The functions and powers of the Auditor General and the role of the NAO are defined by Section 108 of the Constitution of Malta and the Auditor General and National Audit Office Act of 1997. The Constitution and the Act empower the Auditor General to audit the accounts of all Departments and Offices of the Government of Malta, and of such public authorities or other bodies administering, holding, or using funds belonging directly or indirectly to the Government of Malta. The Act extends this mandate further to include the Performance audit of Central Government Departments and Offices and other public sector entities, as well as the audit of the operations of companies or other entities in which the Government of Malta owns not less than 51 per cent of the shares.
The NAO audit competences are specified hereunder:
Central level: The NAO has the authority to audit the accounts of Central Government Departments and Offices and may examine whether such Departments and Offices have used the funds and resources available to them effectively, efficiently, and economically.
Local level: The audit of Local Government is also included within the mandate of the Auditor General as amplified and described in the legislation regulating Local Government.
Public bodies: The Office mandate also includes the audit of Public Authorities and Corporations, and other public entities administering, holding, or using funds belonging directly or indirectly to the Government of Malta or where the Government of Malta owns not less than 51 per cent of the shares.
Private entities: The NAO is also empowered to audit Government assistance received by non-Govermental organisations.