.?'"' necessary, programme and efficiency audit or per-
fhlP&.C :"IA1'rt.e;( ?'"COD&. mf,9u btp~ "Il.}- formance audit in order to ensure that the perfor-
I1.C;J1A t Illf..C;J1A ! mance of Federal Government offices and or-
~. OILU h'}+;t '}lJ-ll h'}+;t (~) t (I) ~ (r) ~ 'h'l(g) ganizations is in accordance with the law,
fl.,.OD t\ h1-(De ODIPl.}- lhe; m ~ (De OD&. m-m..}- economically sound and has attained the desired
f?'"C
A,}I.~1-r fJ-~:f" t\t..1..&.1A OD'}..,F.}- ODF(,1
a.-I:
objectives;
At; I\X"C~-I: ffll\f, ~ltL Iltm-.4>1A J 5) report audit findings to the head of the audited
f~1..&.1A
'Pe;(De"lt1--r f?'"COD&.(De(Dem..}- Federal Government office and organization, as the
m'}1:1A ODt.R~'}
fO?ll;J"'1' hlf~ mlll(De). t\lh1l11 .,.m""T ?'"bc case may be, the result of the audits performed in
a..}- (,TC.}- If..C;J1A ! accordance with sub-Articles, (l),(2),(3),and (4) of
, }. ht\,AoT ~tt ho?'ODl\h:f":f(De ODF(,1 this Article, the result of the audits performed shall
o."'T ;JC also be immediately submitted to the Council of
0-1-11flC f~"'l1'1 f'}l1l.}- ?'"COD&. FC'i.}-'
f..lJf,}-'fo?'ODl\h-l: ODOD(,I9'T'} lmtfJlA I Peoples' Representatives, where it indicates the
~. lIIJ'I:fm-?'" f~1..&.1A OD'}..,F.}- ODF(,f o..}- commission of a crime;
A'I 6) issue directives, in cooperation with other offices
X"C~.}- fm-ll1' "lt1-C hODODt.(1-flL.}- "'OD~tl(De
1,IIt.It 1.m- f ~ 1 11.4>.}- 11\ (De OD If).') concerned, regarding accounts and property auditing
hl;J'" {11 procedures and standards;
rlabc~.}- f,lttfJlA :; 7) issue certificates of competence to internal auditors
~. hllt.I\1.1f1J It.l11(De flllJe;:f(De?,"~1..&.1A ODF(,1
to be empolyed by any Federal Government offices
a..}- f(Dell1' "1l1-C'T fODF"', o.:f":fm-'} ~"'11e; ,
and organizations;
'}-fll.}- OODODCODC m-m.-I:'} A11l1IAXot\.}- 8) where it deems it necessary, require internal auditors
ft.l1.C.., f,TItIA ; of any Federal Government offices to audit the
U. ho?'ODt\h:f":f(De h"1\.}- ;JC OOD.,.llflC A1f..hllt.I\ accounts and property of their offices and report the
1..,-1: 1\(Dell1' "It 1-C'T FAme; f,lttfJ IA :; findings:
I' h'}X" ~"'11 m'}1:A llt\n..}- fJ-~:f"e; ;f-lIIJ~F'" 9) where it deems it necessery, train internal auditors in
01t.1\m- h~1 Q.P,''',} l\"'tlD1 ?'"b11.}- It\(De cooperation with concerned organs;
A,}f..IT~
"U', ~Uf-a flO?ODAh-l: OD;tthc:.T
O!fllbC"T J t1D1I1":.y.f It., ~ Tc; A.AoT tIDl1f 9'T I\f,
J 10) where it has reasons to believe that any account has
been kept in a criminal and dishonest manner,
ni;JA ! impound such books, documents, ledgers, vouchers
!~. '11Hit -v.th-tc itt\11lfite; f~Ufit hm'10:" flO?I and other materials related to such account;
If;J1:m- f..,}11 1\10 lrthLI\1.GJo1 ?'"bc f,lttfJlA :; 11) give the necesslJl)' adivce on the financial and
accounting regulations to be prepared by the
Ministry of Finance.
 .,., !ilfifil ~'9'" Federal Negarit Gazeta - No. 26 6thMarch 1997 - Page 388
~ rfT~ ~1.6-~ ~;J~T ;Jt11fJ -k1'C?!'); ftt1:T t!'i

12) make efforts, in cooperation with other concerned

II' tU\.f\o"f"M~ hlll/..ooAh:J-TlD- ooF(,1 n.+--.y..;1C
Government Offices, with a view to promote the
OOO...flOC f'l."111 i\1111li flaJl:" 00-1 ~1Jl'&;1IC
Accounting and Auditing Profession; take ap-
1'l:" I1.C;1/:\ :: f4.-F..I,./r 001..,F:" rlaJl:"li propriate measures to ensure that the development
f'l."111 i\1111 00-1 :"t"lA~lD-1 LC ~Jf ~1Jl'&;1IC of the Accounting and Auditing Profession of the
i\itLI\1.lD-1 ck1'1'C I1.C;1/:\ ; Federal Government is in the right direction;
Ir' hb/:\/:\ flaJl:" ~li ck1'1'C o.C'sP"f ;1C flaJl:" 13) maintain close contact and cooperation with the
,flC flll/...&;1ICO:"1 o-t:J- O",ooAh'" f:"C1I Audit and Control Offices of Regional Govern-
. f F I,. "'1;.~:"li :"1I1IC I1.C;1/:\ :: ments with a view to enhance the development of
I~' f'PlilD- laJl"'C ooF(,1 n.:"; auditing;
U) 04.-~1,./:\ 001..,F:" flAn.:"~:" FC fUr). 14) issue, renew, suspend and cancel certificates of
1:c"!:+"f.. competence of private auditors and accountants
A) 0 ib.., 04.-F..1,./:\II' n b /:\/:\ 001.., F :J-:" f;1 I,. who provide auditing and accounting services to:
~Jf:J- FC ~1JlO'). 0"'1O(a). 1:C"!:+T . .(a) organizations which are under the ownership
dt) Oib.., foo~lIJmC 0011:" f4.-F..I,./:\ 001..,F:" of the Federal Government;
(b) public organizations which are, by law, under
OO'~flTlD- f F I,. "CG:T ..
00) fOl/it.,..&;1.C;}I\k~:"li F/:\1IJ1 Oib.., "'A~+
the common ownership of the Federal and
Regional Governments;
A4.-F..I,./:\001..,F:" 0"'(am- f F I,. 00it" T ..
(c) activities over which the Federal Government
II' ) f 4.-F..I,./:\ II' fb /:\/:\ 001.., F:J-:" ~ 1 Jl 0-9'" f 4.- has the right to control;
F..I,./:\li flD-6f.b9'" O'~ fU1C lD-it1' f..,/:\ i\.1Rit (d) sectors over which the Federal Government
"'C'T 0;11,. 01ll/..1\]Y.~ TlD- Fl,.sPT .. lbf\oT _s been assigned by law, with the respon-
f4.-F..I,./:\ 001..,F:" fOl/itL"'9'" ;}I\k~:" flO(a sibility and authorit)' to administer;
1.fITlD- f F I,. it" T I\~ laJl:" AIII/..lhli lD-).
00 (e) joint ventures organized under the partnership
laJl"'C'Tli fY."111 i\1111 F I,. AIII/..lhlilD-). of the Federal and Regional Governments, the
fY."111 i\ 'P<tsPT OF 1,.lD- 00 it b A00 (aOl/1,.:" Federal Government and foreign or. local
flll/..litTI\TlD-1 f9'"itbC lOl+:" ~(aIlJ/:\ .. investors, other areas of activities where the
11:"/:\ .. ,''''&;/:\ .. ~IPCIf/:\ :: Federal Government has undertaken the res-
fAoF..I,./:\ 'P'ilD- }.Jt.,.e ODFtl 0.+ f9'"itbe ponsibility for their execution.
I~'
1O l.,.:t- l1.(a1''i l1.11: it n,"h 1111 ..,.OJ11r-:y. 9'"he
15) Charge fees for the issuance and renewal of such
certificates in accordance with regulations issued
o.:t- fOl/..OJtIJlD-1 J.'.1'O 0 ODh.,. /:\ .,.., fllD-1 'I' ,;J
by the Council of Peoples' Representatives.
lithtt:l\/:\ ::
b if:/:\ Y'it :,.
PART THREE
f 4.-F..I,./:\ 'PlilD- laJl.,.Cli 9'"b:;'/:\ 'PlilD- POWERS AND DUTIES OF THE FEDERAL 4

laJl"'C F/:\1IJ1li .,...,flC \. n:J

.,..., fie
AUDITOR GENERAL
~. f AoF..I,.A 'PlilD- }.Jt.,.e F /:\tlJ1'i AND DEPUTY AUDITOR GENERAL
8. Powers and Duties of the Federal Auditor General
f 4.-F..I,./:\ tptj lD-}'Jl"'~ f 4.-1..1,./:\ 'Pli lD- laJl"'C
ooF(,1 n.:t- fOI\~ ;}I\k 0000'1 OtLtJ n'P"!: ' The Federal Auqitor General shall be the head of the
0 i\ 1+ ~ 1: A4.-F..I,.f.\ 'Pli lD- laJl"'C 00 F (, 1 n.:" Office of the Federal Auditor General and shall, in
f"'(amlD-1 F/:\1IJ1li .,...,flC OFI,. I\~ hOi/'P/:\ addition to implementing the powers and duties of the
0.,.aJ.0I/(, htLtJ flll/..h.,.AlD- F/:\dJ1li .,...,flC ~li l office of the Federal Auditor General provided for under
Article 7 of this Proclamation, have the following powers
'P /:\;
and duties:
Ii' OrtU i\'P"!: Oi\1+~ 1:1o-it i\1+~ (Ii)" (I)" (r) ~li
I) submit a consolidated annual audit report performed
hII'1O~lD- 9'"C00 1,.11'itA00F (,1
on 00 II'l:" itAIII/.. under sub-Articles (l},(2),(3)and(4) of Article 7 and
n.i: Fl,.sP"f i\m:J>l\~ t}oo:J-ce ""f1 Aib1l1l on the activities of the Office of the Federal Auditor
"'lO\]f"T 9'"bC n.:"I+CfI/:\ ::9'"bC n.i: OFI,.I\~ General to the Council of Peoples' Representatives
001/~O'1 0:" 'UI. 114.-F..I,./:\ ('T1I i\. h- T tort.&;1:" and between sessions, to the president of the Federal
I+CfI/:\ ; Republic;
I' f11"11 III/..titi:C f 4.-F..I,./:\ 001..,F:" lALlD-1 2) review the annual report which the Ministry of
O~:" t}oo:" 1 0.11' 1Oa.1. .. U1I:"li (').&;. ~ 1 Jlo-9'" Finance submits to it concerning the Federal Gover-
f001..,P':" 11"11 .,b fO')' OOl~sPT1 Y."111fn~:" nment receipts and expenditures, assets and
t}ooi: ~ 11..,. m 11'++ n.,.:F A if:1'~:" "..,+ A9'"C00I,. liabilities as well as the financial statistical data
A&..101,./:\ 'PlilD- laJl"'C ~/:\\]/:\ :: 'PlilD- laJl"'~9'" within four months of receipt, and submit his
fY."111 ""f1lD- 01.l(alD- n~ lOC 1.tI. lD-it1' ooC9'"C'li 'comments theron to the Minjstry; include same in
.. ~A\]/:\ J his annual report to be submitted to the Council of
i\1'1+ (,;rCi:1 h~i\it""fi: AIII/..titi:~
Aib 1111 "'1O\] f"T 9'"b C n.:" 0 111/..1+COlD- 'ioo:J-ce Peoples Representatives.
;
""f1 lD-it1' (,;rCi: ~1Jl\]"':"I1.C;1/:\
1K" rfitil A..1..t.l\ ~;M-r ;JtLfIJ <k1'C n ft]1:-r n +, IiifTi "9"" FederalNegaritGazeta- No. 26 6thMarch 1997- Page 389

r- OtUJ 1\'P:E-, 01\,}+~ 1; '}o-la 1\,}+~ (~) OOlPlT 3) include the objections and comments raised by the
m-m.'I:,} ~,}-'l.fm-ck f+~l1'T 1\111\Tflam-T 1\la+ organs notified under sub-.Article(5) of Article 7 of
.ffT'i .f"'lltT + .4"m-'l" 1\'1';l(t'.fl\00(f).'} f100+ this Proclamtion in the report indicated in sub-
~'}~(f~ .e,tJ') OtltJ 1\,}+~ '}o-la 1\,}+~ (Ii) O+m Article (1) of this Article where they appear to him
.,.lam- H1q m-la'l' .fla1qA ! unsatisfactory;
.,...,q-t-'} 00lJ.1q I\"7h'im'} OOJP(,.f 0.'I:,} .f~l~A! 4) organize the office of the Federal Auditor General so
~-
as to properly carry out his duties;
~- fooJP('.f 0.'I:,} 01:T 1\H;J:E-.y.I\ih1l1l +ml1f"T
5) Prepare and submit the budget of the office of the
9"hC o.T .f+CqA ! ftL+ Y:r OJP/roI\.e, .fm-I\A !
Federal Auditor General to the Council of Peoples'
:;;- O~1../roA ftii'.A lacii'.la ih..,'i ~,}1Im-la'l' f+OOl\h
Representatives and implement same upon approval;
'l:T'} OOlPl:l''C ~I\"7~T'} m1l", f ih1l1l +ml1f"T
6) employ, administer the personnel necessary for the
9"hC o.T OOlJ..fmtIJm-~,}11 OOlPlT I\OOJP(,.f 0.'1: office in accordance with regulations issued by the
1\laLI\1. fIT). 1P/ro+7'fT'} .e,+'I'/roA . .fla+~Y:/roA !
Council of Peoples'. Representatives following the
1;' I\JP/rom-1\laLI\1. tffi ft1~ oct oooo(,.f OoolamT basic principles of federal civil service laws;
fJ.-'lT 9"coo/ro ~,}~1\..,qlt O..,A J.-'l"'~T m.e,9" 7) where he deems if necessary, delegate with the
O/t.I\-T ql\OO-.f~T ~'}-'lh'im'} .e,mhl\A II necessary instruction, private auditors or other
professionals to carry out audits,
u' f9"h-rA 'P'im- J.-'l+C JPAtIJ'}'i +..,qC
li' h~1../roA 'P'im- J.-'l+C OOlJ.lamm- oooo(,.f 9. Powers and Duties of the Deputy Auditor General
tlDlPlT! 1) Following the directives given to him by the Federal
u) f~1../roA 'P'im- J.-'l+C ooJP(,.f o.T .,...,q Auditor General:
~T'} 0"7'" Y: 1 0"7~/ro1:T . ooor /roT'i (a) assists the Federal Auditor General in planning,
O"7la+qOC f~1../roA 'P'im- J.-'l+C,} .e,l~A 1 organizing, guiding and coordinating the ac-
1\) f ~1../roA 'P'im- J.-'l+C O"7.e,fiCOT 1.tf. tivities of the office of the Federal Auditor
I\~1../ro~ 'P'im- J.-'l+C f+lam-T'} +..,q~T General:
(b) carries out the duties of the Federal Auditor
.fh'im-'iA II
I, n~1../roA 'P'im- J.-'l+C fOlJ.lam-T'}/t.I\-T JP/ro~T General in the absence of the latter.
II
2) carries out other activities assigned to him by the
.fh'im-'iA
Federal Auditor General.

PARTFOUR
hCj:A 1\/ro:"
MISCELLANEOUS PROVISIONS
A ~ A ~ Y:,},;J1.~T
10. Buget and Auditing
I, 01: T'i '£"111 9"COO/ro
1) A proportionate quarterly appropriations of the
li- I\~1../roA 'P'im- J.-'l+C OOJP(,.f o.T h+L+~m- operational budget of the approved budget of the
01: T m-la'l' ff(alaT mc Y:C~ f(f~m- f JP/ro"7lah.~ office of the Federal Auditor General shall be
Oh.Tf"k.f 1Ith./roce q'}h O~1../roA 'P'im- J.-'l+C deposited in advance in the National Bank of
00 JP(,.f n.:" la9" 0 .,.hL +m- '£"111m-la'I' 01\') Y: 1.tf. Ethiopia in an account opened in the mime of the
0~f."0IJ..f ~,}-'l+oo'l' .e,~l,;JA II Office of the Federal Auditor General.
I, f~1../ro&.\ 'P'im- J.-'l+C OOJP(,.f 0.:" '£"111 Oih1l1l 2) The Accounts of the Office of the Federal Auditor
+ml1f"T 9"hc o.T : 9"hC 0.'1: OJP/ro I\.e, O"7,f.tf General shall be audited by a body to be designated
'}O:,. 1.tf. O~/roA ('T1II\J1- ,.~tl~'}T OOlJ.laf9" by the Council of Peoples' Representatives or by
1\I1A .e,OOlOO/roA II the president of the Federal Republic, where the
Ili' lal\J.-'lT JPC~T'i f1.11 1~11 Council is not in session, as the case may be.
li' f~1../roA 'P'im- J.-'l+C 1\'}Y: '£"111 J.-'lT ft.f~C'" 11. Audit Procedure and Period of Limitation
I\"'~~ 1\laLI\1. ~,}~oolal\m- 1 1\'}Y: 01\'}Y: 1) The Federal Aud'itor General may audit accounts in
01lC1ICI m.e,9" "1\At:: 1\At:: fM T H1.. 1\.00lrC full or by a system of spot-checking which-ever he
,f.TI\A II (t(f'}9" OtltJ 1\'P:E-1\,)+~ ~ '}o-la 1\,}+~ deems it appropriate in a given case provided,
(li) ~'i (I) OOlPlT '£"1PT'} OOC9"~ OOlJ..f+Com- however, that any report which he submits, in
H1q m-la'l' I\~.f'}~'}~ ,£.,,11 !OO/roOO-t-'}0-~:l'C; accordance with sub-Articles(1)and (2) of Article 8
'I'A.,.:" 00"'1\" 1\1\0:" II of this Proclamation concerning the results of
I' f~1../roA 'P'im- J.-'l+C fOlJ.!~C,;J:fm- rCOO/ro~T Audits of the accounts, shall contain a statement
hOlJ.OOlOOlm- f01:T ~OOT m~~1\ hO-I\T f01::" describing the nature and extent of the audit
~OO:JoT "71\Cj:fl\q:fm-r :: ~1C ..,'} o~C~ ..,rT performed with respect to each account.
m'}1:A oo~oo-'} .f00~ ~,}~tf~ h+q~T 0-1\:" 2) The Federal Auditor General shall not peform
f01:T ~OO:l'T m~~I\1\AC: 1\.00l9"C ,f.TI\A II audits covering beyond a period of two fiscal years
prior to the fisCalyear upon which the audit is to be
performed unless he believes that a crime has been
committed,
I'Jr r.n U-t.A ~;Jt"" :JU.tIJ 4l1'C: n '''1:''''n +, !if-tii ,.,.. FederalNegaritGazeta- No.26 6111 March 1997 - Page 390
I
ill-
! fTODC"7~9'T ..,1.:1- 12. Duties of Persons to be Audited
.

Ii'- fU-I,.A 'P'ieD- I-JlTC . fODr~1 0.-1: I-JlT~T 1) Any individual, employees or an official, upon
request by the Federal Auditor General, Auditors of
m"". f~I.I,.A 'P'ieD- I-JlTC CDb.t\-T A,..CODI,.
m:J'DI/.'i hhLI\1. f""l.OD~TeD-') OD"ihlj:"" I t~e Office of. the Federal, Auditor (Generaf or
oD"tJ{~T . OD1I1f1T . it.,Jl.T'I' h.t\-T fA"th-Ij:'i" Reprsentatives oCthe Federal Auditor i General,
shall, forthwith, make available corret and complete
fJ-/Jt ODI.]f,,";f V-A-f\.m". fTmf+eD- .,Ait-fl'
books, documents, ledgers, vouchers and all other
iPl,."'~ ",,,,. ..t\rAtIJ') O..,.hhA'i a",.,A ht.\~') documentary or oral evidence which the Auditors
-U..,. M~I.-o ..,1.:1-hAa"" IS deemed it useful and necessary for auditing.
I- f AJoe./Jt tpIj",. I-Jl"'C ODr ~1 0."" ~ ') Jl-'tlJm 2) Any person who has had in his custody or has paid
t,.:fm- atlll "'P~ rlAtIJ') '.,.limeD- hl}l\""" 1,)"11 or has expended or is in charge of the accounts of the
m,," ,)-01.""fTl.ha I CDQ.\ 11.L.1 . rhLt\ CD"'"
money and property of the organs auditable by the
h'LUfft ;)I\L tlf., "7')~eD-" it. ia.lnf~ 'L"1ft') office of the Federal Auditor General under the
ItJl"" ""h1.I." .,1..:1- hha"" :: provisions of this proclamation, shall, upon request,
have the obligation to have his accounts audited.
f- TODC"7~ ODr~1 o..y.T a~1..I,.A 'P'ieD- I-JlTC
3) Auditee entities are obliged to take corrective
0.,.1\ II- ~;rC~T a"'1A~ .,~.y.T T1fi.eD-')
"" measures, within 30 days from the date of delivery,
"'C,...,. 1\C,.)I' ~')JlCDhJJ. a.,.itm- M7i'7i'1
on recommendations and comments included in the
'"1 f1T'1' hh""r-f";fODIPI."" he!) +'i"" I) IAaAm 1..1t. audit reports sent to them by the Federal Auditor
..h-r ~C"')I' fODeD-it~ .,1.:1- hAI)TeD- :: ~C"'jf General; if they are unable to take such measures,
ft-eD-it~ I}A;J=l\-".tt., 1-1:') aOD"AJt A~I.I,.IA shall inform the same and the reasons thereof to the
1''ieD- 1-Jl."'C ODJP~1 0."" atld- f'Llt. 11.11 eD-h1' Federal Auditor General within the period specified
""'CD~ hA"TeD- :: herein.
~- f~l.l,.l\- 'P'ieD-I-Jl"'C Aih1l1l "'CDI}"'T,..hc 0."" 4) The Head of any audited office whose weaknesses
OOlJ.I+COeD-~;rc"" eD-il-r ~hOD"" f :1-fl):feD- were commented in the report of the Federal
Auditor General submitted to the Council of
-r~1 o."';T ;)"L9'T 0:1-''''' ~hOO.y.T I\f, peoples' Representatives, shall have the duty to take
hhL"1.cD-') fb7h",l}hl ~C~ CDh1.eD-f,1J')}. appropriate remedial measures and inform same to
A,..hc o.-I:'i A~I.I,.A 'f''ieD- I-Jl"'~ f"7/tCD:" the Council of Peoples' Representatives and the
.,1.:1- hAI)TeD- :: Federal Auditor General.
If- f"'iI:1-CD~ ..,1.;1- 13. Duty to Notify
.
f~l.l,.l\- 'P'ieD- I-Jl"'C I-Jl"" I\1h'ieD-') a~' I\f, The Federal Auditor General shall notify to the
CD,)~A ODIPI,.-I:,) 100" ~,)1.If" "IJ')}. AIj:""lh Ministry of Justice and the head of the audited
"tthi:C ~'i A"'I..""AhTI& hJl+ T1.~1. tJDr~1 0."" Federal Government Office or Organization con-
cerned where, in the course of his auditing, he has
m,," ~C~+ fa"" =,"L "7h;J-CD:"hAa"" IS
reasons to believe that an offence has been commit-
iii- Ii-
Tif.+t; :t-nt:,.
ted.
..,.,1;'1&" itm-I
14. Offences and penalty
u) fd.1..I,.A 'Pt;eD- I-.tT~ a+-r;J- CD"'" Ol-Jl 1) Any person who:
T~:r: m",.. OCDb.t\-:r: h"7I}".,:,. A,..Coot. (a) fails to produce or make available books,
~ ., JI.f'C-oA:" f"tm"+cD-') OD"lhfi:"" I documents, ledgers, vouchers or any other
oD"h~";f . OD.,.,it-1- . ta'1Jl.T'i ta.froT fJtth-fi: documentary or oral evidence which the
tIJ"", f:J'1A ODl.jf9'T '''+1.0 . OJf,'" Federal Auditor General directly or through
A) A~1.I,.A 'P'ieD-I-JlT~ . AoDr~1 0.-1: his employees or his representatives requires
for auditing; or
I-Jl"'~T CDf,'" ACDb.froT uta.,.~ ODIf}.,) (b) gives to the Federal Auditor General, the
~IOJ+ uit+~ ODI.~ fitm CDf,'" heD-""'~
oDlf~,) A"7oD') fOh')
Auditors of the Office of the Federal Auditor
/tf,~ 1.eD- "7'iT
''''' General or its representatives any information
eD-"" oDl.jf ftam . OJf,'" which he knows to be false or which he has no
th) f~I.I,.A 'Pt;eD- I-Jl"'~ ~I,. O""l.11)~').&;f,h. reason to believe to be true; or
'iCD') fit'ihA . CD"'" (c) obstructs the proper carrying out of the func-
CID) IAOct ,oh')I"" o~I.I,.A 'f''i''eD- I-Jl"'~ tions of the Federal Auditor General; or
a+I.(t-I-Jl..,. ~;rc.y."f a+itm- f"77i'7i'1 hh.,. (d) fails to take'measures, within 30 days from the
If"';":(-':; '''f1T 1\f,(tCDTi: ~C"')f IIACDtJ.1.. date of delivery, on recommendations and
0.,.1. "11dJc 001P1."" comments included in the audit report of the
CD"" atlll h'P~
Federal Auditor General; or fails. to comply
IIDL",.. ia.~ca"" AooL,.,.. L:J'1.~ If~
with the provisions of this Proclamation when
IA"'17 ! he is required to do so;
~,)1.If" hh,..h"" ~hh it ,. 'OD:" O""l.1.Ch
shall be punished with imprisonment from 5 to 7
~rl,.:" OJ"'" 1Ie! itlJ (hrC itlJ 1IC) years or with a fine of BirrlO,ObO (ten thousand
'1,)"-0 oo.,.Al CDf,'" OV-A-I:,.. f,+tlJlA ::
Birr) or with both such fine and imprisonment.
'IA- fUii U-t-A );1&.}o ;JfLlI) 'liTe n fl}-I:.}o n .,., IiIi'll 'J.,... Federal Negarit Gazeta - No. 26 6thMarch 1997 - Page 391

~. arn~tJJa" laJl"'C; 2) Any Auditor who:

V) f""~ .,1..;J-tJJa') f&oou.,. tD~" O~",,"~i: (a) in consideration for the perfonnance or for the
tD~" 0"., &- ., l..;J-tJJa "71: l., fOlJ.1 IltJJa') "f&"7
f:l., tD~I}" "7l:l., M~1IltJJa') f&"7l:l"
omission of an act in violation of the duties
proper to his office solicits, exacts a promise
lllP;J- f 1')"11 tD~"
""" 1'~" ~ ')Jlflll1tJJa of or receives a gift, money or any other
fll1f+ f f.,.ll4- ~IA f.,.+Of&tD~I}"f+lOf&""')
ftDfI'( f tD~I}"
advantage; or
fA) f&OIJ.I.(C1tJJa f"l"l1 (b) accepts any auditable document as genuine
I}"Coo&- "'ooCO'/~tJJa l+l
Of&"" fI~1: ootr~ ') ~ltD+ ~ ')1. where he knows that it is not or unduly rejects
"'fI"'~
""hhf&~ fI~1: hl"f&"" tD~I}" ""hhf&~~i:,) any valuable document submitted to him by
~1 tD+ fl.~ 11f&"" fOlJ.1IltJJa') fI ~I: "~+Of& tJJa the one to be audited; or
f+l f tD~I}" (c) defrauds or cooperates with others by creating
sh) f~1..&-1A 00')""""" 1')"11 l"11'OlOl tD~I}" conducive conditions so that they can defraud
fltJJa ~ ')JlI"11'OlllC V-~;J-1P"f') 0"700 or conspires in defrauding money of tht.:
"""
3FT"" f.,.IlOl tD~I}"Il1.l f tD~I}" Federal Government; or
00 ) "'"1l. 1 IAtr~ 1':"1}" f&~"" f&"7"1"" tD~I}" (d) with intent to obtain or procure undue
f& (}CD-')
""" fICD- f&"7 II1 1"" tD~I}"
""" advantage for himself or to a third person
f&001-..';"" 0"7 (}1I f 0 ",ooCO'/ tCD- f +l 0- f&..,.') or to cause a harm on any other person,
00~;'hCj:"" f oo"he"f 00"U1{1"f (}~p.."fe; causes to disappear or falsi\y or cause to
,,"f\o"f "7e;TCD-')I}" ool~1P"f ~')JlIl14- 11.1.1 be falsified or forges any books,
tD~I}" tDf. "'(}-r ff&tDlI1 tD~I}" ~')Jlf&OJm-
documents, ledgers, vouchers or any other
11.1.1 ~
~ ') 1.tr~hhl}"ll"" ~llh h""C qoo-r OOlJ..(CIl
. evidence submitted to him by the one to
be audited:
~""&--r 'he; hl1C In.u ~llh lIC - I?;Q.U (hllC shall be punished with imprisonment from 5 to 10
o".,C n.U ~llh 'OC hIP&- hl}"ll"" n.u) OOlJ.1.Cll years and with a fine from Birr 10,000 upto Birr
r1')"11 00""1>1>~+tlJlA :: 15,000 (ten thousand upto-fifteen thousand Birr.)
If;' r"'?f~c; "'L~"t~"', rll'/~cr&-TCD- ;'h1"f 15. Repeal and Non-Applicability
6' f'Pe;OJ' ).Jt+C ooP't.r o..},
f&D?<J:<J:?"
fmtIJOJ- 1) The Proclamation to Establish the Office of the
h'P~ <k1'C IE/!uf.it lULUh'P~ .,.-liZ:1A :: Auditor Genral Proclamation No. 13/1987, is
I' .eU, h'P~ fD?~I /blt,,'f ift.ffc; 1.'{1~'f'lULU
hereby repealed.
h'P~ n+1i&,). .,.J;f'1' "f. +&.~D?Ft.hf.'it.:f 2) Any'Laws and Regulations which are inconsistent
m°?" ::
witb this Proclamation shall not apply to matters
I}, provided for in this Proclamation.
h'P:( f"t~c;O-r 1.11.
~tJ h'P~ hftI1:-r t!~
16. Effective Date
+') Ii!fiti! q.I}". "f.I}"r: f~e;
~trc; IA :: This Proclamation shall en.terinto force as of the 6thday
of Match, 1997.
hJlll hOIl ftI1:"" l)~ +') Ii!fifi! q.I}".
Done at Addis Ababa, this 6thday of March, 1997.
p../ C ";J(a 1...';..';
NEGASO GIDADA (DR.)
fh.-rfokl ~1..&-"'e Jl'fPh&-fl.I'e ~TlIfl.h
PRESIDENT OF THE FEDERAL DEMOCRA TIC
T /..Il..';') ..,.
REPUBLIC OF ETHIOPIA

-nCY1~ f)4r Uf-l-UZ.f .(-C~T ,+-1-00

BERHANENASELAM PRINTINGINTERPRISE