Audit Act of 1994

The Audit Act of 1994 of Dominica is a critical legislative instrument that defines the mandate, powers, and independence of the country’s audit authority, the Office of the Director of Audit. Enacted alongside the Finance Administration Act of 1994, it marks a significant turning point in public sector accountability and establishes a structured framework for oversight of all government financial operations. This act formalises how audits are carried out, how reports are submitted, and how public financial management is assessed to ensure the responsible use of state resources.

Foundations and Scope of the Audit Act

The act was introduced to give legal backing to the independent audit of government accounts. The Director of Audit, as stipulated by the Act and reinforced under Section 83 of the Constitution, is responsible for auditing all government departments, courts, commissions, and statutory bodies. The office operates with full autonomy and reports directly to Parliament. This ensures an impartial review of government expenditures and guarantees public access to audit findings. The act compels the Accountant General to submit certified financial statements to the Director within six months after the close of each fiscal year, creating a timeline for transparent financial reporting and subsequent parliamentary review.

Audit Types and International Standards

The Act mandates three categories of audits, financial audits to verify records, compliance audits to check adherence to laws and regulations, and performance audits to examine the efficiency and effectiveness of programs and services. Importantly, the Audit Office must conduct its reviews in accordance with the International Standards of Supreme Audit Institutions (ISSAIs), which are globally recognised benchmarks for public auditing. This alignment supports international confidence in Dominica’s financial integrity and fosters consistency in audit execution across government bodies.

Core Powers of the Director of Audit

• Full access to records: The Director of Audit is empowered to examine all books, accounts, and documents of government agencies and to request written or oral explanations from officials.
• Corrective recommendations: If misuse or irregularities are found, the Director may advise the recovery of funds, apply surcharges, or recommend administrative action against responsible parties.

Institutional Roles and Reporting Process

Once the audit is complete, a report is compiled and submitted to the Minister for Finance, who forwards it to the Speaker of the House of Assembly. It is then presented to Parliament and made publicly available. The Public Accounts Committee (PAC) reviews these reports, questions relevant ministry officials, and presents its findings and recommendations to the full House. This oversight loop ensures that financial misconduct or inefficiencies are not just documented but also addressed at the highest legislative level.

Organizational Linkages and Audit Flow

• Accountant General — submits year-end accounts
• Director of Audit — audits and reports findings
• Public Accounts Committee — holds hearings and follows up on recommendations

Capacity, Reform, and International Engagement

The Audit Act of 1994 enabled the Office of the Director of Audit to strengthen internal procedures, attract technical support, and build a staff trained in both financial and performance audit techniques. Over the years, this has included partnerships through regional frameworks such as CAROSAI (Caribbean Organisation of Supreme Audit Institutions) and global initiatives like the Global SAI Accountability Initiative (GSAI). These efforts have increased audit coverage, boosted report timeliness, and fostered proactive engagement with civil society and Parliament.

More recently, digital systems and modern audit tools are being integrated to improve data accuracy, risk assessment, and automation in reporting. Such modernization ensures the Audit Office remains responsive to emerging fiscal risks and maintains relevance amid growing expectations for transparency.