ลำดับเหตุการณ์สำคัญ ในงานตรวจเงินแผ่นดินไทย ฉบับภาษาอังกฤษ

The Chronicle of Office of the Auditor General of Thailand since 1875-2015

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6 The Chronicle of Office of the Auditor General of Thailand since (1875-2015)

tHE Chronicle of Office ofthe Auditor General of Thailand SINCE 1875-2015 7

“Chao Phanakngarn Phu Truat Yai (the Auditor General) together with his deputy sincerely pledge their loyalty to His Majesty the King promising that they will dutifully conduct the audit of financial accounts, cash and properties throughout the kingdom, without fail, for the benefit of the public. And also that they will perform their duty ”with the utmost of determination and to the best of their ability Source: Krom Phra Khlang Mahasombat (Royal Treasury) Department and Other Departments with Financial Functions Act B.E. 2418 (1875), Article 8, Clause 5.8 The Chronicle of Office of the Auditor General of Thailand since 1875-2015

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10 The Chronicle of Office of the Auditor General of Thailand since (1875-2015)

Preface“…because public money is the people’s money…” This is thephrase from His Majesty King Bhumibol Adulyadej’s speech toofficials at the Office of the Auditor General of Thailand thatbest expresses the true meaning of public finance. All publicauditors accordingly hold this royal advice close to their heartsand always perform their public finance auditing responsibilitieswith integrity and impartiality.On the occasion of the 100th anniversary of its establishment, theOffice of the Auditor General of Thailand has prepared a seriesof commemorative book entitled ‘A Hundred Year’s Tales of theOffice of the Auditor General of Thailand’, in three volumes.The current series consists of three books.Book 1: A chronicle of the Office of the Auditor General ofThailand, Book 2: A History of State Auditing in Thailand, andBook 3: The Development and Milestones of State Auditing inThailand. The book preparation committee has aimed to recordthe progress of the Office of the Auditor General of Thailandfrom its inception to the present day, to create pride in allpublic auditors and to raise public awareness to the importanceof public finance through this series of books. 11

State auditing during the reign of King Chulalongkorn (Rama V)12 The Chronicle of Office of the Auditor General of Thailand since (1875-2015)

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14 The Chronicle of Office of the Auditor General of Thailand since 1875-2015

Inception: Office Luang (the Royal Audit Office)• His Majesty 14 April 1875 King Chulalongkorn,the prime mover of state Enactment of the Krom Phra Khlang Mahasombat (Royal Treasury) Departmentaudit in Thailand. 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. 15

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• Krom Phraya Office Luang was located in Damrong Sawat Ananyavongse Hall, which was closeDevavongse Varoprakarn to the King’s residential quarters in the Grand Palace. King Rama V visited Officestarted working at Office Luang on a daily basis to audit the royal treasury accounts personally. He also tookLuang after receiving royal charge of the auditing of the accounts in other ministries.appointment to the postof first Auditor Generalof Thailand at the youngage of 17 years. He was thefounder of the RoyalFamily of Devakul.Source:The National Archives ofThailand (Vajirayana HallCollection, Picture No.252-34).• Article 8 of the KromPhra Khlang Mahas-ombat Department andOther Departments withFinancial Functions ActB.E. 2418 (1875) relatingto Office Luang in theGrand Palace, contains 16clauses on state audit-ing that range from theauditor’s independence tothe auditor’s duties, auditresults reporting, theaudit period and auditingmethods.Source:Book of Prachum KodmaiSok (Annals of Statues) 1877 King Rama V ordered the merging of the Audit Office with the Royal Secretariat Department. 17

1880Abolition of Office Luang and the transfer of all its salary budgets to the centralsalary budget. An excerpt from King Rama V’s explanation of his decision toabolish the Royal Audit Office reads: “Although the Audit Office law was worthy,the people responsible for the audit functions informed me outright that it couldnot be fully observed”. • King Rama V’s handwritten comment on the use of public funds. Source: The National Archives of Thailand. This picture was displayed on the cover of the Office of the Auditor General of Thailand’s 2007 performance report.18 The Chronicle of Office of the Auditor General of Thailand since 1875-2015

The Krom Traut period• The Royal Decree on the 7 October 1890 Official Duties of the PhraKhlang Mahasombat Enactment of the Royal Decree on the Official Duties of the Phra Khlang(Royal Treasury) Ministry Mahasombat (Royal Treasury) Ministry, allocating the duties of managing stateB.E. 2433 (1890), revenue and expenditure as well as the safeguarding of all of the royal financestipulating the duties of accounts and the crown properties to the Phra Klang Mahasombat Ministry. UnderKrom Traut (the the administration of the minister in charge, the Ministry was also responsibleInspection Department) for the collection of taxes and excises throughout the country. Its organizationalin conducting structure consisted of 13 departments (which were the Krom Chao Krasuangaccounting audits, price or major departments and Krom Khuen or minor departments). Krom Trautaudits and also public was one of the Krom Chao Krasuang departments whose functions includedfinance reports, royal accounting audits, pricing audits and the auditing of reports on public revenues andassets, taxes and excises expenditures, royal assets, taxes and excises. During the initial period of itsaudits. establishment, King Rama V appointed Phraya Phiphitphokhaisawan as the firstSource: Director-General of Krom Traut.The Government Gazette. 13 December 1890 Enactment of the 16-Article Inspection Department Act Ror Sor. 109 (B.E. 2433 or A.D. 1890). 19

• The powers and duties of Krom Traut as stipu- lated by the 16-Article Inspection Department Act B.E. 2433 (1890) include the auditing of five categories of public assets. Source: The Government Gazette. • The list of names of the early-period officials of Krom Traut with Phraya Phiphitphokhaisawan as the Department’s first Director-General. Source: The Government Gazette.20 The Chronicle of Office of the Auditor General of Thailand since 1875-2015

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 finances in state budget planning. The royal funds were placed under the management of the Phra Khlang Khang Thi (Privy Purse) department.•Sala Look KhunPavilion at the GrandPalace.Source:www.vajiravudh.ac.th 1898 Royal appointment of Mr. Charles James Rivett Carnac as special Director-General of Krom Traut Lae Krom Sarabanchi (the Inspection and Accounting Department) within the Royal Treasury Ministry.• Mr. Charles James RivettCarnac, the specialDirector-General of KromTraut Lae Krom Sarabanchiand advisor to the PhraKhlang MahasombatMinistry in 1898 during thereign of King Rama V.Source:Commemorative book onthe 70th anniversary of theestablishment of theComptroller General’sDepartment. 21

• Royal appointment of HRH Prince Kitiyakara Voralaksana as Director- General of Krom Traut and Krom Sarabanchi. Source: The Government Gazette.1902 • HRH Prince Krom Phra Chanthaburi Naruenat whoRoyal appointment of Phra Ong Chao Kitiyakara Voralaksana (His Royal was talented in financialHighness Krom Phra Chanthaburi Naruenat) to the post of Director General of and economic affairs. PrinceKrom Traut Lae Krom Sarabanchi. Kitiyakara Voralaksana was elevated to the rank of Krom Phra Chanthaburi Naruenat in the reign of King Rama VI. In 1915, the Prince offered the fol- lowing opinion to King Rama VI: “…another department should be established at the Ministry of Finance under the name of the State Audit Depart- ment with the duty of auditing public finances; auditing other funds within the government’s responsibility; advising the ministries responsible for the collection, disbursement or safeguarding of public finds on the Accounting Depart- ment’s official regulations; and assisting the Finance Minister in deliberating the establish- ment of new civil service posts. These are the four primary duties of this new department which should be headed by a Director-General”. Krom Phra Chanthaburi Naruenat was the founder of the Royal Family of Kittiyakara. Source: The National Archives of Thailand (Personal Collection, Picture No. 46/13). • The list of names of officials of Krom Traut and Krom Sarabanchi from the time when HRH Prince Prince Kitiyakara Voralaksana was still Krommuen Chanthaburi Naruenat. Source: The Government Gazette.22 The Chronicle of Office of the Auditor General of Thailand since 1875-2015

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1908 Notification of the royal appointment of Phra Ong Chao Rajani Chamcharas(His Royal Highness Krommuen Phitthayalongkorn) as Director-General of KromTraut Lae Krom Sarabanchi. Source: The Government Gazette.• Phra Ong Chao RajaniChamcharas (KrommuenPhitthayalongkorn) was theDirector-General of KromTraut Lae Krom Sarabanchi in1907, a position he held until1915. He was the founder ofthe Royal Family of Rajani.Source:The National Archives of Thailand(Picture No. 001, Vajirayana Hallcollection 18-23). 25

State auditing during the reign of King Vajiravudh (Rama VI)26 The Chronicle of Office of the Auditor General of Thailand since 1875-2015

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• King Rama VI had the 1910 Audit Departmentestablished on 18 September Establishment of the Royal Asset Audit Committee or the Public Revenue and1915. Expenditure Audit Committee by royal command of King Vajiravudh (Rama VI).Source: The committeemembers consisted of Phra Ong Chao Prompong Atirach (Mom ChaoThe National Archives Prom Sanidvongs), Director-General of the Customs Department, as committeeof Thailand (22M000051) chairman, and four other committee members, namely, Phraya Kalyanamaitri, Mr. Williamson, Mr. Graham and Phraya Ratsadakorn Komon. • Chao Phraya Woraphongphiphat, the first Director-General of the Royal Page Audit Department. Source: The National Archives of Thailand (28M00005).• HRH Phra Ong Chao 1913 Prompong Atirach (MomChao Prom Sanidvongs), King Rama VI had the Budget Procedures Act B.E. 2456 (A.D. 1913) enacted toChairman of the Public establish regulations concerning the timeliness of submissions of budgets by allRevenue and Expenditure ministries to the Phra Klang Mahasombat Ministry and to the King, as well asAudit Committee. the deadlines for the royal approval of the budgets. The Act also determined theSource: method of payment for non-budget expenditure during the fiscal year, specifyingThe National Archives of completion by 31 March of the specific fiscal year.Thailand (18M000070). Establishment of Krom Traut Mahatlek (the Royal Page Audit Department), by royal command, to regulate expenditure from the privy purse of the Royal Page Department. Chao Phraya Woraphongphiphat was appointed Director-General of Royal Page Audit Department. 29

• The Budget Procedures Act B.E. 2456 (1913). Source: The Government Gazette. • 1914 Government budget reflecting the economic and financial growth of Siam at the time. Source: The Government Gazette.30 The Chronicle of Office of the Auditor General of Thailand since 1875-2015

• Royal appointment Establishmentof Mr. Emilio Florio of the State Auditor E. Florio as the first DepartmentDirector-General of theState Audit Department. 18 September 1915He laid down the founda-tions for the preparation Since public revenue and expenditure continued to increase over manyof state audit reports, financial years, King Rama VI deemed it suitable to impose stricter auditing andcancelled banknote audit safeguarding measures for the disbursement and keeping of public revenue andreports, district audit expenditure. A special division was created to perform these functions. Thereports and provincial King had the State Audit Department established within the Royal Treasuryrevenue audit reports. Ministry by Notification of the Establishment of the State Audit Department, datedPhotography (taken from 18 September 1915. It was also the Department’s duty to conduct performancethe original document) audits of the officials in charge of public revenue and expenditure or any other typeby Mr. Rattham that the government had responsibility for.Chuanchoei andMr. Somathut Nithitreerat. King Rama VI appointed Mr. Emilio Florio or E. Florio Director-General of the State Audit Department.• Notification of theEstablishment of the StateAudit Department, dated18 September 1915.Source:The Government Gazette. 31

“Whenever an auditor comes for an audit, it is the duty of the officials in Clause 1 to provide oral or written explanations to the auditor and to produce all accounts and records relating to their financial duties, as specified in Clause 1, for inspection. If the auditor wants to examine cash or vouchers or receipts or counterfoils or certificates, the audited ”officials must comply with the auditor’s reguirement. Source: Notification of the Regulations on State Audit Administration B.E. 2458 (1915).32 The Chronicle of Office of the Auditor General of Thailand since 1875-2015

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• Details of the Notification of the State Audit Department Establishment, dated 18 September 1915. Source: The Government Gazette.34 The Chronicle of Office of the Auditor General of Thailand since 1875-2015

• Notification ofMr. E. Florio’s royalappointment to theposition of theAuditor General byKing Rama VI. Source:The Government Gazette.• Sulaka Sathan Building,used as the Office of theState Audit Departmentwhen Mr. E. Florio wasthe Auditor General(as indicated in thecommemorative book onthe 60th anniversary ofthe Office of the AuditCouncil Establishment,1975).Source:Siamese Flag website. 1915 Issuance of the Royal Treasury Ministry’s Notification of the Regulations on State Audit Administration, specifying the duties and functions of the State Audit Department. 35

• Notification of the Regulations on State Audit Administration. It distinctively stipulated the powers and duties of the State Audit Department by referring to the auditors of that time as officials of the State Audit Department. Source: The Government Gazette.1917 • Phraya Anurakrajakosa (Prawes Amatayakul).After Mr. E. Florio left office, King Rama VI appointed Chao Phraya Phonlathep Source:(Chalerm Komarakul Na Nagara), the Comptroller General, to be the interim Commemorative book onsupervisor of the State Audit Department. the 70th anniversary of the establishment of the1921 Comptroller General’s Department.Royal appointment of Phraya Anurak Ratchakosa (Prawes Amatayakul), theComptroller General, as the interim supervisor of the State Audit Department.36 The Chronicle of Office of the Auditor General of Thailand since 1875-2015

• Chao Phraya Phonlathep(Chalerm Komarakul Na Nagara).Source:Commemorative book on the 70thanniversary of the establishmentof the Comptroller General’sDepartment. 37

State auditing duringthe reign ofKing Prajadhipok(Rama VII)22 February 1926 • Three changes in state auditing were introducedKing Prajadhipok (Rama VII) had the State Audit Department during King Rama VII’sincorporated into and, thereby, became a division of the Department of Accounts. reign. The first took place inPhraya Komarakulmontri (Chuen Komarakul Na Nagara) was appointed the 1926 when the KingComptroller General and the interim head of the State Audit Division. had the State Audit Department incorporated into the Comptroller General’s Department. The second change took place after the 1932 revolution when the Department was transferred to report directly to Khana Kammakarn Ratsadon (the People’s Committee of Siam). The third change was introduced in 1933 with the enactment the State Audit Commission Act B.E. 2476 (1933). Source: The National Archives of Thailand (15M000069).38 The Chronicle of Office of the Auditor General of Thailand since (1875-2015)

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• Phraya Komarakulmontri (Chuen Komarakul Na Nagara), the Comptroller General at the time when the State Audit Department was incorporated as a division in the Comptroller General’s Department. Source: Commemorative book on the 70th anniversary of the establishment of the Comptroller General’s Department.40 The Chronicle of Office of the Auditor General of Thailand since 1875-2015

• Phraya Komarakulmontri,the Comptroller Generalwas appointed interimhead of the State AuditDivision. Source:The Government Gazette.• Phraya Chaiyotsombat(Serm Krisanamara).Source:Commemorative book onthe 70th anniversary ofthe establishment of theComptroller General’sDepartment. 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. 41

State auditingunder the democraticsystem • Notification of the Transfer of the State Audit Department within the Ministry of Finance to the People’s Committee of Siam B.E. 2475 (1932). State Auditing played a highly significant role. The original intention of Luang Praditmanutham (Mr. Pridi Banomyong) was to have the State Audit Department adopt the same format of accounting court as France’s ‘la Cour des comptes’. Source: King Prajadhipok Museum.42 The Chronicle of Office of the Auditor General of Thailand since (1875-2015)

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20 July 1932 Issuance of the notification transferring the State Audit Department to theadministration of Khana Kammakarn Ratsadon (the People’s Committee ofSiam) or the Cabinet on 20 July 1932 with Luang Damri Isaranuwat (Mom LuangDamri Isarangkura) acting on behalf of the Director-General of the StateAudit Department. • Phraya Manopakorn Nititada (Kon Hutasingha), Chairman of the People’s Committee of Siam. Source: Thai Wikipedia Source: The Government Gazette.44 The Chronicle of Office of the Auditor General of Thailand since 1875-2015

• Notification of theTransfer of the State AuditDepartment within theMinistry of Finance tothe People’s Committee ofSiam, dated 20 July 1932.Source:The Government Gazette. 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 certified payment copies, the comparison of budget disbursement from the Treasury with monthly financial report, evidence and the submission of national 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. 45

The Audit Council period46 The Chronicle of Office of the Auditor General of Thailand since (1875-2015)

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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 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).• Luang Damri Isaranuwat • Luang Damri Isaranuwatplayed a crucial role in the laid the foundation for statedrafting of the Audit Council auditing work, particularly theAct B.E. 2476 (1933), the accounting audit. During thefirst piece of state audit pioneering period of thelegislation in the demo- Department he helped tocratic period. He was later organize training sessions,appointed the first President modernized auditing functionsof the Audit Council on 24 and established accounting as aFebruary 1933. field of study at ThammasatSource: University. He left the AuditPhotography (taken from Council presidency in 1945the original picture) by after serving a total of 12 years.Mr. Rattham Chuanchoei andMr. Somathut Nithitreerat. 49

• The State Council Act B.E. 2476 (1933), the first state audit legislation in the early period of democracy in Thailand. Source: The Government Gazette. • Notification of the Royal Appointment of the President of the Audit Council. King Rama VII appointed Luang Damri Isaranuwat to the post of President of the Audit Council. Source: The Government Gazette.50 The Chronicle of Office of the Auditor General of Thailand since 1875-2015

• The Royal Decree onthe Regulations of theOffice of the PrimeMinister’s Office andDepartments B.E. 2476(1993). Article 8 of thisroyal decree divided theAudit Council into threeunits: the Office of theSecretary, the CentralState Audit Departmentand the Regional AuditDepartment.Source:The Government Gazette. 51

• Salaries of members of the Audit Council in 1934. Source: The Government Gazette. • Appointment notice of the first group of Audit Council members in 1934. Source: The Government Gazette.52 The Chronicle of Office of the Auditor General of Thailand since 1875-2015

• Appointment noticeof the first group ofAudit Council membersin 1934 with LuangWorapakphinit (WinAswanond) as amember and secretaryof the Council.Source:The Government Gazette. 1933 The Audit Council formulated, for the first time, audit marking, audit receipts, and other audit 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 hired as temporary civil servants working for the Audit Council. Four females were eventually hired as permanent civil servants at the Audit Council. It was the first time that women were employed in the auditing profession. 53