Law No. (4) of 2018
Establishing the
Financial Audit Authority[1]
ـــــــــــــــــــــــــــــــــــــــــــ
We, Mohammed bin Rashid Al Maktoum,
Ruler of Dubai,
After perusal of:
Federal
Law No. (3) of 1987 Issuing the Penal Code and its amendments;
Federal Law No. (35) of 1992 Issuing the Criminal Procedures Code and its
amendments;
Federal Law No. (2) of 2015 Concerning Commercial Companies and its
amendments;
Law No.
(5) of 1995 Establishing the Department of Finance;
Law No.
(27) of 2006 Concerning Management of the Government of Dubai Human Resources
and its amendments;
Law
No. (8) of 2010 Concerning the Financial Audit Department and its amendments;
Law No.
(11) of 2014 Establishing the Dubai Electronic Security Centre;
Law No.
(1) of 2016 Concerning the Financial Regulations of the Government of Dubai;
Law
No. (13) of 2016 Concerning the Judicial Authorities in the Emirate of Dubai;
Decree No. (23) of 2014 Establishing the Supreme Legislation Committee in
the Emirate of Dubai; and
Resolution No. (2) of 2011 Authorising the Deputy Ruler to Supervise the
Financial Audit Department,
Do
hereby issue this Law.
This Law will
be cited as “Law No. (4) of 2018 Establishing the Financial Audit Authority”.
The following words and
expressions, wherever mentioned in this Law, will have the meaning indicated
opposite each of them unless the context implies otherwise:
|
Emirate: |
The
Emirate of Dubai. |
|
Ruler: |
His
Highness the Ruler of Dubai. |
|
Government: |
The
Government of Dubai. |
|
Authority: |
The
Financial Audit Authority. |
|
Chairman: |
The
chairman of the Authority. |
|
Director
General: |
The
director general of the Authority. |
|
Auditee: |
Any
entity that is subject to audit by the Authority
under this Law. |
|
Audit
Systems: |
The
financial, accounting, administrative, operational, and smart systems used by
Auditees. |
Pursuant to this
Law, a public authority named the “Financial Audit Authority” is established.
The Authority will have legal personality, financial and administrative
autonomy, and the legal capacity required to undertake all acts and
dispositions that ensure the achievement of its objectives. The Authority will
be affiliated to the Ruler.
The head office of
the Authority will be located in the Emirate.
The Authority will have the following objectives:
1.
to audit
Public Funds by verifying that they are legitimately and properly used and managed;
2.
to
ensure that the financial, administrative, accounting, operational, and smart
duties and activities of Auditees are conducted efficiently and effectively;
3.
to
promote, and ensure the implementation of, effective accountability and appropriate management practices of Auditees;
4.
to
contribute to the creation of a supportive audit and risk management environment that promotes
transparency and integrity;
5.
to
verify that the administrative resolutions and procedures adopted by Auditees
are in
compliance with the
legislation in force in the Emirate; and
6.
to
promote the principles of transparency and integrity; and to combat all types,
forms, and methods of financial and administrative corruption.
a.
For
the purpose of achieving its objectives, the Authority will have the duties and
powers to:
1.
audit
the periodic and annual consolidated Financial Statements of the Government and
the consolidated Financial Statements of Auditees, in accordance with the
Authority’s methodology; establish the rules, principles and standards that
govern the preparation and presentation of the financial reports and the draft
consolidated Financial Statements of the Government
2.
investigate
the financial and administrative violations detected by the Authority or by
Auditees; and identify the causes of these violations and take the appropriate
action in this respect;
3.
verify
the complaints, data, and information received by the Authority about any
financial irregularities committed by Auditees;
4.
provide
Auditees with financial and accounting expert services as may be assigned by
the Ruler or the Chairman, or provide these services at the request of Government
Entities or entities which are not subject to audit in the Emirate;
5.
verify
the Auditees' compliance with the legislation, and with the policies,
regulations, bylaws, and resolutions issued in pursuance thereof;
6.
verify
the accuracy of calculation and collection of the Public Revenue and financial
proceeds generated from the services provided, and the activities conducted, by
Auditees, by the banks operating in the Emirate, and by the entities that are
not subject to audit as may be assigned by the Ruler or the Chairman. These revenues
and proceeds include, without limitation, taxes, fees, prices, tariffs, fines,
sale proceeds, rental income, franchise revenue, profits, proceeds from
encashing guarantees, and other sources;
7.
express
an opinion and provide observations on the Financial Statements of the
Government and Auditees, and issue the required reports and submit them to the
Ruler for appropriate action, prior to the date of approval of these
statements;
8.
provide
appropriate audit advice and recommendations to improve the performance of the
Government and Auditees to meet international standards;
9.
participate
in, and represent the Authority on, boards and committees as may be directed by
the Ruler or the Chairman;
10. follow up on the recovery of funds and proceeds
generated from financial and administrative violations;
11. review the Auditees’ work practices and procedures
to identify and rectify weaknesses that may result in committing financial and
administrative violations;
12. propose the legislation, regulations, and policies
required to combat financial and administrative violations;
13. regulate the criteria for appointment and
reappointment of auditors; and evaluate the performance of their audit duties
at the respective Auditees;
14. provide direct communication channels with the parties
dealing with Auditees in order to receive complaints in relation to acts involving
financial or administrative violations; investigate such violations; and take the
necessary action in this regard;
15. conduct specialised studies and research in the
pursuit of achieving administrative and financial integrity;
16. create a database of financial and administrative
violations; analyse these violations; and develop appropriate solutions to address,
and prevent reoccurrence of, the same;
17. organise conferences, seminars, and training
courses on transparency, integrity, and combating financial and administrative
violations; and collaborate and cooperate with relevant regional and international
organisations to promote and ensure effective accountability and adoption of
appropriate management practices; and
18. exercise any other duties or powers that are assigned
to the Authority by the Ruler or the Chairman and that are relevant to auditing
Public Funds or required for the achievement of its objectives.
b.
The
Authority may, through the Director General, inquire of any Auditee official
about any information or data related to any irregularities committed within
these Auditees; and that official must fully cooperate with the Authority in
this respect.
The Authority will have the
following organisational levels:
1.
the
Chairman;
2.
the
Director General; and
3.
the
executive body.
a.
A
Chairman will be appointed to the Authority pursuant to a decree issued by the
Ruler.
b.
The
Chairman will undertake general supervision of the work of the Authority, and
ensure the achievement of its objectives under this Law. In particular, the
Chairman will have the duties and powers to:
1.
approve
the general policies, plans, and work programmes of the Authority;
2.
approve
the draft annual budget and the Financial Statements of the Authority, and
submit the same to the Ruler for final approval;
3.
approve
the organisational structure of the Authority;
4.
approve
the bylaws, regulations, and resolutions regulating the administrative,
financial, and technical work of the Authority, including human resources
regulations and financial approval powers;
5.
approve
charges for the services provided by the Authority;
6.
approve
the initiatives, programmes, and projects that are relevant to the Authority’s
objectives;
7.
appoint
executive directors of the Authority upon the recommendation of the Director
General; and
8.
exercise
any other duties or powers assigned to him by the Ruler.
c.
The
Chairman may delegate any of the powers referred to in paragraph (b) of this
Article to the Director General, provided that such delegation is specific and
in writing.
a.
A
Director General will be appointed to the Authority pursuant to a decree issued
by the Ruler.
b.
The
Director General will manage the Authority and will verify that the executive
body exercise all its duties and powers under this Law. In particular, the
Director General will have the duties and powers to:
1.
develop
the general policies, strategic plans, and work programmes of the Authority;
submit the same to the Chairman for approval; and follow up their
implementation;
2.
prepare
the draft annual budget and Financial Statements of the Authority, and submit
the same to the Chairman for approval;
3.
prepare
the organisational structure of the Authority, and submit the same to the
Chairman for approval;
4.
develop
the financial rules and regulations of the Authority, including the accounting
principles and standards to be adopted by the Authority to maintain its
financial records; and submit the same to the Chairman for approval;
5.
represent
the Authority before third parties and execute contracts, agreements, and
memoranda of understanding with local, regional, and international entities in areas
of expertise relevant to the work of the Authority;
6.
propose
the bylaws, regulations, and resolutions regulating the administrative,
financial, and technical work at the Authority, including human resources
regulations and financial approval powers; and submit the same to Chairman for
approval;
7.
appoint
deputy executive directors, managers, advisers, experts, and technical and
administrative staff;
8.
supervise
the executive body of the Authority and ensure the effective performance of the
duties and functions assigned to it;
9.
propose
the initiatives, programmes, and projects that are relevant to the objectives
of the Authority; and submit the same to the Chairman for approval;
10. prepare periodic reports outlining the
achievements and activities of the Authority, and present the same to the
Chairman to take the appropriate action in this regard;
11. approve the provision of audit services and
financial and accounting expert services to entities that are not subject to
audit upon their request, and issue the resolutions prescribing the fees
applicable thereon;
12. propose charges for the services provided by the
Authority; and submit the same to the Chairman for approval; and
13. exercise any other duties or powers that are
required for the achievement of the objectives of the Authority and that are
assigned or delegated to him by the Chairman.
c.
The
Director General may delegate any of the powers referred to in paragraph (b) of
this Article to any Employee of the Authority, provided that such delegation is
specific and in writing.
a.
The
Chairman and the Director General must, upon appointment and prior to assuming
their employment duties, take the following oath before the Ruler:
“I swear by Allah/God the Almighty to be faithful
to the Ruler and the Emirate; to respect the legislation in force; to protect
Public Funds; to perform my duties with utmost honesty and integrity; and to
protect the confidentiality of work-related information”.
b.
Executive
directors must, upon appointment and prior to assuming their employment duties,
take the oath referred to in paragraph (a) of this Article before the Chairman.
c.
Experts,
technical staff, and auditors must take the oath referred to in paragraph (a)
of this Article before the Director General.
a.
Neither
the Director General, nor executive directors, nor other Employees of the
Authority may conduct any financial, professional, or commercial activities, or
hold any post that conflicts with their work at the Authority, without the
approval of the Chairman or the Director General, as the case may be.
b.
A former
Employee of the Authority may work for any Auditee that he has audited during
his service with the Authority only after the lapse of three (3) years from the
end date of his service or with the approval of the Director General.
c.
Neither
the Director General, nor executive directors, nor other Employees of the
Authority may serve as members on the boards or committees formed by any
Auditee without the approval of the Chairman.
d.
Subject
to liability, Employees of the Authority are prohibited from disclosing or
divulging any information or data relating to their job duties.
Audit
Work
The audit
of Auditees by the Authority includes the following:
1.
financial
and compliance audit;
2.
performance
audit;
3.
auditing
of Audit Systems; and
4.
auditing
the efficiency and effectiveness of Audit Systems.
The
Authority will perform financial audit and compliance audit on all operations
to verify their legitimacy and appropriateness, and accuracy of calculations;
and to detect financial and administrative violations and take the necessary
corrective actions, through the following steps:
1.
examine
the financial transactions undertaken
by Auditees in the course of conducting and handling their financial and
operational activities and transactions;
2.
examine
all data, documents, and instruments relating to the Auditees' Financial Statements;
3.
verify,
in coordination with concerned entities, proper implementation by Auditees of
the legislation, policies, regulations, bylaws, and resolutions relevant to
their work; of those they issue; or of those regulating their affairs;
4.
audit the consolidated Financial Statements of the Government and issue an audit opinion thereon; issue a report on the outcomes of that audit stating the actual consolidated financial
position of the Government; and review the final accounts of Auditees, in
accordance with the work methodology and framework adopted by the Authority;
5.
examine
the final and consolidated Financial Statements of Auditees and their auditors’ working papers
and reports; and issue the relevant reports;
6.
verify
the accuracy of calculation and collection of the Public Revenue and financial
proceeds generated from the services provided, and the activities conducted, by
Auditees and by the banks operating in the Emirate. These include, without
limitation, taxes, fees, prices, tariffs, fines, sale proceeds, rental income,
franchise revenue, profits,
proceeds from encashing guarantees, and other sources; and
7.
examine
and audit the human resources administrative resolutions
and procedures adopted by Auditees in relation to appointments, promotions,
bonuses, increments, settlements, allowances, and other similar affairs to
ensure that these resolutions are valid and compliant with the legislation in
force and their regulatory bylaws.
The Authority will conduct a performance audit of the duties and activities of Auditees in order to verify their efficiency and effectiveness. This includes the following:
1.
verifying
the effectiveness of optimal use of available resources “inputs”
in delivering the required “outputs”, and assess to what extent organisational
effectiveness and proper conduct of work have been achieved;
2.
examining
deviations that have arisen in the course of performing duties and activities,
and identifying the causes of these deviations;
3.
verifying
the cost-effectiveness and quality of completed work and that it was
implemented at the appropriate time and place;
4.
verifying
the extent of achievement by Auditees of their objectives and of their
contribution to the achievement of the general strategic objectives and plans
of the Government;
5.
verifying
the extent of achievement of prescribed performance goals with a view to
improving the performance of Auditees; and
6.
verifying
that Auditees have responsibility
accounting principles and rules in place.
The Authority will, in coordination with the concerned entities in the Emirate, conduct audit of Audit Systems in order to verify the efficiency and effectiveness of these systems in performing all operational activities and financial transactions of Auditees. This will include the following:
1.
evaluating
all assets, applications, software; operations, data, investments, means of
communication and servers; and examining databases and the reports generated
from Audit Systems to verify their efficiency and effectiveness in achieving
the Auditees'
objectives;
2.
verifying
the availability of Audit Systems that ensure the protection of Auditees;
3.
verifying
that Audit Systems are appropriate and effective; and evaluating the effectiveness
of the procedures adopted by Auditees to protect the assets of these systems;
4.
examining
the reliability of Audit Systems, the integration of the operations and reports
of these systems, and the governance systems of Auditees;
5.
verifying
that the funds allocated for Audit Systems have been used for the intended
purposes and in accordance with the relevant regulatory legislation; and
6.
verifying
that the funds allocated in the General Budget for Audit Systems have not been
exceeded.
The
Authority will conduct audit of the efficiency and effectiveness of Audit Systems through:
1.
examining
Audit Systems and the procedures thereof in order to verify their
appropriateness, identify weaknesses, and to provide recommendations to rectify
any such weaknesses; and
2.
evaluating,
as per international best practices, the application of governance and enterprise
risk management principles, performance management practices, internal control systems,
the practices of internal audit units, and other practices adopted by Auditees,
to identify the obstacles faced by Auditees and highlight development and
improvement opportunities.
Nothing in this Law will prejudice the functions of the Dubai Electronic
Security Centre under the above-mentioned Law No. (11) of 2014 relating to auditing
government Information Security and the Information Systems of Government
Entities and of other entities affiliated to the Government. The Authority has
the power to audit Information Security and Information Systems of
non-governmental entities and other entities to be audited by the Authority
pursuant to Article (18) of this Law.
In
accordance with its annual audit plan, the Authority will exercise its duties
and powers under this Law in respect of the following entities whether they are
located within or outside of the Emirate:
1.
Government
Departments; public agencies and corporations; Government authorities and
councils, including the authorities supervising Special Development Zones and
free zones, such as the Dubai International Financial Centre; and any other
entities affiliated to the Government;
2.
companies
owned by the Government or Government Entities or those in which they hold twenty-five percent (25%) or more of the share
capital. The Authority may, at its
own discretion, audit companies in which the Government or Government Entities
hold less than twenty-five percent (25%) of the share capital;
3.
companies
for which the Government guarantees a minimum profit;
4.
entities
which receive financial subsidies from the Government;
5.
any
enterprise or other entity which the Ruler or the Chairman assigns the Authority to audit;
6.
other
entities or enterprises that are audited by the Authority pursuant to the legislation regulating these
entities and enterprises; and
7.
any
entity identified by the Authority to be involved in financial and administrative violations committed
within any of the entities referred to in this Article, in which case, the Authority’s audit will be limited to such violations and in
accordance with the legislation in force in the Emirate.
Overall
or selective audit of Auditees will be conducted in accordance with the rules
approved in the annual audit plan of the Authority.
a.
The
Authority may audit any accounts, documents, records, or papers as it deems
necessary to conduct audit work effectively. Audit may be conducted at the
premises of the Authority, the premises of the Auditee, or the premises of the
entity where the accounts, records, and documents subject to audit are
maintained.
b.
The
Authority may require Auditees to link their Audit Systems with the Authority’s
systems to enable remote audit and analysis of data relating to financial
transactions and operational transactions.
c.
All
information, data, and documents which will be perused by the Authority for
audit purposes will be treated as confidential, whether disclosed at the
premises of the Authority, the premises of an Auditee, or the premises of the
entity where the accounts, records, and documents subject to audit are
maintained.
a.
The
Director General and the Authority Employees assigned to conduct audit may
access any books, documents, records, or papers as required for conducting the
audit, and directly contact any of the Auditee Employees to enquire into any
matter related to an audit or investigation conducted by the Authority. For
this purpose, they may interview any Employee involved in any financial or
administrative violation committed at an Auditee.
b.
Auditees
must facilitate the work of Authority Employees by providing the required
documents and records, or any other data they deem required for conducting the
Audit; by enabling them to inspect Audit Systems; and by providing them with a
suitable place to perform their work.
The
Authority will have the right to review the plans and workflow of the internal
audit units of Auditees and of external auditors; to review and give opinion on
the reports issued by them; and to verify implementation by Auditees of the
recommendations contained in these reports.
The Authority will collate
audit findings in reports that contain its observations and recommendations, and will communicate these to Auditees in writing. An
Auditee
must implement
the Authority’s recommendations and submit
its reply
to the observations and recommendations
within
thirty (30) days from the date of notification. The
said
period is extendable upon a decision
from the
Director General. In the event that an Auditee fails to respond within
the said period without reasonable justification, the audit findings and the Authority's
observations included in its reports shall be deemed accurate
and final.
For the purpose of monitoring and
auditing the activities and work of Auditees, the Authority may seek the
assistance of any expert or technical staff it deems
appropriate to assist it in performing its audit duties under this Law. The
Director General will issue a resolution to determine the professional fees for such experts and technical staff.
In the
event that a dispute arises, while the Authority is exercising its duties and powers under this law, between the Authority and an
Auditee, any such dispute will be referred to the Chairman to advise on the
relevant appropriate action.
An Auditee must:
1.
provide
the Authority with whatever is necessary to enable it to
perform its duties, including any documents, records, papers, and information as the Authority may deem required for audit work in accordance with the provisions of this Law and the legislation in force;
2.
enable
Authority’s
Employees to examine and assess Audit Systems in accordance with the provisions of this Law and the legislation in force;
3.
provide
the Authority with all data and information contained in its financial records, its draft Financial Statements, and the supporting documents thereof;
4.
notify the Authority with and provide a copy of the resolutions issued for the delegation of authorities by the officials of Auditees to any of their Employees in accordance with the provisions of the
above-mentioned Law No. (1) of 2016;
5.
report
to the Authority any financial and administrative violations
committed within the Auditee;
6.
establish
organisational
units for internal control; and
7.
perform
any other obligations as may be determined by the Chairman by virtue of resolutions issued in this respect.
The Department of Finance must provide the Authority with the draft consolidated
Financial Statements of the Government and the supporting documents, in order
for the Authority to review the same and issue an audit opinion and provide any
observations thereon. Prior to the date of approval of these statements, the
Authority must submit the relevant reports to the Department of Finance to
incorporate its reconciliations and amendments thereon.
All
Auditees must, where the nature of their business and internal systems
necessitate the appointment of an external auditor, comply with the principles
and criteria regulating the appointment of auditors, scope of their work, the reports they issue, and the assessment of their
performance in order to ensure their compliance with the terms of their
engagement contracts, the International Standards on Auditing, and the
legislation in force.
Officials
and Employees of Auditees will be liable for their legal actions and physical
acts with respect to conducting audit work, in accordance with the rules
prescribed in this Law and legislation in force.
Where the
work of the Authority is obstructed by any person, the Director General or his
assignee may take all the appropriate measures to safeguard the boxes,
filing cabinets, or other places where the documents, records, papers, and
books to be audited are maintained. The Director General or his assignee may,
where necessary, seek the assistance of competent entities in the Emirate,
including police personnel.
The following cases and incidents, without limitation, will be considered as
financial and administrative violations and must be referred by an Auditee to
the Authority for investigation:
1.
failure
to comply with the financial rules, regulations, and bylaws applicable to the Auditee;
2.
failure
to comply with the rules and provisions governing the implementation of the
items of the General Budget or the Auditee's budget;
3.
failure
to comply with the rules and provisions governing the contracts and agreements
concluded by the Auditee;
4.
issuance of administrative resolutions that contradict with the legislation in force which may have a financial impact;
5.
failure
to comply with the rules and regulations governing warehouses and with the accounting policies issued by the Auditee;
6.
failure
to timely
provide the Authority with the financial data, draft Financial Statements, and their supporting documents by the prescribed
deadlines; or failure to provide the Authority with the documents required to conduct audit work;
7.
any
disposition, act, omission, negligence, or dereliction of duty that results in
damage to the Auditee or causes the loss of, or compromises, the financial
rights thereof;
8.
misappropriation
of
the Public Funds or Auditee’s funds, facilitating the misappropriation or embezzlement
of such funds, or causing loss of the interests thereof;
9.
wasting Auditee funds, or acting fraudulently with the intention
of embezzling such funds;
10. abuse of a public office for deriving personal gains for himself or
others; or for obstructing, hindering, or delaying the collection of the Public
Revenue generated from the funds, taxes, and fees prescribed for the Government
or Auditees;
11. falsification of official documents or use of false
instruments;
12. receiving or soliciting a bribe; and
13. violations related to tax or customs evasion.
Any
person will be considered as a violator under the provisions of this Law, and
will be subject to questioning and to disciplinary and criminal action, if he
engages in any of the following acts:
1.
obstructing
audit
work; or refusing to
cooperate with the Authority Employees
or to enable them to perform their duties as stipulated in this Law;
2.
refusing
to provide any information relevant to any investigation conducted by the Authority;
3.
refraining
from responding to any observation or correspondence of the Authority or delaying in providing such response for a period exceeding thirty (30) days without reasonable justification;
4.
refusing
to comply with any requirements or measures prescribed by the Authority; or
5.
concealing
any incident or case whose referral to the Authority for investigation is required by law.
a.
Without
prejudice to any applicable criminal liability, an Auditee's Employee, who
commits any of the acts or violations stipulated in this Law during his
service, will be punished in accordance with the applicable Auditee’s human
resources legislation.
b.
Without
prejudice to criminal liability, if applicable, Employees will bear the civil
liability for any damage incurred as a result of any of his acts or violations
hereunder.
During
any violation investigation conducted under the provisions of this law, the
Director General, or his authorised representative, may take any of the
following actions and measures:
1.
request the Auditee to suspend the service of the violating Employee until the investigation is concluded;
2.
retain the documents, papers, and records used in committing the violation;
3.
close
the investigation if the violation is found to be false or if it is proven that the Employee has not committed any of the violations
stated in this Law;
4.
refer
investigation documents to the Public Prosecution if the investigation reveals
that a criminal offence punishable by the law has been committed;
5.
request the withdrawal of all decisions issued in relation to the
violation and to reverse all legal or financial consequences that ensued from
these decisions from the date on which such decisions are rendered; and/or
6.
request
the imposition of disciplinary action against the violating Employee, in which case the official in charge of
the Auditee must issue an administrative resolution imposing the appropriate
disciplinary action against that Employee
and notify the Authority of the same
within fifteen (15) days from the date of imposing the disciplinary action.
a.
If
the Director General considers the disciplinary action imposed on a violating
Employee commensurate with the gravity of the committed violation, the Auditee
will be notified of the approval of the decision issued in respect of the
violation.
b.
If
the Director General considers the disciplinary action taken against a
violating Employee incommensurate with the gravity of the committed violation,
the Director General may request the official in charge of the Auditee to
impose a severer disciplinary action that is commensurate with the gravity of
the committed violation within seven (7) days from the date of being required
to do so. If the official in charge of the Auditee fails to respond to that
request, the matter will be referred to the Chairman to take the appropriate
action in this regard.
c.
In
any event, an Employee may submit a written grievance to the Grievance
Committee referred to in Article (36) of this Law against any decision taken
against him within fifteen (15) days from the date of being notified of the
contested decision.
a.
Pursuant
to a resolution of the Chairman, a committee named the “Grievances Committee”
will be formed, and will comprise three (3) to five (5) members. The committee
will be chaired by a representative from the Authority with the membership of a
representative from the Supreme Legislation Committee in the Emirate of Dubai
and a representative nominated by the official in charge of the Auditee for
which the aggrieved Employee works. The committee will consider the grievances
submitted by the Employees against whom a disciplinary action is taken pursuant
to the human resources legislation applicable within the Auditee.
b.
The
Chairman will issue a resolution determining the terms of reference, powers,
and the procedures for dealing with the committee. The decision issued by the
Grievances Committee on a grievance will be final and non-appealable by any
method of administrative review without prejudice to the aggrieved Employee’s
right to have recourse to court.
a.
An
Employee will remain liable for any violations
committed by him even if his service ends for any reason whatsoever. He may be
subject to investigation, legal action, and any of the following penalties:
1.
depriving
the Employee of no more than twenty-five percent (25%) of the Pension for a
period not exceeding three (3) months; or
2.
cutting
the Pension or the End-of-service Gratuity by no more than twenty-five percent
(25%) from the date on which the disciplinary action is imposed against him.
b.
The
Employee’s absence from work will not prevent him
from being held disciplinarily liable for the violations he has committed, and his resignation may not be accepted if he is under
investigation unless a final decision is issued in this regard.
c.
A
disciplinary violation will expire upon the death of the violating Employee or upon the lapse of five (5) years from the date of
discovery thereof. This limitation period will be interrupted once an investigation of the violation is initiated or
upon referral of the violating Employee
to the entity responsible for imposing the disciplinary action against the Employee or to any judicial authority having
jurisdiction over any felony resulting from, or relating directly or indirectly
to, that violation. A new limitation period
will commence from the date of the last action taken in respect
of the violation. Where multiple Employees
are under investigation for the same violation, any interruption of that period
for any Employee will be deemed
an interruption of the limitation period for the other Employees even if no other interrupting action is
taken against them.
d.
A
penal action against a violating Employee
will lapse in accordance with the general rules of limitation applicable to
penal cases pursuant to the legislation in force.
The Employees
of the Authority nominated by a resolution of the Director General will have
the capacity of law enforcement officers to record the acts committed in breach
of the provisions of this Law and the resolutions issued in pursuance hereof.
For this purpose, they may issue violation reports and seek the assistance of
competent entities in the Emirate including police personnel.
The
Authority will issue the following reports:
1.
a
general annual report to be submitted by the Chairman to the Ruler on all
activities and audit work performed by the Authority, observations and recommendations arising from the audit work conducted by the Authority, committed violations and the relevant action
taken, including the penalties imposed against violators, and the requests and proposed corrective measures;
2.
reports
on audit findings, which contain the observations and recommendations of the Authority. These reports must be communicated in writing to Auditees;
3.
a report
on the results of auditing the draft consolidated
Financial Statements of the
Government. This report must
contain the Authority’s audit
opinion on the financial position of the Government and will be sent to the
Department of Finance to implement any required changes and amendments based on
the Authority’s feedback;
4.
reports on the findings of the audit
of the financial data and consolidated Financial Statements of Auditees;
5.
reports
on the findings of the general assessment of governance, enterprise risk management, performance management, internal
control system, and the internal audit units of Auditees, and on the
recommended development and improvement opportunities;
6.
reports
on the violations committed by Auditees;
7.
special
reports on any matter of critical importance that requires review by the
competent authorities in the Emirate given its gravity and importance; and
8.
any
other reports that the Authority deems necessary and that are required to
enable it to perform its duties under this Law.
a.
The
Authority may coordinate with international, regional, federal, and local
entities in areas related to the work of the Authority.
b.
In
accordance with legislation in force, the Authority may conclude agreements
with external entities or join any regional or international organisations in
areas related to the work of the Authority.
a.
The
financial resources of the Authority will consist of:
1.
the
annual budget approved by the Ruler for the Authority;
2.
the
charges for the services provided by the Authority;
3.
the
charges for financial and accounting expert services assigned to or requested from the Authority; and
4.
any
other resources approved by the Chairman.
b.
The
Director General will have all the powers required to manage, use, and
implement the approved budget of the Authority. This includes the distribution
of its appropriations, allocation of its revenues, supervising its
implementation, and reallocation of budgetary chapters and items, in accordance
with the relevant financial regulations adopted by the authority.
a.
In
regulating its accounts and records, the Authority will apply government
accounting rules and principles.
b.
The
Financial Year of the Authority will commence on 1 January and will end on 31
December of each year.
c.
The
Authority will have an independent budget to be submitted by the Chairman to
the Ruler for approval no later than 15 December of each year. The Chairman may
request additional or new appropriations, provided that these are submitted to
the Ruler for approval.
d.
The
accounts, records, documents, and accounting cycle will be regulated pursuant
to the relevant resolutions issued by the Director General.
As of the
effective date of this Law, all the rights and obligations of the Financial Audit
Department are hereby transferred to the Authority. The Employees of the
Financial Audit Department will also be transferred to the Authority as of the
effective date of this Law without prejudice to their existing rights.
Law No.
(27) of 2006 Concerning Management of the Government of Dubai Human Resources
and its amendments will apply to the Authority Employees until the Chairman
approves the human resource regulations of the Authority.
Except
for the resolutions that the Ruler or the Chairman has the exclusive authority
to issue under this Law or any other legislation, the Director General will
issue the resolutions required for the implementation of the provisions of this
Law.
a.
This
Law supersedes the above-mentioned Law No. (8) of 2010.
b.
Any
provision in any other legislation will be repealed to the extent that it
contradicts the provisions of this Law.
c.
The
bylaws, resolutions, and instructions issued in pursuance of the
above-mentioned Law No. (8) of 2010 will continue in force to the extent that
they do not contradict this Law, until superseding bylaws, resolutions, and
instructions are issued.
This Law comes into force on
the day on which it is issued, and will be published in the Official Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 11 April 2018
Corresponding to 25 Rajab 1439 A.H.
©2018 The Supreme
Legislation Committee in the Emirate of Dubai
[1]Every effort
has been made to produce an accurate and complete English version of this
legislation. However, for the purpose of its interpretation and application,
reference must be made to the original Arabic text. In case of conflict, the
Arabic text will prevail.