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As enacted
Contents

Part IV · Imposition of Surcharge

19. Audit Service Commission to impose a surcharge

Official English translation. The Sinhala text prevails.

(1)

(a)

Unless otherwise specifically provided for, in any other written law, the Audit Service

Commission shall report the amount of any deficiency or loss in any transaction of an auditee entity where the Audit Service

Commission has reasonable grounds to believe that such transaction has been made contrary to any written law and has caused any deficiency or loss due to fraud, negligence, misappropriation or corruption of those involved in that transaction to the

Chief Accounting Officer of the auditee entity for imposition of a surcharge on the value of the deficiency or loss in every transaction of such auditee entity;

(b)

Any person involved in causing the deficiency or loss referred to in paragraph (a)

shall hereinafter be referred to as the “person who is responsible for the deficiency or loss”.

(2)

The Chief Accounting Officer of the auditee entity shall charge the surcharge under subsection (1), against any person who is responsible for the deficiency or loss, either jointly or severally, followed by a formal disciplinary action by the Disciplinary Authority or a judicial process.

(3)

The Chief Accounting Officer of the auditee entity shall, in charging the amount to be recovered, adopt the following procedure:—

(a)

issue a notice to each person in respect of whom the surcharge is to be imposed specifying the reasons for such imposition, and afford an opportunity for each such person to make representation to show cause, in writing in respect of subsections (1) and (2), within a period of twenty one days from the date of receipt of the Notice.The Chief Accounting

Officer shall report thereof to the Audit Service

Commission;

(b)

consider the representations made under paragraph (a) prior to making a decision on the surcharge to be imposed;

(c)

where no representations have been made within the time specified, the Chief Accounting Officer of the auditee entity shall proceed to make a decision on the surcharge to be charged;

(d)

the surcharge shall be decided on the cumulative of the amount of the deficiency or loss and such interest as may have accrued, as charged on the rates for

Treasury bills when the deficiency or loss arose;

(e)

the decision of the Chief Accounting Officer of the auditee entity under paragraphs (b) and (c) shall be communicated forthwith to each person who is responsible for the deficiency or loss by issuing a

Surcharge Certificate, specifying the following:—

(i)

the reasons for surcharging;

(ii)

the amount to be charged, which includes the deficiency or loss of the transaction, the surcharge decided and any interest percentage, as may be determined, for any delay of payment of the said amounts exceeding two months from the date of payment specified;

(iii)

the action contemplated for its recovery;

(iv)

the date on or before which the amount specified under item (ii) is to be paid;

(v)

the details of the manner in which payment shall be made.

(4)

The Chief Accounting Officer of the auditee entity shall charge the amount specified under subsection (3)(e)(ii)

from the person who is responsible for the deficiency or loss who may be in-service or not in-service at the time of the audit, within one month of the date of payment as specified in the Surcharge Certificate.

Read on from s 20

Part V

Audit Service Commission

Read on from Part V

Part VI

Establishment of the National Audit Office and the Sri Lanka State Audit Service

Read on from Part VI

Part VII

Responsibilities of a Chief Accounting Officer and Accounting Officer

Read on from Part VII

Part VIII

Offences and Penalties

Read on from Part VIII

Part IX

General

Read on from Part IX

Schedules