On21/Jul./2019, President of Federal Board of Supreme Audit(FBSA) Dr. Salah N.Khalf, met Baghdad’s Mayor, Dr.Thikra Alwash.
In the Name of the People
Presidency of the Republic
Resolution No. 33
Pursuant to the passage of the law hereunder by the Council of Representatives (COR) and in conformity with the provisions of Article 61 (1) and Article 73 (3) of the Constitution, the President of the Republic has decided on 27 October, 2011 to promulgate the following law:
Law No. (31) of 2011
Law of The Board of Supreme Audit
Definitions and Objectives
For the purpose of the law, the following expressions shall have the meanings assigned thereto:
1. ‘The Board’: The Board of Supreme Audit 2. ‘The President’: President of The Board of Supreme Audit 3. ‘The Council’: The Council of Financial Audit
For the purpose of the law, any of the following shall be deemed as a financial abuse:
1. Violation of laws, regulations and provisions 2. Dereliction or default, resulting in a loss or waste of public funds or damages to the National Economy. 3. Not to make available the necessary records, documents and information to be kept for audit and control, or non-submission to the Board or the bodies it authorizes. 4. Abstaining from or delay in answering the Board’s reports, correspondence, objections and observations within the specified period.
Page 2 of 13
Article 3 The Board of Supreme Audit shall undertake control over the following: a. The Public money, wherever exist. b. Works of entities subject to the Board’s control and audit throughout Iraq as per to the provisions of this law and the laws in force.
Article 4 The Board looks forward to achieve the following objectives: 1. To safeguard the public money against waste, squander and misconduct, and to ensure sound use of it. 2. To enhance efficiency of audittees. 3. To contribute to the independence of economy and supporting its growth and stability. 4. To spread the national and international standard-based accounting and auditing systems and continuously improving practicable standards and criteria of management and accounting. 5. To develop the profession of accounting and auditing and accounting systems and to enhance the auditees’ accounting and audit performance.
Chapter II The Board Independence, Function and Mandate
Article 5 The Board shall be a financially and administratively independent body with a judicial personality. It is the highest financial controlling body, which is attached to the COR and represented by president of the Board or whom he may authorize.
Article 6 The Board shall undertake the following duties: 1. Auditing and control over accounts and activities of the entities under the Board jurisdiction and verifying sound disbursement of public funds and efficient implementation of laws, regulations and provisions, including:
a. Examining and auditing the transactions of public spending so as to ensure that they are valid and not exceeding their budgetary appropriations, and using public funds for the purposes intended to without waste, abuse or misconduct, as well as evaluating its returns.
b. Examining and reviewing estimation and realization transactions pertaining to the collection of public resources to ascertain that the procedures in place are appropriate and are soundly implemented.
Page 3 of 13
c. Expressing opinion on financial statements and reports related to the results of auditees’ actions and financial positions, and verifying whether they are organized according to the legal requirements and the accepted accounting standards and representing the real financial position, result of activity and cash flows.
2. Control of performance evaluation of entities subject to the Board’s control.
3. Providing technical support in the fields of audit, accounting and administration and the related organizational and technical matters.
4. Evaluating overall financial and economic plans and policies which are established to fulfill and comply with the states’ objectives.
5. Conducting audit on issues requested for review by the Council of Representatives.
Subject to the provisions of this law, the Board shall prepare a comprehensive annual plan to fulfill the audit duties entrusted to it, which include:
1. Audit and performance evaluation tasks.
2. Fields of cooperation with the Commission of Public Integrity and Offices of Inspectors General.
3. Matters and issues perceived by the Board to be essential for verifying the government level of transparency and performance of duties.
Hereunder entities shall be subject to the Board jurisdiction:
1. The state institutions and departments, the public sector, or any other authority deals with the public funds in collection, disbursement, planning, funding, exchanging, trading, in-kind production or production of commodities or services.
2. Any other authority whose law or by-law stipulates it should be subject to the Board’s audit and control.
The judicial authority shall be excluded, only with regard to its judicial powers, from the Board’s audit and control.
The Board’s audit includes examining and auditing transactions and appropriations of the public revenues, expenditures and financial commitments in terms of their
Page 4 of 13
planning, collecting, expending, as well as assets of different types to verify how proper they are evaluated and registered in the orderly books and records, and to ensure availability, ownership, efficiency and safety of their usage, maintenance and safeguarding; as well as checking and auditing documents, contracts, records, accounting books, budgets, financial statements, and decisions and all other documents and administrative issues related to the auditing duties.
Audit and Control works shall be carried out in accordance with the local and international approved rules, usages and standards, as well as the regular approaches.
1. The audit works shall be carried out at the auditees’ headquarters, or, in case working in these sites has been impeded or become disrupted, at the Board’s headquarters or main offices. The bodies concerned should prepare appropriate places for the Board’s officials and allow them to access all the necessary records, documents and any information or data required for their job.
2. In case an auditee abstains from making available the records and information necessary for auditing and control, the Board, within 20 days, shall make a notice to the auditee and the inspector general office in the auditee to present these records and information and to clarify the reasons for abstention.
3. Should the Board find the reasons for abstention unjustifiable, it may inform the Prime Ministry or Commission of Integrity to carry out an investigation and bind the abstainer to provide the required records and information, or the Parliament if the case continued.
The Board has the following powers:
1. The right to access all the documents, transactions, orders and decisions related to audit and control, to conduct or supervise an at site stock count, and to obtain, as appropriate, from all the relevant administrative and technical levels all the clarifications, information and answers needed to carry out its mission.
2. Auditing the classified programs and expenditures that are related to the national security, and President of the Board may deputize whom he chooses to act on his behalf to carry out the relevant auditing and reporting.
3. Based on a decision by the Council of Financial Audit, conducting inspections on the grants, loans, facilities, preferences and investments and making sure they are dedicated to the purposes of provision.
Page 5 of 13
The Board upon detecting infringements may ask the Inspector General or the Commission of Public Integrity to hold investigation and take the necessary procedures and to clear the infringement and the associated effects.
The Board’s President may ask the relevant minister or chairman of auditee:
1. To refer the offender to investigation and to have him/her suspended from duty.
2. To file a lawsuit as to any rights may arise to the State from financial irregularities.
3. To hold the violator responsible for compensating all damages endured by the auditee.
The Board must report to the General Prosecution, Commission of Public Integrity, or the relevant investigative authorities, each by its jurisdiction, on every financial irregularity detected if it was recognized as an offence.
The Board is bound to advice the council of ministers on any dispute with the entities under its audit and control to take action on the issue, if otherwise it fails to settle the issue in question, the Board shall report to the Parliament.
Auditees subject to the Board’s audit should notify the Board of any case of financial abuse at the date of their discovery, without prejudice to the right of such entities to take the appropriate procedures. They are bound to inform the Board of these procedures.
Page 6 of 13
Chapter III Organization of the Board
The Board shall be composed of the Council, the President, the Vice-presidents, and the Offices.
1. The Council is consisted of the President, as chairman, and vice-presidents and directors general, as members.
2. The Council shall convene once a month minimum by invitation of the chairman or one third of the members. The quorum shall be with the attendance of two thirds of the full members.
3. The Council makes decisions by vote of the majority of the members present. In case of a tie, the side supported by the chairman shall prevail.
4. The Council shall have a secretariat general headed by an official who has the rank of director. The Secretariat shall keep a record to write down the meetings minutes, Council discussions, and the decisions adopted
5. The Board’s President may call on the head of any auditee or whoever represents him to attend the Council meetings on issues related to that auditee.
The Council scope of work is as follows:
1. Approving the work plans of the Board.
2. Establishing and ratifying the Board’s work bases, regulations and methods of implementation.
3. Deciding on the issues for conducting audit and control tasks and providing the necessary requirements.
4. Defining the scope of work and systematization of the Board’s offices based on the general guidance of the state.
5. Planning and validating the annual draft budget of the Board according to the State general directions and submitting it to the Ministry of Finance to integrate it with the state’s public budget.
6. Approving the framework of the Board’s reports.
Page 7 of 13
7. Discussing the development of applied training courses for the Board’s staff and others, or for those working in the private sector, and the Council may have them awarded as per its discretion.
8. Setting rules of hiring auditors by the Board from the private sector to conduct audit and control on any of the Board’s auditees, provided that their share of the audit assignments under the Board’s annual audit plan is no more than 5%.
1. a. The Council of Representatives (COR) shall create an ad hoc committee of 9 members to be chosen from the Integrity, the Legal, and the Financial Committees to select 3 nominees for the post of president of the Board.
b. The COR shall approve one of the 3 nominees by absolute majority of its members.
2. The President has the rank of a Minister and shall be appointed for a term of 4 years.
3. President of the Board has the authorities of a Minister of Finance regarding the Board’s issues, staff and budget.
The nominee for the post of president of the Board shall:
1. Be an Iraqi national, not have been convicted of any non-political felony, nor of a misdemeanor involving violation of honor.
2. Not be subject to the procedures of the Commission of Accountability and Justice.
3. Be a holder of a primary university degree in specialties relating to the Board’s tasks with no less than 15 year actual experience in the field of specialty within the government or the public sector.
4. Be known for his highest standards of ethical behavior and a reputation for integrity and honesty.
5. Not have been president of the Board for two terms, whether or not successive.
6. Be independent and not affiliated to any party or political affiliation.
Page 8 of 13
The Council of Representative may interrogate the Board’s president according to the Ministers Interrogation Procedures stipulated in the Constitution, and may exempt him from office as specified.
The following formations are attached to the Board’s president:
1. The Board’s president main office shall be headed by a Manager with at least a bachelor’s degree, and known for his experience and efficiency.
2. Office of Technical Affairs and Studies: shall be headed by a Director General with a higher academic degree. This Office shall undertake the technical and professional duties required for audit activities, as well as the task of conducting researches on the means of improving, increasing effectiveness and raising level of performance of the audit work, preparing the Board’s annual plan and taking the necessary measures for implementation, and participating in developing the performance evaluation standards and indicators.
3. Office of Legal Affairs: shall be headed by a Director General with a primary university degree in Law. This Office shall provide legal advice, review laws, regulations and instructions, express opinion on the draft laws, regulations and instructions introduced to the Board, and represent the Board, by proxy from the Board’s president, before the courts.
4. Office of Administrative and Financial Affairs: shall be headed by a director general with at least a primary university degree. This Office shall prepare and provide administrative and financial services for the Board.
The President shall have two deputies of the rank of deputy-minister to be appointed for four years renewable once only, provided each of whom has no less than 10 years of actual service under the same requirements for president appointment.
1. The Board shall be composed of 8 audit offices located in Baghdad and other 8 audit offices located in the governorates, each of which shall be headed by an official of the rank of director general. They are in charge of the audit and control of the auditees thereof, as may be decided by the Council according to the work requirements.
2. The scope of work and affiliation of the offices set forth in item (1) of this Article shall be organized by virtue of a decision by the Council.
Page 9 of 13
3. Any official to be appointed as head of audit office must have no less than 15year experience of auditing, including 5 years minimum of actual service in the Board, and shall be a at least with a chartered accountant degree.
1. a) Within 120 days of the end of every year, the Council of Financial Audit shall present to the COR an annual report of the basic aspects ensuing from the implementation results of the Board’s annual plan, including the insights, observations and suggestions relevant to the financial, administrative, economic and legal circumstances. The report shall contain also evaluation of the efficiency and adequacy of the government procedures required to ensure effective and transparent collection of revenues and spending of public funds.
b) The Council may forward a report to the COR on every important matter relating to the audit and evaluation of financial, administrative and economic performance, and may disseminate, by consent of the COR, any issue it deems necessary.
2. The Council shall make public to the media a list of the completed audit and control reports, and shall make available to the media and any relevant authority, on request, copies thereof, except for the reports that jeopardize the National Security, which may not be published without the consent of the COR.
3. The President may publish, upon consent of the Council, any of the Board’s reports in the media.
4. The Board shall, besides its main tasks, have oversight on the Boards of audit located in the regions, and to this end it may undertake the following:
a) Reviewing all audit reports issued by these institutions and incorporating them in the federal report of its own.
b) Coordinating the Board’s work at the federal level with that of the regional Boards of audit according to processes to be established by the Council of Financial Audit set forth in the law.
c) Cross-coordinating the processes maintained by the regional Boards of Audit as per rules to be approved by the Council.
Page 10 of 13
5. The Board may conduct administrative investigation with regard to a financial violation detected directly by it in the auditees lacking offices of Inspector General or when the office of Inspector General in the relevant auditee fails to fulfill the investigation within 90 days after receipt of notification from the Board. In such case, the Inspector General concerned shall hand over all the documents and initial papers including all the papers related to the investigation made by which upon the Board’s request.
6. a) The Council may discuss and approve, prior to issuance of the Board’s reports, all the observations, recommendations, suggestions and opinions hereto, and may thereon entrust any of its members or of the Board’s employees with part of this assignment.
b) The Council may endorse guidelines or rules as to the collection of audit fees from non-governmental institutions subject to the Board’s control.
c) The Council may endorse guidelines and processes of coordination between the federal Board of Supreme Audit and the regional Boards of Audit.
d) The Council may delegate part of its duties and authorities to the President.
The Council may involve the state employees and the practitioners in carrying out the Board’s duties and jurisdictions, and may grant them the remunerations and fees at the amount it determines.
Employees working in the Board shall be granted the following allowances:
1. Audit allowance equivalent to 50% of a salary or wage.
2. Risk allowance equivalent to 50% of a salary or wage.
3. Transport, non-profession risks and ad hoc tasks allowances equivalent to 30% of a salary or wage as per rules and instructions to be issued by the Council.
The President may grant, for the purpose of promotion and increment, seniority of six months maximum to the Board employee of any rank who is proved to be highly efficient or to have made exceptional efforts.
President of the Board may pay on annual basis, for the Board’s employees who have accumulated leaves of more than 180 days, the salaries of the accumulated paid leaves for the period in excess of this period.
Page 11 of 13
President of the Board, vice presidents, the heads of offices or the employees in charge of audit and control may not work in another profession or trade even after the official work hours, except for publishing books and researches, lecturing, and affiliation to scientific assemblies, professional syndicates, and the civil society.
1. A Board retiree shall be paid a leaving indemnity, provided that he/she has not been retired, based on his request, before reaching the retirement age or for medical reasons, equivalent to his/her last six monthly salaries.
2. The heirs of a Board’s in-service deceased employee shall be eligible to have the indemnity specified in para (1) of this Article.
The allowances provided for in this law shall be awarded to the Board’s employees in addition to the allowances stipulated in the laws in force.
The Board shall adopt Rules of Procedure that defines the organization of the Board’s offices, their duties and authorities, to be promulgated in the Official Gazette.
Employees of the Board shall be subject to provisions of the regulations in effect, except for any issue being provided for in this law.
The president shall issue, with approval of the Council, instructions to facilitate the implementation of the provisions of this law.
The Board of Supreme Audit law no. 6 (1990) and amendments shall be abolished, except for the relevant guidance which shall continue to apply until a replacement is issued.
Page 12 of 13
Laws that contradict with the provisions of this law shall not be applied.
This Law shall come into force on the date of its publication in the Official Gazette
President of the Republic
The law was legislated to:
Regulate the Board of Supreme Audit work, define its duties and powers, enhance control over public money and organize the relation between the Board and the other audit institutions pursuant to Article 103, paragraph 1 of the Constitution.
This law has been promulgated.
On21/Jul./2019, President of Federal Board of Supreme Audit(FBSA) Dr. Salah N.Khalf, met Baghdad’s Mayor, Dr.Thikra Alwash.
President of Federal Board of Supreme Audit (FBSA) Dr.Salah N. Khalaf, presided a delegation to attend ASOSAI 54th
President of Federal Board of Supreme Audit (FBSA) Dr. Salah N. Khalaf, met representatives of United Nations Development Program (UNDP)