The Ministry of Finance has moved swiftly to delegate financial authority at the National Audit Office (NAO) amid a deepening administrative crisis that had placed even staff salary payments at risk, following delays in appointing an Auditor General.
Under normal circumstances, the Auditor General serves as the Chief Accounting Officer of the NAO. However, with the post remaining vacant since December 6, the institution has been unable to conduct any financial transactions.
In response, the Secretary to the Ministry of Finance has temporarily delegated financial authority to the Deputy Auditor General (DAG) in charge of administration at the NAO, until an Auditor General is formally appointed.
Typically, once Parliament passes the Appropriation Bill (Budget), financial authority rests with the Minister of Finance. This authority is then delegated to the Finance Ministry Secretary, who subsequently transfers it to the secretaries of other ministries. Independent institutions such as the NAO, however, do not fall under any ministry, and their heads are therefore designated as Chief Accounting Authorities.
“Somebody has to be appointed as the Chief Accounting Authority,” an official source said. “The NAO informed us that they were unable to carry out any financial transactions—not even salary payments—because no one held the required authority.”
According to the source, the NAO has been unable to spend funds since January due to the absence of an Auditor General. As a result, the Ministry of Finance referred the matter to President Anura Kumara Dissanayake, who also serves as the Minister of Finance. The President subsequently directed that financial authority be delegated to a senior NAO official.
Accordingly, effective this week, financial authority at the National Audit Office has been vested in Oshan Fernando, the Deputy Auditor General in charge of administration.
