EARLY HISTORY OF AGO
1867 - Establishment of Audit Office (Straits Settlements)
The Auditor-General’s Office (AGO) of Singapore has its origins in the Audit Office of the Straits Settlements which was
established by the British colonial government in 1867. This was the year that the Straits Settlements were made a Crown
Colony of the British Empire. The formation of the Audit Office was under the Exchequer and Audit Departments Act which
was passed in Great Britain in 1866. The Act required all government departments to produce annual accounting reports.
The Office of the Comptroller and Auditor-General in charge of an Exchequer and Audit Department was established under
the Act to audit those accounting reports.
Gazette appointing Charles
Irving as Auditor-General of the
Straits Settlements, 1867 |
Report of Auditor-General to
Straits Settlements Legislative
Council, 1868 |
Charles J Irving was appointed the first Auditor-General of the Straits Settlements by the British Crown in 1867 with
responsibility for reporting on the Colony’s financial accounts, confirming the accuracy of the financial returns, assuring the
soundness of its accounting procedures and conducting investigations into any financial discrepancies that might have
emerged from the Colony’s financial statements. As Auditor-General, Irving held a seat in the Straits Settlements
Legislative Council, but reported directly to the Colonial Secretary in London and not to the Governor of the Straits
Settlements. This was to preserve his autonomy as an auditor and his ability to act as an impartial check on the local
government for the British Crown.
1932 - Birth of the Singapore Audit Office
Report of Director of Colonial
Audit on Accounts of Straits
Settlements, 1936 |
Administrative reforms in 1932 resulted in the merging of the Auditor-General’s
Offices of the Straits Settlements and the Federated Malay States into a single
department, the “Audit Department”.
The Audit Department, which had its headquarters in Kuala Lumpur, came under
the authority of the Colonial Audit Department (renamed Overseas Audit Department in
1955) in London, headed by the Director-General of Colonial Audit (re-designated
Director-General of the Overseas Audit Service in 1955). The responsibility of the
Director-General was to monitor the finances of Britain’s overseas possessions for the British Secretary of State for the Colonies.
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A Singapore Audit Office (later renamed the “Audit
Department”) was established under the charge of a Deputy
Auditor, who was subordinate to the Auditor-General in Kuala
Lumpur. This administrative arrangement remained largely
unchanged until the Federation of Malaya became
independent in 1957.
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Visit by Mr. J. L. Worlledge (Director-General of Colonial Audit) to the Singapore Audit Office, 1950 |
AUDITING THE STATE OF SINGAPORE
1958 - Appointment of the first Director of Audit (State of Singapore)
Singapore remained a British Crown Colony in August 1957 when the Federation of Malaya became independent.
Consequently, the Singapore Audit Department was partitioned from Malaya and returned to the supervision of the Overseas Audit Department in London.
In August 1958, the British Parliament changed the status of Singapore from a Colony to a State. In the same year, the post of Director of Audit was created for the head of the Singapore Audit Department.
The first Director of Audit of
the new State of Singapore was Arthur H Armitage. He held the post during the period 1958 to 1962.
The responsibility of the Director of Audit was to audit the accounts of all departments and offices of the Government of
Singapore (including the office of the Public Service Commission) and the accounts of the Supreme Court, of all subordinate courts
and of the Legislative Assembly. Audit reports were to be submitted by the Director of Audit to the Yang di-Pertuan Negara (Head
of State of Singapore), who would cause them to be presented to the Legislative Assembly. The Director of Audit was by law
appointed by the Yang di-Pertuan Negara on the advice of the Prime Minister after consultation with the Public Service Commission.
1958 - Formation of the Public Accounts Committee
In 1958, Singapore’s Public Accounts Committee comprising members of the Legislative Assembly (now known as Parliament)
was established following the passing of the State of Singapore Act by the British Parliament. Its responsibility was to review the
annual report of the Director of Audit. The Committee serves as an oversight body on government expenditure above the Director of
Audit.
1959 - Legal Authority Given to the Audit Department
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In 1959, Singapore was granted full internal self-government by the British
Parliament. In that year, the official standing of the Audit Department was
enhanced with the enactment of an Audit Ordinance which formally gave the
Director of Audit the legal authority to carry out his duties in the new Singapore
State. Under the Ordinance, the Director of Audit was given the right of access at
all times, to all and any information related to government accounts to ensure the
correct management of these accounts.
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Audit Ordinance, 1959 |
1963 - Administration under the Federation of Malaysia
In 1963, Malaya, Singapore, Sabah and Sarawak signed the Malaysia Agreement in London to form the Federation of Malaysia.
Consequently, the Singapore Audit Department became a branch of the Malaysian Audit Department under the Auditor-General of
Malaysia. Audit reports on the accounts of Singapore were to be submitted by the Auditor-General of Malaysia to the Malaysian
Head of State (Yang di-Pertuan Agong) to lay before the House of Representatives. The audit reports were also given to the
Singapore Head of State (Yang di-Pertuan Negara) to lay before the Legislative Assembly.
This arrangement was short-lived. Singapore separated from Malaysia in August 1965.
BUILDING A NATIONAL AUDIT INSTITUTION
1965 - Singapore’s Independence
On 9 August 1965, Singapore became an independent and sovereign nation. The Singapore Audit Department returned once
again to the Singapore Government authority. From its inception, the Government of the Republic of Singapore took care to
maintain legally strong and independent public auditing institutions like the Audit Department and Public Accounts Committee
(established in 1958). This focus on auditing and public accountability was encouraged under the parliamentary democratic
political system which Singapore inherited from the British. In a parliamentary democracy, the Government is formed from selected
Members of Parliament belonging to the majority party popularly elected by the voting public. The Government derives its authority
from the public and is accountable to them, through Parliament, in its exercise of power and the use of public funds. The national
auditor’s role, to check on government finances for Parliament, is thus a central pillar of the parliamentary accountability system.
1966 - Enactment of the Audit Act
Audit Act, 1966 |
In 1966, the Singapore Parliament passed the Audit Act to re-enact the 1959
Audit Ordinance that lapsed when Singapore became part of Malaysia. The Audit Act
was deemed to have come into operation on 9 August 1965. This Act safeguarded
the Director of Audit’s terms of service as well as his tenure of office from arbitrary
changes to allow him carry out his work objectively and autonomously, without fear or
favour.
The Audit Act stipulated the responsibilities of the Director of Audit, which were to
ascertain whether all reasonable steps had been taken to ensure that public funds
and resources were used and managed according to established laws and
regulations, rather than guaranteeing that this was the case in every respect.
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1985 - Renaming the Audit Department
The Audit Department was renamed the Auditor-General’s Office (AGO) during the year 1985. The Director of
Audit had been re-designated Auditor-General in 1970.
1991 - Constitutional Amendment and AGO’s Enlarged Role
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In 1991, a significant amendment to the AGO’s functions took place when the
Constitution of the Republic of Singapore was amended to empower the President to
veto government’s use of national reserves as well as appointments to vital public
sector positions – including that of the Auditor-General. Along with these changes, the
terms of appointment and duties of the Auditor-General were also enshrined in the
Constitution. The President was given the discretion to accept or reject the advice of
the Prime Minister regarding the appointment or removal of the Auditor-General.
These changes further enhanced the AGO’s freedom to conduct its work effectively
and without fear or favour.
The Constitution also imposed on the Auditor-General the additional duty of
informing the President of any proposed transaction of the Government which is likely
to draw on the reserves of the Government which were not accumulated by the
Government during its current term of office.
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Amendment to the Constitution of the
Republic of Singapore, 1991
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(Images Courtesy of National Archives of Singapore)