Public Audit in the European Union

SUPREME AUDIT INSTITUTIONS IN THE EU AND ITS MEMBER STATES – AN OVERVIEW

INTRODUCTION

Public scrutiny is an integral part of democratic systems. All 27 countries that now form the European Union (EU) have put in place arrangements to ensure that public expenditure is accountable, transparent and robustly supervised. This is where supreme audit institutions (SAIs), as external public auditors, come into play.

SAIs carry out independent investigations into the efficient, effective and economic use of public resources, as well as the compliance of public spending and revenue collection with the applicable rules. They support parliamentary control of governments with their fact-based, objective and impartial audit reports, and thereby help to improve policies, programmes, public administration and the management of their state’s finances. This helps to build citizens’ trust in our societies’ checks and balances and further develop democracies that function properly.

Besides promoting and developing accountability and transparency in government, EU SAIs also play an active role in supporting the capacity building of public audit bodies in third countries.

Many of the SAIs covered in this repository can boast a rich heritage (sometimes dating back several hundreds of years), while others were only recently established in their current form. The structure, remit and powers of most SAIs have evolved over time, sometimes as a result of political changes or the reform of public administration. The existence of an independent SAI is a condition for joining the EU.

TYPES OF SAIs
AND SAI GOVERNANCE

There are different ways of classifying SAIs. Traditionally, they are grouped into bodies with organisational structures that are rooted in the French/Latin, Anglo-Saxon, or Germanic traditions. Nowadays, however, the distinction is mainly made between bodies with or without jurisdictional power. Another distinction can be made between monocratic SAIs that are headed by a single person (President, Auditor General, or Comptroller and Auditor General) and SAIs that are governed by a collegiate body (e.g. a board, college, senate or plenum).

Within this broad range, further distinctions could be made, for example based on SAIs’ power to also perform audits on the lower levels of government, or of the relationship between the SAI and its national parliament.

INDEPENDENCE

EU SAIs are independent public bodies. Their independence from the legislature, executive and judiciary is enshrined in the constitution. Depending on their mandate, SAIs may conduct ex ante or ex post checks, to assess the legality and regularity of revenue and expenditure, as well as the economy, efficiency, and effectiveness of policies, programmes and measures, or the functioning of the public administration. Some SAIs also evaluate the impact of public policies and programmes.

RELATION
WITH PARLIAMENT

The relationships between SAIs and parliaments across the EU are as diverse as the public audit bodies themselves. While all SAIs are independent bodies, some form part of the parliamentary oversight structure.

Despite the diversity, it is a common feature that SAIs in the EU and its Member States generally maintain close relationships with their parliaments. This relationship is principally a reporting one, in which the SAI sends its audit reports to parliament. These reports are usually discussed by a special committee, and sometimes, depending on the audit subject, also by committees dealing with specific topics. In general, representatives of the SAI are entitled to attend and/or participate in these debates. In some Member States, the head of the SAI also has the right to be heard in parliamentary discussions on subjects of relevance for the SAI’s work.

Parliaments often have a decisive role in the nomination and/or appointment of an SAI’s president/auditor general or governing body. In addition to this, some parliaments also draft and approve the SAI’s budget, or nominate an external auditor to audit the SAI’s accounts.

Finally, some, but not all, SAIs have the power to audit the administrative expenditure of their national parliaments.

STAFFING AND BUDGETS

The SAIs’ human and financial resources differ considerably between countries, even when considered in proportion to the number of inhabitants or the budget audited. These differences reflect not only the SAI’s mandate and its organisation, but also the broader characteristics of the Member State and its national administration.

Overall, there are more than 15 000 people working for the SAIs in the EU and its Member States. Together, the SAIs of the four biggest EU Member States (Germany, France, Italy and Spain, representing almost 260 million people) employ around 5 000 people, whereas the SAIs of the remaining Member States (with 190 million people) employ some 9 500 people.

For the EU as a whole there is one SAI staff member for a median of 20 000 citizens. There are, however, significant differences between the individual Member States. In almost all cases, the SAIs’ own budgets account for less than 0.1 % of the overall government budget.

AUDIT SUBJECTS

EU SAIs play a central role in the public accountability process. As the external auditors of the executive, they assess the extent to which the government’s policies and spending achieve the intended objectives, check public financial management and report on the accounts of public bodies, thus providing independent information and assurance to parliaments.

SAIs scrutinise the revenue and expenditure of state budgets at the central or federal level and, in some Member States, may also carry out audits at regional, local or municipal government levels. Although their audits focus primarily on ministries and governmental bodies, audited entities can also include state-owned enterprises, such as broadcasting corporations, institutes of higher education, or national banks.

Most SAIs are entitled to audit all public revenue and spending, including any at the level of private companies or individual beneficiaries.

SELECTION
OF AUDIT TOPICS
AND PROGRAMMING

The audit selection and planning process takes into account different criteria, such as risk and impact, and the future development of specific policy areas. Many SAIs work with annual programming procedures and audit plans, which they draw up based on a multiannual strategy and annual risk assessments. This combination of medium and long-term planning allows for flexibility and enables SAIs to react to unforeseen developments.

In some countries, parliament (members and/or committees), government ministers, or even private individuals/organisations may request the SAI to carry out specific audits. With a few exceptions, however, SAIs are not obliged to undertake such audits.

In SAIs that are headed by a single person, the head of the SAI generally takes the final decision on which audits are to be carried out. In all other cases, this is done collectively by the governing board or the college.

EVIDENCE
AND FOLLOW-UP

To collect audit evidence, SAIs examine documents, analyse data, conduct interviews, or carry out on-the-spot checks, for example on the auditee’s premises or at a project site. To be able to do so, SAIs have the right of access to all information they deem necessary to carry out their tasks, and the staff of audited entities are obliged to cooperate with the SAI’s auditors.

To counterbalance this freedom of access, SAIs and their staff are subject to specific confidentiality obligations as regards the information obtained during their audits.

REPORTING

Based on their audits, SAIs draft reports in which they present their findings and observations, point out irregularities, draw audit conclusions, and make recommendations to address shortcomings. These recommendations form an important element of every audit report, as they provide policy makers with valuable guidance. This can help them to improve the effectiveness, efficiency and economy of public expenditure and its compliance with the applicable rules, and help to prevent errors, irregularities and misspending.

Certain SAIs are also entitled to give their opinions regarding (draft) legislation on topics falling within their remit, such as financial management, either on their own initiative, or at the specific request of the legislature.

PUBLICATIONS

SAIs normally publish annual reports on their audit of the annual accounts of the state and the implementation of the state budget. In addition, some SAIs publish reports on the financial statements of specific institutions or bodies (such as parliament, the Head of State, or social welfare systems). Some SAIs also issue audit opinions on these financial statements and on annual accounts.

In addition, SAIs issue audit reports on specific topics, opinions on (draft) legislation, review-based publications or follow-up reports. Several SAIs also publish discussion papers, analyses and studies, or dossiers providing background information on audits of relevant subjects.

Furthermore, some SAIs regularly publish reports on the management and implementation of EU funds in their country.

Finally, several SAIs publish annual activity reports, periodicals, or other documents providing background information about their work.

COMMUNICATING RESULTS

SAIs normally submit their reports to parliament, generally to those committees responsible for budget matters and/or other topics covered by an audit. In general, SAIs also make most of their audit reports public. Exceptions may however apply for reports dealing with sensitive areas (such as defence) or where specific confidentiality obligations apply.

Social media are widely used to engage and interact directly with citizens and the media.

COOPERATION

Cooperation with other SAIs

Cooperation between EU SAIs

There is a close network of cooperation between the SAIs of EU Member States and the ECA. This cooperation takes place within the framework of the Contact Committee, which is composed of the heads of EU SAIs and the ECA. The EU Contact Committee may set up working groups and task forces on specific EU-related audit topics and provides an active network for professional contacts between EU SAI staff.

The same article of the TFEU that instructs the ECA to cooperate and liaise with the EU SAIs also allows the auditors of SAIs of EU Member States to take part (as observers) in audits carried out by the ECA on their national territory. There is a standard procedure by which the ECA informs the national SAI of each audit visit planned in its country. The national SAI may then decide if it wishes to send staff to join the ECA audit team during its on-the-spot visits. In addition, EU SAIs may carry out joint or coordinated audits on selected subjects.

Furthermore, EU SAIs traditionally cooperate on a bilateral basis. This includes, for example, sharing audit methodologies and results, as well as temporary exchanges of audit staff.

Cooperation with other SAIs beyond the EU

EU SAIs may perform peer reviews or participate in capacity-building activities such as twinning projects, which are intended to help the SAIs of third countries develop their legal and institutional bases.

A specific network has been set up for supporting EU enlargement SAIs, aimed at promoting and facilitating cooperation between EU Member States, EU candidate countries and potential candidates, mainly through small-scale, practical, hands-on cooperation.

A number of EU SAIs also cooperate closely with public audit bodies in countries with which their Member State maintains close relations for historic reasons and/or that are part of their language community.

Cooperation with other public audit bodies at national level

Depending on their governmental structure, EU Member States have entrusted the public audit function to bodies that operate on a federal, national, regional, provincial, or municipal level. In countries with fully-fledged regional audit offices, SAIs normally focus their audits on the central government level and cooperate, as applicable, with the other public audit bodies in their respective Member States.

Cooperation with international organisations

All EU SAIs are members of INTOSAI and EUROSAI.

In addition, EU SAIs participate in projects run by a wide variety of organisations in the field of public audit, and some act as the external auditors of international, intergovernmental, or supranational organisations, such as the United Nations (UN) and their specialised agencies, the Organisation for Economic Cooperation and Development (OECD), or the World Trade Organisation (WTO). By doing so, they also ensure the regular and efficient use of the financial contributions of their countries to these organisations.

Finally, it is common practice for EU SAIs to participate in cooperation initiatives with international organisations (for example the OECD, the Inter-Parliamentary Union (IPU), the Institute of Internal Auditors (IIA), the International Federation of Accountants (IFAC)). This type of cooperation usually focuses on topical matters related to public auditing, and may entail secondments, training courses, knowledge sharing, or other forms of professional exchange.

FACTSHEETS

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The European Court of Auditors (ECA) examines all revenue received and expenditure disbursed by the EU or by bodies, offices or agencies set up by the EU.

It assesses whether the EU’s finances have been managed soundly, and whether all revenue has been received and expenditure disbursed in compliance with the applicable regulations. The ECA provides the European Parliament (EP) and the Council with an annual statement of assurance on the legality and regularity of the use of EU funds. It also reports on any irregularities identified.

The ECA draws up an annual report after the close of each financial year. It may also, at any time, submit observations on specific questions, particularly in the form of special reports, and deliver opinions.

KEY LEGISLATION

• Articles 285 to 287 of the Treaty on the Functioning of the European Union;
• Regulation on the financial rules applicable to the general budget of the Union.

AUDITED ENTITIES

The ECA audits all aspects of the implementation of the EU budget. The European Commission is the ECA’s main auditee and is informed of its audit work and approach, and of the relevant audit results.

In addition to the Directorates-General of the European Commission, the ECA audits:

• the European Development Funds;
• the EU agencies and executive agencies, joint undertakings, and other bodies;
• the European Investment Bank and the European Investment Fund;
• the European Central Bank;
• borrowing and lending operations of the EU (e.g. European Financial Stabilisation Mechanism);
• the Single Supervisory Mechanism and Single Resolution Mechanism.

— STRUCTURE

TYPE OF SAI

A collegiate structure with no jurisdictional function.

PLACE OF THE SAI IN THE GOVERNMENT SYSTEM

The ECA is the European Union’s external auditor. It is one of seven EU Institutions and is fully independent in carrying out its audits.

The ECA draws up its own rules of procedure. These rules require the approval of the Council.

RELATIONSHIP WITH
THE EUROPEAN PARLIAMENT / COUNCIL / MEMBER STATES’ PARLIAMENTS

The ECA presents all its reports and opinions, including its annual report, to the EP and the Council. These reports provide the basis for the yearly discharge exercise on the EU budget and may be used by the legislators in their ongoing work.

EUROPEAN PARLIAMENT

The ECA President presents the annual report to the EP’s Committee on Budgetary Control (CONT) and its plenary and is invited to participate in the EP’s plenary debate on the discharge. ECA Members are regularly invited to present relevant ECA reports to the CONT and other EP committees and working bodies.

COUNCIL OF THE EU

The ECA President presents the annual report to the Economic and Financial Affairs Council (ECOFIN) and may be invited to present selected special reports of specific interest.

At working level, the ECA’s main interlocutor is the Council’s Budget Committee, which deals with all financial issues, including the discharge procedure. ECA reports are presented to the appropriate Council preparatory bodies, who agree on draft Council conclusions, which are then adopted at a higher Council level.

PARLIAMENTS OF EU MEMBER STATES

The ECA also communicates its reports and opinions to the relevant parliamentary committees in the Member States. In addition to this, ECA Members may present ECA publications, in particular annual and special reports, in the Member States’ parliaments.

— ORGANISATION

HEAD

GOVERNING BODY

Collegiate body of 27 Members, one from each Member State.

ECA Members perform their duties in complete independence and in the general interest of the EU. Upon taking office, they swear an oath to that effect before the European Court of Justice.

TERM OF OFFICE

6 years, renewable.

SELECTION METHOD

The Council of the EU appoints the ECA Members after consulting the EP, following nomination by their respective Member States.

ORGANISATIONAL STRUCTURE

The ECA is organised into five audit chambers plus an Audit Quality Control Committee (AQCC), an Administrative Committee and a Secretariat-General. The President, each audit chamber and the AQCC are all supported by directorates, to which audit staff are assigned.

The full college of 27 ECA Members is chaired by the President and usually meets twice a month to discuss and adopt documents such as the reports on the EU general budget and the European Development Funds, which are the ECA’s main annual publications.

PRESIDENCY

The President is supported by the Directorate of the Presidency (DOP), which is responsible for strategic development, work programming, planning and performance management, institutional relations, communication and media relations.

In addition, the legal service and the internal audit department report directly to the President.

AUDIT CHAMBERS

The ECA assigns Members to one of the five audit chambers.

Each chamber has an EU policy-based theme to guide its work and is headed by a Dean, who is elected from and by the Members of that chamber for a renewable term of two years. Each Member is responsible for specific audit tasks.

Each chamber has two areas of responsibility:

• to adopt special reports, specific annual reports and opinions; and
• to prepare the annual reports on the EU budget and the European Development Funds, for adoption by the ECA College.

AUDIT QUALITY CONTROL COMMITTEE

The AQCC is composed of the Member for Audit Quality Control and five other Members (one representative of each audit chamber). It deals with the ECA’s audit policies, standards and methodology, audit support and development and audit quality control. It is in charge of methodological aspects and carries out the ECA-wide engagement quality reviews.

ADMINISTRATIVE COMMITTEE

Decisions on broader strategic and administrative issues are taken by the Administrative Committee and, where appropriate, by the college of Members.

The Administrative Committee is composed of the ECA President (chair), the Deans of the chambers, the Member for Institutional Relations and the Member for Audit Quality Control. It deals with all administrative matters and decisions on issues related to strategy, external relations and communication.

SECRETARY-GENERAL

The ECA college nominates a Secretary-General for a renewable period of six years.

He or she is mainly responsible for the Court Secretariat and audit support services (Human Resources, Finance and General Services; Information, Workplace and Innovation; Translation, Language Services and Publication).

— RESOURCES

STAFF

• Number: 980 (corresponding to 969 FTEs (31.12.2022) (of whom 59 % are in audit)
• Staff come from all EU Member States, generally recruited through EU-wide open competitions.
• Gender balance: ♂ 48 %; ♀ 52 %. Average age: 47,4

BUDGET

• The ECA is financed by the general budget of the European Union.
• 175.06 million euros (2023), all administrative expenditure
• The ECA’s budget represents less than 0.1 % of total EU spending and around 1.5 % of total administrative EU spending.

AUDIT WORK

— AUDIT REMIT

The audits are record-based and, if necessary, are performed on site in the other EU Institutions and in any bodies, offices or agencies which manage revenue or expenditure on behalf of the EU. Specific arrangements apply to the activity of the European Investment Bank (EIB) in managing EU revenue and expenditure.

In the Member States, the audit is carried out in liaison with the national SAIs or, if these do not have the necessary powers, with the competent national departments. The ECA cooperates with Member State SAIs in a spirit of trust while maintaining the independence of both parties.

— PLANNING THE AUDIT WORK

The ECA decides on its work programme independently. It has an annual programming procedure which is based on a multi-annual risk assessment for the different policy areas.

The EP and the Council can suggest potential audit topics for the ECA to consider.

The ECA publishes its work programme on its website.

— AUDIT METHODS

Through its work, the ECA examines the extent to which the EU policy objectives are met and assesses the state of EU budget accounting and financial management.

The ECA carries out different types of audits:

• performance audits on the effectiveness, efficiency and economy of EU policies and programmes. These value-for-money audits focus on specific management or budgetary topics. They are selected based on criteria such as public interest, potential for improvement, risk of poor performance or risk of irregularity; and
• financial and compliance audits on the reliability of annual accounts and the legality and regularity of underlying transactions (most notably the statement of assurance) as well as assessments of whether the systems and transactions in specific budgetary areas comply with the rules and regulations governing them.

The ECA performs its audits in accordance with the international auditing standards and code of ethics, in line with its commitment to these frameworks, notably the INTOSAI's Framework for Professional Pronouncements (IFPP), the international standards on auditing (ISA), as well as the INTOSAI and IFAC codes of ethics.

The relevant methodology and guidance is made available in an online platform (AWARE, Accessible Web-based Audit Resource for the ECA), which is designed to help ECA auditors select, plan, conduct, and report compliance, financial and performance audits, as well as non-audit engagements (reviews and opinions) in the EU context.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The ECA’s portfolio of publications comprises:

• annual reports, mainly containing the results of financial and compliance audit work on the EU budget and the European Development Funds, but also budgetary management and performance aspects;
• specific annual reports, on the EU agencies, decentralised bodies, joint undertakings and other bodies;
• special reports, presenting the results of selected audits on specific policy or spending areas, or on budgetary and management issues;
• opinions on new or updated legislation with a significant impact on financial management – either at the request of another institution or on the ECA’s own initiative; and
• reviews, aiming to provide scene-setting description and analysis, often from a cross-cutting perspective and based on previous audit work or other publicly available information.

— DISSEMINATION ACTIVITIES

All ECA publications are publicly available on its website in all the official EU languages. The ECA also actively disseminates its reports through a number of channels, including social media.

— COOPERATION WITH OTHERS

The ECA maintains close relationships with national SAIs and international audit organisations, performs peer reviews, interacts with think tanks and research organisations, and participates in academic discourse.

In November 2022, at the XXIV INTOSAI Congress (INCOSAI) in Rio de Janeiro, the ECA took over from the SAI of Brazil the role of Chair of the INTOSAI Professional Standards Committee (PSC). In this capacity, the ECA is also a member of the INTOSAI Governing Board.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Austrian Court of Audit (ACA) is the independent supreme audit institution at federal, provincial and municipal level.

It verifies that state funds are being correctly administered, including state spending by public institutions and state funds used by private institutions (on the basis of uniformity of auditing).

The ACA scrutinises whether resources available are being used economically, efficiently and effectively. In addition to audits and consultations – its most important strategic function – the ACA also performs further tasks of relevance for public policy and a number of notarial functions.

The ACA decides on the types, themes and methodology of its audits on its own initiative and independently.

The ACA is constitutionally mandated to carry out special audits. For example:

• on a resolution from the Austrian Federal Parliament or a provincial one;
• at the request of the members of the Austrian Federal Parliament or a provincial one; and
• based on a reasonable request from the Federal Government, provincial Government or a Federal Minister.

The Constitution limits the number of such requests to ensure the independence of the ACA’s audit planning.

In addition, the ACA takes on important special tasks, such as:

• compiling the Federal financial statements;
• working on the statement of financial debt;
• reviewing draft laws and regulations;
• tasks under the Incompatibility Act and Income Limitation Act;
• tasks relating to political parties and elections;
• tasks relating to the report on the average incomes and retirement pensions paid by Federal Government enterprises and agencies; and finally
• the establishment of expert opinions for arbitration panels, according to the Stability Pact 2012.

KEY LEGISLATION

The activities, functions, organisation and position of the ACA are governed by:

• Chapter VI of the Federal Constitutional Law (1920);
• Federal Act on the Austrian Court of Audit (Austrian Court of Audit Act 1948 – RHG);
• Constitutional Court Act (if differences of opinion arise between the ACA and a legal entity regarding powers and rights, the ACA can call upon the Constitutional Court to make a decision);
• Federal Law on the Rules of Procedure of the National Council (the provincial parliaments govern the strategically important participation of the ACA in committee meetings and plenary sessions);
• Treaty on the Functioning of the European Union (applies directly to the auditing of EU community resources and cooperation with the European Court of Auditors).

AUDITED ENTITIES

The ACA audits the financial affairs (i.e. the financial activities) of:

• the state, the provinces, municipal associations, municipalities with more than 10 000 inhabitants and other legal entities defined by law;
• foundations, funds and institutes which are administered by federal, provincial or municipal institutions or individuals which themselves form part of a federal, provincial or municipal institution;
• organisations in which the state, a province or a municipality with at least 10 000 inhabitants has de facto control or holds at least 50 % of the share, stock or equity capital, or which are operated by the state, a province or a municipality alone or together with other contracting parties;
• federal, provincial and municipal public legal entities using federal, provincial or municipal funds;
• social insurance bodies and statutory associations of employers, employees and professionals (chambers); and
• legal entities established by law, e.g. ORF (Austrian Broadcasting Corporation).

— STRUCTURE

TYPE OF SAI

A distinct model, headed by a President and auditing at federal, provincial and municipal level following the Westminster model.

PLACE OF THE SAI IN GOVERNMENT SYSTEM

The ACA is Austria’s Supreme Audit Institution and reports directly to the national parliament. It acts:

• as an agent for the national parliament in matters pertaining to the Federal administration of public funds and the financial administration of the statutory professional associations under the executive authority of the Austrian Federation;
• as an agent for Provincial parliaments concerned in matters pertaining to provinces, municipal associations, and municipal administration of public funds as well as the financial administration of the statutory professional associations under the executive authority of the provinces.

The ACA is independent of the Federal Government and the Provincial Governments and subject only to the provisions of the law and is therefore allocated to the legislative branch.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The President of the ACA communicates with the national Parliament and its committees directly and personally or through an agent delegated by him.

The President of the ACA is entitled to participate in debates in the national Parliament and its (sub-) committees on ACA reports, the final federal budget accounts, motions concerning the implementation of specific actions in the ACA’s examination of the administration of public funds, and the subdivisions related to the ACA in the Federal Finance Act.

The President of the ACA is always entitled, in accordance with the detailed provisions of the Federal Law on the Rules of Procedure of the national Parliament, to be heard in the debates on the subjects listed above, at his request.

The ACA provides an annual report on its activities to the national Parliament, provincial parliaments, and the municipal council. It can report its observations on individual matters to the national Parliament, the provincial parliaments, and the municipal councils at any time and, if necessary, make proposals. The ACA informs the Federal Government of all its reports at the same time as submitting them to the national Parliament.

Furthermore, a standing committee is appointed by the national Parliament to discuss the ACA’s reports. Its appointment maintains the principle of proportional representation.

— ORGANISATION

HEAD

GOVERNING BODY

The ACA does not have a governing body. Its President has the exclusive decision-making authority.

There is no permanent Vice-President of the ACA. Should the President be prevented from the discharge of his or her responsibilities, the most senior ranking official of the ACA represents him or her. This also applies if the office of the President is vacant.

ORGANISATIONAL STRUCTURE

The ACA is organised into five divisions and two units (one management and administration division and four audit divisions, as well as the parties and compliance audit unit and the control, planning and impact audit unit). The audit divisions consist of two subordinate audit units each, where three to four audit departments are grouped thematically. The parties and compliance audit unit consist of two audit departments.

This organisational structure allows inter-divisional strategy and audit planning, optimised use of resources by flexible, cooperative audit teams, and fosters and improves the inter-divisional exchange of knowledge.

“Centres of excellence” have been set up in each unit and division. Each centre of excellent is responsible for a cross-cutting thematic area, with the aims of building expertise, consolidating the organisation of knowledge and ensuring the flow of information within the ACA. Examples of cross-cutting areas include quality management, data analysis, crisis management and prevention, construction project management and public procurement law, international climate and environmental obligations, the financial system and sustainable public finances, preventing corruption, and compliance and risk management.

— RESOURCES

STAFF

• Number: 295 (1 January 2023) (approx. 84 % in audit)
• Gender balance: ♂ 49.8 %; ♀ 50.2 %. Average age: 49.4

BUDGET

• 37.4 million euros (2022)
• 0.04 % of total Government budget

AUDIT WORK

— PLANNING THE AUDIT WORK

The ACA plans its work on an annual basis.

In Austria, the ACA may also be asked to carry out special audits. This is based on a resolution from the National Council or a provincial Parliament, or from members of the National Council or a provincial Parliament, or at the reasonable request of the Federal Government or a provincial Government or a Federal Minister. However, the Constitution limits the number of requests to ensure the independence of the ACA’s audit planning.

As of 2017, the ACA started an initiative to involve the public via Facebook for the first time. Citizens were encouraged to participate in the development of audit topics by proposing topics of interest. Their proposals were considered where possible in the audit planning process and discussed in the annual audit planning conference.

The ACA carries out about 90 audits every year, at federal, provincial and municipal level.

— AUDIT METHODS

The ACA’s auditing criteria are the legal principles of economy, efficiency and effectiveness, on the basis of regularity and legality.

The ACA carries out audits combining:

• performance audits; and
• financial audits.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The ACA submits its reports at federal, provincial and municipal level.

In addition to this, the ACA publishes reports:

• regarding the investigation and evaluation of issues;
• highlighting and quantifying potential improvements;
• establishing and quantifying financial issues; and
• issuing concrete and implementable recommendations.

— DISSEMINATION ACTIVITIES

The ACA disseminates its publications:

• on its website;
• on social media;
• in press releases.

— COOPERATION WITH OTHERS

At national level, the ACA cooperates with the provincial audit institutions to coordinate their respective annual audit plans.

Since 1963 the ACA has run the General Secretariat of INTOSAI.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Belgian Court of Audit (BCA) audits revenue and expenditure, and the executive power’s implementation of policy. The BCA also has a legal function with regard to public accounting officers and has other specific tasks.

In carrying out its duties, the BCA has the right of access to all documents and information it deems necessary. On-the-spot checks are possible.

KEY LEGISLATION

• Belgian Constitution of 1831: Article 180;
• Special Act of 16 January 1989 organising the financing of the communities and regions: Articles 50 and 71;
• Act of 29 October 1846 organising the Court of Audit;
• Act of 16 May 2003, laying down general provisions applicable to budgets, to controls of subsidies and the accounts of communities and regions and the organisation of the Court of Audit’s audit: Articles 2 and 10;
• Rules of procedure of the Court of Audit;
• The Treaty on the Functioning of the EU: Article 287(3).

AUDITED ENTITIES

The BCA audits:

• the federal state;
• the communities;
• the regions;
• the provinces; and
• the public service institutions for the levels of administration mentioned above.

The audit of municipalities falls outside the scope of its powers.

— STRUCTURE

TYPE OF SAI

A collegiate supreme audit institution with a jurisdictional function.

PLACE OF THE SAI IN THE GOVERNMENT SYSTEM

The BCA is independent of the bodies it audits. It also enjoys autonomy vis-à-vis parliamentary assemblies: it sets its own priorities for the accomplishment of its mission and chooses the subjects of its audits by applying objective selection criteria.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The BCA audits public authorities and evaluates the implementation and impact of public policies with a view to informing the parliamentary assemblies.

With regard to the budget, the specific task of the BCA is to provide information to the parliamentary assemblies.

It also appraises the accounts of public authorities.

— ORGANISATION

HEAD

GOVERNING BODY

The general assembly, consisting of 12 members, is made up of a French-speaking chamber and a Dutch-speaking one. Each chamber consists of a president, four counsellors and a secretary general. The senior of the two presidents is designated “Premier Président” or “Eerste Voorzitter” and the senior of the two secretaries-general “Greffier en chef” or “Hoofdgriffier”.

TERM OF OFFICE

The members of the BCA are appointed for a term of six years, renewable.

SELECTION METHOD

The members of the BCA are elected by the House of Representatives.

ORGANISATIONAL STRUCTURE

The BCA’s services are made up of ten directorates, each headed by a senior auditor-director, and grouped into three sectors.

The breakdown into sectors is in line with the powers of the general assembly and the French-speaking and Dutch-speaking chambers.

The BCA’s general assembly is responsible for matters relating to the Federal State, the Brussels-Capital Region, the Brussels Common Community Commission and the German-speaking Community, as well as for the interpretation of EU and federal rules.

The French-speaking chamber has exclusive responsibility for matters involving the French Community, the Brussels French Community Commission, the Walloon Region, the provinces in this Region and the public service institutions related to them.

The Dutch-speaking chamber has exclusive responsibility for matters related to the Flemish Community and Region, the public institutions depending on them, and the Flemish provinces.

— RESOURCES

STAFF

• Number: 452.45 FTEs (2023) (approx. 71 % in audit)
• Gender balance: ♂ 59 %; ♀ 41 %. Average age: 48.7 years

BUDGET

• The BCA is financed by the federal state budget
• 60.4 million euros (2023), used in its entirety for administrative expenditure
• < 0.05 % of the total federal state budget (2023)

AUDIT WORK

— PLANNING THE AUDIT WORK

The BCA plans its work in the following three types of document:

• a multiannual strategic plan;
• annual operational plans (by directorate);
• annual management plans (by service).

It prepares these plans on the basis of:

• compliance with its legal obligations;
• risk analysis;
• parliamentary concerns;
• financial and social interest;
• added value of the audit;
• availability of resources; and
• coverage of the audit field.

— AUDIT METHODS

The BCA carries out performance, financial, and legality and regularity audits.

It has standardised its audit practices by means of manuals and electronic work files.

The BCA performs its audits in compliance with the international auditing standards (ISSAIs).

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The BCA publishes:

• annual audit reports;
• special reports on specific topics;
• opinions about draft budgets; and
• annual activity reports.

— DISSEMINATION ACTIVITIES

The BCA informs the parliamentary assemblies, the ministers and the public authorities about the results of its audits. All BCA reports are available on its website.

— COOPERATION WITH OTHERS

The BCA provides general information on its strategy, working methods and the results of its audits through its website and publications and during study days.

It maintains regular contacts with other actors involved in public audit in Belgium, in particular to exchange useful experience and plan its audit activities.

It conducts exchange programmes and joint audit training events with the European Court of Auditors and supreme audit institutions in other countries. It contributes to the work of international organisations.

The BCA is actively involved in developments in its field of audit and area of activity. 

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Bulgarian National Audit Office (NAO) exercises control over the implementation of the budget and other public resources and activities in accordance with the NAO Act and internationally accepted auditing standards.

The main task of the NAO is to check the reliability and authenticity of the financial statements of budget organisations, and the lawful, effective, efficient and economical management of public resources and activities, as well as to provide the National Assembly with reliable and objective information about its work.

KEY LEGISLATION

• Article 91 of the Constitution of the Republic of Bulgaria (1991)
• National Audit Office Act of 13 February 2015

AUDITED ENTITIES

The NAO audits:

• the state budget, the budgets of the state social security scheme and the National Health Insurance Fund, the budgets of 265 municipalities; other budgets adopted by the National Assembly, the budgets of their spending units and the management of their property;
• the budgets of the Bulgarian Academy of Sciences, the state institutions of higher education, the Bulgarian Telegraph Agency, Bulgarian National Television and Bulgarian National Radio;
• public funds paid to people carrying out an economic activity; the accounts of EU funds and other international programmes and agreements, including their management by the relevant bodies and end users of the funds;
• the budget expenditure of the Bulgarian National Bank and its management; the formation of the annual excess of revenues over the bank’s costs charged to the state budget, and other links it has with the state budget;
• the sources and management of state debt, state-guaranteed debt, municipal debt and the use of debt instruments;
• the privatisation and concession of state and municipal property, as well as public funds and public assets provided to people outside the public sector;
• the implementation of international agreements, contracts, conventions or other international acts, where this has been provided for by the relevant international act or has been assigned by an authorised body;
• state enterprises which are not trading companies;
• trading companies at least 50 % of whose capital is owned by the state and/or a municipality;
• legal persons with obligations guaranteed by the state or by state and/or municipal property;
• other public funds, assets and activities, where so assigned by a legal act.

— STRUCTURE

TYPE OF SAI

An audit office, independent of government, headed by a President.

PLACE OF THE SAI IN THE GOVERNMENT SYSTEM

The NAO’s activities are independent of any government body.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The NAO reports to the Parliament on its activity for the preceding year.

The NAO’s annual financial statement is audited by an independent commission of registered auditors appointed by the Parliament.

The National Assembly may assign up to 5 audits to the NAO annually.

The NAO submits reports to the Parliament on the execution of audits assigned by the Parliament, and the audit reports and opinions that it is legally required to submit.

The NAO submits for examination by parliamentary committees, on its own initiative or at the request of the National Assembly, audit reports of significant importance for improving budget discipline and the management of the budget and other public funds and activities.

A permanent public sector accountability sub-committee was created within the Budget and Finance Committee of the National Assembly in order to ensure closer cooperation and relations between the NAO and the Parliament.

— ORGANISATION

HEAD

GOVERNING BODY

The NAO’s management team consists of a President, two Vice-Presidents, and two Members who are representatives of the Institute of Certified Public Accountants and the Institute of Internal Auditors.

The management team is formed on the “open government” principle.

TERM OF OFFICE

Vice-Presidents: 7 years, renewable.

SELECTION METHOD

The Vice-Presidents and the Members are elected by the Parliament upon a proposal by the NAO President.

ORGANISATIONAL STRUCTURE

The NAO is organised in six directorates (two for financial audits, two for compliance audits of financial management, one for performance audits, and one for special audits).

Its two Vice-Presidents are each responsible for three directorates. In addition to this, there are seven directorates for various administrative responsibilities, all of which fall directly under the President of the NAO.

— RESOURCES

STAFF

• Number: 398 FTEs (2023) (76 % in audit)
• Gender balance: ♂ 23 %; ♀ 77 %. Average age: 49

BUDGET

• The NAO is financed from the national budget.
• €12.044 million (2022 budget carried over to 2023)
• 0.112 % of total government budget

AUDIT WORK

— PLANNING THE AUDIT WORK

The NAO decides on its work programme independently. It adopts an annual programme for its audit activity based on priority areas and criteria.

It has an annual programming procedure based on a three-year strategic audit plan, defining audit areas from which special audit tasks are selected annually for inclusion in the annual audit programme. The selection of audit tasks is based on criteria adopted by the NAO.

The Parliament may also assign up to five additional audits to the NAO per year.

The NAO publishes its work programme on its website.

— AUDIT METHODS

The NAO carries out:

• financial audits;
• compliance audits;
• performance audits; and
• special audits.

The NAO performs its audits in accordance with the international auditing standards (ISSAIs) and good practice.

The NAO has developed its audit manual to implement the internationally accepted auditing standards and its audit activity.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The NAO publishes:

• all audit reports under the NAO Act except those containing classified information and parts of reports that are submitted to the Prosecutor’s Office;
• an annual report on its activity;
• an audit report on its annual financial statement;
• information about the submission of draft audit reports – a procedure enabling former managers of the organisations audited to be notified when an audit has been carried out concerning their period of management;
• reports on the implementation of its recommendations, including information on unimplemented recommendations;
• annual financial statements from political parties and lists of their donors;
• reports on the financial control exercised over political parties under the Political Parties Act;
• information held in the unified public register of parties, coalitions of parties and initiative committees registered to participate in elections. This information also covers the funding of election campaigns, including donors, advertising agencies, etc.;
• audit reports on the funding of election campaigns under the Election Code;
• summarised audit reports for the annual financial statements;
• reports with opinions on the state budget implementation statements, the public social security scheme budget, the National Health Insurance Fund budget, and the budgetary expenditure of the Bulgarian National Bank for the preceding year;
• ISSAIs translated into Bulgarian.

— DISSEMINATION ACTIVITIES

All NAO publications, including all audit reports, are publicly available on its website, which is the main platform for publicity and transparency and public information on its overall activity.

The NAO publishes press releases for, and short video clips about, audit reports, and organises press conferences and informal meetings with the media. It participates in TV programmes and interviews, and initiates and participates in round tables and conferences.

The NAO is active on social media.

— COOPERATION WITH OTHERS

The NAO cooperates with other government authorities to increase the efficiency of the control system and act against crime and corruption, and with professional and non-governmental organisations to exchange good practice and foster professional development.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The State Audit Office (SAO) performs audits of income and expense, assets and liabilities, financial statements, financial transactions and programmes, projects and activities of the subjects of audit which are defined in the State Audit Office Act and in the Act on the Financing of Political Activities, Election Campaigns and Referendums.

It assesses whether the financial statements present a true and fair financial position and the results of financial activities in line with accepted accounting standards, compliance with laws and regulations, and the economy, efficiency and effectiveness of programmes and projects funded from the State budget or the budget of local and regional self-government units.

The SAO carries out its audits at central, regional and local level.

KEY LEGISLATION

• Constitution 1990;
• State Audit Office Act (2019);
• Act on the Financing of Political Activities, Election Campaigns and Referendums (2019).

AUDITED ENTITIES

• state sector bodies;
• units of local and regional self-government;
• legal entities financed from the budget;
• legal entities founded by the Republic of Croatia or by a local and regional self-government unit, and legal entities owned by the Republic of Croatia or by local and regional self-government units;
• companies and other legal entities of which the Republic of Croatia or a local and regional self-government unit have majority ownership of the shares or units and/or a decisive influence over the management;
• legal entities (subsidiaries) founding legal entities whose founder is the Republic of Croatia or a local and regional self-government unit;
• legal entities securing funds for their activities from compulsory contributions, membership fees or other revenue stipulated by law;
• political parties, independent representatives and members of representative bodies of local and regional self-government units, as stipulated by the law governing the financing of political activities and election campaigns;
• legal entities in the Republic of Croatia that use funds from the European Union, international financial mechanisms and other international organisations or institutions for financing public needs;
• in addition to the aforementioned auditees, the Croatian National Bank is also an auditee in accordance with Title IV of the State Audit Office Act.

There are approximately 16 195 entities that fall within the audit jurisdiction of the SAO.

— STRUCTURE

TYPE OF SAI

An audit office, independent of government, headed by an Auditor-General.

PLACE OF THE SAI IN GOVERNMENT SYSTEM

According to the Constitution of the Republic of Croatia, the SAO is the supreme audit institution of the Republic, and is autonomous and independent in its work.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The legal framework regulating relations between the SAO and the Parliament is set out in the State Audit Office Act, the Act on the Financing of Political Activities, Election Campaigns and Referendums, and the Standing Orders of the Croatian parliament.

The SAO provides Parliament with an Annual Work Report, an Annual Report on the Implementation of the State Budget, and audit reports (individually, or a group of thematic reports). Reports are discussed at meetings of the respective committees and in plenary sessions. Before the debate on audit reports in committees or plenary sessions, Parliament requires an opinion from the government.

Parliament’s Finance and State Budget Committee, as well as other committees, depending on the audit topic, discuss the audit reports, in the presence of the Auditor-General and representatives of the SAO. The respective committee then adopts a conclusion on the audit reports.

After discussion in the plenary session, Parliament reaches a conclusion, which obliges the government to reflect within a certain period of time on the implementation of the SAO’s recommendations.

— ORGANISATION

HEAD

ORGANISATIONAL STRUCTURE

The SAO has its headquarters in Zagreb, and 20 regional offices. It operates across the entire territory of Croatia.

At head office, departments are structured according to entity type and audit type, including legal, human resources and accounting departments, and an internal audit department. Public relations and international cooperation fall within the scope of the head office’s work.

The activities, tasks and responsibilities of the SAO are defined by the Act on the State Audit Office and by the Charter of the State Audit Office.

— RESOURCES

STAFF

• Number: 293 FTEs (2022) (83.7 % in audit)
• Gender balance: ♂ 15 %; ♀ 85 %. Average age: 48.3

BUDGET

• The SAO is funded from the State Budget of the Republic of Croatia.
• The SAO autonomously plans the funds necessary for its work, and the Croatian Parliament defines them in the State Budget.
• €12.4 million (2022)
• 0.05 % of the total state budget (2022)

AUDIT WORK

— PLANNING THE AUDIT WORK

The SAO plans and performs its audits independently, according to its Annual Programme and Work Plan. Parliament can request that audits be included in the SAO’s work plan, but in practice this is rarely the case.

The Annual Audit Programme and Work Plan are approved by the Auditor-General, as is guidance on the preparation of the annual programme and work plan. The annual programme and work plan contain obligatory audits, as well as audits of other subjects.

The audit on the State Budget Execution is an obligatory audit that is based on the provisions of the State Audit Office Act, while other obligatory audits are determined by the provisions of the Law on the Financing of Political Activities, Election Campaigns and Referendums.

Audits of other subjects that fall within the mandate of the SAO are determined on the basis of criteria which are defined by the State Audit Office Act. These are:

• risk assessment;
• the financial importance of audit subjects;
• the results of previous audits – opinion given;
• information collected about subject operations and management; and
• other criteria which are determined in the SAO’s internal regulations (recommendations not implemented, and publication in the media).

— AUDIT METHODS

The SAO performs the following audits:

• financial audits, which include the examination of documents, reports, internal control systems and internal audit, accounting and financial procedures and other records to verify that the financial statements present a true and fair financial position, and that the results of the financial activities are in line with accepted accounting standards and principles; and
• a compliance audit, which includes examination of financial transactions in terms of the legal use of funds; and
• performance audits, which assess the economy and efficiency of operations, and how effectively the general objectives – or the objectives of individual financial transactions, programmes and projects – were met.

The SAO performs audits in accordance with international auditing standards (ISSAIs), and its own code of ethics. It uses performance and financial audit manuals, as well as guidelines.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The SAO’s reports are:

• an Annual Work Report containing the results of the SAO’s audit work for the reporting period, and its other activities;
• audit reports on financial, compliance and performance audits; and
• audit reports on thematic audits which are published at the same time as single audit reports, containing the results of single audits on certain themes (e.g. auditing hospitals or national parks).

The SAO publishes notices about new audit reports or other activities on its website.

— DISSEMINATION ACTIVITIES

All audit reports are published on the website upon completion. At the same time, a press release is issued and a press conference is organised.

The SAO submits audit reports to the Parliament immediately after they are completed and published.

The SAO publishes its Annual Work Report and its Strategic and Annual Plans on its website (the former, only once Parliament has been informed about it).

— COOPERATION WITH OTHERS

The SAO cooperates with other state authorities in carrying out its tasks, without prejudice to its autonomy and independence. In accordance with this requirement, the State Audit Office cooperates with judicial and state bodies.

After they have been submitted to Parliament, audit reports are submitted to the State Attorney’s Office.

The SAO also submits the required audit reports and available documentation to the Ministry of the Interior, upon request.

After audits of political parties, independent representatives and members of the representative bodies of local units elected from the voter list, the SAO must inform the State Attorney’s Office of any violations of the Law. The Office cooperates with the State Election Commission, the Tax Administration, the Office for the Suppression of Corruption and Organised Crime, the Ministry of the Interior, and with courts and other state bodies.

The SAO maintains close relationships with other national SAIs and international audit organisations, and is actively involved in the activities of their bodies and working groups. The SAO also cooperates with different national and international professional organisations, bodies and institutions, the academic community, and the general public.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

According to the Constitution, the Audit Office of the Republic of Cyprus (AORC) audits all public sector revenue and expenditure and all monetary and other administered assets owned by the public sector. It may also audit all liabilities incurred by or on behalf of the Republic.

The AORC faces no limitations in the scope of its audits and has the right of access to all books, records, and places where assets are kept that it deems necessary to carry out its work.

KEY LEGISLATION

• Constitution of the Republic of Cyprus (1960): Part 6, Chapter 2, Articles 115-117;
• the Fiscal Responsibility and Financial Framework Law (Law No 20(I)/2014);
• the Law on the Provision of Evidence and Information to the Auditor General (Law No 113(I)/2002);
• legislation on public procurement.

AUDITED ENTITIES

The AORC audits the activities of:

• public bodies:
  • ministries;
  • government departments, services or agencies;
• statutory bodies;
• local government authorities:
  • communities;
  • municipalities; and
• other organisations, enterprises or funds in the wider public sector.

— STRUCTURE

TYPE OF SAI

An audit office, independent of government, headed by an Auditor General.

PLACE OF THE SAI IN GOVERNMENT SYSTEM

The AORC is an independent state body.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The AORC is structurally independent of the parliament, but the two bodies cooperate closely. The Parliamentary Committee on Development Plans and Public Expenditure Control regularly examines the recommendations and observations of the AORC to monitor the response of audited agencies to the AORC’s observations and recommendations.

In addition, almost all Parliamentary committees regularly request the assistance of the AORC in issues relating to its responsibilities. Occasionally the AORC has a contributory role in the legislative process. The parliament may ask the AORC to perform special investigations or audits.

The AORC performs audits, issues special reports and submits an annual report to the President of the Republic of Cyprus.

The AORC’s budget is subject to the approval of the council of ministers and the parliament. This constitutes a restriction of its independence.

— ORGANISATION

HEAD

GOVERNING BODY

According to the Constitution, the AORC is governed exclusively by the Auditor General. There is no other governing body. However, for the purposes of approving the AORC’s special reports and annual report, the audit directives provide for the establishment of a management team consisting of the Auditor General, Deputy Auditor General, Audit Directors, and Technical Audit Director.

ORGANISATIONAL STRUCTURE

The AORC is divided into 17 Sections dealing with financial, compliance and performance audits.

There are three Divisions, each of which has three Sections, and two Branches, each of which has two or three Sections. A further two Divisions report directly to the Deputy Auditor General. Each Division is headed by a Director of Audit, while the heads of the Branches are Senior Principal Auditors.

The Director of Technical Audit heads the Technical Audit Division, which is responsible for all such audits.

In addition to this, the AORC has a methodology and quality assurance unit and support functions such as administration and accounts.

— RESOURCES

STAFF

• Number: 137 FTEs (full-time equivalents) (March 2023) [84 % in audit, 16 % in support posts (archives, etc.)].
• Gender balance: ♂ 40 %; ♀ 60 %. Average age: 49.

BUDGET

• The AORC is financed from the central government budget;
• €8.0 million (2023);
• approximately 92 % relates to staff costs, and the remainder to operating expenditure;
• approximately 0.07 % of the total State expenditure budget.

AUDIT WORK

— PLANNING THE AUDIT WORK

The auditing of central government financial statements, which includes compliance auditing, is coordinated centrally within the AORC, but planned and carried out by the relevant audit Divisions of each Ministry.

Performance audits and any additional compliance audits are planned, programmed and carried out individually by the AORC’s Divisions and the Technical Audit Division.

The planning includes an outline of the days budgeted for each audit planned, estimated on the basis of the number of staff available, the volume and significance of the work involved, audit risk and past findings.

— AUDIT METHODS

The AORC performs different types of audits:

• financial audits;
• compliance audits (regulatory controls);
• performance audits;
• technical audits, which primarily comprise audits of public procurement practices (terms and conditions of tender documents, assessment of project costs and evaluation reports), on-site audits of construction projects in progress, audits of contracts for the rental of property to house government offices and IT audits (i.e. audits of information technology/electronic data processing systems);
• environmental audits, which normally entail a mix of financial, compliance and performance auditing regarding a specific subject matter relating to environmental governance. These are conducted in accordance with specialised methodological guidelines and standards issued by INTOSAI; and
• special investigations, which are normally launched either at the specific request of the parliament, or following complaints or a police request for assistance in investigating potentially criminal cases.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The AORC principally publishes:

• an annual report, which primarily contains references to special audit reports issued during the year and the findings of the audit on the financial statements of the Republic of Cyprus;
• an audit opinion on the financial statements of the Republic of Cyprus;
• an opinion on the Financial Report;
• special reports issued upon completion of major audits, including audits of public bodies, statutory bodies and/or local authorities, as well as performance or environmental audits.

— DISSEMINATION ACTIVITIES

The AORC reports on the findings of its audits directly to the relevant entities, and offers relevant recommendations.

The annual report is submitted to the President and the parliament of the Republic of Cyprus.

In addition to this, the AORC publishes all non-classified audit reports on its website and issues relevant press releases where required. Social media are also used to provide citizens with information, and a press officer has been appointed to communicate with the media.

— COOPERATION WITH OTHERS

Besides its close cooperation with the parliament, the AORC also collaborates with citizens, field experts and civil society organisations to obtain insights into audit subject matters.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Supreme Audit Office (SAO) audits the management of state property, finances collected pursuant to the law for the benefit of legal persons (e.g. health insurance) and financial resources received from abroad (including EU funds). It expresses its opinion on the final state accounts and oversees the implementation of the state budget. The SAO is not authorised to audit the finances of municipalities, towns, and regions or to audit commercial companies owned by the state or by self-administration.

KEY LEGISLATION

• Constitution of the Czech Republic (1993);
• Act No 166/1993 Coll., on the Supreme Audit Office (regarding the SAO’s activity and powers).

AUDITED ENTITIES

The SAO audits:

• organisational units of the state; state-funded organisations; state funds
• legal and natural persons (only their management of state funds); and
• the financial management of the Czech National Bank in the area of expenditure on property acquisition and the bank’s operations.

— STRUCTURE

TYPE OF SAI

A collegiate institution with no jurisdictional function.

PLACE OF THE SAI IN GOVERNMENT SYSTEM

The SAO is an independent audit body of the Czech Republic. Its existence is rooted directly in the Constitution of the Czech Republic, guaranteeing its independence from the legislature, executive and judiciary.

The Act on the state budget of the Czech Republic provides for a separate chapter in the state budget, ensuring the SAO has appropriate financial autonomy.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The President of the Republic nominates the President and the Vice-President of the SAO on the proposal of the Czech Chamber of Deputies (the Lower Chamber of Parliament).

The SAO submits its draft budget to the Chamber of Deputies of the Parliament of the Czech Republic, and parliament approves the budget and its basic structure. The government cannot make decisions about the SAO’s budget, it only includes the budget in the SAO budget section in the draft general state budget.

The President of the SAO sends all approved audit conclusions to the government, the Chamber of Deputies of the Parliament of the Czech Republic and the Senate of the Parliament of the Czech Republic (the Upper Chamber of Parliament).

The President of the SAO is entitled to attend and to speak during sessions of the parliament or government of the Czech Republic on matters related to the work of the SAO.

The government discusses all SAO audit reports in the presence of the SAO’s President and for each audit it adopts a government resolution (mainly including remedial measures).

The main partner at the parliamentary level is the Committee on Budgetary Control of the Lower Chamber.

— ORGANISATION

HEAD

GOVERNING BODY

Board of the SAO (consisting of the President, the Vice-President and 15 Members).

TERM OF OFFICE

A Member’s term of office ends when he or she reaches 65 years of age. Every SAO Member submits an official oath to the Chairman of the Chamber of Deputies of the Parliament of the Czech Republic and assumes his or her office upon submission.

SELECTION METHOD

The Chamber of Deputies of the Parliament of the Czech Republic elects the 15 Members on the proposal of the President of the SAO.

ORGANISATIONAL STRUCTURE

The SAO is a collegiate institution that consists of various bodies, sections, departments, and units. The President of the SAO directs the Office and the Vice-President acts as his or her deputy.

The bodies of the SAO are the Board, Senates, and the Disciplinary Chamber. These are governed by the Act on the Supreme Audit Office and their own rules of procedure, which are discussed and approved by the Board.

The SAO consists of the Audit Section, the Administrative Section and the Office of the President of the SAO. These are divided into specialised departments that are further divided into units.

The SAO management reports directly to the President. These are the Senior Director of the Audit Section, the Senior Director of the Administrative Section, the Director of the President’s Office, the Board Secretary, the Director of the Security Department and the Director of the Internal Audit Department.

— RESOURCES

STAFF

• Number: 459 FTEs (2022) (approx. 66 % in audit)
• Gender balance: ♂ 37 %; ♀ 63 % (♂ 49 %; ♀ 51 % for management functions). Average age: 49

BUDGET

• The SAO’s expenditure is covered by the state budget of the Czech Republic.
• 42.90 million euros (2022)
• 0.052 % of total government budget

AUDIT WORK

— PLANNING THE AUDIT WORK

The SAO plans its work in an annual audit plan, which is based on suggestions from the President, the Vice-President, Members of the Board, internal analysis or external stakeholders.

The government, the Chamber of Deputies or the Senate of the parliament of the Czech Republic and their bodies can suggest audits to the Board of the SAO, which it can take on or reject at its own discretion.

These audit suggestions summarise the subject and objectives of the audit, and indicate the auditees, the timing of and reason for the audit, information about the legal and economic position of the proposed auditees, information about previous identical or similar audits, the basic characteristics of the audited area, the audit hypotheses, and so on.

— AUDIT METHODS

Under its defined powers, the SAO performs audits in line with its audit standards, which are based on the International Standards of Supreme Audit Institutions. The SAO performs audits in line with the legal regulations, which encompass legality audits, financial audits, and performance audits. An audit comprises a preparatory phase, an execution phase, and an audit conclusion drafting phase. An audit takes 10 months on average to complete, with several to several dozen auditors taking part, depending on the number of auditees.

The SAO examines whether the activities audited comply with the legislation, reviews the substantive and formal accuracy of these activities and assesses whether they are effective, economical and efficient.

The SAO’s financial audits check whether the audited entities’ financial statements give a true and fair view of the subject of the accounting in accordance with the legal regulations.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The SAO’s main output takes the form of audit conclusions which are published on the SAO’s website and in the SAO’s Bulletin as soon as the audit conclusion has been approved by the Board of the SAO. The President of the SAO sends all approved audit conclusions to the Chamber of Deputies, the Senate, and the government.

The SAO is legally obliged to publish:

• the Bulletin of the SAO, an official publication that contains a summary of audit reports for a given period. One edition also contains the Annual Audit Plan and further editions may reflect changes in the Annual Audit Plan;
• the Annual Report which contains in particular an assessment of the audits and audit results from the past year. In addition, the Annual Report includes a description of other activities, such as information about the SAO’s cooperation with criminal justice authorities, tax authorities and the public, information about international cooperation activities and about the SAO’s financial management and staff;
• the Statement on the Implementation of the State Budget, in which the SAO gives its opinion on the government’s report on the implementation of the state budget, based on its assessment of the administration of the state budget in the first six months of the relevant year;
• the Statement on the State Final Account. In this document the SAO gives its opinion on the draft of the state final account of the Czech Republic for the relevant year, based on its evaluation of the economic situation in the country and the results of the state’s financial management; and
• the Final Account, comprising information on the financial management of the SAO for the past year. An external auditor verifies the Final Account each year, after which the SAO President submits it to the Czech Parliament.

In addition to this, the SAO also issues other publications, such as the EU Report (in which the SAO presents its comparison and assessment of the uptake and use of EU funds by the Czech Republic), summary audit reports covering certain areas, handbooks, topical papers, and reports on audits the SAO conducted in parallel with other SAIs.

— DISSEMINATION ACTIVITIES

The SAO strives to make information on audit results easily accessible to the public. Therefore, it publishes audit conclusions, press releases, and other relevant documents on its website and on social media. There it also communicates the results of its audits, analysis and news, videos regarding its audits, and other information about its activities.

The SAO values transparency and therefore publishes its own contracts on its website, together with details about its budget, verified data and other data.

— COOPERATION WITH OTHERS

Sharing knowledge is one of the SAO’s main aims in the international environment. Therefore, it supports knowledge sharing in international activities and also through cooperative audits.

The SAO organises several conferences, seminars, and other professionally-oriented activities every year. Designed both for the SAO’s staff and for the professional public and representatives of other state institutions, these activities assist in improving public administration.

Since 2017, the SAO has regularly organised a public administration hackathon, during which about 20 public authorities provide their data. In March 2020, the SAO hosted the first annual international hackathon for Supreme Audit Institutions in which 23, mainly European, countries took part. Several dozen developers, programmers and data analysts participate in the hackathons and interesting prototypes of applications and visualisations are created.

These are intended to create a platform for sharing knowledge and good practice not only among the public, but also among academics, experts in given fields, students, and other concerned groups.

On the international level, the SAO regularly sends its auditors to participate in the audit bodies of international organisations. The SAO has had representatives in bodies such as EUROCONTROL, the European Defence Agency and the European Space Agency.

In 2021-2024, the SAO is chairing the European Organisation of Supreme Audit Institutions (EUROSAI).

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Danish National Audit Office (NAO) audits the government’s accounts and examines whether government funds are administered in accordance with the intentions and decisions of the Danish Parliament.

It has the right of access to all the information it needs to carry out its work.

KEY LEGISLATION

The Auditor General Act of Denmark original version from 1976, current revision from 2012.

AUDITED ENTITIES

The NAO audits:

• all Government accounts
  • ministries: 21 (as of December 2022);
  • government agencies: 135;
• the accounts of institutions, associations and foundations whose expenses or accounting deficits are covered fully or partially by grants financed by the state;
• the accounts of independent administrative entities established by statute;
• the accounts of partnerships and enterprises in which the state participates directly or indirectly as a partner, or where it is a liable business associate.

The NAO’s mandate does not cover the audit of the Danish central bank.

— STRUCTURE

TYPE OF SAI

An audit office, independent of government, headed by an Auditor General.

PLACE OF THE SAI IN GOVERNMENT SYSTEM

The NAO is an independent organisation under the Danish Parliament. The NAO’s Auditor General is not permitted to be a Member of Parliament.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The NAO is completely independent in the performance of its duties. The Public Accounts Committee, which is appointed by the Danish Parliament, is the only body that may request the NAO to perform an audit of a particular area.

The NAO submits all its reports to the Public Accounts Committee, and the Auditor General presents the reports at the monthly meetings of the Public Accounts Committee.

The NAO collaborates closely with relevant ministries and provides support in the form of guidance for their accounting and accounting control procedures.

Parliament sets the NAO’s budget.

— ORGANISATION

HEAD

GOVERNING BODY

The Auditor General heads the NAO, assisted by an advisory body consisting of the NAO’s four Assistant Auditors General.

TERM OF OFFICE

Assistant Auditors General are not appointed for a fixed period.

SELECTION METHOD

The Auditor General appoints the Assistant Auditors General.

ORGANISATIONAL STRUCTURE

The NAO is organised into four departments, each headed by an Assistant Auditor General.

— RESOURCES

STAFF

• Number: 269 (as of end of year 2022)
• Gender balance: ♂ 46 %; ♀ 54 %

BUDGET

• Approx. 30 million euros (2022)
• 37 % of the NAO’s audit resources are allocated to major studies of specific areas (performance audits) and 63 % to the annual audit of the Danish government accounts.
• < 0.01 % of total government expenditure

AUDIT WORK

— PLANNING THE AUDIT WORK

The Auditor General and the four Assistant Auditors General meet weekly to discuss the NAO’s strategy and activity planning.

The NAO is obliged to examine and report on matters when requested to do so by the Public Accounts Committee. Such tasks represent on average about one third of the audit subjects in the NAO’s major studies.

All audits are planned on the basis of assessments of materiality and risk.

The NAO’s annual audit activities and major studies are planned one year in advance. However, the plan is continuously adjusted to respond to new developments.

— AUDIT METHODS

The NAO chooses its audit approach and methodology independently.

It performs its work in accordance with Danish legislation and the Danish Public Sector Auditing Standards, which are based on the International Standards of Supreme Audit Institutions (ISSAIs).

The NAO performs financial, compliance, and performance audits.

To verify the impact of its audits, the NAO, together with the Public Accounts Committee, checks the follow-up of its recommendations by auditees.

In addition to this, ministries are obliged to respond to NAO audit reports.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The NAO publishes:

• an annual report on the audit of the Danish government accounts;
• an annual report on the audit of the Danish government’s administration;
• major studies on specific areas (approx. 20-22 per year);
• an annual report on the NAO’s own activities, performance and accounts;
• follow-up memoranda on all audit reports;
• additional memoranda on certain topics; and
• the Danish Public Sector Auditing Standards.

— DISSEMINATION ACTIVITIES

In accordance with the Danish Public Information Act, the NAO submits memoranda and audit reports to the Public Accounts Committee before publishing them on its website.

The first chapter of major studies and selected audit reports and memoranda is translated into English.

The NAO focuses on external knowledge-sharing to enhance the quality of the services it provides to the public sector.

The NAO hosts four or five information-sharing seminars for external stakeholders each year.

— COOPERATION WITH OTHERS

The NAO cooperates with the internal audit units in ministries and other audited entities.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The National Audit Office of Estonia (NAO) carries out public sector audits and verifies whether public funds have been used economically, efficiently, effectively, and lawfully.

KEY LEGISLATION

• National Audit Office Act (2002)
• Chapter XI of the Constitution of the Republic of Estonia (1992) – The National Audit Office

AUDITED ENTITIES

The NAO audits the activities of:

• the Chancellery of the Parliament, the Office of the President of the Republic, the courts, the central bank of Estonia, the Financial Supervision and Resolution Authority, the Government Office and the Office of the Chancellor of Justice;
• government authorities and the state authorities they administer;
• local authorities, regarding the possession, use and disposal of municipal assets (financial and compliance audit only), immovable and movable property of the state transferred into their possession, earmarked allocations and subsidies granted from the state budget, and funds allocated for the performance of state functions (financial, compliance and performance audit);
• foundations and non-profit associations founded by a local authority or where a local authority is a member;
• legal persons in public law;
• foundations and non-profit associations founded by the state or a legal person in public law, or where the state or a legal person in public law is a member;
• companies where the state, legal persons in public law or the above-mentioned foundations jointly or separately exercise dominant influence through a majority holding or otherwise, and the subsidiaries of such companies;
• companies which have obtained loans from the state or whose loans or other contractual obligations are secured by the state;
• companies where a local authority exercises dominant influence through a majority holding or otherwise, and the subsidiaries of such companies;
• other persons performing public functions pertaining to the use and preservation of state assets.

— STRUCTURE

TYPE OF SAI

An audit office, independent of government, headed by an Auditor General.

PLACE OF THE SAI IN GOVERNMENT SYSTEM

The NAO is an independent state body under the Estonian Constitution.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The NAO’s budget is approved by the Parliament.

The NAO is accountable to the Parliament and presents its reports to the State Budget Control Select Committee of the Parliament.

The Auditor General may take part in government sessions and has the right to speak in matters concerning his or her duties.

The NAO’s activities are audited annually by an audit undertaking appointed by the Parliament at the proposal of the Finance Committee.

— ORGANISATION

HEAD

ORGANISATIONAL STRUCTURE

The NAO is divided into three structural units. The Audit Department carries out financial, compliance and performance audits and comprises seven audit groups. The Analysis Department prepares reviews and special works. The Development and Administrative Service supports the Audit Department and the Auditor General in the performance of their functions, and coordinates the NAO’s work.

— RESOURCES

STAFF

• Number: 79.6 FTEs (2023) (74 % in audit)
• Gender balance: ♂ 32 %; ♀ 68 %. Average age: 44

BUDGET

• €5.86 million (2023)
• 70.5 % staff costs, 29.5 % operating costs
• 0.035 % of total state budget

AUDIT WORK

— PLANNING THE AUDIT WORK

The NAO decides independently and exclusively which topics it will audit, which types of audit it will carry out, and how those audits will be scheduled.

It publishes detailed information on its website about its audit programme and the progress of ongoing audits.

— AUDIT METHODS

The NAO carries out different types of audits:

• In a financial audit the NAO evaluates whether the financial statements of institutions correctly and reliably reflect their financial condition. The NAO examines whether the accounts are correct and possible misuse of funds has been eliminated. Financial audits also look at the legality of transactions.
• In a performance audit the NAO examines whether the public sector uses funds economically, efficiently and effectively. A performance audit can also be defined as a process of investigation whether the audited institutions achieve their intended aims and whether they do it properly or at the lowest cost. A performance audit evaluates the activities of the public sector in resolving problems at strategic level, analyses in depth the reasons for problems and suggests ideas for overcoming them. The goal of a performance audit is also to identify best administrative practice and contribute to disseminating it.
• In a compliance audit the NAO examines the legality of activities. This is the main approach used in local government audits.

The NAO has the right to access any and all information necessary to perform its functions, including restricted information, and all auditees are required to submit information when asked to do so.

The NAO performs its audits in accordance with the international auditing standards (INTOSAI Professional Pronouncements) and its audit manual.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The NAO publishes audit reports, which can be divided into financial audits and performance audits.

In addition to audit reports, the NAO prepares special reports, which do not necessarily involve classic audit procedures but focus on the analysis of a single question.

The NAO also submits two major reports to the Parliament each year:

• a review of the use and preservation of state assets during the preceding budgetary year;
• an evaluation of the consolidated state annual report, in which the NAO assesses, among other things, whether the state’s annual accounts are correct and economic transactions have been lawful.

— DISSEMINATION ACTIVITIES

The NAO’s publications are available on its website in Estonian, with summaries in English. The NAO also actively disseminates its reports on social media.

— COOPERATION WITH OTHERS

The NAO cooperates with local authorities and the government of the Republic in order to improve the internal control and internal audit systems of government authorities and entities administered by government authorities.

In addition to this, legal persons in public law are required to send a copy of their approved annual reports to the NAO.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The National Audit Office of Finland (NAOF) is an independent authority which audits central government finances, evaluates fiscal policy, and oversees election-campaign and political-party funding.

It audits the management of central government finances and state asset management, and oversees fiscal policy and election-campaign and political-party funding. Its activities cover central government finances as a whole, and it has extensive rights of access to information under the Constitution of Finland.

KEY LEGISLATION

• Constitution of Finland (1919 and 1999);
• Act on the Finnish National Audit Office (676/2000);
• Act on the right of the Finnish National Audit Office to audit certain credit transfers between Finland and the European Communities (353/1995);
• Act on the implementation of the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union and on general government spending limits (869/2012);
• Act on Election Candidate Funding (273/2009);
• Act on Political Parties (10/1969).
• Act on Welfare Areas (611/2021)
• Act on the organisation of social and health care and rescue operations in the region of Uusimaa (Laki sosiaali- ja terveydenhuollon sekä pelastustoimen järjestämisestä Uudellamaalla) (615/2021).

The Finnish Parliament approved the Act on the Transparency Register on 24/2/2023. In Finland, the first transparency register in the Nordic countries will be introduced from the beginning of 2024. The NAOF acts as keeper of the register, and oversees the notification obligation.

AUDITED ENTITIES

The NAOF audits:

• the government and ministries;
• government agencies and offices;
• off-budget funds;
• state enterprises and state-controlled companies;
• central government transfers and subsidies paid to municipalities, companies, and other entities; and
• transfers of funds between Finland and the European Union.

The NAOF does not audit:

• the finances of Parliament;
• funds for which Parliament is responsible;
• the Bank of Finland or the Financial Supervisory Authority; or
• the Social Insurance Institution.

— STRUCTURE

TYPE OF SAI

An independent national audit authority headed by an Auditor General.

PLACE OF THE SAI IN THE GOVERNMENT SYSTEM

The NAOF is an independent body affiliated with the Parliament which audits the management of government finances and budgetary compliance, and oversees the rules of fiscal policy. In addition, it oversees election-campaign and political-party funding.

RELATIONSHIP WITH THE PARLIAMENT/GOVERNMENT

The NAOF’s role and functions and its right of access to information are laid down in the Finnish Constitution. The NAOF has been affiliated with the Parliament since 2001. It makes independent decisions about what, how and when it audits. The Auditor General decides on the audit and oversight plan. The NAOF’s mandate does not cover Parliament’s activities.

The Parliament elects the Auditor General of the NAOF at its plenary session. Similarly, only the Parliament can remove the Auditor General (acting on proposal of the Office Commission) The auditor who audits Parliament’s accounts also audits the NAOF’s accounts.

Parliament can only assign tasks to the NAOF by law.

Parliament, as the legislator, lays down the NAOF’s role and tasks, approves its budget proposal, decides its resources as part of the State budget, and discusses its annual report.

The NAOF drafts annual reports on the state of the management of central government finances, fiscal policy, and the transparency of election-campaign and political-party funding. In addition, each year in September the NAOF submits its Annual Activity Report to Parliament. The NAOF also delivers two separate reports annually: a separate report on the audit of the final central government accounts from the previous year and the Government’s annual report in May, and separate report on fiscal policy monitoring in December.

— ORGANISATION

HEAD

GOVERNING BODY

The Auditor General of the NAOF approves the audit and oversight plan, and decides on reports to Parliament and on audit guidelines.

The Auditor General is supported by the NAOF’s management board in management matters and in decision-making regarding general policy. The management board discusses issues that are fundamentally important and far-reaching in terms of the NAOF’s management and functioning, as well as key issues in terms of coordinating operations.

In addition to the Auditor General, the management board comprises the unit directors, two audit managers, the communications manager and the HR manager. The NAOF’s staff can also elect their own representative from among themselves to join management board for a maximum term of three years. The Auditor General can invite temporary or permanent experts to the management board if necessary.

TERM OF OFFICE

The management board is a permanent body provided for in the Rules of Procedure. The term of office of the staff representative on the management board is three years, while the rest of the management board is appointed permanently.

SELECTION METHOD

Composition of the management board is determined in accordance with the Rules of Procedure which are approved by the Auditor General.

ORGANISATIONAL STRUCTURE

The NAOF’s employees are assigned to three units: an Audit Unit, a Monitoring and Oversight Unit, and a Shared Services Unit .

Fiscal Policy Monitoring (operating in the Monitoring and Oversight Unit) is an independent function within the NAOF. It oversees compliance with the rules governing fiscal policy, and the setting and achieving of fiscal policy objectives.

 

In addition, according to the Act on the National Audit Office of Finland, the NAOF has an Advisory Board, the appointment of which is decided by the Auditor General, and a Sanction and Penalty board.

— RESOURCES

STAFF

• Number: 135 full-time employees and 10 part-time employees (2022) (76 % in audit)
• Gender balance: ♂ 43 %; ♀ 57 %. Average age: 47.8

BUDGET

• 17 million euros (2022)
• 0.03 % of total government budget

AUDIT WORK

— PLANNING OF AUDIT WORK

Audit and oversight work is based on the audit and oversight plan adopted by the NAOF. The plan covers a period of four years. The audit and oversight plan is prepared once a year, but can be updated during the year if necessary.

The NAOF’s audit and oversight activities are based on the societal impact objectives of its operations as defined in the NAOF’s strategy (2019-2023):

• improved effectiveness of the management of central government finances;
• increased trust in the information basis for decision-making;
• greater confidence that the Finnish central government works in an open, efficient and sustainable manner.

The NAOF’s action and financial plan defines result targets for its activities, creating the conditions and basis for the effectiveness of activities.

The planning of audit and oversight topics is based on the assessment of risks identified in central government finances and their management, and on the monitoring of changes in the operating environment. The primary criterion for orienting an audit is the significance of the topic in terms of central government finances. Other factors influencing the choice of audit topics are the importance of the matter to Parliament and decision-makers, the topicality and timeliness of the issue, and the auditability of the topic.

— AUDIT METHODS

The NAOF performs the duties laid down in the Constitution by means of financial audits, compliance audits, performance audits, and fiscal policy audits. It also performs multi-type audits combining different audit types.

Audits follow the audit guidelines prepared by the NAOF and based on the ISSAI auditing standards. The NAOF’s audit manuals are public and are available on the Office’s website.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The NAOF publishes:

• its annual reports, annual accounts, audit and oversight plans, financial and action plans;
• reports on its audit of the final central government accounts;
• reports on its financial, compliance, performance, multi-type and fiscal-policy audits;
• fiscal-policy monitoring evaluations and reports;
• separate reports to Parliament, including the NAOF’s annual report, a report on the audit of the final central government accounts from the previous year and the Government’s annual report, a report on fiscal policy monitoring, a report on monitoring of election-campaign funding, and a report on the monitoring of political-party funding;
• reports on the monitoring of political-party and election-campaign funding;
• reports on the monitoring of political-party funding;
• follow-up reports; and
• briefing papers, opinions, perspectives and in-depth analysis.

— DISSEMINATION ACTIVITIES

Audits performed by the NAOF, and other publications and matters related to the NAOF, are announced on its website and on social media channels. Information about upcoming audits and publications is also listed on the website. In addition, media releases, blogs and other communication material are produced as separately agreed.

— COOPERATION WITH OTHERS

The NAOF pursues cooperation and active dialogue with its stakeholders and auditees. The NAOF works in cooperation with stakeholders, both nationally and internationally.

In addition to their audit work, the NAOF’s representatives can act as experts, for example in parliamentary committees and government working groups. The NAOF also participates in discussions in the field of public finance and the development of administration.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The French Court of Audit (CDC), together with the 17 regional and territorial chambers of accounts (CRTCs), is responsible for:

• assessing public accounts, and imposing penalties on public accounting officers or granting them discharge;
• carrying out compliance and performance audits on all public organisations and public funds or their equivalent;
• certifying state and social security accounts;
• evaluating public policies.

A significant reform took effect on 1 January 2023. The reform establishes a shared system between public accounting officers and authorising officers, ending the personal and monetary liability of public accounting officers, with the exception of certain overseas territories, and redefining the infringements that up until to now were brought before the Budget and Finance Disciplinary Court (CDBF), a body that has ceased to exist. Financial judges will no longer rule on the accounts, but will judge the perpetrators of the most serious financial offences, both public accounting officers and authorising officers. The fundamental principle of separation between authorising officer and accounting officer will continue to apply. The reform also introduced the policy of publishing all of the CDC’s reports, and it redefined the scope of the annual report, which could, for instance, cover tasks selected after a public consultation.

The performance and compliance audits are mainly divided up into “organisational audits” (on a specific entity) and “thematic investigations” (on a topic relating to public management or public policy).

The CDC and the CRTCs constitute the French financial courts. They have access to all documents required to carry out their duties.

KEY LEGISLATION

• French constitution (Article 47-2)
• Financial Courts Code
• Specific audit laws and regulations

AUDITED ENTITIES

The CDC and the CRTCs audit:

• all state management and accounts;
  • the accounts of the Presidency of the Republic, the National Assembly, and the Senate;
  • the ministries (central administrations, departments with responsibilities at national level and decentralised departments);
  • government agencies and their territorial network;
  • publicly owned enterprises;
• social security management and accounts;
• management and accounts from local authorities (from regional to municipal levels) and their agencies, public hospitals, secondary schools, etc.;
• public funds granted to private entities;
• funds used by charities if they are donated through public campaigns;
• funds used by private entities, if such funds come from private, tax-exempt grants.

— STRUCTURE

TYPE OF SAI

A collegiate SAI with a jurisdictional function.

PLACE OF THE SAI IN GOVERNMENT SYSTEM

The CDC is independent of the government and parliament and maintains an equal distance from both.

The CDC’s First President also is the chair of:

• the High Council for Public Finances (HCFP);
• the Council of Mandatory Contributions (CPO).

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The CDC is independent of the government and parliament. It forwards its audit reports to them together with recommendations.

The CDC certifies the accounts of both parliamentary chambers.

As part of its evaluation and monitoring tasks, the parliament works closely with the CDC to follow up the CDC’s recommendations. Parliament and the Prime Minister may ask the CDC to perform a limited number of audits. Parliament may also entrust the CDC with evaluating public policies.

— ORGANISATION

HEAD

GOVERNING BODY

The CDC is governed by a College consisting of the First President and the presidents of the chambers. The Prosecutor-General, who is independent, attends the meetings of the College.

The CRTCs are headed by presidents, who are Members of the CDC. The High Council of the CRTCs is chaired by the First President.

TERM OF OFFICE

The First President and the presidents of the chambers are magistrates and have tenure which is limited only by the statutory retirement age.

SELECTION METHOD

The presidents of the chambers and the Prosecutor-General are appointed by a decree of the President of the Republic issued by the Council of Ministers at the proposal of the Prime Minister.

ORGANISATIONAL STRUCTURE

The CDC is organised into six chambers by sector, a judicial chamber, a department for strategic planning and publishing, and a secretariat-general.

The Prosecutor-General, the advocates general, and the regional financial prosecutors are independent of the CDC and the CRTCs, and act as public prosecutor (with requisitions for opening judicial proceedings, findings on all the reports of financial courts, opinions on their organisation and methods, relations with judicial authorities, etc.).

— RESOURCES

STAFF

• Total: 1 803 (2022), 68 % in audit (819 in the CDC and 984 in the CRTCs)
• Gender balance: ♂ 49 %; ♀ 51 %. Average age: 49.10

BUDGET

• €232.13 million (2022) (51 % for the CDC, 49 % for the CRTCs)
• < 0.007 % of the total government budget

AUDIT WORK

— PLANNING THE AUDIT WORK

The First President, after asking for an opinion from the Prosecutor-General, determines the general organisation of the CDC, plans the audits and evaluations, and allocates the resources to the different chambers. The breakdown of the programme into different audits is completed at team level within each chamber.

It is the same process in each CRTC.

The audit topics are selected on the basis of risk assessments, the timetables for compulsory organisational audits of the various bodies, audit experience and taking into account the level of public interest. In line with the 2020-2025 strategic plan, a platform open to the public will enable them to be involved in some of the audit planning from 2023.

Currently, and until 1 January 2023 (see information on reform above), judicial activities relate to selected accounts to be audited and judged over a period of several years.

— AUDIT METHODS

All types of audits are based on methods defined by the CDC/CRTC according to international standards.

Judicial activities follow strict rules of procedure.

The CDC’s public policy evaluation methodology is set out in practical guidelines and training sessions.

All activities comply with the principles of collective responsibility and the adversarial procedure.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The CDC publishes:

• a general annual report on 15 to 20 topics, which is also delivered to the President of the Republic;
• an annual report on the execution of state budget and the results for the previous year;
• an annual certification of state accounts for the previous year;
• an annual assessment of the situation of the public finances and prospects for the current year;
• an annual report on the execution of the social security system budget and annual certification of the corresponding accounts for the previous year;
• an annual report on local public finances for the previous year;
• five to ten thematic reports each year;
• “flash audit” reports, each of around 20 pages; “flash audits” use an accelerated procedure to analyse new public aid measures and offer useful comments and observations going forward;
• all reports on the use of private grants by charity organisations;
• all main reports sent to the government (referred to a minister).

In 2021, the CDC also published a series of notes on the significant structural issues affecting France. These in-depth summaries of recent works and new productions analyse the great challenges of the next few years and set out the potential instruments that could be used to meet these challenges. They help to focus public debate at a key time for citizen reflection, while taking care to reconcile effective public policy with support for sustainable growth.

The CRTCs publish:

• their management audit reports, which are sent to the local authorities;
• some reports within the CDC’s general annual report.

— DISSEMINATION ACTIVITIES

The CDC has a constitutional obligation to keep the public informed. Therefore, it reports on an increasing amount of its work in the media (33 000 citations in the press in 2022, 23 300 of which were for the CDC alone), on its website (more than 2.1 million visits in 2022, with 1.4 million unique visitors), and on social media (183 500 followers). The financial courts published 1 362 reports, of which 1 256 were for the CRTCs.

The CDC sends all its main reports to government and parliament, and publishes them.

Parliament receives and uses the CDC’s six annual reports and its thematic reports. The CDC also publishes information on the follow-up of its recommendations.

The CDC publishes all reports on charity funds.

The CRTCs send their management audit reports to local authorities who have to read them aloud in their council meetings, which are open to the public and the media.

The CDC and the CRTCs deliver their orders and judgments in public hearings. They publish collections of annotated jurisprudence.

— COOPERATION

The CDC cooperates closely with the CRTCs, which carry out their own work independently. The CDC is in charge of investigations carried out jointly with the CRTCs in areas of shared competence.

The CDC cooperates with parliamentary committees, the Council of State, judicial authorities through the Prosecutor-General, other independent administrative authorities and governmental general inspectorates.

On an international level, the CDC works with other SAIs on bilateral initiatives such as twinning and thematic cooperation, and plays its part in multilateral bodies such as the Contact Committee of the EU SAIs, EUROSAI, INTOSAI and AISCCUF – the association of French-speaking SAIs. With other SAIs or as part of its own research, the CDC carries out many international comparison studies, which are becoming systematic as a complement to audits, and in turn it responds to similar requests (126 studies in 2022).

The CDC is also statutory auditor for several international organisations. In 2022, this concerned the World Food Programme, the Council of Europe, the Organisation for Security and Cooperation in Europe, and the World Trade Organization. The CDC has been a member of the United Nations Board of Auditors since 1 July 2022. The CDC examines the management and accounts of these organisations through performance and regularity audits.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The German SAI audits all federal revenues and expenditure, as well as representational funds and secret expenditure, and determines whether the federal budget has been managed properly and efficiently.

It has full rights of access to any body and any information it requires for its audit work, including non-federal entities where these manage federal funds.

KEY LEGISLATION

• Constitution (Article 114, paragraph 2, Basic Law) (1949);
• Federal Budget Code (Article 88 et seq.) (1969);
• Budgetary Principles Act (Article 53 et seq.) (1969);
• German SAI Act.

AUDITED ENTITIES

The German SAI has access to any institution or body managing federal funds, e.g.:

• government ministries and their subordinate bodies;
• state agencies;
• social security institutions;
• public enterprises;
• federal grantees; and
• administrative units of constitutional bodies.

— STRUCTURE

TYPE OF SAI

A collegiate structure with no jurisdictional function.

PLACE OF THE SAI IN GOVERNMENT SYSTEM

The German SAI is a supreme federal authority and ranks equally with federal ministries.

It is fully independent and does not take instructions to perform specific audit work. However, Parliament may propose certain audits to the German SAI.

The President of the German SAI holds an ex officio position as Federal Performance Commissioner. He puts forward recommendations, reports and opinions in order to enhance the efficiency of the federal administration. He may also advise Parliament on legislation.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

Through its audit and advisory work, the German SAI supports the German federal government and parliament, which uses the German SAI’s annual report as a basis for granting discharge to the federal government.

The German SAI reports to both the executive and the legislative branches of federal government and may give advice before final decision-making.

It also participates in the budget negotiations between the federal Ministry of Finance and the line departments and may provide input on each departmental budget estimate. In addition to this, it gives advice during budget implementation.

AUDIT WORK

— ORGANISATION

HEAD

GOVERNING BODY

Decisions relating to audit work are made at the level of the audit divisions by collegiate bodies, which comprise the Members of the SAI, i.e. a senior audit director and an audit director, and in some cases also the President or the Vice-President. Members of the German SAI enjoy judicial independence.

Certain types of overall decisions, e.g. on items related to the annual report, are reserved to the Senate. The Senate is the supreme decision-making body.

TERM OF OFFICE

Senior audit directors are civil servants. Their tenure is limited to the statutory retirement age for civil servants, currently 67.

ORGANISATIONAL STRUCTURE

The German SAI is composed of nine audit divisions with 49 audit units. Another division focuses on international audit work and supports the President in his function as a member of the United Nations Board of Auditors. The support division is responsible for central management.

— RESOURCES

STAFF

• Total: 1 080 (as of 2023) (80 % in audit)
• Gender balance: ♂ 58 %; ♀ 42 %. Average age: > 51

BUDGET

• 187 million euros (2023)
• 0.04 % of the total federal budget

— PLANNING THE AUDIT WORK

The President, Vice-President, Senate and all collegiate bodies are involved in the German SAI’s strategic and work planning.

The German SAI’s audit units regularly carry out a risk and task analysis, which forms the basis of a medium-term audit plan as well as an audit strategy for the next three to five years.

The units plan their audit tasks in annual audit plans in a coordinated manner, and these plans form the basis for the overall audit plan of the German SAI.

The German SAI is free to decide on audit requests from Parliament or parliamentary committees.

— AUDIT METHODS

The German SAI carries out performance, compliance and financial audits, both ex post and in real-time, and provides pro-active advice. It determines the timing and nature of its audit work independently and may carry out fieldwork.

Performance audits are a key task, and these are typically combined with compliance or financial audit elements in a comprehensive audit. The German SAI uses sustainability as an additional strategic audit criterion.

The German SAI’s work also includes:

• selective audits, which involve in-depth examinations designed to gather evidence on a particular aspect of the audit matter;
• horizontal audits, which study a specific subject across a representative selection of government bodies to develop audit findings on a defined area of government operations and transactions;
• exploratory studies, which are a tool for obtaining insights into specific problem areas, procedures or developments. These do not aim to provide a final evaluation of government operations and transactions, but are a suitable option to prepare for new audit missions;
• follow-up audits, which serve to identify whether the authorities with oversight have acted on the audit findings or on parliamentary resolutions;
• management audits (or general audits), which serve to obtain a comprehensive overview of the audited body’s financial management; and
• real-time audits, which allow the German SAI to examine the multitude of individual decisions that major programmes entail, separately and at each project stage. This approach allows it to detect shortcomings at an early stage and inform decision-making bodies in good time.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The German SAI issues:

• management letters with audit findings, which it sends to the audited bodies for comment;
• an annual report composed of a principal volume (I) and a supplementary volume (II). Volume I is published in autumn each year and volume II in spring of the following year. Taken together they form an up-to-date basis for the parliamentary discharge procedure;
• advisory reports; and
• special purpose reports.

It submits its advisory and special purpose reports to parliament and the federal government.

In addition to this, in his or her function of Federal Performance Commissioner, the President publishes a series of opinions and good practice guides.

The German SAI includes recommendations for improvement in its management letters and reports, and comments on topical issues such as draft legislation and major procurement projects, or provides expert input.

— DISSEMINATION ACTIVITIES

The German SAI presents its annual report to the public at a federal press conference and publishes its work (including the annual report, special purpose reports and final audit letters) on its website.

The special reports and the outputs of the Federal Performance Commissioner also feature there.

— COOPERATION WITH OTHERS

Since Germany has a federal government structure, regional audit institutions and municipal audit offices audit the other levels of government. However, as the fiscal systems of the Federation and of the sixteen constituent states of the Federal Republic are largely intertwined, the German SAI and the independent regional audit institutions of the states work closely together.

This cooperation focuses mainly on programmes that the Federal Government and the states fund jointly, or on responsibilities that the central government has delegated to the states.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Hellenic Court of Audit (HCA) carries out audits of the expenditure and accounts of the State, local authorities and other legal entities as provided for by law or if they are in receipt of public money.

Its jurisdiction extends to government departments and ministries, local government bodies and other public sector organisations. It may also participate in the audit of the accounts of legal entities governed by private law.

It has the right of full access to all IT systems, central and local government accounting books, supporting documentation and staff. It may also request any relevant information from all the competent authorities, which are obliged to cooperate.

JURISDICTIONAL COMPETENCE

The HCA adjudicates on remedies and means of redress in disputes concerning:

• pensions;
• the audit of accounts in general;
• the civil liability of public servants, employees of local authorities and other legal persons governed by public law in the event of any damage caused to the State by fraud or negligence, as well as these same organisations and legal persons in the performance of their duties;
• the liability of public servants for the acquisition of wealth whose legal origin cannot be justified (following an audit of their annual declarations of assets and liabilities).

The HCA also delivers opinions on:

• draft legislation concerning (a) pension matters (required by the Constitution), (b) matters of major importance relating to financial management by General Government bodies, (c) public procurement issues and (d) matters within its sphere of competence;
• questions of a financial nature, provided that the opinion does not prejudge the resolution of a dispute already pending before it;
• draft decisions on (a) the offsetting of State budget revenue and expenditure and (b) changing the criteria and conditions for classifying or declassifying revenue as irrecoverable.

KEY LEGISLATION

Article 98 of the Constitution legislatively enshrines the powers of the HCA, which are exercised as provided by law. Law No 4700/2020 (A 127) on a Uniform Procedure for the Hellenic Court of Audit, comprising a comprehensive legislative framework for pre-contractual audit, and Law No 4820/2021 (Α 130) on the Organic Law of the Hellenic Court of Audit are particularly important.

AUDITED ENTITIES

The HCA’s audit mandate extends to:

• the Presidency of the Republic;
• the Presidency of the Government;
• the Parliament;
• 19 ministries;
• 7 decentralised administrations;
• 5 constitutional independent authorities and 18 independent administrative authorities not established directly under the Constitution;
• 332 municipalities (first-level local authorities);
• 13 regions (second-level local authorities);
• 26 social insurance organisations;
• 106 State hospitals.

The HCA also audits the accounts of approximately 450 other general government legal entities, and public and private legal entities owned by local authorities (755), as well as subsidised private entities.

— STRUCTURE

TYPE OF SAI

A court with jurisdictional, audit and advisory powers.

PLACE OF THE SAI IN THE GOVERNMENT SYSTEM

The HCA is the supreme public financial Court within the Greek judicial system.

RELATIONSHIP WITH PARLIAMENT / GOVERNMENT

The HCA is required to submit to the Parliament an Annual Report on its audit activities, and a Report on the accuracy and reliability of the Report on the Financial Statement, Balance Sheet and other financial statements of the State.

Every year the President of the HCA presents the Annual Audit Programme to Parliament, which may propose that priority be given to some of the audits planned, and express an interest in up to a further three audits per year, focusing on weaknesses in public management systems in particular, being carried out in addition to those already planned.

Thematic audit reports are forwarded to the relevant Parliamentary Committee prior to being released to the press, while the President of the HCA presents them to Parliament, in accordance with its Rules of Procedure.

Parliament also approves the HCA’s budget based on the recommendations of the Ministries of Finance and Justice.

— ORGANISATION

GOVERNING BODY

The Plenum of the HCA is the supreme jurisdictional body and is composed of the President, 10 Vice-Presidents and 40 Judge Counsellors. The Plenum can meet in full, in a major panel, or in one of three minor panels. The number of members sitting in each of these minor panels may be varied by decision of the full Plenum.

The full Plenum comprises the President of the Court and all the Vice-Presidents and Judge Counsellors. The major panel of the Plenum comprises the President, Vice-Presidents and 20 Judge Counsellors who are selected by drawing lots. Each of the three minor panel of the Plenum comprises the President of the Court and 14 Vice-Presidents and Judge Counsellors. The Vice-Presidents are allocated to each panel in order of seniority, while the Judge Counsellors are drawn by lot every three years under the conditions laid down in the relevant decision of the Plenum.

TERM OF OFFICE

Members are judges who enjoy personal and operational independence and are appointed for life.

SELECTION METHOD

Vice-Presidents: appointed by Presidential Decree upon a proposal from the Council of Ministers.

Judge Counsellors: promoted by Presidential Decree upon the decision of the Supreme Judicial Council.

ORGANISATIONAL STRUCTURE

The Head of the HCA is the President. Under the President there are 10 actively serving Vice-Presidents, seven of whom chair each of the HCA’s Jurisdictional Chambers and judicial formations.

The Vice Presidents deputise for the President in order of seniority. The HCA has posts for 166 judges. At present, there are 40 Judge Counsellors, 66 Assistant Judges, 14 Reporting Judges and 8 trainee Reporting Judges.

Inextricably embedded in the HCA’s organisational structure is the layer of the Office of the Advocate General, an independent judicial authority acting in the public interest and comprising the Advocate General, Deputy Advocate General, three Sub-Deputy Advocates General and eight Reporting Judges. Assistant Judges and Reporting Judges are also being seconded to support its work at present.

The HCA comprises the Plenum (structured as indicated above), seven Chambers (presided over by a Vice-President) with judicial powers, and three Audit Departments (Audit Department I, chaired by the President, and Audit Department II and the Studies and Opinions Department, chaired by the Vice-President), which are responsible for all matters relating to planning, the conduct of audits, and the processing of the Report on the Financial Statement and Balance Sheet of the State, and the Annual Report.

The organisational structure also contains six Jurisdictional Sections (judicial formations presided over by a Judge Counsellor), three of which are responsible for pre-contractual audits, two discharge responsibilities of an auditing and jurisdictional nature, whilst the Fourth Jurisdictional Section deals mainly with the supervision, coordination and monitoring of the European Court of Auditors' audits in Greece, and the HCA’s international relations.

Audit offices headed by Commissioners of the HCA (i.e. court officials with a university degree, with more than 15 years’ experience and holding the rank of head of division) are situated in ministries, prefectures/regions and larger municipalities, and have auditing and sanctioning powers. There are currently 55 Commissioners’ offices in Athens and 56 all over Greece. The number of court officials amounts to 626.

— RESOURCES

STAFF

• Complement:  626 FTEs (management: 15 %; audit: 63 %; administration: 22 %) + 152 judges
• Gender balance: ♂ 34 %; ♀ 66 %. Average age: 52
  
  

(reference period: March 2023)

BUDGET

• €36.7 million
• Allocation: approx. 95 % for remuneration and salaries
• < 0.01 % of total government budget
  
  

(reference period: March 2023)

AUDIT WORK

— PLANNING THE AUDIT WORK

The HCA plans its work in its Multiannual and Annual Work Programmes, which are approved by its Plenum.

The Multiannual Audit Programme contains the list of audit topics by strategic priority, and specifies the objectives and priorities of the audits planned. When selecting the audits to be included in its Annual Programme and their possible combination, the HCA takes account of the strategic priorities of the Multiannual Audit Programme, the Court’s compulsory recurring audit work, any requests from Parliament, the representatives of bodies, or citizens, for audits relating to the investigation of complaints, as well as proposed cooperation with European and international audit institutions.

— AUDIT METHODS

The HCA carries out pre-contractual and ex post audits, including thematic audits in areas of high audit interest (which may be financial, compliance, or performance audits), as well as follow-up audits, in accordance with the HCA’s audit manual and the International Auditing Standards (INTOSAI).

The HCA carries out:

• audits prior to the conclusion of contracts with a high financial value awarded by the State or any other equivalent legal entity, as specified by law (pre-contractual audit);
• ex post audits of the accounts of accounting officers of the State and of local authorities or other legal entities, giving rise to a decision taken by the HCA Commissioner or Jurisdictional Section responsible in which the accounts are either accepted as sound or rejected as illegal. In the latter case the deficit will be recovered;
• thematic audits (financial, compliance and performance) in areas of high audit interest, in accordance with the HCA’s Annual Audit Programme and the international standards and principles of Supreme Audit Institutions (INTOSAI Framework of Professional Pronouncements (IFPP)).

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The HCA issues:

• Mandatory audit reports:
  • Annual report on its audit activities, including the results of its activities, observations stemming from its work, suggestions on reforms and improvements (including relevant laws);
  • Statement of assurance on implementation of the State budget;
• Own-initiative audit reports: The HCA also publishes audit reports according to its Annual Work Programme;
• Reports on audits that the Parliament expressed interest in having carried out that were not originally planned (a maximum of three per annum), focusing in particular on weaknesses in public management systems;
• Opinions on legislation;
• Other: Reports on the follow-up of audit results.

— DISSEMINATION ACTIVITIES

The HCA’s Annual Report is published in the Greek Official Gazette, and available to the public on the HCA’s website. Reports on thematic audits are also posted on its website.The President presents these reports to Parliament, in accordance with its Rules of Procedure, and the Organic Law of the HCA.

Judgments and rulings of judicial formations from which personal data have been removed are also published on the HCA’s website and in law journals. In cases within its competence and after having assessed the circumstances, the Plenum may also issue a short statement on the content of a decision it has taken and the estimated publication date via the President of the HCA.

The HCA may organise conferences to present its audit work to auditees and relevant stakeholders.

The Press Office is responsible for issuing press releases, posting them on the HCA’s website and social media, and for briefing the press.

 

 

GENERAL INFORMATION

— LEGAL BASIS

The State Audit Office of Hungary (SAO) is the supreme financial and economic audit body of the National Assembly, to which it reports. Its audit mandate covers all aspects of the use of public funds and national assets.

It is responsible for financial and economic audits, and for auditing the implementation of the central budget, the management of public finances, the use of funds from public finances and the management of national assets. The SAO carries out its audits according to the criteria of legality, expediency and effectiveness. Based on its findings, the SAO may initiate proceedings with the competent authority against the audited entities and the individuals responsible. The SAO’s reports, and its findings and conclusions, cannot be contested before courts or other authorities.

Based on its audit experience, the SAO assists the National Assembly, its committees and the work of the auditees by providing them with its findings, proposals, advisory opinions and recommendations, as well as by carrying out analyses and studies.

KEY LEGISLATION

• The Fundamental Law of Hungary
• Act LXVI of 2011 on the SAO

AUDITED ENTITIES

The SAO’s audits may cover in particular the following entities and areas:

• public institutions;
• institutions funded from the central budget;
• budgetary implementation of social security funds and separate state funds;
• management of local governments, minority self-governments, and their associations;
• asset management of economic organisations owned in full or in part by the state or by local governments;
• taxation and other revenue-generating activities of the State Tax and Customs Authority and local authorities;
• management and proper functioning of the National Bank of Hungary;
• management of political parties and their foundations, and the use of contributions thereto;
• use of funds for parliamentary or municipal elections and national referendums;
• campaign accounts of organisations nominating candidates;
• management of church organisations funded from the central budget;
• use of specific operating budgets of national security services;
• legality criteria for the transparent operation of non-governmental organisations carrying out activities liable to affect public life.

— STRUCTURE

TYPE OF SAI

Being the supreme financial and economic audit body of the National Assembly, it is independent of any other organisation in the course of its audit activities and is headed by a President.

PLACE OF THE SAI IN THE GOVERNMENT SYSTEM

The SAO performs its duties under the authority of the National Assembly. In an annual report to the National Assembly, its President provides information on the SAO’s audit activities, operation and management in the previous year, and on the measures taken as a follow-up to the audit findings.

The SAO represents an independent heading in the structure of the central budget.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The SAO assists the National Assembly, its committees and the auditees with its findings, proposals and advice based on its audit experience. The President of the SAO is a member of the Fiscal Council. The SAO supports the Council’s work by carrying out analyses and studies and making them available to the Council.

The SAO carries out its audit activities on the basis of an annual audit plan approved by the President. The President of the SAO informs the National Assembly of the audit plan and any amendments to it.

The SAO is obliged to conduct audits on the basis of a National Assembly decision, and may carry out audits at the request of the Government, NATO, the European Union or any international organisation of which Hungary is a member, as well as in fulfilment of an obligation arising from an international treaty entered into by the Parliament or the Government, or on the basis of an individual decision of the President.

— ORGANISATION

HEAD

ORGANISATIONAL STRUCTURE

The SAO operates under the sole responsibility of the President. The senior officials are the President and the Vice-Presidents. The President is elected by the National Assembly and the Vice-Presidents are appointed by the President, both for twelve years. Audit activities are carried out through audit directorates, whose audit activities cover central and local levels of public finances, entities outside general government. and the management of public assets, via compliance, financial and performance audits. The directorates are headed by directors and the audit work is carried out under the operational direction of audit managers under the directors’ responsibility.

The audit activities in the directorates are supported by the strategic, methodological, risk assessment and quality assurance functions under the leadership of the Coordinating Director, as well as by a key analysis unit performing the SAO’s analytical functions as provided for in the legislation. In addition, other units (legal, financial, IT, administrative, personnel, communication, international) contribute to ensuring the functioning of the SAO.

— RESOURCES

STAFF

• Number: 496.5 (full-time equivalent) (on 15 March 2023) (74.6 % in audit)
• Gender balance: ♂ 38 %; ♀ 62 %. Average age: 47.19

BUDGET

• 13.3 billion HUF (2023) (33.7 million euros)
• Budget planning: the SAO drafts its own budget, which must be submitted to the National Assembly, without any change by the government, as part of the draft central budget act
• < 0.04 % of total government expenditure; 0.02 % of GDP

AUDIT WORK

— PLANNING THE AUDIT WORK

The SAO carries out its audit activities on the basis of the annual audit plan approved by the President and according to auditing rules and standards.

The frequency of audits is determined by law or, in the absence of statutory provisions, by the President.

The SAO takes a real-time approach in the informed selection of the audit scope and the establishment of a corresponding audit programme, with an emphasis on risk assessment and added value.

— AUDIT METHODS

Taking into account INTOSAI’s international auditing standards, the SAO develops its own rules and methods for auditing and ensures their continuous review and development in line with the changing environment. Audits carried out by the SAO can be compliance, financial or performance audits, or a combination thereof.

The SAO’s annual audit plan is public and published by the SAO on its website. During the SAO’s audits, information provided by the audited entity and data subject to the audit are assessed by the SAO on the basis of the audit criteria set out in the audit programme.

On the basis of the published audit documents, the audit methods used and the audit programme sent to them in advance, auditees are informed of the audit objectives and the criteria on which the SAO bases its findings.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The SAO publishes:

• an opinion on the draft central budget act;
• a report on the implementation of the central budget;
• audit reports and follow-up reports (while ensuring the protection of classified information);
• annual information on its activities and the functioning of the institution;
• legally non-binding recommendations;
• analyses and studies.

The SAO has a legal obligation to support the work of the Fiscal Council by means of its analyses. In order to fulfil this obligation, the SAO carries out several analyses each year on the state of the budget and certain issues of fiscal policy.

— DISSEMINATION ACTIVITIES

The SAO keeps the public at large informed of its work and liaises with the press service of the National Assembly and with press representatives. It operates a website in Hungarian and English and distributes its publications by means of press releases in order to inform the public and ensure its statutory publication obligation.

In addition to its audit reports, the website publishes the SAO’s legal authorisation, the rules pertaining to its operation and activities, its tasks, audit plan, mission, strategy, professional audit standards, CVs of the SAO’s leaders and other data of public interest.

In order to make the most of its work and professional experience, the SAO pays particular attention to open and comprehensible communication with stakeholders and reports on its work in a manner that is understandable and acceptable to the targeted users.

— COOPERATION WITH OTHERS

The SAO ensures continuous professional development through cooperation with external organisations and the involvement of their expertise, thereby increasing the quality and credibility of its work. In order to carry out its tasks in a more efficient and effective way, it concludes cooperation agreements with professional partners and liaises with national audit bodies.

The SAO participates in domestic and international professional events, and closely follows developments in international professional standards of auditing and topical issues discussed in international fora, in order to further develop its audit activities and methodology, as well as its organisational functioning.

The SAO is an organisation engaged in international activities to meet its international strategic objectives and further its engagement in international auditing public life. The SAO liaises, in particular, with INTOSAI, EUROSAI, EURORAI, the institutions and other organisations of the European Union, the International Board of Auditors for NATO and the supreme audit institutions of the Visegrad cooperation countries in order to strengthen international cooperation and continuously improve its auditing rules and audit methods.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Comptroller and Auditor General (C&AG) plays a central role in the public accountability process by providing assurance to parliament through the Committee of Public Accounts (PAC) on the manner in which public funds have been administered, and providing reports on matters arising out of audits and other examinations.

The main tasks are:

• audit and report on the accounts of public bodies;
• establish that transactions of public bodies are in accordance with the legal authorities governing them and that funds are applied for the purposes intended;
• examine whether public bodies administer resources economically and efficiently and have mechanisms in place to evaluate the effectiveness of operations;
• authorise the release of funds from the Exchequer for purposes permitted by law.

KEY LEGISLATION

• Constitution of Ireland: Article 33 (1922, replaced in 1937);
• Exchequer and Audit Departments Act from 1866;
• Comptroller and Auditor General Act from 1923, amended in 1993;
• Comptroller and Auditor General and Committees of the Houses of the Oireachtas (Special Provisions) Act from 1998.

AUDITED ENTITIES

The C&AG audits:

• vote accounts: 44;
• departmental funds: 27;
• financial entities: 29;
• health entities: 29;
• North/South Bodies: 7;
• education sector: 43; and
• semi-state bodies: 108.

— STRUCTURE

TYPE OF SAI

An audit office, independent of government, headed by a Comptroller and Auditor General.

PLACE OF THE SAI IN THE GOVERNMENT SYSTEM

Fully independent.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The relationship with the Parliament is essentially a reporting one. The results of the audit activities are reported to the Parliament through audit certificates and reports on financial management. The PAC also examines the C&AG’s special reports. There is close cooperation with the PAC. The C&AG attends meetings of the PAC as a permanent witness. The results of the C&AG’s independent examinations provide a foundation for PAC enquiry.

— ORGANISATION

HEAD

GOVERNING BODY

Audit Board comprising of the Comptroller and Auditor General, the Secretary and the Directors of Audit, and a Management Board comprising of the Directors and Deputy Directors of Audit.

ORGANISATIONAL STRUCTURE

The Audit Board has independent oversight of the Office of the Comptroller and Auditor General and is responsible for the development and implementation of strategy. The Management Board coordinates the operations of the Office.

— RESOURCES

STAFF

• Number: 191 FTEs (December 2022)
• Gender balance: ♂ 50 %; ♀ 50 %. Average age: 42 years

BUDGET

• 15.9 million euros (2022)
• < 0.02 % of total government expenditure

AUDIT WORK

— PLANNING THE AUDIT WORK

The C&AG decides independently on the performance audit work programme of the Office. This is based on the overall reporting strategy and specific sectional strategies. The financial audit programme is designed to meet statutory deadlines, where applicable.

— AUDIT METHODS

The C&AG conducts financial audits and performance audits. These are carried out in accordance with International Standards on Auditing (“ISSAIs”) and the C&AG’s own code of ethics.

The C&AG uses financial and performance audit manuals, as well as practical guidelines.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The C&AG drafts the following reports:

• opinions on public accounts;
• reports on important matters relating to value for money and the administration of public funds;
• letters to management following audits on matters relating to internal financial control, management and corporate governance;
• grants of credit authorising the release of state funds by the Central Bank of Ireland for purposes authorised by law.

— DISSEMINATION ACTIVITIES

Public sector bodies are required to present their financial statements to Parliament. These financial statements include the C&AG’s audit report.

Each year, the C&AG presents to Parliament the financial statements of government departments and offices and a report on the accounts of the public services. In addition, special reports are submitted to the relevant minister, who has responsibility for the presentation of the report to Parliament.

Reports are publicly available on the C&AG’s website and in the Irish Parliament’s library. Press releases are published to accompany the publication of all special reports.

— COOPERATION WITH OTHERS

The C&AG maintains a relationship with the Local Government Audit Service in Ireland. The Local Government Audit Service has responsibility for the audit of local government bodies. All reports by the Local Government Audit Service are made available to the C&AG.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

In the constitutional architecture of Italy, the Corte dei conti (Cdc) is the external audit body of the State, independent from the parliament and government, with the aim of ensuring the proper, sound management of public finances and assessing their stability.

JURISDICTIONAL COMPETENCE

The Cdc is part of the judiciary and, according to Article 103(2) of the Italian Constitution, has jurisdiction in matters of public accounts and in other matters laid down by law.

Accordingly, in case of ascertained damage to public funds, directors, employees and accounting officers and any other person with an employment relationship with the public administration are not liable under the standard rules of civil law, but under the specific rules relating to administrative and accounting liability.

Where there is loss or waste regarding public funds, administrative officials – of the State or of any public administration – and public or private entities and/or individuals managing public funds in the public interest may be found liable.

The damages may be material (loss of real/financial assets) or intangible (non-material damage).

Only prosecutors at the regional Public Prosecutor’s Office of the Cdc can bring liability proceedings before the regional legal chambers of the Cdc.

The Cdc also has jurisdiction over the activities of accounting officers, i.e. individuals whose task is to manage public money, and goods (e.g. treasurers, etc.).

KEY LEGISLATION

Audit competences:

• Articles 81, 97, 100, 117 and 119 of the Italian Constitution (1948);
• Law No 20/1994;
• Law No 131/2002;
• Law No 266/2005;
• Law No 213/2012;
• Law No 120/2020;
• Decree-Law No 77/2021.

Jurisdictional competences:

• Articles 103 and 108 of the Italian Constitution;
• the code of accounting law pursuant to Legislative Decree No 174/2016;
• Law No 19/1994;
• Law No 20/1994;
• Law No 639/1996;
• Law No 120/2020;
• Decree-Law No 77/2021.

AUDITED ENTITIES

The Cdc audits:

• ministries;
• public authorities and state agencies, including independent authorities;
• public funded bodies;
• regions, provinces, municipalities, metropolitan areas and their subsidiaries; and
• private companies in which the Italian State, the regions or local bodies have a controlling interest.

— STRUCTURE

TYPE OF SAI

The Cdc carries out both audit and legal duties.

In addition, the Cdc carries out advisory functions for parliament, the government, the regions, municipalities, provinces and metropolitan areas.

PLACE OF THE SAI IN THE GOVERNMENT SYSTEM

According to the Italian Constitution, the Cdc is autonomous and independent from the other powers of the State.

RELATIONSHIP WITH PARLIAMENT / GOVERNMENT

As an audit body, the Cdc reports to Parliament on its audit results.

It carries out controls and audits on the government’s actions and management, with the aim of safeguarding lawfulness and the stability of public finances.

In the event that the actions of the executive do not comply with the law, the Cdc may issue a negative opinion rendering these actions ineffective.

The Cdc carries out advisory functions in accounting matters at the request of the government, regions, provinces, municipalities and metropolitan areas. It also provides opinions to Parliament and the government regarding laws, bills, administrative and regulatory provisions and the corresponding drafts. The opinion of the Cdc is mandatory for introducing, modifying or repealing provisions regarding accounting systems and for introducing or modifying accounting templates, documents and records.

The Cdc is involved in the proceedings for the adoption of the Budget Law and the other economic programming documents.

— ORGANISATION

HEAD

GOVERNING BODY

The Council of the Presidency of the Cdc is composed of eleven members: the President and Deputy President of the Cdc, the General Prosecutor of the Cdc, four members appointed by Parliament and four judges of the Cdc.

TERM OF OFFICE

4 years.

SELECTION METHOD

The four judges are appointed by and from among the Cdc’s judges. The external members are appointed by the Chamber of Deputies (2) and the Senate (2) from among professors of law and/or lawyers with at least 20 years’ experience.

ORGANISATIONAL STRUCTURE

The Cdc is divided into national and regional audit and legal chambers, complemented by public and regional prosecutors’ offices.

The Cdc has its seat in Rome and divisions nationwide. Accordingly, in each of the 19 regions and in the two autonomous provinces there are regional audit chambers, regional legal chambers and regional prosecutors’ offices.

The Cdc also has several central audit chambers and three central legal chambers of appeal in Rome and one for Sicily. The chambers of appeal act as courts of second instance and final arbitration.

The Public Prosecutor’s Office works alongside the legal chambers. The Public Prosecutor of the Cdc is based in Rome, while the regional prosecutors are based in the regional legal chambers and have competence for their specific region.

— RESOURCES

STAFF

• Number of judges: 503; average age = 54;
• Number of civil servants (including management): 2 340; average age = 52;
• Gender balance: ♂ 306; ♀ 197 (judges); ♂ 893; ♀ 1 447 (civil servants).

BUDGET

• 502.177 million euros (2023)

AUDIT WORK

— PLANNING THE AUDIT WORK

At the beginning of each year, the Cdc independently approves its general audit plan, which includes audit policies, strategies and criteria for central audit chambers as well as indications for regional audit chambers. Each central and regional audit chamber also approves its own audit plan.

Each plan takes into account parameters such as financial relevance, potential risk of errors or breaches of the law, the results of previous audits, specific requests or suggestions from public authorities, and human and technical resources.

The Cdc sends its own annual audit plan to the Presidents of the Chamber of Deputies and the Senate, and, at regional level, to the presidents of the regions and regional councils, as well as to the audited bodies.

The annual audit plan outlines:

• the planning of the activities;
• the bodies subject to audit by the Cdc;
• the selected parameters, criteria and sampling procedure; and
• the activities and issues subject to audit by the Cdc.

— AUDIT METHODS

The Cdc carries out:

• ex ante compliance audit concerning the most financially significant measures and administrative directives issued by the government pursuant to the law, with the aim of preventing any breaches of the law by the government’s actions;
• ex post performance audit on all public administration activity with the aim of assessing the compliance of the results with the objectives laid down by law; and
• audit of the financial management of entities, including undertakings, receiving regular budgetary support from the State and regional or local administrations.

The auditees have the right of reply to the findings of the Cdc prior to approval of the final report.

Under this adversarial procedure, the Cdc:

• gives notice to audited entities regarding its annual audit plan and provides information on the subjects, terms, proceedings and the general planning of the audit;
• holds a continuous constructive dialogue with the audited entities and their internal audit management departments;
• publishes its final report and presents its observations in the context of a public hearing during a public session of the relevant audit chamber.

For its performance audits, the Cdc produces reports containing its analyses, evaluations and recommendations. The auditees should follow these recommendations in order to eliminate any problematic issues encountered in the management of public finances and thereby ensure sound management. They should also update the Cdc regarding any measures introduced afterwards on the basis of the recommendations.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The Cdc provides Parliament with information in the form of:

• annual reports on the State’s general financial statement;
• four-monthly reports on the expenditure laws (regarding any costs connected with legal provisions);
• special hearings in which the Cdc presents its opinion on the government’s economic and financial plan and on its financial bill;
• specific reports on regional and local financing;
• an annual report on the coordination of public finance;
• reports on the cost of public sector employment;
• reports on the management of EU funds; and
• reports on the management of public bodies and entities.

— DISSEMINATION ACTIVITIES

The reports of the Cdc are published on its website.

— COOPERATION WITH OTHERS

The State’s central control system is supervised by the General Accounting Department (at the Ministry of Economy and Finance) headed by the State Accountant General.

In each ministry, an independent central accounting office, part of the General Accounting Department, verifies the compliance of administrative activities with the relevant financial laws and ministerial directives (such as the lawfulness of any prospective expenditure). The central accounting office approves any commitment regarded as lawful or refers any irregular transactions to the Minister, who can order the General Accounting Department to verify the specific transactions. Such cases are automatically sent to the Cdc.

The General Finance Inspectorate carries out on-the-spot inspections of the activities of ministries and public bodies and may propose corrective actions where necessary. The Inspectorate also verifies the proper functioning of the internal audit mechanisms of each body. The reports of the General Inspectorate are forwarded to the Accountant-General and, where a financial loss is detected, to the Public Prosecutor of the Cdc, who can prosecute civil servants. 

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The State Audit Office of the Republic of Latvia (SAO) carries out financial, compliance and performance audits to check:

• the revenue and expenditure of state and municipal budgets, including the absorption of EU financial assistance funds and those of other international organisations or institutions;
• actions with state and local government property.

Every year the SAO provides the Parliament with an audit opinion on the implementation of the state and municipal budgets and opinions on whether the annual financial reports have been correctly prepared by ministries and other central government institutions.

The SAO submits a report to the Parliament and the Cabinet of Ministers:

• regarding financial audits in audited entities for which the SAO has issued a qualified opinion or an adverse opinion, or a disclaimer of opinion;
• regarding all performance audits; and
• regarding especially important and significant findings.

If any violations of legal standards are identified during audits, the SAO must inform the relevant law enforcement institutions accordingly. The SAO have the right to recover losses to the state or local government budget caused by the malpractice of a person, when detected by an audit, if the person does not voluntarily compensate for the loss and if the auditee or its superior institution does not act to recover the loss.

In order to eliminate deficiencies found during the audits, the SAO is mandated to issue recommendations to the audited entities and supervise implementation of the recommendations.

The SAO has the right of access to all information deemed necessary to carry out its work.

KEY LEGISLATION

• Constitution of the Republic of Latvia (1922);
• State Audit Office Law (2002).

AUDITED ENTITIES

The SAO audits:

• state institutions (14 ministries and their 131 subordinate institutions, 13 central state institutions), as well as national universities and planning regions;
• local government units (43 municipalities and 10 cities), and their subordinate institutions;
• state or local government owned enterprises or private companies involving state ownership;
• other commercial companies, societies, foundations and natural persons: (1) if state or local government resources are at their disposal or in their keeping, (2) if they are financed from state or local government resources, or (3) if they carry out state or local government procurement.

— STRUCTURE

TYPE OF SAI

The SAO of Latvia is an independent collegial supreme audit institution headed by an Auditor General.

PLACE OF THE SAI IN GOVERNMENT SYSTEM

The SAO is one of the six constitutional bodies in Latvia. It is fully independent and set up as a collegiate supreme audit institution, a key element in the state’s financial control system, serving public interests by providing independent assurance on the lawful, correct, economic, efficient and effective use of central and local government resources, promoting sound financial management and a transparent decision-making process in the public sector.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The SAO presents its reports and opinions to the Latvian Parliament (Saeima) and the Cabinet of Ministers.

THE PARLIAMENT

The SAO cooperates closely with different parliamentary committees, but mostly with the Public Expenditure and Audit Committee (PEAC), which is the main recipient of the SAO’s reports. The SAO informs the PEAC regarding the results of all audits performed, deficiencies in the activities of the respective sectors and violations of the regulatory provisions detected by the audits as well as progress on the implementation of recommendations. The PEAC, in its own right, also follows up the implementation of the SAO’s recommendations.

The Auditor General reports to the Saeima on the activities of the State Audit Office once a year.

THE CABINET OF MINISTERS

The SAO also communicates its reports and audit opinions to the Cabinet of Ministers. The SAO submits reports to the Cabinet of Ministers regarding financial audits in audited entities for which the SAO has issued a qualified opinion or an adverse opinion, or a disclaimer of opinion, as well as reports on all performance audits and any especially important and significant findings.

— ORGANISATION

GOVERNING BODY

The SAO is governed by the Auditor General (the President) and the Council of the SAO, which consists of the directors of the five audit departments and the Audit and Methodology Department.

TERM OF OFFICE

4 years, no more than two consecutive terms allowed.

SELECTION METHOD

The members of the Council are appointed by the Parliament upon recommendation by the Auditor General.

ORGANISATIONAL STRUCTURE

The Auditor General administers and manages the work of the SAO, including the Auditor General’s Office, Support Divisions and the Chancellery, which is responsible for the SAO’s financial planning and accounting, organisation of record keeping, maintenance activities, and information technology.

The Council of the SAO consists of the Auditor General (Chairman) and six Council Members who are the Directors of the Audit departments. The Council approves most of the documents that regulate the performance of the SAO.

The SAO has five Audit Departments and an Audit and Methodology Department, which carries out audits and also draws up, updates and implements the SAO’s audit methodology. Each audit department consists of a Director and two or three Audit Sectors. Audit Departments perform audits according to the Annual Audit Plan approved by the Council of the SAO. Each Audit Department is responsible for certain designated audited entities and audit fields.

— RESOURCES

STAFF

• Number: 161 FTEs (1 March 2023) (around 75 % in audit)
• Gender balance: ♂ 20 %; ♀ 80 %. Average age: 43

BUDGET

• 7.45 million euros (2023)
• Around 0.08 % of total government expenditure

AUDIT WORK

— PLANNING THE AUDIT WORK

The audit work is planned annually and approved by the Council of the SAO.

Development of the general audit work programme of the SAO consists of the following stages:

• development of the SAO’s Strategy;
• strategic evaluation of audit areas;
• preparation of audit topics;
• development of the SAO’s work plan.

The SAO’s work plan is for internal use only, but the Speaker of the Parliament is informed about the audit directions planned for the year.

The audit departments carry out the work in accordance with the plan. The directors of the departments and the heads of sectors take decisions on specific audit scope, audit questions and the allocation of the audit resources.

— AUDIT METHODS

The SAO carries out:

• financial audits, to assess whether the financial statements have been prepared in accordance with the relevant regulations;
• compliance and performance audits, to assess whether the audited entity operates in accordance with the requirements set by law and whether the audited entity performs its operations and transactions in an economic and effective manner.

The SAO carries out all audits in accordance with the international auditing standards (ISSAIs). Decisions on specific approaches and methods remain at the discretion of the SAO. Audited entities may react to audit findings of the SAO. They are further required to provide progress reports on the implementation of recommendations.

There is an extensive framework for continuous internal and external quality control.

The SAO also uses financial, performance and compliance audit manuals, practical audit guidelines and specific internal procedures created by the SAO. These documents are for internal use only.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The SAO publishes:

• an opinion on the financial report concerning the implementation of the state budget and local government budgets;
• opinions on whether the annual reports have been correctly prepared by ministries and other central state institutions;
• performance and compliance audit reports;
• discussion papers based on findings from the performance and compliance audits conducted; and
• the SAO’s annual report.

— DISSEMINATION ACTIVITIES

In accordance with the Law on the SAO, the SAO regularly informs the general public and citizens about audits performed, by publishing all audit reports and opinions on its website after they have become effective. The most common distribution channels for audit information are the official website of the SAO and public media – journalists and social media (Facebook, Twitter, YouTube, PodBean). Publication of audit reports is always accompanied by press releases or press conferences. In some cases, when the audited topic is of heightened public interest, visually accessible and easily understood summaries of audit reports and audio-visual products are prepared for use in further communication. In addition to the results of the audit, the public are also informed about progress on implementing the audit recommendations. This is mainly communicated via social media. The summaries of audit reports are available in English on the SAO website.

— COOPERATION WITH OTHERS

The SAO cooperates closely with the academic sector, e.g. with Stockholm School of Economics in Riga to maintain the certification system of public sector auditors in the Republic of Latvia.

The SAO is cooperating with private sector auditors and in particular the Latvian Association of Certified Auditors, continuously strengthening the system to effectively use the work of Certified Auditors within the SAO’s financial audits in municipalities.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The powers of the National Audit Office of Lithuania (NAO) are established in the Constitution of the Republic of Lithuania, the Law of the Republic of Lithuania on the National Audit Office, and other legal acts.

The NAO oversees the lawfulness and efficiency of the management and use of State property and the execution of the State budget, carries out public audits, exercises control over budgetary policy and performs other activities to achieve the objectives set in the Law on the NAO.

KEY LEGISLATION

• Constitution of the Republic: Chapter on the NAOL (1992);
• Law on the National Audit Office (1995, recast 01/07/2021).

RESPONSIBILITIES OF THE NATIONAL AUDIT OFFICE

The NAO audits:

• the consolidated annual accounts referred to in the Law on State Control;
• the use of state budget funds allocated for municipal budgets;
• EU financial support received by the Republic of Lithuania.

— STRUCTURE

TYPE OF SAI

An audit office, independent of government, headed by an Auditor General.

PLACE OF THE SAI IN GOVERNMENT SYSTEM

The NAO is an independent supreme audit institution that is accountable to Parliament and not formally related to other government bodies.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The NAO is accountable to Parliament and assists it in carrying out its parliamentary control. Therefore, Parliament and the NAO maintain close relations.

The closest relations are with the Parliament’s Committee on Audit, which considers the NAO’s reports and contributes to the implementation of the NAO’s recommendations through its decisions. When carrying out budgetary policy control the NAO liaises with the Parliament’s Committee on Budget and Finance, which considers the reports and conclusions submitted to it by the NAO.

Parliament may assign certain audits to the NAO within the NAO’s field of competence.

— ORGANISATION

HEAD

GOVERNING BODY

The NAO is headed by the Auditor General and Deputy Auditors General. There are currently three Deputy Auditors General in post.

Under the Law on the National Audit Office of the Republic of Lithuania, the National Audit Office must set up a Council as an advisory body of the Auditor General.

TERM OF OFFICE

The Deputy Auditors General are appointed for a term of five years, which is renewable once.

SELECTION METHOD

The Deputy Auditors General are appointed by the President of the Republic on the recommendation of the Auditor General.

The composition and the rules of procedure of the Council of the National Audit Office are approved by the Auditor General.

ORGANISATIONAL STRUCTURE

The NAO combines three functions in one institution:

• Supreme Audit Institution;
• European Union Investment Audit Institution;
• Fiscal Institution.

— RESOURCES

STAFF

• Number: 245  employees, 3 of whom work part-time(1 April 2023) (67 % in audit)
• Gender balance: ♂ 23 %; ♀ 77 %. Average age: 44 years

BUDGET

• €10.016 million (2023)

AUDIT WORK

— PLANNING THE AUDIT WORK

The NAO plans its audits and evaluations in annual audit programmes, at its own discretion. At the planning stage, public sector activity monitoring is conducted, data is collected, and existing and potential risks are analysed. The NAO’s stakeholders may propose audit ideas.

The work programme can be continuously amended to reflect current developments.

— AUDIT METHODS

The NAO carries out financial, compliance and performance audits. All methodologies used comply with ISSAIs and international best practice.

Auditees are entitled to comment on draft audit reports.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The NAO publishes on an annual basis:

• an activity report;
• conclusions of financial audits and reports on:
  • the state consolidated annual accounts;
  • the consolidated annual accounts of the State Social Funds;
  • the consolidated annual accounts of the State Compulsory Health Insurance Fund;
  • the consolidated annual accounts of the State Pension Annuities Fund;
  • the national consolidated annual accounts;
• performance and compliance audit reports;
• reports on the implementation of recommendations;
• conclusions/reports on evaluations, reviews.

— DISSEMINATION ACTIVITIES

The NAO submits its annual activity report, all its audit and evaluation conclusions/reports, and reports on the implementation of public audit recommendations to Parliament.

The NAO publishes all its audit and evaluation reports and conclusions, and its annual activity report on its website. Data on the results of public audits, the monitoring of budgetary policy and audits of European Union investments are also made available to the public on Lithuania’s open data portal.

The results of monitoring of the implementation of public audit recommendations (status of the implementation of recommendations, responsible entities, and changes that have taken place following the implementation of recommendations) are continuously updated and published as open data on the NAO website and on Lithuania’s open data portal.

The NAO carries out its activities according to the principles of independence, transparency, legality and professionalism.

— COOPERATION WITH OTHERS

The NAO cooperates with Parliament, the Ministry of Finance, the Lithuanian Chamber of Auditors and the Association of Internal Auditors and Association of Municipal Controllers in order to share experience and develop common standards.

The NAO has concluded cooperation agreements with the Bank of Lithuania, the Chief Official Ethics Commission, the State Tax Inspectorate, the Competition Council, the Ministry of Social Security and Labour, the Ministry of Finance, the General Prosecutor’s Office, the Public Procurement Office, the Special Investigation Service, the Financial Crimes Investigation Service, the State Data Agency, Vilnius, Kaunas and Klaipėda city municipalities, the Faculty of Economics and Business Administration of Vilnius University, Vytautas Magnus University, Mykolas Romeris University, the Association of Municipal Controllers, the Lithuanian Chamber of Auditors and the Association of Internal Auditors.

Regular peer reviews are conducted to ensure the quality of the NAO’s audits.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Luxembourg Court of Auditors (LCA) controls the financial management of State instruments, administrations and services. The Court is also entitled to examine other public bodies insofar as these are not subject to another system of financial audit prescribed by legislation. Finally, the Court can audit the use of public funds granted for a particular purpose to legal entities in the public sector and individual and legal entities in the private sector with regard to the use of these public funds in accordance with their intended purpose.

In carrying out its work, the LCA has the right to access all those documents it deems necessary. In addition to the audit work, the LCA can be consulted by parliament to express an opinion on draft legislation.

KEY LEGISLATION

• Article 105, revised, of the Luxembourg Constitution (1868);
• Law on the Cour des comptes (8 June 1999), as amended.

AUDITED ENTITIES

The LCA audits:

• instruments, administration, and state services;
• ministries;
• government agencies;
• other public bodies;
• parts of public and private entities financed by public grants; and
• political parties.

— STRUCTURE

TYPE OF SAI

A collegiate structure with no jurisdictional function.

PLACE OF THE SAI IN THE GOVERNMENT SYSTEM

The LCA is an independent institution.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The relationship with Parliament is consultative. The LCA presents all its reports to Parliament. Additionally, the LCA can be consulted during the drafting of legislation. The Parliament may also ask the LCA to conduct an audit related to a specific subject.

— ORGANISATION

HEAD

GOVERNING BODY

The LCA is governed by a college consisting of the President, the Vice-President and three counsellors.

TERM OF OFFICE

6 years, renewable.

SELECTION METHOD

The members of the college of the LCA are appointed by the Grand Duke on the proposal of Parliament, which prepares a list with candidates.

ORGANISATIONAL STRUCTURE

The LCA makes decisions on a collegiate basis by majority vote. The President chairs the meetings and holds the casting vote in the event of a split decision.

It is organised into an audit and an administrative section. The audit section comprises four audit departments, each headed by a Member.

— RESOURCES

STAFF

• Number: 32 (2023)
• Gender balance: ♂ 65.6 %; ♀ 34.4 %

BUDGET

• 5.2 million euros (2023)
• The State budget makes a provision for the LCA’s maintenance based on its estimates.

AUDIT WORK

— PLANNING THE AUDIT WORK

The LCA decides on its annual work programme independently. The planning procedure is fixed by the LCA’s college, which adopts its work programme at the end of the preceding year.

The Parliament may ask the LCA to conduct audits in certain areas.

— AUDIT METHODS

The LCA conducts financial and performance audits.

During the audit process, the LCA submits findings to the audited entities, which can reply with comments within a fixed time period, before the reports are presented to the Parliament.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The LCA publishes:

• a general report on state accounts;
• special reports on specific areas of financial management, prepared on the LCA’s own initiative or at the request of Parliament; and
• opinions on draft legislation and the management of the budget.

— DISSEMINATION ACTIVITIES

The LCA presents its annual reports and special reports to Parliament and also publishes them on its website.

— COOPERATION WITH OTHERS

The LCA cooperates closely with its auditees and the relevant ministries.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The National Audit Office of Malta (NAO) is the national audit institution responsible for the external audit of central and local government. Its mandatory function is to carry out financial and compliance audits of central government.

Furthermore, it may carry out audits on any matter relating to government finances, property or funds administered or under the control of any government department or office.

The NAO may also audit the accounts and/or activities of public authorities or bodies administering, holding or using funds belonging directly or indirectly to the government. It may further audit the operations of companies or other entities in which the government has a majority shareholding.

The NAO legislation empowers the Office to carry out performance audits to assess the economy, efficiency and effectiveness of public sector programmes, functions, initiatives or other activities.

The NAO is also responsible for the audit of local government by appointing private auditors as local government auditors for local councils, and lending technical and administrative support to such auditors.

The NAO has right of access to all information deemed necessary to carry out its work.

KEY LEGISLATION

• Constitution of Malta: Article 108 (1964)
• Auditor General and National Audit Office Act (1997)
• Standing Order No 120 of the House of Representatives (1995)
• Local Government Act (1995)

AUDITED ENTITIES

The NAO audits:

• ministries: 21 (mandatory);
• all government departments and offices (mandatory);
• local government (mandatory in terms of Local Government Act), as indicated under “Mandate” above;
• public authorities or bodies administering, holding or using funds belonging directly or indirectly to government (not mandatory, unless specifically stipulated by relevant legislation);
• other bodies holding or using government funds (not mandatory, unless specifically stipulated by relevant legislation);
• companies or other entities in which the government has a majority shareholding (not mandatory).

Note: The NAO is primarily obliged to carry out financial and compliance audits of central government, and it may carry out any type of audit on central and local government, as well as on other bodies that hold or administer public funds. However, public entities and other non-central government entities are audited by private sector auditors.

— STRUCTURE

TYPE OF SAI

An audit office, independent of government, headed by an Auditor General.

PLACE OF THE SAI IN GOVERNMENT SYSTEM

The NAO is the Government’s External Auditor. It is fully independent in carrying out its audits. The Auditor General must not be subject to the authority or control of any person.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The Auditor General reports directly to the Speaker of the House of Representatives.

The Public Accounts Committee (PAC) of the Parliament and the Minister responsible for Finance may ask the NAO to carry out enquiries into any matters that fall within its mandate. In terms of local government legislation, the Minister responsible for local government may also ask the Auditor General to carry out enquiries into local councils.

— ORGANISATION

HEAD

GOVERNING BODY

Although there is no official governing body, the Auditor General is assisted by a Deputy Auditor General and three Assistant Auditors General.

SELECTION METHOD

Both the Auditor General and the Deputy Auditor General are appointed by the President, as indicated above.

Assistant Auditors General are appointed through an internal and/or external call for applications. An internal interview board interviews and reports upon the candidates for this post. The Auditor General appoints the successful candidate upon a recommendation by the interview board.

ORGANISATIONAL STRUCTURE

The NAO is organised into four sections, the first three of which are headed by an Assistant Auditor General. These are:

• the Financial and Compliance Audit Section, which is responsible for analysing the Government Financial Report, for auditing a number of government ministries and departments, local government and a number of non-governmental organisations;
• the Performance Audit Section, which is responsible for performance / value for money audits;
• the Special Audits and Investigations Section, which is responsible for investigative reports, which are usually requested by the Public Accounts Committee or by the Minister responsible for Finance;
• the ICT Section, which is responsible for IT audits, as well as for providing IT support to the other audit sections in the performance of their audits.

Apart from the audit sections, there is another section – the finance and administration section headed by a manager – responsible for matters relating to finance, administration and human resources.

— RESOURCES

STAFF

• Number: 58 FTEs (December 2022) (81 % in audit)
• Gender balance: ♂ 40 %; ♀ 60 %. Average age: 46

BUDGET

• €3.85 million (2021) / €3.9 million (2022)
• The NAO’s budget is fully financed by the general budget of Malta
• Around 0.07 % of total government expenditure

AUDIT WORK

— PLANNING THE AUDIT WORK

The NAO is free in its choice of audit subjects. The PAC and the Ministry responsible for Finance may also invite it to carry out enquiries relating to public funds. Although the NAO would normally comply with any such requests, it is not obliged to do so.

NAO prepares annual audit plans, comprising a list of planned audits for the particular year, which are approved by the Auditor General and the Deputy Auditor General.

In selecting audit areas for inclusion in the annual audit programme, the NAO takes different criteria into account, such as perceived risks concerning subject matter, topicality of the issue, social and financial materiality, or the extent of parliamentary and governmental, media or public interest. The Office also recently introduced a risk assessment system for government ministries; this is now being developed further to cover corporations, public agencies and other risk elements. This practice leads to a more balanced range of audits.

— AUDIT METHODS

The NAO carries out financial audits, compliance audits, performance audits, investigative audits and IT audits.

Financial and compliance reports are published annually, not later than twelve months following the end of the financial year (31 December). Other reports are published once they are finalised.

In addition, the NAO publishes an annual summary of the findings of the audit reports of local government auditors towards the end of the year (title: Report by the Auditor General on the Workings of Local Government).

The NAO performs its audits in accordance with the relevant international auditing standards, and has its own audit manuals for financial and compliance and performance audits.

Moreover, for its performance audit work, the NAO follows the Issue Analysis and Drawing Conclusions (IADC) approach.

Finally, it has its own code of professional conduct, to which its employees are obliged to adhere.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The NAO publishes:

• an annual report on public accounts;
• an annual report on the workings of local government;
• annual reports on follow-up audits;
• an NAO annual report and financial statements report; and
• standalone reports on performance audits, investigative reports, and other types of audit reports not referred to above.

— DISSEMINATION ACTIVITIES

The NAO submits all its audit and other reports to the Speaker of the House of Representatives. Each report contains an executive summary, which provides a brief synthesis of the report and is accompanied by a press release comprising the salient points of the respective report. The NAO publishes all its reports on its website and Facebook page after they are presented to the Speaker of the House of Representatives.

— COOPERATION WITH OTHERS

The NAO maintains close bilateral relations with a number of other EU Member State SAIs. It is a member of INTOSAI, EUROSAI and the Contact Committee of the European Union, and of the Commonwealth Auditors General network.

The NAO also actively participates in a number of international networks, especially those of the EUROSAI IT Working Group and the INTOSAI Working Group on Environmental Auditing.

It also interacts with the University of Malta and is a member of a number of government committees in an “observer” capacity.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Netherlands Court of Audit (NCA) examines whether the central government is spending taxpayers’ money sensibly, economically and prudently. Its statutory task is to audit the government’s income and expenditure, on which it reports to Parliament once a year on “Accountability Day” (the third Wednesday in May). Based on the NCA’s opinion, Parliament can decide whether to grant discharge to the government. In addition, the NCA reports to Parliament on individual audits, allowing MPs to determine whether the relevant minister's policy is effective.

KEY LEGISLATION

• Articles 76, 77, 78 of the Dutch Constitution (1814);
• The Government Accounts Act (2016).

AUDITED ENTITIES

The NCA audits:

• 23 sections of the state budget, mainly ministries and state funds; and
• more than 100 (groups of) legal entities with statutory duties.

— STRUCTURE

TYPE OF SAI

A collegiate structure with no jurisdictional function.

PLACE OF THE SAI IN GOVERNMENT SYSTEM

The NCA is the central government’s external auditor. It is an independent body and has the constitutional status of a “High Council of State”, a type of national public body created to safeguard the democratic rule of law.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The working relationship between the NCA and the Dutch Parliament is based on cooperation. At an institutional level, the board has regular meetings with Parliament’s Standing Finance Committee. Their staff are also in contact daily.

The NCA publishes its audit findings, mainly in the form of reports and letters, by sending them to Parliament. Parliament is offered a private briefing before an audit report is published. If it accepts, the minister responsible is also offered a private briefing.

Parliament occasionally invites the NCA to attend parliamentary hearings, given its specific expertise.

— ORGANISATION

HEAD

GOVERNING BODY

The NCA is governed by a Board consisting of the President and two members. The Board members take all decisions jointly.

Each member of the Board acts as a rapporteur for part of the NCA’s work and the President oversees the organisation as a whole.

The NCA also has two external, extraordinary Board members, who may be called upon to take part in certain activities; for example, to supervise audits, carry out external activities or to deputise for Board members.

TERM OF OFFICE

All board members of the NCA are appointed for life until the statutory retirement age of 70.

SELECTION METHOD

The Board members are appointed by the head of state. The appointment decision is prepared jointly by the Board and Parliament.

The Board selects at least four candidates, based on an open recruitment procedure. The list of candidates is submitted to the House of Representatives. The House is not bound to this list. The House then submits a list of three candidates to the head of state, who appoints the candidate with the most parliamentary support.

ORGANISATIONAL STRUCTURE

The NCA’s board is supported by an organisation headed by a Secretary-General, who is appointed by law and sworn in by the head of state. The NCA has a management team, headed by the Secretary-General, consisting of six audit directors and one director of support services. This management team is responsible for the quality of the organisation and the audits.

— RESOURCES

STAFF

• Number: 276 FTEs (February 2023) (61.4 % in audit)
• Gender balance: ♂ 50 %; ♀ 50 %. Average age: 46

BUDGET

• 39.5 million euros (2023)
• 0.01 % of total government expenditure (2023)

AUDIT WORK

— PLANNING THE AUDIT WORK

Although the NCA decides on its own initiative what audits to carry out, Parliament, ministers and state secretaries may ask the NCA to carry out an audit.

The NCA has an ongoing audit programme, which is reviewed several times a year in accordance with the outcome of strategic dialogue sessions. Part of the NCA’s audit capacity is allocated to multi-year audit programmes focusing on topics considered to be of great financial and social importance.

The NCA prioritises audits areas in which it can add value thanks to its specific powers (such as the right to access confidential information) and its independence and impartiality, or because no other organisation can perform audits in the areas in question.

— AUDIT METHODS

The NCA performs financial and performance audits.

It experiments with new audit methods and techniques but also with new forms of publication.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The NCA publishes:

• an annual report;
• audit reports;
• focus reports;
• budget letters;
• web dossiers; and
• fact sheets.

The NCA passes on its audit findings, as well as its accumulated experience, to the government, Parliament and those responsible for managing the entities it audits.

The NCA limits its publications in the periods before, during and after general elections, until the new cabinet is in place.

— DISSEMINATION ACTIVITIES

The NCA publishes reports on its website and posts information on its publications on social media.

On the third Wednesday in May (known as “Accountability Day”), the NCA expresses an independent opinion on the central government’s accounts and its operational management, financial management and the quality of the policy information that ministers supply to Parliament.

— COOPERATION WITH OTHERS

The NCA actively cooperates and shares knowledge with audit institutions of the Kingdom of the Netherlands. These institutions range from local audit offices and audit committees to the audit institutions in the Caribbean part of the Netherlands.

In addition, the NCA is an active contributor to the international audit community. It has vast experience in strengthening institutional development through capacity-building projects with supreme audit institutions abroad. The NCA also cooperates and exchanges specific expertise with sister institutions and is an institutional member of INTOSAI, EUROSAI, the EU Contact Committee and Global Audit Leadership Forum.

Examples of close cooperation are joint or parallel audits by the NCA and other supreme audit institutions.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Supreme Audit Office (NIK) audits the activity of government administration bodies, the National Bank of Poland, state legal persons and other state organisational units regarding legality, economic prudence, efficacy and diligence. The NIK may audit the activity of local government bodies, local government legal entities and other local government organisational units regarding legality, economic prudence and diligence.

The NIK may also audit the activity of other organisational units and business entities in relation to legality and regularity within the scope of their use of state or public property or resources and with regard to meeting their financial obligations to the state.

The NIK is entitled to access all the information it needs, and its staff have free access to the premises of auditee bodies and the right to examine relevant documents and other materials. The NIK may interview witnesses from auditee or other bodies, receive evidence from them, request oral or written explanations from staff at the bodies audited, seek assistance from experts and specialists, and take part in auditees’ management meetings.

KEY LEGISLATION

Constitution of the Republic of Poland of 2 April 1997

Amended Act on the Supreme Audit Office (Act on NIK) of 23 December 1994.

AUDITED ENTITIES

The NIK audits, among other things:

• budgetary units (e.g. ministries and state agencies);
• state targeted funds;
• executive agencies and other state legal entities from the public finance sector;
• state banks, including the National Bank of Poland;
• local self-government bodies;
• other entities incurring public expenditure, including non-public finance sector units.

— STRUCTURE

TYPE OF SAI

An audit office, headed by a President and acting under the collegiate principle, which means that there is a special body, called the Council of the NIK, involved in the process of approval and adoption of the most important documents.

PLACE OF THE SAI IN THE GOVERNMENT SYSTEM

The NIK is the supreme state auditing body, independent from government, but subordinate to the Lower House of Parliament (Sejm).

RELATIONSHIP WITH PARLIAMENT / GOVERNMENT

The NIK reports to the Sejm and cooperates with almost all Sejm committees, which review the majority of NIK audit reports, according to their scope of operation. The Sejm State Audit Committee also reviews NIK audit reports and provides its opinions on the NIK’s budget and suggestions for potential NIK audit areas submitted by other Sejm committees (40-60 annually). The NIK also informs the State Audit Committee about its annual work plan.

The Sejm reviews the main NIK reports: the annual activity report and the analysis of the execution of the state budget execution and monetary policy guidelines.

The Sejm and its bodies can order the NIK to carry out audits, but such situations are rare (1-3 annually).

— ORGANISATION

HEAD

GOVERNING BODY

The President and the Council make up the NIK’s governing body. This is a collegiate body comprising 19 members: the NIK President, Vice-Presidents, the Director-General, and 14 members, i.e. seven academics in law or economics (who are independent of the NIK) and seven directors of organisational audit units or advisors to the President of the NIK.

TERM OF OFFICE

The President, Vice-Presidents and Director-General serve on the NIK Council for the duration of their tenure, while other Members are appointed for a three-year renewable term.

SELECTION METHOD

The 14 Members of the NIK Council are appointed by the Marshal (Speaker) of the Sejm upon request of the President of the NIK after obtaining an opinion from the Sejm Committee on State Auditing.

ORGANISATIONAL STRUCTURE

The NIK is organised into audit units (14 departments and 16 regional branches) and administration and support departments (4). The operational territories of particular regional branches – which have the same status as audit departments – correspond to Poland’s administrative divisions (regions).

Audits performed by audit departments and regional branches are supervised by the President of the NIK or one of the Vice-Presidents.

— RESOURCES

STAFF

• Number: 1 576 FTEs (2021) (71 % in audit)
• Gender balance: ♂ 53 %; ♀ 47 %. Average age: above 41 (auditors)

BUDGET

• NIK budget: PLN 308 million / approx. 68 million euros (January 2021)
• Allocation: the NIK Council adopts the NIK’s draft budget. The Minister of Finance incorporates it into the draft state budget, which is then discussed and approved by Parliament.
• Approx. 0.07 % of the total government budget

AUDIT WORK

— PLANNING OF THE AUDIT WORK

The NIK plans its audits on the basis of its four-year strategy, which includes development plans, the mission, objectives and strategic initiatives, the means of implementing and monitoring the progress of the implementation of those initiatives, and a three-year audit activity strategy, as well as on that of the annual work plan. The audit of the execution of the state budget, as the primary, constitutional and statutory duty of the NIK, has priority in the audit planning.

The work plan is the result of a multi-stage planning process lasting several months. A draft work plan is drawn up by the audit planning group, based on selected audit topics proposed by the organisational audit units. Members of the group attend meetings with representatives of all the organisational audit units to discuss their proposals. They also hold a series of internal discussions on audit topics submitted by the directors of the organisational audit units, counsels to the President of the NIK, and other auditors. The draft work plan is then forwarded to the Steering Committee, which is authorised to make additional amendments. The Steering Committee is also in charge of technical and organisational arrangements for the annual work plan.

The NIK monitors legislative changes, studies statistical data, and examines government plans and programmes, as well as press releases and citizens’ complaints. This monitoring contributes significantly to the annual and long-term planning. On this basis, it can develop the work plan and define audit priorities.

The selection of the areas proposed for auditing is preceded by a comprehensive risk analysis based on, among other things, reports and publications from international institutions such as the OECD, World Bank Council of the EU or European Court of Auditors, national strategy documents, public sector financial plans, statistics, complaints received by the NIK, results of opinion polls and media reports.

— AUDIT METHODS

The NIK carries out financial, regularity and performance audits (planned and ad hoc), as well as integrated audits covering all three areas.

The NIK uses auditing standards based on Polish law, the INTOSAI Auditing Standards, the European Implementing Guidelines for the INTOSAI Auditing Standards, the Standards of the International Federation of Accountants (IFAC) and its own long experience.

Methodology guidelines (audit manual), based on these standards, provide detailed instructions on how to conduct an audit.

The NIK’s Code of Ethics is consistent with internationally recognised auditing standards.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The NIK publishes:

• analyses of the execution of the state budget and monetary policy guidelines (annual report);
• opinions on approvals, which are addressed to the Council of Ministers;
• post-audit statements (reports following single-entity audits);
• summary reports on all planned audits and certain ad-hoc ones (information on audit results);
• Annual Activity Reports;
• analyses of the use made of audit findings on law-making and application of the law;
• Annual Work Plans.

The NIK also draws up:

• proposals for legislative amendments (de lege ferenda proposals);
• analyses of citizens’ requests and complaints.

Follow-up of audit results:

• The NIK informs the audited entities about its findings and recommendations and systematically checks if these are followed-up. The results of these checks are presented in follow-up reports.

— DISSEMINATION ACTIVITIES

PUBLICATION OF AUDIT RESULTS

The NIK publishes its audit reports, related documents and information about its current activities on its website (www.nik.gov.pl) and via the Public Information Bulletin (https://bip.nik.gov.pl/).

MEDIA COVERAGE

The NIK has for years conducted an active information policy to allow the public to gain the most objective and broadest possible knowledge of the NIK’s audits and activities.

INTERACTION WITH CITIZENS

The NIK has a legal obligation to provide information on its functioning, activities, products, etc., and allows citizens to submit requests, e.g. for audits. All audit reports (other than confidential ones) are posted on the NIK’s website. The NIK also publishes a bi-monthly “State Audit” periodical.

— COOPERATION WITH OTHERS

The NIK works closely together with other – national or local – control, audit and inspection bodies (these provide the NIK with the results of their audits and jointly conduct certain audits under the management of the NIK).

The NIK also regularly cooperates with universities and research institutions and systematically seeks the advice of external specialists

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

In accordance with the Constitution and the Law, the Tribunal de Contas de Portugal (TCP):

• controls the legality and regularity of public revenue and expenditure and public debt;
• issues an opinion on the General State Accounts and the Autonomous Regions’ Accounts and will certify the General State Accounts from 2023 onwards;
• assesses public financial management; and
• enforces financial liabilities.

The TCP has the right to access all the information deemed necessary, and auditees are obliged to cooperate.

KEY LEGISLATION

• Constitution of the Portuguese Republic (1976): Articles 107, 209(c), 214 and 216;
• Law on the Organisation and Functioning of the Tribunal de Contas: Law 98/97 of 26 August 1997;
• Budget Framework Law: Law 151/2015 of 11 September 2015, Article 66 (6).

AUDITED ENTITIES

The TCP audits:

• the State and its various departments;
• the autonomous regions of the Azores and Madeira and their various departments;
• local authorities and their associations or federations, including metropolitan areas;
• public institutes;
• social security institutions;
• public associations, associations of public entities or associations of mixed public and private entities which are mostly funded by public entities or subject to their management control;
• state-owned companies;
• regional companies;
• inter-municipal and municipal companies;
• any entities with involvement of public funds, whether they receive a grant or are partly state-owned;
• companies with concessions to manage state-owned companies, or companies with a share of public capital or mixed private and public companies controlled by the public sector, companies with concessions or which manage public services, and companies with public works concessions; and
• other entities benefiting from or managing public funds.

— STRUCTURE

TYPE OF SAI

A collegial Court model with audit and jurisdictional functions, composed of the President and 18 Members (judges with the same status as Supreme Court judges).

PLACE OF THE SAI IN GOVERNMENT SYSTEM

According to the Constitution, the TCP is a supreme court and, as such, is a sovereign body on a par with the President of the Republic, the Parliament, the Government and the other courts. It is the independent supreme audit institution in charge of external financial control/audit, checking the execution of the State Budget by the Government.

The Members of the TCP, being judges, are irremovable and cannot be liable for their judgments, with certain exceptions provided for by law.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The TCP is independent from all other institutions. However, cooperation procedures set out in legislation include, but are not limited to, the following:

• Parliament and the Government may request the TCP to undertake audits on specific entities or financial subjects, but the requested action is not mandatory for the TCP;
• Parliament may ask for existing reports to be sent to it;
• Parliament may ask the TCP for information obtained while carrying out the audits; and
• TCP audit reports and its annual report are generally published and sent to the Parliament and other stakeholders.

— ORGANISATION

HEAD

GOVERNING BODY

The TCP is self-governing.

The President is the head of the institution.

The TCP has the right to determine its own budget and also has financial autonomy to manage its budget. The budget is approved by Parliament.

The Court Plenary, consisting of the President and all the Members, is the decision-making authority for the TCP’s draft annual budget and strategic plan.

TERM OF OFFICE

Members are appointed for life.

SELECTION METHOD

Members are recruited through a public competition with a selection board.

ORGANISATIONAL STRUCTURE

The TCP is organised into three Chambers, and two Regional Chambers (for the Azores and Madeira, respectively). These audit chambers comprise audit and administrative departments.

In addition, the TCP has an Internal Audit department under the direct responsibility of the TCP’s President, and an Audit Standards Commission.

The TCP’s Members are assigned to the different chambers, on the basis of academic and professional criteria.

— RESOURCES

STAFF

• Number: 530 (December 2022)
• Gender balance: ♂ 31 %; ♀ 69 %. Average age: 53
• Percentage of staff working in audit: 60 %

BUDGET

• The TCP is financed by the general budget of the state and by own resources (fees charged to auditees)
• Overall budget (2023): 29 million euros
• 0.026 % of total government expenditure

AUDIT WORK

— PLANNING THE AUDIT WORK

The TCP approves a Strategic Plan every three years, following a participatory process that culminates in a SWOT analysis (key weaknesses, strengths, opportunities, challenges and threats) and a risk analysis outlining goals and priorities.

For the same strategic period, the Court also approves a three-year programme which leads to a medium-term operational plan, which is the sum of the annual plans for the period in question.

In addition, it approves a detailed annual work programme with complete independence.

— AUDIT METHODS

The TCP carries out all types of audits.

The methods and methodologies used are laid down in the TCP’s audit manuals, which take into consideration international auditing standards (ISSAIs) and best practices.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The TCP publishes all its reports and decisions, in particular:

• annual reports and opinions on the General State Accounts and the Autonomous Regions’ accounts;
• audit reports; and
• an annual activity report.

— DISSEMINATION ACTIVITIES

The TCP publicises reports, decisions, relevant documents, events and activities on its website.

Furthermore, it may decide to publish its reports in the Portuguese Official Journal and disseminate them via the media. The TCP also uses social media to interact with the public.

— COOPERATION WITH OTHERS

The TCP is a member of the Governing Board of INTOSAI, of EUROSAI and of the SAI Organisation of Portuguese-speaking countries (OISC/CPLP), and an associate member of OLACEFS (Organisation of Latin American and Caribbean SAIs). The TCP is also Vice-Chair of the EUROSAI Network for Ethics, which replaces the Task Force on Audit and Ethics and is chaired by the Croatian SAI. In addition, the TCP participates in SAI capacity-building projects, notably in Portuguese-speaking countries, and is the external auditor for the EMBL (European Molecular Biology Laboratory), CERN (European Organization for Nuclear Research), and the INL International Iberian Nanotechnology Laboratory, and a member of the EUROCONTROL Audit Board.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Romanian Court of Accounts (RCoA) conducts audits of the establishment, management and use of state and public sector financial resources. It works autonomously, as stipulated in the Constitution, and is a member of international organisations for SAIs.

KEY LEGISLATION

• Constitution of Romania (1991, revised 2003)
• Law No 94/1992 on the organisation and operation of the Court of Accounts, subsequently republished with amendments and additions

AUDITED ENTITIES

The RCoA audits:

• public authorities and institutions;
• administrative and territorial units (county councils, mayors of cities, towns and municipalities);
• the National Bank of Romania;
• public enterprises;
• commercial companies in which the state, administrative or territorial units, public institutions or autonomous administrations hold, individually or jointly, a majority share;
• social insurance bodies managing public assets, wealth or funds;
• legal entities which receive government guarantees for loans, or subsidies, or other state financial assistance from central and local public administrations or other public institutions.

— STRUCTURE

TYPE OF SAI

A structure under collegiate governance, with no jurisdictional function.

PLACE OF THE SAI IN THE GOVERNMENT SYSTEM

The RCoA is an independent public institution and is answerable only to Parliament.

As Romania’s supreme audit institution, the RCoA audits the establishment, management and use of state and public sector financial resources.

At the request of Parliament, the RCoA approves the draft state budget and draft legislation in the field of public finance and accounting, as well as drafts which would result in less revenue or more expenditure than provided for in the budget act. It also approves the establishment by the government or ministries of specialised bodies under their responsibility.

Litigation resulting from the RCoA’s activity is settled in the judicial courts.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The RCoA submits an annual report to Parliament on the annual accounts showing the use of public budgets. The report includes audit conclusions and recommendations.

Parliament is the only authority which can ask the RCoA to carry out public sector audits.

The RCoA is the only body that audits the way the two Chambers of Parliament and the government implement their budgets.

The RCoA draws up and approves its own budget and sends it to the government for inclusion in the draft state budget that is submitted to Parliament for approval. However, the annual budget approval process allows for intervention by the government or Parliament on the budget that is adopted by the RCoA plenum.

A special parliamentary committee scrutinises how the RCoA uses its own budget.

— ORGANISATION

HEAD

GOVERNING BODY

The RCoA is governed by a plenum of 18 members known as ‟counsellors of accounts”, who are appointed by Parliament in accordance with the Constitution and the Law on the institution’s organisation and operation.

The President is responsible for executive management of the RCoA. In this he is assisted by two vice-presidents appointed by Parliament from among the counsellors of accounts.

TERM OF OFFICE

One third of the plenum is replaced every three years.

9 years, non-renewable.

SELECTION METHOD

The members of the RCoA are appointed by Parliament for a fixed period of nine years. They discharge their duties independently and can only be dismissed by Parliament under terms laid down in the Law on the institution’s organisation and operation. Counsellors of accounts are state dignitaries and are subject to the same legal constraints as judges. Thus the members of the RCoA may not belong to a political party or engage in public activity of a political nature during their term of office.

ORGANISATIONAL STRUCTURE

The RCoA is organised centrally into ten audit divisions, one coordinating division, a legal division and a general secretariat whose role is to provide support for the institution’s specific areas of work. Regionally, it consists of 42 county chambers of accounts and the Bucharest City Chamber of Accounts. Within the RCoA there is also an operationally independent audit authority charged with auditing EU funding received by Romania.

— RESOURCES

STAFF

• Number: 1 966 posts (2023), including 1 619 posts of external public auditor (82.35 % in audit)
• Gender balance: ♂ 37.46 %, ♀ 62.54 %. Average age: 48 years and 11 months

BUDGET

• The RCoA is financed from the state budget
• €88 million (2023) including administrative expenditure
• Approximately 0.12 % of total spending from the state budget

AUDIT WORK

— PLANNING THE AUDIT WORK

The RCoA decides on its own work programmes.

Planning is done both annually and multiannually. Work programmes are approved by the plenum.

Multiannual work programmes cover a period of three years.

— AUDIT METHODS

The RCoA carries out:

• financial audits of budget implementation accounts;
• performance audits of entities, projects, processes or operations involving public spending;
• compliance audits.

Audits are carried out in accordance with the INTOSAI standards and on the basis of legal rules, manuals and guidelines developed for specific activities, as well as other internal rules.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The RCoA delivers an annual public report to Parliament on its audit of the management accounts of the consolidated general budget for the previous financial year.

The annual public report is the most important and most visible document published by the RCoA. It provides a summary of the institution’s principal audit findings, conclusions and recommendations.

The RCoA also produces an annual activity report with information about its strategy, mandate, responsibilities, mission and relations with various stakeholders. This report also contains data and information for the year in question about the way the RCoA was organised, its work, staff training, calendar of professional activities, results, international activity, and human and financial resources.

Once a year, the RCoA addresses reports on local public finances to deliberative local government authorities. These reports are the result of audits conducted by the county chambers of accounts on the budgets of local administrative and territorial units.

The RCoA produces own-initiative audit reports in key areas of public interest. It sends these to Parliament and other stakeholders.

— DISSEMINATION ACTIVITIES

The RCoA’s reports and other publications are available electronically on the institution’s official website (www.curteadeconturi.ro), as are summaries in English of the public annual report and the annual activity report.

The RCoA’s annual report is published in the Official Gazette of Romania, Part a III-a.

— COOPERATION WITH OTHERS

Internationally, the RCoA maintains relations with other SAIs through exchanges of experience, by participating in conferences, seminars and working groups, and by publishing relevant studies in international journals.

RCoA also takes part in joint audits and in audits performed in cooperation with other supreme audit institutions in areas such as environmental audit, waste collection audit, audit of municipalities, etc.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Supreme Audit Office of the Slovak Republic (SAO) audits the management of the funds and property of the state, local authorities and the European Union. It also audits state revenue and ensures that customs and tax are correctly collected.

In carrying out its audits, the SAO has the right of access to all premises and documents deemed necessary to carry out the audit.

In addition to its own audit activities, upon request by the National Bank of Slovakia the SAO participates in the process of proposing the independent external auditor for the audit of the final accounts of the National Bank of Slovakia.

KEY LEGISLATION

• Articles 60-63 of Constitution of the Slovak Republic (1992);
• Act No 39/1993 on the SAO of the Slovak Republic.

AUDITED ENTITIES

The SAO audits:

• government bodies;
• ministries: 14;
• central state administration bodies;
• public institutions;
• legal entities founded by central government authorities or other state administration agencies;
• local government bodies and higher territorial units, their budget-funded organisations and legal entities incorporated into them;
• state special-purpose units; and
• private individuals and legal entities that receive national, public, European, and other foreign funds.

— STRUCTURE

TYPE OF SAI

A Westminster-type (monocratic) structure with no jurisdictional function.

PLACE OF THE SAI IN GOVERNMENT SYSTEM

The SAO is an independent state body.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The SAO submits a yearly summary report on the results of all audits to Parliament. It also submits complete audit reports to relevant Parliament committees.

On the basis of a resolution by Parliament, the SAO may be ordered to carry out a specific audit within its remit. The SAO is obliged to perform such an audit.

The SAO provides opinions on the proposals for the state budget and the final state accounts of the Slovak Republic and submits them to the Parliament.

The President and two Vice-Presidents are elected and recalled by the Parliament.

— ORGANISATION

HEAD

GOVERNING BODY

The SAO is governed by the President as a statutory body supported by two Vice-Presidents.

TERM OF OFFICE

The tenure of the Vice-Presidents is seven years, renewable once.

SELECTION METHOD

The Vice-Presidents are elected by the Members of the National Council via secret ballot.

ORGANISATIONAL STRUCTURE

The SAO headquarters in Bratislava consists of an Audit section, an Analysis and Innovation section and the Office of the President, which provide support services. There are also seven regional branches located in regional centres that audit the self-governing regional, district and local municipalities.

— RESOURCES

STAFF

• Number: 291 (2022) (78 % in audit)
• Gender balance: ♂ 37 %; ♀ 63 %. Average age: 48

BUDGET

• 13.9 million euros (2023)
• 0.04 % of total government expenditure

AUDIT WORK

— PLANNING THE AUDIT WORK

The SAO plans its audit work in annual audit plans, which the Advisory Board approves based on a three-year framework plan.

The list of audits is mainly compiled based on an analysis of risks, the SAO’s strategic objectives and suggestions from the public.

— AUDIT METHODS

The SAO carries out three principal types of audit:

• financial audits;
• compliance audits; and
• performance audits.

Based on the results of an audit, the SAO sends a draft report to the audited entity, which may then express an opinion, and this will be included in the final report in the form of an amendment to the report.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The SAO publishes:

• an annual report;
• financial audit reports;
• compliance audit reports;
• performance audit reports; and
• a summary report on the results of all audits.

— DISSEMINATION ACTIVITIES

The SAO sends all of its audit reports to the audited entity and to Parliament and its respective committees. The SAO informs the President of the Republic, the Prime Minister and the Speaker of the Parliament on substantial findings.

In addition, a summary of the final report is published on the SAO’s website.

— COOPERATION WITH OTHERS

The SAO cooperates with many institutions at national and international level.

National partners are universities, public authorities like the General Prosecutor’s Office, the Chamber of Auditors, the Antimonopoly Office of the Slovak Republic, and the Office for Public Procurement, among others.

The aim of the SAO’s national and international cooperation activities is to contribute to the development of methodologies and the quality of work and thus also towards improved implementation of the SAO’s mandate within the Slovak Republic.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Court of Audit of the Republic of Slovenia (CoA) supervises the state accounts, the state budget and all public revenue and expenditure.

KEY LEGISLATION

• Constitution (1991) of the Republic of Slovenia: Articles 150 and 151
• Court of Audit Act

The acts under which the CoA exercises its powers may not be challenged in a court of law or before other state authorities.

AUDITED ENTITIES

The CoA audits:

• any legal entity governed by public law or a unit thereof;
• any legal entity governed by private law that:
  • has received aid from the budget of the European Union, the state budget or the budget of a local authority;
  • is a concession-holder; or
  • is a company, bank or insurance company in which the state or a local authority has a majority stake;
• natural persons who:
  • have received aid from the budget of the European Union, the state budget or the budget of a local authority; or
  • are carrying out a public service or securing public goods on the basis of a concession.

— STRUCTURE

TYPE OF SAI

A distinct model, headed by a President and auditing at central, regional, and local level with no jurisdictional powers.

PLACE OF THE SAI IN GOVERNMENT SYSTEM

The CoA is independent in the performance of its duties and bound by the Constitution and other laws. Its Members are appointed by the National Assembly.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

The CoA sends all its audit reports to the National Assembly, to which it also submits an annual activity report.

In determining which audits to carry out in a given calendar year, the CoA considers proposals made by members and working bodies of the National Assembly, central government, ministries and local community bodies. It must consider at least five proposals from the National Assembly, including at least two from opposition members and two from parliamentary working bodies.

The National Assembly appoints an external auditor to audit the CoA’s financial statements.

— ORGANISATION

HEAD

GOVERNING BODY

The CoA is governed by a senate consisting of the President and two vice-presidents.

TERM OF OFFICE

9 years, renewable.

SELECTION METHOD

The National Assembly appoints the vice-presidents of the CoA by absolute majority vote on a proposal from the President of the Republic.

ORGANISATIONAL STRUCTURE

As State Auditor General, the President represents the CoA and is responsible for its operations. The first vice-president assumes authority in the absence of the President and, together with the second vice-president, by authorisation of the President, discharges the tasks of State Auditor General. Departments are headed by supreme state auditors and organised by area of public sector activity. One department specialises in performance and IT audits.

The President and vice-presidents form the Senate, which is the highest governing body. The Senate adopts the CoA’s rules of procedure by agreement with the National Assembly, and decides on the most pressing audits and strategic issues.

— RESOURCES

STAFF

• Number: 125 FTEs (March 2023) (68.0 % in audit)
• Gender balance: ♂ 24.8 %; ♀ 75.2 %. Average age: 48.9 years

BUDGET

• CoA budget (2023): €8 295 400
• 0.04969 % of total budget

AUDIT WORK

— PLANNING THE AUDIT WORK

The CoA adopts its work programme independently, and this remains confidential. The CoA must select at least five audit proposals submitted by the National Assembly.

— AUDIT METHODS

The CoA carries out different types of audits:

• performance audits on the effectiveness, efficiency and economy of the operations of its auditees in achieving set goals and programmes; these are selected on the basis of criteria such as their potential contribution to better financial management, public interest, the risk of poor performance and irregularities;
• financial and compliance audits on the reliability of the annual accounts and the legality and regularity of underlying transactions (a statement of assurance), and assessments of whether the systems and transactions in specific budgetary areas comply with the applicable rules and regulations.

Audits are often a combination of these two audit types.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The CoA publishes:

• audit reports and “post-audit” (follow-up) reports;
• an annual activity report;
• opinions;
• selected responses to requests for comment.

— DISSEMINATION ACTIVITIES

The CoA submits its annual activity report to the Speaker of the National Assembly. The report is then discussed by the Committee for Public Finance Control in a session that is open to journalists and other media representatives.

All audit reports and post-audit reports are published on the CoA’s website one day after they are formally adopted and submitted to the auditee(s) and the National Assembly.

— COOPERATION WITH OTHERS

The primary focus of the CoA is to provide objective and reliable information on public finance spending, with the aim of facilitating better management and delivery of public services. To this end, it cooperates with various entities across the public domain and maintains close working relations with the National Assembly and its committees. To promote good management and disseminate its findings more widely, it often takes part in events organised by professional associations or public bodies.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Tribunal de Cuentas (TCU) audits, on an external, continuous and ex post basis, financial and economic activity in the public sector, the annual accounts of political parties that receive subsidies for operating expenses, and electoral processes (audit function). It also assesses the accounting responsibility of those who manage public funds and assets (jurisdictional function), and has a sanctioning function in respect of political parties, as well as a limited advisory function.

Its jurisdiction extends throughout the national territory of Spain.

KEY LEGISLATION

• Spanish Constitution (1978), sections 136 and 153 d;
• 2/1982 TCU Organic Act;
• 7/1988 TCU Functioning Act;
• 8/2007 Financing of Political Parties Organic Act;
• 5/1985 General Electoral System Organic Act.

AUDITED ENTITIES

The TCU audits:

• State public sector, including:
  • the General State Administration (including 22 ministries and cabinet office);
  • State public-sector institutions, comprising 447 entities:
  • 212 public administrative bodies (47.4 %);
  • 200 public businesses (44.74 %);
  • 35 public foundations (7.83 %);
• the regional public sector: the 17 Autonomous Regions and two Autonomous Cities, comprising approximately 1 333 entities:
  • 424 public administrative bodies (31.81 %);
  • 490 public businesses (36.76 %);
  • 417 public foundations (31.26 %);
• the local public sector: comprising 12 990 entities;
• political parties: parties with parliamentary representation (25 political parties) and others.

— STRUCTURE

TYPE OF SAI

A court with a jurisdictional function.

PLACE OF THE SAI IN THE GOVERNMENT SYSTEM

The TCU is the supreme audit institution in Spain. It is responsible for auditing the accounts and the financial and economic management of the State and the public sector, the annual accounts of political parties that receive subsidies for operating expenses, and the accounts of electoral processes.

RELATIONSHIP WITH THE PARLIAMENT/GOVERNMENT

RELATIONSHIP WITH THE SPANISH PARLIAMENT

The TCU is directly answerable to Parliament, without prejudice to its independent supervisory and jurisdictional duties, and performs its functions of examining and verifying the general accounts of the State by delegation. Parliament may propose audits to the TCU.

The TCU is in permanent liaison with Parliament through the Joint Congress-Senate Committee for relations with the TCU.

Once the Plenum has adopted the TCU’s audit programme, it is forwarded to the Joint Committee for relations with the TCU.

The results of audits (included in reports, memoranda, motions and notes approved by the Plenum of the TCU) are sent to the Spanish Parliament. The Joint Congress-Senate Committee on relations with the TCU, at a hearing with the President of the TCU, deliberates on each of the reports, memoranda, motions and notes, and takes the appropriate decisions.

The TCU may draw the Parliament’s attention to cases where those obliged to cooperate have failed to do so (without prejudice to other actions covered by law).

RELATIONSHIP WITH THE GOVERNMENT

The TCU is independent in the exercise of its functions.

Once approved, its audit report is forwarded to the national government, the Governing Councils of the Autonomous Regions or the plenary sessions of local authorities, as appropriate.

— ORGANISATION

HEAD

GOVERNING BODY

The TCU is governed by the Plenum, a collegiate body made up of 12 Counsellors (one of whom is the President) and the TCU’s Chief Prosecutor.

In addition, the TCU has a Management Board, consisting of the President of the TCU and the heads of the TCU’s audit and prosecution sections. It is responsible for relations with Parliament, HR matters, and work planning. It exercises disciplinary powers over cases of gross misconduct, and develops and proposes items for the agenda of the Plenum.

TERM OF OFFICE

Counsellors: nine years, renewable. They have the status of judges, are independent and cannot be removed.

The Chief Prosecutor: five years, renewable.

SELECTION METHOD

Counsellors are appointed by the Spanish Parliament (six by Congress and six by the Senate, by a three-fifths majority vote in each house). The Chief Prosecutor is appointed by the Government.

ORGANISATIONAL STRUCTURE

The TCU’s Audit Section comprises eight departments. Five sector departments (covering financial and economic activity in the public sector), two territorial departments (one auditing the financial and economic activities of the Autonomous Regions and Autonomous Cities, and the other auditing the provincial and municipal entities), and a department that audits political parties.

— RESOURCES

STAFF

• Number: 733 FTEs (March 2022) (approx. 55 % in audit and 14 % for jurisdictional tasks)
• Gender balance: ♂ 38 %; ♀ 62 %. Average age: 55.03

BUDGET

• 78 million euros (2023), part of the General State Budget
• Allocation: approx. 87 % for staff remuneration
• 0.013 % of the total Government budget

AUDIT WORK

— PLANNING THE AUDIT WORK

The TCU plans its audit work in an annual programme, on the basis of its mid- and long-term planning. This annual audit programme is approved by the Plenum of the TCU, which forwards it to the Joint Congress-Senate Committee of the Spanish Parliament responsible for relations with the TCU.

The programme contains audits that must be carried out on the basis of the TCU’s legal mandate, the TCU’s own audit initiative, and audits proposed by the Spanish Parliament (and, if within their remit, the Legislative Assemblies of the Autonomous Regions). The Plenum may add, modify, suspend or cancel audit tasks during the year.

The annual programme is published on the TCU’s website.

— AUDIT METHODS

The TCU carries out:

• compliance audits to verify if the economic and financial management of the audited entity, activity or programme complies with the applicable legal and regulatory provisions;
• financial audits, which aim to give an opinion on the reliability of information supplied by the financial statements of an entity in terms of its relevance to the applicable principles, criteria and accounting standards; and
• performance audits, which aim to provide an assessment of all or part of the operations, management systems and procedures of the audited entity, programme or activity in terms of its economic and financial rationale, and if it adheres to the principles of sound management.

If different types of audit are combined, these can be:

• regularity audits, which focus on the objectives of compliance and financial audits; or
• comprehensive audits, which cover all the types of audit referred to above.

The TCU also carries out follow-up audits, which are targeted exclusively at verifying the degree of compliance with recommendations issued by the TCU in previous audit reports.

In addition, the TCU carries out horizontal audits, in which it audits several entities within the same public sub-sector, or different sub-sectors, with common characteristics and the same objectives and time range.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The TCU produces the following reports and products, all of which must be approved by the Plenum:

• special reports, containing the results, conclusions and recommendations of the individual audits;
• an annual memorandum of performance, comprising a summary of the audit and jurisdictional activities the TCU carried out during the year and the main results;
• a final declaration on the general accounts of the State, which includes an opinion about the State’s financial management and its public sector;
• an annual audit report on the regional public sector;
• an annual audit report on the local public sector;
• motions containing proposals for measures which, in the TCU’s view, could improve the financial management of the public sector; and
• notes, which are documents which analyse a specific matter due to its particular importance or unique characteristics.

— DISSEMINATION ACTIVITIES

The results of the audits, once approved by the Plenum, are published on the TCU’s website and forwarded to the following recipients:

• the Spanish Parliament;
• the Legislative Assemblies of the Autonomous Regions; or
• the plenary sessions of local authorities, as appropriate.

They are also forwarded to the national government, the Governing Councils of the Autonomous Regions or the plenary sessions of local authorities, as appropriate.

Once it has been analysed by Parliament, the audit report, together with the resolution adopted by the Joint Committee, is published in the Official State Gazette (and, where appropriate, in the Official Gazette of the Autonomous Region).

The TCU also publishes press releases on its website to provide quick access to the latest information on its reports and documents.

In addition, a quarterly bulletin is published, containing information on TCU activity.

— COOPERATION WITH OTHERS

The TCU closely coordinates its activities with the Regional External Audit Bodies that have been created in some Autonomous Regions.

 

 

GENERAL INFORMATION

— LEGAL BASIS

MANDATE

The Swedish National Audit Office (NAO) is part of the parliamentary control structure and it is the only body that can audit all the state finances. By auditing the whole chain of executive power, it ensures that the Swedish Parliament (Riksdag) receives a coordinated and independent audit of state finances and government activities.

The NAO moreover represents Sweden in international audit-related contexts to promote and develop public audit, and has been commissioned by the Riksdag to cooperate with SAIs in developing countries to strengthen their skills and capacity in auditing.

KEY LEGISLATION

• The Instrument of Government (Constitution, 1809, replaced in 1974);
• Act on Audit of State Activities (2002);
• Act containing Instructions for the Swedish National Audit Office;
• Additional detailed legislation.

AUDITED ENTITIES

The NAO has the mandate to audit:

• the accounts of government, the government offices, the courts and all ministries and government agencies;
• the parliament’s administration and agencies;
• the Royal household and establishment;
• limited liability companies under state ownership or influence;
• the Swedish Inheritance trust funds and foundations created or managed partly or entirely by state authorities; and
• companies with more than 50 % state ownership.

Through its financial audits the NAO shall audit:

• all government accounts, including the government offices and government agencies, except the public pension funds (AP fonderna);
• the Parliament’s administration and ombudsmen, the Bank of Sweden (Riksbanken), and the Bank of Sweden’s Tercentenary Foundation; and
• The Royal Household and the administration of Royal Djurgården (area of the city of Stockholm).

Moreover, the NAO may appoint auditors to companies or foundations with over 50 % state ownership.

The NAO can also participate in audits of international organisations of which Sweden is a member.

— STRUCTURE

TYPE OF SAI

An audit office, independent of government, headed by an Auditor General.

PLACE OF THE SAI IN THE GOVERNMENT SYSTEM

The NAO is an independent organisation under the Swedish Parliament and part of the parliamentary control structure.

RELATIONSHIP WITH THE PARLIAMENT / GOVERNMENT

Parliament decides on the extent and focus of the NAO’s auditing activities as well as its yearly grants.

Parliament also assesses the efficiency of the NAO itself and annually appoints an external auditor to audit the NAO, as well as a parliamentary council for oversight and contact (Parliamentary Council of the Swedish National Audit Office).

The NAO submits its reports on financial audits to the government and those on performance audits to Parliament, which in turn passes them on to the government for their written opinion on the audit. The follow-up report is sent to the Parliament’s Standing committee on Finance.

If the NAO finds deficiencies, it reports them and usually issues recommendations. The entities in question are already consulted during the auditing process and must comment on questions. To carry out its work, the NAO has the right of access to all information.

— ORGANISATION

HEAD

ORGANISATIONAL STRUCTURE

The NAO is organised into a department for performance audit and one for financial audit.

In addition to this, there are four other departments, which are responsible for international relations, , communication, legal services and management support.

Finally, the NAO has a Parliamentary and a Scientific Council, as well as a unit for Internal Audit.

— RESOURCES

STAFF

• Number: 322 FTEs (2022) (67 % in audit)
• Gender balance: ♂ 37 %; ♀ 63 %. Average age: 44

BUDGET

• 431.2 million SEK (38.7 million euros), of which 50 million SEK (4.5 million euros) for international development cooperation (2022)
• Approximately 0,04 % of the state’s total budget for 2022

AUDIT WORK

— PLANNING THE AUDIT WORK

Within the framework set by Parliament regarding the extent and focus of its audit work, the NAO decides independently which topics to audit.

The audit focus is based on an analysis of risks of material misstatement and the relative financial size of an auditee. However, if a small misstatement risks undermining trust in central government, it can be considered material.

Another audit focus is to promote development in general, where the public receives an effective return on its investments. For performance audits, additional criteria are considered such as the amount of added value, timing, and feasibility of an audit.

Apart from its own planning, the NAO is required to perform a financial audit annually on consolidated government accounts and agencies.

— AUDIT METHODS

The NAO conducts an annual financial audit, evaluating the correctness of financial statements, and performance audits, assessing the efficiency of operations. The NAO applies international standards and internal guidelines on auditing activities, communication, and ethical issues.

All reports undergo internal and external quality control assessments.

OUTPUT

— REPORTS AND OTHER PUBLICATIONS

The NAO publishes:

• an annual report;
• an annual audit report;
• audit reports from performance audit;
• audit opinions and reports from financial audit;
• interim financial audit opinions and reports; and
• an annual follow-up report.

— DISSEMINATION ACTIVITIES

The NAO publishes all its reports on its website and issues regular press releases about its work. It uses various communication channels including some social media.

It also publishes a newsletter for interested citizens and stakeholders.

— COOPERATION WITH OTHERS

The NAO carries out a wide range of international activities and represents Sweden in an international context. The NAO is also mandated by the Parliament to support, within the framework of Swedish assistance, the development of audit authorities in other countries.

The NAO has a specific budget allocation for international development, which contributes to transparency, democratic development and the strengthening of parliamentary control in the partner countries. This cooperation takes place both bilaterally and in regional projects. The activities must aim to increase the professional audit competence of the cooperation partner, individual capacity to use these skills and the ability to link the capacities of staff to efficient operations. The NAO can provide basic training on audit matters, further training in specialised areas, support in building quality assurance and quality control, and input in the context of strengthening the organisation’s capacities in leadership, strategic planning, communication and so on.

 

 

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Luxembourg: Publications Office of the European Union, 2023

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ISBN 978-92-849-1202-5

doi:10.2865/686084

QJ-09-23-504-EN-Q