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A Chronicle of the Office of the Auditor General of Thailand.Pdf A Chronicle of the Office of the Auditor General of Thailand (1875-2015) State auditing during the reign of King Chulalongkorn (Rama V) Inception: Office Luang (the Royal Audit Office) 14 April 1875 Enactment of the Krom Phra Khlang Mahasombat (Royal Treasury) Department and Other Departments with Financial Functions Act B.E. 2418 (1875). Article 8 of this Act, on Office Luang or the Royal Audit Office located in the Grand Palace, contained the very first mention of state audit in the provisions of laws in Thailand. Article 8 designated the powers and functions of auditing public accounts throughout the country to Chaophanakngan Yai Phu Truat or the Auditor General. It also determined the auditing standard and granted the Auditor General the authority to audit public revenue and expenditure, the keeping of public revenue and expenditure and the procurement process. Article 8 consisted of 16 clauses and 7 clarifications. King Chulalongkorn (Rama V) had Office Luang established as the central office for the auditing of the royal treasury accounts. This new office was independent of the Royal Treasury Department (Krom Phra Khlang Mahasombat). King Chulalongkorn appointed his younger brother, His Royal Highness Prince Devan Uthayavongse (Somdet Krom Phraya Devavongse Varoprakarn), as the first Auditor General of Thailand. Office Luang was located in Damrong Sawat Ananyavongse Hall, which was close to the King’s residential quarters in the Grand Palace. King Rama V visited Office Luang on a daily basis to audit the royal treasury accounts personally. He also took charge of the auditing of the accounts in other ministries. 1877 King Rama V ordered the merging of the Audit Office with the Royal Secretariat Department. 1 1880 Abolition of Office Luang and the transfer of all its salary budgets to the central salary budget. An excerpt from King Rama V’s explanation of his decision to abolish the Royal Audit Office reads: “Although the Audit Office law was worthy, the people responsible for the audit functions informed me outright that it could not be fully observed”. The Krom Traut (Inspection Department) period 7 October 1890 Enactment of the Royal Decree on the Official Duties of the Phra Khlang Mahasombat (Royal Treasury) Ministry, allocating the duties of managing state revenue and expenditure as well as the safeguarding of all of the royal finance accounts and the crown properties to the Phra Klang Mahasombat Ministry. Under the administration of the minister in charge, the Ministry was also responsible for the collection of taxes and excises throughout the country. Its organizational structure consisted of 13 departments (which were the Krom Chao Krasuang or major departments and Krom Khuen or minor departments). Krom Traut was one of the Krom Chao Krasuang departments whose functions included accounting audits, pricing audits and the auditing of reports on public revenues and expenditures, royal assets, taxes and excises. During the initial period of its establishment, King Rama V appointed Phraya Phiphitphokhaisawan as the first Director-General of Krom Traut. 13 December 1890 Enactment of the 16-Article Inspection Department Act Ror Sor. 109 (B.E. 2433 or A.D. 1890). 1896 The Royal Treasury Ministry began its first budget planning by formulating regulations on the preparation of budgets and presenting these to King Rama V for his royal sanction. Regulations on the control of all ministerial and departmental spending were also introduced to keep state revenue and expenditure in balance and to ensure the country’s financial stability. At the same time, King Rama V ordered a clear separation of public and royal 2 finances in state budget planning. The royal funds were placed under the management of the Phra Khlang Khang Thi (Privy Purse) department. 1898 Royal appointment of Mr. Charles James Rivett Carnac as special Director- General of Krom Traut Lae Krom Sarabanchi (the Inspection and Accounting Departments) within the Royal Treasury Ministry. 1902 Royal appointment of Phra Ong Chao Kitiyakara Voralaksana (His Royal Highness Krom Phra Chanthaburi Naruenat) to the post of Director General of Krom Traut Lae Krom Sarabanchi. 1908 Royal appointment of Phra Ong Chao Rajani Chamcharas (His Royal Highness Krommuen Phitthayalongkorn) as Director-General of Krom Traut Lae Krom Sarabanchi. State auditing during the reign of King King Vajiravudh (Rama VI) 1910 Establishment of the Royal Asset Audit Committee or the Public Accounts Audit Committee by royal command of King Vajiravudh (Rama VI). The committee members consisted of Phra Ong Chao Prompong Atirach (Mom Chao Prom Sanidvongs), Director-General of the Customs Department, as committee chairman, and four other committee members, namely, Phraya Kalyanamaitri, Mr. Williamson, Mr. Graham and Phraya Ratsadakorn Komon. 1913 King Rama VI had the Budget Procedures Act B.E. 2456 (A.D. 1913) enacted to establish regulations concerning the timeliness of submissions of budgets by all ministries to the Phra Klang Mahasombat Ministry and to the King, as well as the deadlines for the royal approval of the budgets. The Act also determined the method of payment for non-budget expenditure during the fiscal year, specifying completion by 31 March of the specific fiscal year. Establishment of Krom Traut Mahatlek (the Royal Page Audit Department), by royal command, to regulate expenditure from the privy purse of the Royal 3 Page Department. Chao Phraya Woraphongphiphat was appointed Director- General of Royal Page Audit Department. Establishment of the State Audit Department 18 September 1915 Since public revenue and expenditure continued to increase over many financial years, King Rama VI deemed it suitable to impose stricter auditing and safeguarding measures for the disbursement and keeping of public revenue and expenditure. A special division was created to perform these functions. The King had the State Audit Department established within the Royal Treasury Ministry by Notification of the Establishment of the State Audit Department, dated 18 September 1915. It was also the Department’s duty to conduct performance audits of the officials in charge of public revenue and expenditure or any other type that the government had responsibility for. King Rama VI appointed Mr. Emilio Florio or E. Florio Director-General of the State Audit Department. 1915 Issuance of the Royal Treasury Ministry’s Notification on State Audit Regulations, specifying the duties and functions of the State Audit Department. 1917 After Mr. E. Florio left office, King Rama VI appointed Chao Phraya Phonlathep (Chalerm Komarakul Na Nagara), the Comptroller General, to be the interim supervisor of the State Audit Department. 1921 Royal appointment of Phraya Anurak Ratchakosa (Prawes Amatayakul), the Comptroller General, as the interim supervisor of the State Audit Department. State auditing during the reign of King Prajadhipok (Rama VII) 22 February 1926 King Prajadhipok (Rama VII) had the State Audit Department incorporated into and, thereby, became a division of the Department of Accounts. Phraya 4 Komarakulmontri (Chuen Komarakul Na Nagara) was appointed the Comptroller General and the interim head of the State Audit Division. 1930 Royal appointment of Phraya Chaiyotsombat (Serm Krisnamara) to the post of Comptroller General and Phraya Noranartphakdi (Pui Bunnag), the assistant Comptroller General, as supervisor of the State Audit Division. State auditing under the democratic system 20 July 1932 Issuance of the notification transferring the State Audit Department to the administration of Khana Kammakarn Ratsadon (the People's Committee of Siam) or the Cabinet on 20 July 1932 with Luang Damri Isaranuwat (Mom Luang Damri Isarangkura) acting on behalf of the Director-General of the State Audit Department. 1932 The State Audit initiated the Accounts Audit Scheme in which Auditor Teams were set up. For example, Audit Team 1 was responsible for the auditing the Royal Railway’s accounts and Audit Team 2 for the auditing of the Post Office’s and the Treasury Savings accounts, etc. The State Audit Department laid down, for the first time, regulations on the examination of certificate of payment copies. There were clarifications of audit principles, the keeping of the certificate of payment copies, the comparison of budget disbursement from the Treasury with the salary certificates of payment copies and the submission of public financial reports, etc. After the 1932 political change, 145 officials from the Comptroller General’s Office in the Phra Klang Mahasombat (Royal Treasury) Ministry were transferred to work for the State Audit Department. The Audit Council period 9 December 1933 Enactment of the Audit Council Act B.E. 2476 (1933) followed by the establishment of the Audit Council and the royal appointment of Luang 5 Damri Isaranuwat as the first President of the Audit Council. The first Audit Council had a total of 19 members. The Audit Council was to report to the Office of the Prime Minister, as decreed in Article 8 of the Royal Decree on the Reorganization of the Office of the Prime Minister’s Offices and Departments B.E. 2476 (1934). 1933 The Audit Council formulated, for the first time, audit seals, audit receipts, certificates of payment and several other proofs of evidence formats. 1934 The Audit Council initiated an audit-training project for university student’s internal audit practicum at the Audit Council. In the first year of the project, 80 students from Thammasat University joined the training and were subsequently
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