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Annual Report

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2009/2010

ANNUAL REPORT 2009/2010

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Contents

Foreword 3

The ACA celebrates 250 years 5

The ACA is reorganised 11

The auditors are audited 13

Auditing process – from planning to report stage 15

Audit of fi nancing instruments makes an impact 20

The new Federal Financial Statements 25

Administrative reform:Proposals await implementation 27

Chronology 2009/fi rst half 2010 34

Overview of the ACA: Mandate and Objectives 43

Reports for 2009 and fi rst half 2010Reporting at a federal level 73Reporting at a laender and local level 79

International sectionThe ACA within the INTOSAI framework 97International chronology 2009/fi rst half 2010 104

Intellectual Capital Statement of the ACA 112


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Foreword

Dear readers,

Past, present and future are key ele-ments of this ACA annual report. As well as giving a quick overview of the many activities of the supreme audit institution in Austria, in this, the fi fth annual report, we will give you an overview of the audit pro-cess, explain the effectiveness of the ACA, as well as our new organisa-tional structure, the development of the peer review and preparations for our 250 year anniversary.

“Public auditing pays off”. That is the motto of the ACA anniversary celebrations and it is the aim of this report to demonstrate it also.

Public auditing is the cornerstone of the parliamentary system and democracy. According to the constitution, the ACA is responsible for auditing the fi nancial management of the state. We check whether monies collected from taxpayers are being used economically, effi -ciently and effectively.

The stock taken with this report shows that the ACA, as an organ of the federal, of the Laender and of the local authorities, completely fulfi ls its constitutional responsibility of auditing and consultation.

In our audits, the ACA makes suggestions for improvements. Thanks to the close and constructive relationships we foster with the insti-tutions we audit, and with the general representative bodies, these re commendations have had a broad effect. The last survey process has shown that from a total of 1,140 recommendations in 2008, exactly 81 per cent have been or will be implemented.

As well as giving advice to our audit clients during the audit pro-cess and reviewing draft laws and regulations, the ACA’s consultation function also stimulates the reform process in Austria. At the moment, experts in the ACA are collaborating with the working group on new administration, amongst others. Many proposals are currently lying on

Dr Josef MoserACA President

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the table – however, the political decisions to implement these reforms are still outstanding.

In addition to its national responsibilities, the ACA is also active on an international level. For over 40 years Vienna has been the headquar-ters of the General Secretariat of the INTOSAI, the umbrella organisa-tion of audit institutions from 189 countries. Currently, the INTOSAI is working on setting out the independent nature of the Supreme Audit Institutions (Declarations of Lima and Mexico) in a United Nations document.

Personally, and in the name of my dedicated colleagues, I would like to thank decision-makers from the political, administrative and eco-nomic sphere, as well as the media and the public, for your construc-tive cooperation and for the trust that you have placed in the ACA.

Dr Josef MoserACA President


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With this hand-written document,

Empress Maria Theresa set up the

“Hofrechencammer” (Chamber for Audit) on the 23rd Decem-ber, 1761, a precur-sor of today’s ACA.

It was responsible for “the criticism of all accounts and all

fi nancial matters, and in particular

the bringing to light of any perceived

mis-expenditure.”

Set up in 1761 by Maria Theresa Habsburg as the “Chamber for Audit”, the ACA today looks back on a history of change that has formed the basis for its current activities and for future challenges. With its numerous projects, the ACA aims to use its anniversary year to give an understanding to the people of Austria of the function of public auditing within the framework of our democratic system.

The ACA celebrates 250 years

Next year the ACA will celebrate its 250th anniversary. Preparations for the 2011 celebrations are already well underway.

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Historical development shows that in times of democracy the man-date of the ACA has always increased. This underlines the impor-tance of external public auditing for the functioning of a democracy.

Activities in the jubilee year will be based on three fundamental pil-lars:

• An exhibition in the rooms of the Austrian parliament will high-light the past, present and future of the ACA. Exhibits, charts and multimedia points will show visitors the history, working meth-odology and impact of the ACA. Special attention will be paid to having a youth-orientated format of the contents: the impor-tance of independent auditing in a democracy will be shown to this age group in an understandable and effective way.

Ten clusters of themes are planned: from the time of Maria Theresa, the Austrian Empire, and the Austro-Hungarian monarchy through the First Republic, the so-called “Ständestaat” (austrofascism), the Nazi period and the Second Republic, up to international net-works, the present and the future.

• Secondly, the ACA will issue a publication commemorating its 250th anniversary. Numerous contributions from personalities in the fi elds of politics, science and the media, as well as employees of the ACA, will outline the story of the ACA, its current activi-ties and responsibilities and its future challenges.

• Finally, the issues of external auditing will be explained to a broader public during the 250 year celebrations. With the slo-gan “Public auditing pays off”, various events, a touring exhibi-tion and special events for schools, are planned. Looking back to the past is especially relevant as it is always when authorities or rulers wish to limit the competencies and responsibilities of the ACA, that they fi nally realise they cannot manage without the auditing function.

The projects planned for the 250th jubilee year should demonstrate that public auditing pays off and that a strong, independent audit-ing authority is therefore indispensable. The topics presented in the jubilee year should make it clear that transparent auditing assures the best possible use of public funds, contributes to an improve-ment in the quality of public dealings, and reduces waste of money and corruption.


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The ACA has defi ned numerous target groups that it wishes to address during the jubilee year, with the slogan “250 years of the ACA – objective, independent, effective – public auditing pays off”. It has something special in mind for one particular group: schoolchildren. The ten clusters of themes which were chosen for the exhibition at the parliament will be shown in the format of a comic book story.

Below is a sample: the founder of the “Chamber for Audit”, Empress Maria Theresa, is drawn by the well-known cartoonist, Milan Ilic, on commission by the ACA:


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250 YEARS OF THE ACA

23 December 1761

Empress Maria Theresa establishes the “Hofrechen-cammer” (Chamber for Audit). It is awarded suspen-sive power in all important fi nancial matters (pre-ventative supervision).

1805 Emperor Franz I sets up the “General Audit Director-ate”. With this new fi nancial auditing organisation, preventative supervision is dispensed with, which had been a bone of contention between the supervisory and executive arms since its establishment. On-site fi nancial inspection commences.

1866 Emperor Franz Joseph reorganises the auditing func-tion: the Supreme Court of Audit results. Auditing is no longer solely limited to the correctness of the fi g-ures in the accounts but also on auditing the man-agement of state assets.

1918 The newly formed republic takes over the Supreme Court of Audit of the monarchy. The state Court of Audit is put under the direct control of the National Assembly and audits the management of the entire state economy, including state debt, with regard to its effectiveness and economy of use.

1920s Gradually the competency of the ACA is extended to include the auditing of the management of the Laender and municipalities with over 20,000 resi-dents.

1934 The so-called “Ständestaat” adapts the function of the ACA to conform to the authoritarian constitution.

1939 After the Anchluss of Austria, the tasks of the ACA are transferred to the German Reich. A subsidiary offi ce of the Reich audit organisation remains in Vienna.

1945 Under the interim constitution, the state Court of Audit is set up.

1948 The fi fth chapter of the federal constitution on the ACA is revised leading to the enactment of a new court of audit law.


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1975 The president and the vice president of the ACA are given the right to participate in National Council dis-cussions regarding ACA reports, on the federal fi nan-cial statements and on the chapter of the draft fed-eral fi nance law which concerns the ACA, as well as in its committees (subcommittees).

1978 The responsibility of the ACA to audit companies is regulated.

Research project: The ACA in “Ständestaat” and the Third Reich

250 years give the opportunity, but at the same time present a respon-sibility, to examine the history of the ACA and present all the highs and lows. The time between 1933 and 1945 form part of this. The ACA has therefore, on the occasion of the forthcoming jubilee year, initiated a research project on the role of the ACA in the time of the authoritarian Ständestaat state, during National Socialism and in the period straight after the war. The ACA puts a critical view on its history and clears up its role in these dark chapters of 20th cen-tury history.

In cooperation with the Ludwig Boltzmann Institute for Research into the Effects of War, Graz-Vienna, and the Institute for Economic, Social and Corporate History at the University of Graz, this issue is being given special attention. The background of the research project is the question of what effect the regime changes of 1933/34 (Ständestaat) and 1938 (Anschluss to Nazi Germany) left behind on the administration. As the document archives up to 1939 are avail-able, going back over this period is very straightforward for the ACA. However, during the period of August 1939 to the collapse of the German Reich in 1945, there are hardly any documents avail-able in Vienna. Therefore, to complete the research, it will be nec-essary to access records in Berlin in order to clarify the role of the Vienna offi ce.

How important the project is, can be seen in that after Hitler walked into Austria in March 1938, the ACA initially remained in its then form, but those working there had to swear an oath of allegiance to the Führer. A telegram of congratulations from the president of the Reich Court of Audit, Ernst Moritz Saemisch, remains from those days (see next page).


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Otto Ender, the president of the ACA since 1934, was arrested by the Gestapo at the end of March 1938 and later deported from the coun-try. In August 1939, the ACA became a subsidiary offi ce of the Court of Audit of the German Reich in Potsdam. From this point, the offi ce in Vienna was directed by offi cials in Potsdam.

Details of the research project will be published next year on the occasion of the 250 year jubilee as a contribution to clearing up Austrian history.


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With the aims outlined above – to strengthen the ACA for new challenges – the president commissioned an internal reorganisa-tion project group in March 2010. On the one hand, this was tasked to improve the framework conditions in the core areas of auditing and consultation and, on the other hand, to bring the focus of the internal service departments more in line with the demands of the audit service.

The result of the project – after the involvement of the staff council – was fi rst discussed with the management team in May and then presented to all employees of the institution. In May 2010, imple-mentation of the project results also commenced.

The new ACA organisation came into being on 1st September, 2010. The number of sections remains unchanged at fi ve, as is the number of departments at 35.

Henceforth, the ACA has four auditing sections and one section which includes all internal support and service departments. Each of the fi ve sections contains seven departments, which are linked in two task clusters, in order to create a connection between related audit topics and therefore work more effi ciently.

Two examples: Cluster A in Section 3 contains fi nancial compensa-tion and fi nancial capital accounts, as well as administration, pub-lic services and shares or spin-offs on Laender or municipal levels of government. Cluster A in Section 4 is responsible for education and science.

Centres of expertise have been set up in several departments, includ-ing the areas of administrative reform, internal auditing, effi cient budget management, accounts receivable, grants, public procure-ment law and corporate law.

The ACA is reorganised

The ACA has been restructured and the changes came into effect on 1 st September, 2010. The changes mirror the current and future challenges which will face the supreme audit institution for the federal, Laender and local levels of government. Amongst others, the following have been enhanced: national perspective, screening of f nancial f ows between the levels of govern-ment and the observation of the wide f eld of public services from care and social provisioning through school and kindergardens to water supply and waste water disposal.

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Cabinet of the president

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Section 1 Section 2 Section 3

Section 4 Section 5

ACA infrastructure/ State/ Laender/Munici- Education/Science Finance/

Audit Support Econom

y palities/Public Services Infrastructure Sustainability

Communication/internal affairs

communication/relations with parliament

editing 1B1

Cluster B

1B2

General secretariat of INTOSAI/international affairs

1B3

ACA infrastructure/development

HR management/travel manage-ment/staff protection

budget/infrastructure/library 1A1

Cluster A

1A2

planning/development

ACA IT infrastructure

1A3

1A4

Economy

real estate/building

public shares/energy/post

2B1

Cluster B

2B2economy/employment market

2B3

Law/security/

administrative reform

justice/internal

exterior/defence

2A1

Cluster A

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reform/internal control system

HR/information technology/organisation

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2A4

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Education/science

education

Infrastructure

construction

transport

4B1

Cluster B4B2

infrastructure and area planning

4B3

art/culture/media

4A1

Cluster A4A2

scienceresearch/technology

and innovation

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EU/sustainability

economies and effectiveness targeting

EU finances5B1

Cluster B

5B2

environmental protection andagriculture

5B3

Finance/legal matters

Cluster A

banks and finance management

audit statements/federalfinancial statements

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5A2

public charges

legal matters

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Representatives of the renowned supreme audit institutions of Ger-many, Denmark and Switzerland were in Vienna between October 2009 and April 2010 to conduct an on-site inspection of the ACA. For more than six months, therefore, the ACA found itself in the unusual role of being the auditee. The results of this peer review are due to be published later this year.

A peer review is a modern instrument of quality assurance. The pro-cedure comes originally from the fi eld of science and is used there to judge scientifi c work. The INTOSAI, the International Organisa-tion of Supreme Audit Institutions, took this model and developed guidelines for Peer Reviews for external public auditing.

Experienced auditors from the German, Danish and Swiss audit insti-tutions carefully examined the operations and working methods of the ACA. Core to this were strategic fundamentals, the perception of the core activities of auditing and consultation, support serv-ices such as IT, the evaluation of audit results and public relations. Those carrying out the peer review followed internationally recog-nised standards.

At the beginning of 2009, the presidents of the audit institutions involved in the peer review signed off on the core areas in a com-muniqué and Memorandum of Understanding. On this basis, the inspection began on-site in October 2009 and was completed at the end of April 2010 following several visits from German, Danish and Swiss peers.

Within the framework of the peer review there was also an employee survey, which was carried out by an external research institute and commissioned by the Swiss audit institution. The survey included questions on issues such as relationship to the employer, internal information and knowledge transfer, satisfaction at the workplace and career prospects. At 74%, the response rate was very high. The results of the survey were presented to the employees at the ACA at the end of April 2009. They will also be included in the fi nal report of the peer review.

Apart from intensive consultation and talks within the ACA, the external auditors also held talks with members of parliament, with

The auditors are audited

“Who audits the auditors?” There is now a concrete answer to this frequently asked question.

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representatives of audited bodies, with heads of Laender audit offi ces and with journalists.

At the moment, the German supreme audit institution, as the “lead-ing peer” is putting the results together. The audit results are due to be sent to the ACA for statement in the autumn. In the interests of complete transparency, the ACA will submit the results to the National Council and the nine Laender parliaments and make it available to the public, by the end of this year.

However the peer review does not end with the fi nal report. In the interests of increasing the effectiveness of the ACA, the recommen-dations and suggestions for improvement by the peers will be ana-lysed immediately after the report is published and will be imple-mented as soon as possible.

Presentation of the employee survey in the peer review

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Audit process – from planning to report stage

Strategically-speaking, audit activities mak e up the most important area of activity for the ACA. Due to the varying subjects covered, each audit presents a new challenge. The audit pro-cedure is therefore carefully def ned and broken down into a seven-part process. In order to ensure that all auditors adhere to the same standards of quality , all steps of the process have been precisely set out in an auditors’ handbook.

Audit planning

The annual audit programme forms the basis for each audit. The audit departments of the ACA work out the programme together with the section leaders and the president. The strategies, medium term plan

Audit Process

Stages of process

Audit planning

Audit preparation

On-site visit

Draft audit findings

Statement procedures

Draft final report

Follow-up

Process steps or products

external

Coordination with audit institutions of the Laender

Audit assignment

Initial meetingResearch

Exit meeting

Audit resultsPresentation of draft to audit client for comment

ACA reply to comments from audit clientCorrespondence

ReportMedia workDiscussion in general representative bodies

Core statementsFollow-up of recommendationsPerformance evaluation

internal

Legal entity databaseAudit subjects databasePlanning conference

Audit programme

Project agreementKick-offEnvironment analysisAudit approach

Milestone meetingProject documentation

Audit findingsMilestone meetingEditing of audit findingsDocumentation of audit evidence

Report writingReport editing

Final documentationIntellectual capital transfer

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and the respective themed audit focus all form the basis. The audit programme for the coming year is established in the autumn of the previous year at a planning conference. The independence of the ACA, which is set out in the constitution, assures that the ACA has autonomy when creating its audit programme. The selection of audit themes follows certain criteria such as fi nancial relevance, current developments and risk potential. In order to safeguard its independ-ence, the ACA coordinates its audit activity in a network with other audit authorities, in particular the Laender audit institutions and the audit institution of the City of Vienna.

Together audits encompass the entire spectrum of public activity. Their remit extends from fundamental fi nancial management of pub-lic and private sector resources through areas of current political interest to issues concerning the citizens of the country.

Audit preparation

For every audit proposal an internal project agreement is signed off. Then an environmental analysis is created, in which the bodies that will be affected by the audit are identifi ed. The subjects and aims of the audit are set out in a detailed audit draft. The audit client is informed in writing regarding the upcoming audit (audit appoint-ment).

On-site audit

The actual on-site audit always begins with an initial meeting with the management of the body to be audited. In this the auditors will outline the issues to be covered in the audit and clarify any que-ries regarding the audit process. Then the audit team begins their research. This happens on site, and the body being audited will pro-vide offi ce space to the team. As well as collecting and evaluating written documents, information will be gathered through meetings with the representatives of the audit client.

Draft of audit fi ndings

After the on-site audit has been completed, the data and documents which have been collected are evaluated and the fourth part of the process, the draft of the audit fi ndings begins. In order to clarify any issues that may arise when looking through the documents, the members of the audit team will also carry out discussions with the audit client in this phase, if required. Both during the inspection and in the collation of fi ndings, internal milestone meetings take


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place where the auditors coordinate with the contract giver (usually the department head) regarding how the audit is proceeding, clarify open issues, and the corresponding project is written up. The mile-stone meetings act as a ‘should v is’ comparison between the audit draft and its implementation. At the end of this phase, there is a clos-ing discussion with the management at the body being audited. The auditors present the results of the research and main contents of the audit result to the audit client.

Statement procedures

After the audit result has been completed, the ACA conveys its fi nd-ings to the audit client and the fi fth part of the process, the state-ment process begins. The audit client has the opportunity to make a written response to the ACA on its fi ndings. There is a three month deadline for this, set out in the constitution. Following this, the ACA puts together a possible response – called the “statement on the state-ment”. Both positions are entered in the report.

Final report

The sixth part of the process “Final report” comprises the publica-tion of the report, contact with the media and discussion in general representative bodies.

An audit team on their way to an on-site audit

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After the audit fi ndings, statement procedures and responses have been completed, the report is proofed in the editorial section of the ACA. At this point it is also checked that the report follows the stand-ardised format. ACA reports, with few exceptions, such as the federal fi nancial statements for example, basically follow the same format.

The fi rst section is the summary, in which the main points are set out. There is a reference to the corresponding chapter in the main document, using “reference numbers”. An essential part of the sum-mary is the “lead”, in which the ACA highlights the main conclu-sions of the report.

After the summary, all the key data of the project or institution are outlined in a box. For example, this may contain when the insti-tution was established, fi nancial and personnel data or the owner-ship structure.

Then follows the body of the report. This is broken down into var-ious “reference numbers”, i.e. chapters, such as “fi nance”, “person-nel” etc. Each individual reference number has, for its part, several (up to a maximum of four) parts:

• In the fi rst part, every reference number represents the fi ndings of the ACA.

• The second part contains the ACA judgment on its fi ndings.

• In the third part, the individual reference numbers cover the state-ment of the audit client.

• The fourth section contains the response of the ACA.

As a fi nal reference number, recommendations under the title “Final remarks/closing recommendations” are set out in the report.

After the editorial department has ensured that the report follows this standard structure, the fi nished report is authorised to be sent from the president to the relevant general representative body – National Council, Laender parliament or municipal authority. Only after the general representative body has received the report, does the ACA publish it. Up until then the ACA is bound to secrecy.


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Follow-up

Even after publication, the audit process is not yet closed. The sev-enth and fi nal part of the process is “follow-up”. In this part, core learnings and generally valid statements are gleaned from the audit and put on the website. The survey process is also an important part of follow-up. The ACA checks with the audited body a year after the report has been published as to the implementation of its recom-mendations. Finally, learnings from the audit are conveyed to the employees of the ACA, in the framework of knowledge communities.

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Audit of fi nancing instruments makes an impact

The f ndings and recommendations in the audit reports on the f nancing instruments at a fed-eral, Laender and local level, are a good example of how effective the ACA is and the compre-hensive reforms it can set in motion. In past months, f nancial management at a federal level and for many Laender and local communities have been newly regulated and put in order . There has also been a large impact on the international level. Audit f ndings have contributed to a further development of audit standards.

Aim, scope and use of crosscutting audit

At the end of 2007/beginning of 2008 the ACA audited the fi nancing and investment management of eight chosen public authorities (fed-eral state, four Laender and three towns). The aim of the audit was to analyse and compare the fi nancing and investment instruments and the fi nancing strategies and risks. The reports were submitted to the National Council and respective Laender parliaments in July 2009 and published at the same time, including the audit fi ndings concerning the federal state in Report Federal 2009/8.

In the second phase of the crosscutting audit in 2009, the ACA in-corporated the remaining Laender and further towns in the audit. The submission of the reports to the Laender parliaments is immi-nent.

Important themes of the reports

The reports contained both a general section, which basically con-cerns the comparison between the fi ndings and recommendations on the individual areas of fi nancial management in the public authori-ties, and a special section with specifi c conclusions on each author-ity. The themes covered in the reports included in particular liabil-ity management, derivatives, asset and risk management.

Effects and uses of the reports

The ACA achieved the following impact with these reports, on a federal, Laender and municipal level, as well as in the international arena:

Federal Level

• On the basis of various ACA reports, the president of the ACA pre-sented a policy paper “Fundamentals for fi nancing and investment in public authorities” at a summit called by the Federal Chancellor


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Audit of fi nancing instrumentsmakes an impact

in the Federal Chancellery on 31st July 2009. This was the basis for a working group to be commissioned by the Federal Minister for Finance to work on recommendations for optimising federal fi nancial management.

• These expert groups, consisting of six experts from the fi elds of science and fi nance, presented their fi nal report to the Federal Minister for Finance on 3rd November 2009. On 24th November 2009, this was brought to the attention of the Council of Minis-ters. As well as recommendations for implementing effi cient and risk-appropriate state fi nancial management, the report also con-tained guidelines for the investment of fi nancial resources using adequate risk guidelines.

• In the course of the amendment of the Federal Budget Act 2013, further proposals on the basis of ACA audit fi ndings were taken up. These changes especially concerned the lifting of the pro-vision of transactions to raise short-term liquidity for the pur-poses of investment and a new defi nition of the term “transac-tions to raise short-term liquidity”. The National Council enacted the amendment on 11th December 2009.

Summit at the Federal Chancellery

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• On 7th July 2010, the National Council enacted an amendment on the Federal Financial Act, regulating liability management of the Austrian Republic, as well as organisational rules and those cov-ering risk for the Austrian federal fi nancing agency (ÖBFA). The amendments to the act based on recommendations of the ACA especially concerned an improvement of risk management in the ÖBFA by means of a legal requirement to establish risk manage-ment guidelines (including adequate control mechanisms for all relevant types of risk) and investment guidelines, as well as man-datory introduction of the four-eyes principle on resolutions by the ÖBFA board.

• In its report published in July 2010 on the public fi nances of 2009, the Government Debt Committee expressly recognised the proposals for improvements contained in the ACA reports of July 2009, which were numerous and possible to implement quickly, and which ultimately led to new guidelines for federal fi nanc-ing during the fi scal year and legally limited the federal liquid-ity position.

• The ÖBFA immediately set about implementing the ACA’s recom-mendations after the audit. Considerable and immediately effec-tive improvements were shown in a clear reduction of their cash position, the establishment of a certain liquidity reserve, the end of using transactions raising short-term liquidity solely for invest-ment purposes, the revision of credit risk guidelines and a limiting of investment. In addition, the ÖBFA strengthened their initiatives on the use of synergies with the Laender through the provision of a technical infrastructure in the area of risk management. Coop-eration between the ÖBFA and four Laender in the area of liquid-ity management could also be optimised.

Laender and Municipal Levels

• In 2009, initiatives for the improvement of risk management were also put in place on a Laender and municipal level. The ACA col-laborated with working groups set up by the Austrian Associa-tion of Municipalities containing experts from the Government Debt Committee, fi nancial market supervision, the Austrian Cen-tral Bank and the Austrian Chamber of Chartered Public Account-ants and Tax Consultants for the creation of new guidelines for the fi nancial management of municipalities. The ACA was able to provide advice based on its technical expertise and experience from its auditing activity. These guidelines were presented to the public in August 2009.


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Audit of fi nancing instrumentsmakes an impact

• The guidelines mentioned were enacted by the Austrian Associ-ation of Municipalities as a “non-binding yet offi cial and very pressing recommendation for all Austrian local municipalities”. They should contribute to a responsible use of public funds and ensure that investment risk for all municipalities is kept to a min-imum.

International Level

• The ACA took part in the Working Group on Public Debt which was set up by the INTOSAI, the umbrella organisation of the supreme audit institutions. The ACA was able to contribute its experience and knowledge from auditing fi nancing instruments, especially with regard to risk management in the area of investment.

• At the annual conference of the INTOSAI working group on the 14th and 15th of June 2010 in Mexico City, the audit of the fi nanc-ing instruments applied by public authorities with focus on fed-eral authorities (Report Federal 2009/8) were included in the range of “paradigmatic audits”. Up to now there have only been twelve of these audits worldwide. They are published on the homepage of the working group under http://www.wgpd.org.mx. As espe-cially concise and positive examples of exceptionally successful national audits, they act as benchmarks for all INTOSAI mem-bers. In addition, they are used in the context of further educa-tion events for training purposes.

Conclusions

The audit of the ACA has set new standards in the area of risk management for public investment and contributed to debt man-agement in public authorities being considerably further developed in Austria.

By auditing similar technical areas and themes in various public authorities, in a similar way, the ACA has pursued the goal of gain-ing comprehensive knowledge on administrative handling of fi nanc-ing and investment management and enhancing the preventative role of auditing. Building on this, through certain focussed consul-tations specifi c added value is made available to the audited bodies and political decision-makers, especially through the overall perpec-tive of the ACA as a federal and Laender organ. This added value can be seen in the present case in performance and key statistic com-parisons, in benchmarks, and in the analysis of decision-making processes. Through statements on the judgment of effi ciency and

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effectiveness, and on risk-benefi t relationships, audit results have contributed considerably to the assurance of good governance and to better management of public functions.


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The new Federal Financial Statements

The Federal Financial Statements (FFS) have been completely revamped since 2009. The new FFS are characterised by a clear layout, which offers both experts and “budget law laypeople” a quick overview of the federal budget situation. A summary with plenty of graphics highlights to the readers the most important developments of the previous budget period. In addition, all important key data is presented on an overview sheet, which can be pulled out.

Submission of the federal fi nancial statements by the ACA is regu-lated by federal constitutional law (Art. 121 Subsection 2 Fed. Const.). Here it states that the FFS must be submitted to the National Coun-cil by 30th September, at the latest.

In 2010, the ACA sent a volume of the FFS to the National Council in April for the fi rst time. The reason for this was that, in accordance with the fi rst stage of the budget reform law which had been in force since 2009, the draft law for the future federal fi nancial framework (2011-2014) had to be presented by the government to the National Council by the 30th April 2010.

For parliamentary consultation on this federal fi nancial framework law, the ACA submitted its audited data on the management success of the previous fi nancial year, in April. The aim of the report was to make audited data for the previous budgetary year as well as sound analysis available for parliamentary debate.

Federal Financial StatementsVolume 1

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In volume one of the FFS is the estimate valuation and a complete economic representation of the federal budget. The FFS, which is presented to the National Council in the autumn, shows in addition to state income and expenditure, also the assets, liabilities, revenue and the fi nancial state of the country and public institutions. There-fore, the FFS also provides information on the state of national debts and liabilities.

The ACA completes the FFS on the basis of the annual fi nancial statements of the ministries and the accompanying audits, in accord-ance with Section 9 of the Court of Audit Act (Section 9 audits). The subject of the Section 9 audit, is the scrutiny of the annual fi nan-cial statements of the federal ministries and settlement fi ndings as regards their regularity and legality. Scrutiny of the annual fi nancial statements takes place using value-proportionate sampling from all 33 subdivisions of the federal budget settlement. With regard to the budget law reform 2013, the ACA also carried out an additional sam-ple audit of the annual asset calculation and profi t and loss state-ment in 2010.


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Administrative reform: Proposals await implementation

For 18 months, the experts of the ACA have been participating in the New Administration working group. Up to now, the working group has commissioned experts to analyse six of the eleven work packages. This work has been delivered to deadline. In terms of the pro-posed solutions that were presented, political decisions for their implementation are, for the most part, still outstanding.

Working group “New Administration”

As was planned in the current government programme, in February 2009 a working group for consolidation and administrative reform measures was set up. On the political side, the working group con-tained the Federal Chancellor, the Minister of Finance and the Laender governors of Vienna and Lower Austria. In practice, the heads of government were represented by two state secretaries, the Laender heads by their Laender parliament presidents.

As experts, the president of the ACA, the head of the Austrian Institute for Advanced Studies (also president of the Government Debt Com-mittee) and the head of the Austrian Institute of Economic Research take part.

Together, the ACA, the Austrian Institute of Economic Research, the Austrian Institute for Advanced Studies and the Centre for Public Administration Research make up the expert group which analyses the work packages commissioned by the working group. Represent-atives of the expert organisations work on the problems in prelimi-nary committees to create possible solutions, together with employ-ees of the public authorities, and these are evaluated and brought before the working group. In its analyses, the ACA focuses solely on fi ndings from its audits.

In all, eleven work packages were agreed. More than half of these have already been completed by the experts, as the following dia-gram shows:

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Administrative reform: Progress of the eleven work packages

Examples from problem analysis

The following are just some examples from the assortment of the presented and widely discussed issues:

• Although the Laender agreed in a pact on fi nancial compensation to implement as of 2008 a fi nancially equivalent implementation of the federal pension reform – taking into account their differ-ing structures – the Laender of Carinthia and Vienna still have considerably more favourable pension rights for public offi cers and the regulations in the Laender of Tyrol and Salzburg are not fi nancially equivalent. In terms of pension rights for public offi c-ers in cities and municipalities, there is still a need for harmoni-sation in certain Laender (e.g. Styria, Vorarlberg and Carinthia) with the federal regulations or with those of other Laender. Spe-cial pension rights in public companies such as Austrian Federal Railways, Austrian Central Bank or Austrian Broadcasting Asso-

Work package

1. Pensions

2. Human resources

3. Education

4. Science & Development

5. Efficient grant systems

6. Citizen orientation and deregulation

7. Efficiency of the administration

8. Task reform and structural revision

9. Financial compensation and budget law

10. Health and care

11. Environment, infrastructure, public enterprises and funds

Problem analysis by experts

Proposed solutions (preliminary committee)

Political implementation

completed

not completed

partly completed


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ciation, which were also analysed as part of this process, have shown that their employees can retire earlier and in some cases with considerably more favourable pension conditions than their counterparts on a federal level.

• In the area of health and care, a split has occurred in Austria between the legislative competence and its executive competence. In terms of GDP, healthcare spending in Austria between 1998 and 2008 was between 9.9% (minimum) and 10.5% (maximum) and therefore over the EU15 average, which was between 8.0% and 9.3%. There is an over-emphasis on inpatient care, although it is believed that well-developed outpatient services will lead to greater effi ciencies. In 2006, Austria had around 70% more acute care beds per 1,000 inhabitants than the EU average (EU15). The average hospital stay was about 10% less in 2006 and the occu-pancy rate about 70% higher than the EU average.

• The fi nancial situation of most regional health insurance funds is very strained. Between the health insurance carriers there are considerable differences as regards tariffs and provision of serv-ices.

• In terms of care, there are large differences between standards in the various Laender. This especially concerns head count, operat-ing structure, care home size and equipment. Quality assurance is not homogeneous. In all, current regulation of care is not appro-priate to meet changing demographics. Neither equal treatment of patients nor effi cient resource use is assured.

• In the area of cash benefi ts (care allowance) the legal basis is split structurally. Through a broadening of regulations for classifi ca-tion of care needs, there is further differentiation. Over 280 peo-ple are employed throughout the country in administration of care benefi ts.

• Compared with international standards, in Austria there is a com-prehensive grant system that, along with an inconsistent use of the notion of grants, is characterised by a large number of insti-tutions and instruments. Between the public authorities there are overlapping grants and a need to limit and align grants. In many cases, several different ministries take responsibility for support-ing the same area. For this reason, there is not suffi cient transpar-ency for auditing and evaluation purposes, and for grant appli-cants access to funds is made more diffi cult because information is diffi cult to get and administration abounds. The setting up of

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an Austria-wide grant database was an aim but this has never been implemented.

Cooperation on the generation of solution proposals

The ACA operates in the preliminary committees by pointing to tech-nical solutions on the basis of its audit fi ndings, in a neutral way.

In the preliminary committee on “Effi ciency of Administration”, a range of themes were dealt with, corresponding with its broad remit. A core area was made up of proposals for the re-organisation of administrative control. Together with other expert organisations, the ACA has proposed nine priority projects and measures that should be undertaken.

One important proposal of the ACA is contained in the comprehen-sive further development and harmonisation of accounting stand-ards so that comparable data is available for audit purposes after the public authorities were bound from January 1st 2009 to coordinate budget management (Art. 13 Subsection. 2 Fed. Const.). The ACA presented its requests for timely accounting standards in the future in terms of budget control (c.f. “Budget Structure of the Laender”, e.g. in Report Lower Austria 2009/4, point 16). Up to now, there has not been suffi cient consensus on this. However, it was agreed that further debate on the subject in the Estimates and Financial State-ments Committee (VRV) would take place, in which the ACA also takes part and at which it already presented its basic position in June 2010. Progress updates are to be made regularly to the preliminary committee and the project group.

Proposals for a simplifi cation of public procurement law and an increase in the effi ciency of procurement were generated in a sub-group of the preliminary committee, with wide consensus. These pro-vide for simplifi cations in direct tendering, where auditing of price appropriateness and documenting of decisions should continue to be afforded a central role. The separation of functions in impor-tant decision-making and audit functions for construction projects should be enhanced.

On the basis of proposals from the preliminary committees, the neces-sary legal and internal administrative measures will now be prepared.

For the areas of “e-government” and “optimisation of support pro-cesses”, the ACA indicated which problem areas do not yet have suffi cient solutions in place. As a consequence, project assignments


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for additional implementation measures were issues (e.g. revision of the IT security handbook and its circulation in local adminis-tration, broadening of e-card and signature use, implementation of electronic income confi rmation, identifi cation of possible syner-gies between federal and Laender statistics and an intensifi cation of cooperation between Statistics Austria and the individual Laender statistical units).

In the preliminary committee for “Effi cient Services” the ACA cre-ated, together with the Centre for Public Administration Research, a document on minimum standards and parameters for the design of grants. This now sets the basis for further discussions. The pub-lic authorities were asked to establish how far they would like to see these standards as binding. In the view of the ACA, these should be as comprehensive as possible, as modern grant management should consider these standards as a minimum.

The ACA has repeatedly called for a public authority-wide grant database. To this end, it has generated the design for the necessary approvals and requirements for its establishment. This also contains the information necessary from the individual granting activities and programmes, as well as the individual cases in order to achieve meaningful solutions for grant areas and policies.

The preliminary committees on “health” and “care” were established in the working group meeting in June 2010. The ACA has already introduced its vision for the work commissions to establish the rel-evant control parameters and to determine the necessary data for both these areas of performance.

First implementation outcomes

Initial implementation occurred through a Council of Ministers res-olution on 15th September 2009, in which a total of 32 projects on e-government, support processes and administrative reform meas-ures were commissioned in individual ministries. Together with a further seven projects which were agreed, important concerns for reform were undertaken. The Council of Ministers is kept up to date with progress reports on implementation.

In terms of the harmonisation of the pension system, individual Laender have already begun the process of pension reform since the relevant crosscutting audits of the ACA were performed (see Report Federal 2009/10). A draft law proposal from the Land of Carinthia in June 2010 does not go far enough, however, to equate to fi nancial

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reform on a federal level. Altogether in the area of Laender harmo-nisation, there is a savings potential of approximately EUR 714 mil-lion possible for the period 2010 to 2049. Of this, the reforms already implemented in the Laender of Styria (2008) and Vorarlberg (2009) have already achieved some EUR 269 million.

Under consideration of the relevant legal framework conditions, Aus-trian Federal Railways, Austrian Central Bank and Austrian Broad-casting Association have presented initial proposals to align their special pension rights.

In schools administration, there are still diverging visions on a polit-ical level, so that up to now no tangible results have been achieved. However, the expert paper was recognised by all participants as an excellent basis for further intensive discussions and negotiations.

In the view of the ACA, up to now there has been a basic prepared-ness to instigate reform measures in the reform process. However, decisive steps on a political level to seize the proposals of the expert group and bring about profound changes in the current structures and processes are still lacking.

Integration of all political powers

Already early on, the ACA pushed for cohesion of all parliamentary powers in the administrative reform process, as decision-making

Austria-Talks in March 2009 in parliament

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can only occur on a wide level with an on-going discussion process with the relevant stakeholders. The ACA therefore transmitted all the expert papers completed up to that point to the parliamentary groups of the fi ve parties and in the framework of the so-called Austria-Talks, further explained its proposals to the fi ve parties.

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2/1/2009 – Introduction of cost-output accounting in the ACA. In a detailed model based on “New Public Management”, the costs are assigned to the services provided and in this way their value and use to the ACA can be measured. The aim is to enhance cost trans-parency in the ACA.

21/1/2009 – Basis for the peer review is laid. In a communiqué, the presidents of the ACA, Dr Josef Moser, the German supreme audit institution, Prof. Dieter Engels, the Danish supreme audit institution, Henrik Otbo, and the director of the Swiss supreme audit institu-tion, Kurt Grüter, set the seal on the project where the ACA itself is audited.

17/2/2009 – Prelude to adminis-trative reform. The working groups set up by the government meet together in the Federal Chancellery for the fi rst time. As well as Fed-eral Chancellor Werner Faymann and Vice Chancellor Josef Pröll the economic research experts Karl Aiginger (Austrian Institute of Economic Research) and Bern-hard Felderer (Austrian Institute for Advanced Studies), Laender representatives and ACA president, Dr Josef Moser, take part. Sched-ule, approach and the creation of eleven work packages are set.

10/3/2009 – Presentation of the ACA position paper 2009 at the fi rst Austria-Talks for administra-tive reform. The revised version of the fi rst edition in 2007 contains 315 recommendations for reform measures – all arising from ACA audit fi ndings.

12/3/2009 – The abolition of re-submissions is passed by the National Council. Up to now ACA reports which have not yet been discussed in the National Council plenary assembly, expire at the end of the period of legislature. Reports which must be discussed in the new law-making period must be re-submitted.

19/3/2009 – The ACA positions on budget law reform are pre-sented by the ACA president Dr Josef Moser in the consultation advisory body of the budget law reform.

Chronology 2009/ fi rst half 2010

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Chronology 2009/fi rst half 2010

24/3/2009 – Expert group on administrative reform presents its analysis on school administration to government representatives. Issues covered are public services law, school administration and governance and further training for teachers.

16/4/2009 – Completion of the refurbishment work in the ACA headquarters. This is achieved on time and to budget.

4/5/2009 – Move from tempo-rary offi ces in Passetistrasse to the renovated ACA building in Dampf-schiffstrasse. The protected façade of the building has hardly changed. Inside, however, hardly anything of the old building remains.

7/5/2009 – Quality standards for the ACA audits are compiled in an audit handbook and made avail-able to ACA employees. Contained in this is an exact defi nition of the roles and responsibilities, as well as the individual steps of the audit process.

15/5/2009 – Customer survey starts. 1,161 people from three cus-tomer groups – general legislative bodies, audit clients and media – were called on to evaluate the per-formance of the ACA by means of online questionnaires.

26/5/2009 – Meeting of the working group for administrative reform. On the agenda are propos-als by the expert group for school administration and problem anal-ysis on the effi ciency of adminis-tration.

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SCHULVERWALTUNG

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3/6/2009 – Traditional pension-ers’ meeting. Former employees have the opportunity to meet, talk and remember their time at the ACA.

18/6/2009 – Opening celebration for the renovated ACA building in Dampfschiffstrasse. Guest speakers include the National Council presi-dent, Mag.a Barbara Prammer, the Minister of Economy, Family and Young People, Dr. Reinhold Mit-terlehner, and the Chairman of the Laender parliament president con-ference, Prof. Harald Kopietz. The high point of the celebrations is the handover of the key from the managing director of the federal real estate company, DI Christoph Stadlhuber to the ACA president, Dr Josef Moser.

26/6/2009 – Austria-Talks. The governing parties agree with the opposition on a communal approach to administrative reform. A parliamentary subcommittee is set up.

9/7/2009 – ACA publicly an- nounces audit of the “Skylink” air-port terminal. Basis of the audit competency is the joint ven-ture agreement between the main stakeholders of the City of Vienna and the Land of Lower Austria, which, although Vienna and Lower Austria together only have a 40% share, constitute a majority in the view of the ACA. A public debate on the mandate of the ACA com-mences.

15/7/2009 – The ACA publishes its report on the fi nancing instru-ments applied by public authori-ties. The crosscutting audit shows that the strategies of the public authorities differ greatly as regards interest rate structure, extent of foreign exchange regulations and

use of derivates. The ACA fi ndings on the fi nancing strategies of the federal fi nancial agency – due to its approach method, the state is threatened with incurring a fi nan-cial loss of approx. EUR 380 mil-lion – means that a media and political storm is triggered.

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Reform der Beamten-pensionssysteme der Länder Tirol, Vorarlberg und Wien

Finanzierungsinstrumenteder Gebietskörperschaften mit Schwerpunkt Bund

Bericht

des Rechnungshofes


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21/7/2009 – Attempt to inspect Vienna airport. The building of the “Skylink” terminal is to be audited. However the airport does not re cognise the audit scope of the ACA in this case and sends the team away. This is based on three legal opinions, which came to the conclusion that a voluntary audit is not possible in line with share-holders rights.

27/8/2009 – Subcommittee of the constitutional committee: Pres-ident Dr. Josef Moser presents a paper on quality and effi ciency increases in school administra-tion, which has been put together by the expert group on administra-tive reform. The ACA once again fulfi ls its role as an advisory body.

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31/7/2009 – “Speculation summit” in the Federal Chancellery. In the context of the report provided by the ACA on the fi nancing instruments and its fi ndings on the Austrian federal fi nancing agency in the report, the Federal Chancellor, Werner Faymann, Vice Chancellor, Josef Pröll, Secretaries of State Josef Ostermayer and Andreas Schieder, ACA presi-dent Josef Moser, central bank governor Ewald Nowotny and the chair-men of the fi nancial supervisory authority (FMA), Helmut Ettl and Kurt Pribil, discuss the border between effi cient investment and improper speculation.

3/9/2009 – ACA president Dr Josef Moser makes an impromptu speech at the Alpbach Health Symposium. In his speech he calls for structural change in the area of healthcare. He stresses that the authority and organ-isational structure in this sector are very split and that potential for pre-ventative health measures are not being properly utilised.

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SCHULVERWALTUNG

LÖSUNGSVORSCHLÄGE DER EXPERTENGRUPPE

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17/9/2009 – Visit to the ACA of the Court of Audit spokespeo-ple from all fi ve parliamentary parties. The aim of the meeting is an exchange of information and knowledge.

23/9/2009 – National Council enacts a broadening of ACA com-petence. With the change to fed-eral constitutional law, the ACA can also audit organisations in which the public has less than 50 per cent share, but which it “in fact controls”. With this decision it is determined that the ACA may audit Vienna airport.

6/10/2009 – Peer review begins. Ten peers (six employees of the German supreme audit institution and two from those in Switzerland and Denmark) begin their “inspec-tion” of the ACA.

7/10/2009 – Meeting of the working group for the administra-tive reform. The issues to be ana-lysed on the subject of “pensions” and the fi rst concrete measures for implementation on the theme of “effi ciency of the administration” is defi ned (support process, e-gov-ernment).

10/9/2009 – Press conference in the ACA at the presentation of the Annual Report. A considerable part of the report consists of the results of the customer survey. 1,161 people from three different customer groups (mandate holders of the general representative bodies, audit clients and journalists) were questioned on their satisfaction with the services of the ACA. The organisation receives a high approval rating with regard to the competence of its workers, and there is seen to be room for improve-ment in terms of sustainability.

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EFFIZIENZ DER VERWALTUNG


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12/10/2009 – The third course in “Professional MBA Public Audit-ing” commences, which is con-ducted in cooperation with the Vienna University of Economics and Business. Of a total of 21 par-ticipants, 15 are employees of the ACA and the remaining six are from external bodies – the Minis-try of Finance, the City of Vienna, Parliamentary Administration and the ASFINAG.

27/10/2009 – Austria-Talks. ACA president Dr Josef Moser presents the expert paper from the Austrian Institute of Economic Research, Austrian Institute for Advanced Studies and ACA on reforms nec-essary in the pension system. At the heart of the paper is the gen-eral ACA reform proposal for the Laender, which envisages a pen-sion account for new employees and parallel accounting in order to harmonise the pension system with that which exists on a federal level.

19-20/11/2009 – Seminar on corruption. 24 ACA employees take part in an internal seminar regard-ing the onset and tackling of cor-ruption. Guest speaker is the head of the state anti-corruption author-ity Mag Walter Geyer.

2/12/2009 – End of the second MBA, which was conducted in cooperation with the Vienna Uni-versity of Economics and Business. 15 ACA employees are awarded the title of “Master of Business Admin-istration (Public Auditing)” in a graduation ceremony.

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23/10/2009 – Beginning of the inspection at Vienna airport for the “Skylink” project. An audit team consisting of seven auditors is on site to examine the fi nancial management, risk and requirements of the project.


HARMONISIERUNG DER PENSIONSSYSTEME

40

2/12/2009 – Visit to the ACA of the Federal President Dr Heinz Fischer. Following a visit through the refurbished ACA building, Fischer stresses to employees the important role of auditors, both in Austria and within the interna-tional family of audit institutions.

9/12/2009 – Meeting of the working group for administrative reform. Analyses on the issues of “pensions” and “effi cient grant provision” are presented. For both areas a corresponding preliminary committee is set up to generate proposed solutions.

14/12/2009 – The Styrian Land government resolves to entrust the ACA with an audit of the muni-cipality of Fohnsdorf. Preceding the decision, there is an intensive political debate on the subject in Styria.

22/12/2009 – The ACA sub-mits its 2009 activity report. The report includes the result of the enquiry regarding implementa-tion of ACA recommendations on a federal, Laender and local level. It shows that the ACA has achieved an impact with exactly 81 per cent of the 1,140 recommendations it published in its 2008 reports.

22/12/2009 – In its consulta-tion function, the ACA takes part in a session in parliament on the subject “Conclusions and conse-quences of the Hypo-Alpe-Adria case”. For the discussion, the ACA president, Dr Josef Moser, the gov-ernor of the Austrian Central Bank, Dr Ewald Nowotny, both chairmen of the fi nancial market supervi-sory body and the chief whip of

the fi nancial committee, meet together. President Moser makes reference to the recommendations in the reports on “Financial market supervisory authorities and super-visory tasks of the Austrian Central Bank and the Ministry of Finance” (Report Federal 2007/10) and the recommendations of the reports on the budgetary structure of the Laender.

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12/1/2010 – For the peer review, representatives of the German supreme audit institution visit the ACA once again in order to build up a picture on planning and reali-sation of the section 9 audit. Other themes of the peer review are the creation of the Federal Financial Statements and federal budget reform.

19/1/2010 – In the Carinthian Land parliament the strengthen-ing of external fi nancial control in Carinthia is discussed. As a support to the discussion, the ACA presi-dent Dr Josef Moser gives an over-view on the rights and responsibi-lities of external public auditing in other Laender.

15/2/2010 – ACA auditors visit the police executive offi ce in Munich. The working visit takes place in the context of an ACA audit of the Vienna police. Through a comparison of the working meth-ods of the Munich and the Vien-nese police a benchmark compar-ison is drawn between the two cities.

23/2/2010 – Session of the working group for administrative reform on the subject of pensions. Not only are the Austrian Federal Railways pensions discussed, but also the pensions in those Laender where the expert report has iden-tifi ed potential savings. The crea-tion of documentation on health-care reform and general function reform also commences.

5/3/2010 – In the context of the accounting knowledge community, Linz University professor Dkfm Dr Reinbert Schauer refers to the theme “Information programme for public fund accounting” in the ACA. This covers the scope of pub-lic wealth accounting, basic ques-tions on the asset statement and the estimate and fi nancial state-ments. Almost 100 employees of the ACA and other audit institu-tions take part in the event.

21/4/2010 – Publication of the fi rst part of the Federal Financial Statements (FFS). The publication of the FFS takes place in two vol-umes, for the fi rst time. With the publication of the fi rst volume of the 2009 FFS already in April, the ACA delivers to parliament the audited fi gures of the previ-ous budget year and sound anal-yses for the parliamentary debate on the federal fi nancial framework law 2011-2014.

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21/4/2010 – The leadership forum on innovative administra-tion holds its general meeting in the ACA. This meeting of leaders in the public services has the aim of promoting innovative enterprise in administration and strengthen-ing effectiveness.

12/5/2010 – Presentation of the reorganisation which takes place in September 2010. The number of sections and departments remain the same. Through organisation in clusters, information exchange will be improved further and coopera-tion will be enhanced.

9/6/2010 – The working group on administrative reform presents an analysis of issues in the areas of health and care. Referenced in the paper, amongst other issues, is the divided organisational structure in the in-patient and out-patient sec-tor. Also under-average activity in health prevention is criticised.

15/7/2010 – The ACA report on the investment of Lower Austrian housing promotion loans is dealt with in the Lower Austrian parlia-ment. The Lower Austrian parlia-ment had previously described the ACA report as “not serious”. In the supervisory committee and in the accompanying press conference, the ACA president, Dr Josef Moser, refutes all criticism with facts and fi gures from the report.

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27/4/2010 – Swiss peers present results of the employee survey. The head of the Swiss supreme audit institution, Kurt Grüter, and his team, present results on themes such as connection to the employer, internal information and knowledge transfer, satisfaction in the workplace and career prospects. Particularly highly valued are exchange of informa-tion and knowledge, and mutual team support. A need for improvement in internal career prospects is identifi ed.

Reihe BUND2009/8

Reform der Beamten-pensionssysteme der Länder Tirol, Vorarlberg und Wien

Finanzierungsinstrumenteder Gebietskörperschaften mit Schwerpunkt Bund

Bericht

des Rechnungshofes


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GESUNDHEIT UND PFLEGE


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The audit competencies of the ACA are for the most part set out in the Federal Constitutional Act and in the Court of Audit Act of 1948. According to these, the ACA audits the fi nancial affairs of the state, the Laender, municipal associations and municipalities with more than 20,000 inhabitants and other bodies specifi ed by law. Furthermore, ACA competencies include the auditing of trusts, funds and institutions, and of organisations administered by an organ of the state, one of the Laender, or a municipality or by individuals who have been tasked by an organ of the state, one of the Laender, or a municipality. In addi-tion, organisations in which the state, one of the Laender, or a local authority with over 20,000 inhabitants has a share of over 50% or in which the public has a majority, are also within the remit of the ACA. Finally, social insurance funds and legal professional representatives (chambers) are also audited.

Organisationally, the ACA is an organ of the National Council. Func-tionally, however, depending on whether it is auditing a federal body, Land or municipality, it is an organ of the National Council or the Laender parliament or the Vienna municipal council and therefore a federal state/Land/municipal organ.

As its prime objective, the ACA strives for the best possible use of pub-lic funds, i.e. a reduction of costs or an increase in profi ts when utilis-ing public funds. Therefore, the ACA scrutinises whether public funds are procured and used legally, economically, effi ciently and effectively and in a sustainable fashion. In order to optimise income and expendi-ture, the ACA strives for an effi cient and effective use of funds in Aus-tria and the EU.

Through sound recommendations and highlighting possibilities for improvement, the ACA contributes to an increase in effi ciency and effectiveness in the public area and adds value for the state and for society.

According to the Federal Constitutional Act, the ACA is independent. Its independence is expressed both in the autonomy of its audit programme creation, its choice of audit focuses, audit themes, audit methodology and audit forms, as well as in the independent form of its reporting to the general representative bodies.

Overview of the ACA: Mandate and Objectives

The ACA audits on a federal, Laender and local level whether the provision of public funds is utilised in an economical, eff cient and effective way. Its core activities are auditing and con-sultation.

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Strategic Bases

The quality of its services is fundamental to the effectiveness of the ACA. For this reason, the ACA has put together a mission statement with the involvement of all its employees. This defi nes the goals of the ACA and its self-image, as well as the particular values of independ-ence, constitutionality, sustainability, equal opportunity, objectivity and credibility in its legal mandate.

In addition to this, in the strategy of the ACA the current positioning and strategic direction for all areas of performance are established. So, added to its strategic objectives, signifi cant features on the logging of performance and effectiveness of the ACA are named. These indicators can be seen in the Medium Term Plan 2008-2010, in the key indicator system and the intellectual capital statement (number of audits car-ried out, parliamentary questions, media coverage etc.). These indica-tors are regularly collected and used as an important management tool.

The new Medium Term Plan (2011-2013) is currently being generated by a project group. In this plan, the effectiveness aims of the ACA are being particularly taken into consideration. The background for this is the introduction of impact monitoring in the new federal budget law. In line with this approach, the management function should put more emphasis on having a central control role and strengthening individual responsibility. By defi ning up to fi ve impact aims (one of these must be a gender objective), the federal ministries and supreme organs must be transparent regarding what they wish to achieve with their activities and what they wish to achieve externally, for the citizens of the country.

Quality management

The mission statement, draft strategy, medium term plan, indicator system and intellectual capital statement make up most of the qual-ity assurance system of the ACA. Additionally there is the peer review, customer survey, ACA internal commission for innovation, a targeted selection process for new employees, accredited education and further training and professional knowledge management. Added to these, all areas of activity in the ACA have their own quality standards which, for example, defi ne the processes for different phases of the audit process.

In 2009 an internal evaluation on the audit processes commenced. In the course of the pilot project, in fi ve selected audits (one per section) all audit types were examined to see how the quality standards, which the ACA has itself put in place, were followed for the core process of auditing and consultation. The project team created a checklist, against


45

which future audits should be evaluated. In addition, on the basis of this list, they created a sample evaluation report on the chosen audits. The fi rst evaluation report and proposals for a standardised evalua-tion were agreed at the end of 2009 by ACA president, Dr Josef Moser. The pilot project went into normal operation at the end of May 2010 when the second evaluation project was fi nalised.

The ACA expects to reap particular benefi ts from the peer review which has been carried out starting in autumn 2009 by the German, Danish and Swiss supreme audit institutions.

In 2009 cost-output accounting was also implemented, in which a detailed description of costs was attributed to services rendered, so that the value and benefi t of services could be measured. By means of this cost-output accounting, it is possible for the cost of services to be transparent; they will be evaluated on a yearly basis and adjusted to current demands if need be.

Code of conduct

Through its ratifi cation of the “United Nations Agreement against Corruption”, Austria has committed to integrity, honesty and respon-sibility of its public offi cers and the development of a code of con-duct, amongst other things. In addition to this, in the government programme of 2007, the creation of a code of conduct for the public service, focussing on the prevention of corruption, was agreed upon.

In 2007, the ACA created – primarily from the already existing Code of Ethics of the INTOSAI from 1998 – a binding code of conduct for its employees. This code creates standards on the basis of the guiding values of independence, lawfulness, objectivity and credibility for the principles of “correct and legal behaviour” and integrity in all profes-sional and private dealings. It should assist all individuals to strengthen their sense of responsibility. A board of ethics was set up in the ACA to implement the code of conduct, consisting of two employer and two employee representatives, which offers advice and can be called upon to give recommendations in areas of doubt. The board of ethics is made up of Mag. Helga Berger, Dr Friedrich Pammer, Mag. Georg Plepelits and Bertram Königshofer.

Employees

The employees of the ACA are its most important resource. Their quali-fi cations and motivation are the basic prerequisite for the performance of the ACA. Therefore, not only in the selection of new employees, but

Overview of the ACA:Mandate and Objectives

46

also in the context of consistent education and further training, a high value is placed on qualifi cations.

Currently there are 309 people employed at the ACA (on 1st July 2010). More than 81.6% of these work as auditors. They all have at least three years professional experience in various areas. Most auditors are law-yers, economists or engineers.

Over the past 18 months, 21 new employees have successfully passed the intense, multi-level selection process and begun work at the ACA. Using an internal integration and trainee programme, all new entrants are communicated the necessary basic technical knowledge to prepare them for their work. An additional insight into the organisational cul-ture is offered by a 14-day trainee programme in the communication department and the editing department, the completion of a guest audit and assistance by a mentor.

13 employees went into retirement in 2009 and 2010. Most of these have remained in contact with the ACA after their retirement and pass on their knowledge and experience in the annual pensioners meeting in the ACA building.

An important basic element for effi cient performance is employee sat-isfaction and identifi cation with the ACA. In the peer review the Swiss peers carried out an employee survey at the ACA. The results showed that emotional commitment (commitment and identifi cation) and con-tinued connection to the ACA was very pronounced in staff. Com-mitment of employees could be seen in the participation level in the survey: at 74%, the response rate was above average. As well as iden-tifi cation with the company, factors of team work and work-life bal-ance also scored highly. There was seen to be room for improvement in the survey in the area of knowledge transfer.

After the presentation of the results in an employee event, all the employees were called on to make suggestions for improvements. An internal working group is now discussing the ideas which were pro-posed and the results of the employee survey, and is working on corre-sponding reform measures. The fi rst concrete steps already took place when in the autumn the fi rst platforms for the open exchange of opin-ions of departments with section heads and the president in the form of an “active hour” took place. The most important results of the sec-tion head meetings will be published on the intranet.


47

A high value is placed in the ACA on the health of employees. There-fore, the newly renovated offi ces are equipped with height-adjustable desks. To help with back problems, employees can work both stand-ing and sitting down. Also, the training programme contains regular back exercise classes.

Professional MBA Programme Public Auditing

In cooperation with the Executive Academy of the Vienna University of Economics and Business, in 2006 the ACA set up the Professional MBA Programme Public Auditing for auditors in public auditing, as a professional further education course on a university level. This fun-damental training at the highest level is intended to confer audit-rele-vant knowledge and experience from the fi elds of theory and practice in a way that can be applied professionally.

Sound economic knowledge on general management and specialisa-tions in fi nancial management and auditing, economics and public law are imparted. Theory on the audit process, auditing methods and auditing standards is further developed through practical modules with lecturers from the area of auditing. As well as lecturers from the ACA, last year there were seminars from guests such as the director of the


Presentation of the employee survey

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Swiss supreme audit institution, Kurt Grüter. The MBA at the ACA is also open to participants from other audit authorities.

The training to be a “Public Auditor” lasts for four semesters. The course contains 13 lesson blocks, each lasting from four to fi ve days and making up 30 teaching modules of the programme. The course is completed with a masters thesis.

In December 2009, 22 participants completed the second course in “public auditing”, 15 of whom were employees of the ACA and seven external students. In their theses, the students covered subjects includ-ing balancing subsidies, corruption in the construction industry and investment control.

On 12th October 2009, the third course of the “Professional MBA Pub-lic Auditing” began. Of a total of 21 participants, 15 are employees of the ACA and six come from external organisations – the Ministry of Finance, the City of Vienna, the parliamentary administration and the Austrian highway and expressway operator ASFINAG.MBA

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Knowledge communities

The knowledge communities of the ACA promote a practical applica-tion of knowledge acquisition through seminars, workshops and dis-cussions, as well as information and experience exchange within the ACA and with experts from other audit institutions, from academia and from public and economic institutions.

With the setting up of the “audit software” knowledge community, there have now been 12 knowledge communities since 2009 on the following subjects:

• Construction,• Education, science and development,• Data sources,• Financing and taxes,• Public grants,• Health, hospitals and social care,• International,• Public administration and administrative reform,• Audit practice and audit methodology,• Audit software,• Accounting procedures,• Public procurement.

In 2009, 400 employees and 95 external participants took part in ten events, where we had the pleasure of having the participation of eleven external lecturers. In the fi rst six months of 2010, eight events with ten external experts took place, which were attended by 337 employ-ees and 92 external visitors.

HR development

The ACA ensures on-going qualifi cation of its employees though con-sistent education and further training programmes. The transfer of knowledge takes place through regular employee events, work groups, workshops, knowledge communities and closed-door meetings on a departmental and sectional head level. The internal training programme also offers regular seminars on various topics.

In the autumn of 2009, the “writing workshop” began. This two day training course, attended by 84 employees in the fi rst year, puts par-ticular focus on understandable, reader-friendly writing and on qual-ity standards for compiling reports.


50

In order to satisfy the signifi cance placed on personal development within the ACA, in the context of reorganising the ACA, a department was created for this area.

Equal opportunity for all employees is an important concern for the ACA. With successful projects to promote women, it was possible to increase the proportion of women to around 42% in total and 34% in the audit service. The requirement has been put in place to increase the proportion of women in all functions to 40% over the longer term. On the sectional head level, this proportion has already been achieved.

Moreover, the ACA observes its corporate responsibility in terms of its employment duty according to the law on disability in employment. The number of employees according to the law on disability in employ-ment on 1st January 2010 stood at eleven above the legal requirement, and on 1st July 2010 was at ten over the legal requirement.

The ACA has also managed to increase the number of auditors as a pro-portion of total employees. In 2009, the proportion of auditors was at 81.2% measured on a full-time equivalent basis. In 2007, in compari-son, the proportion of auditors was at 78.4%.

Budget

Of course in the ACA the effi cient use of public funds is also an important area for concern. The ACA supports the consolidation efforts of the federal government not only through its audit and con-sultation function and its commitment to administrative reform, but also in the course of the current organisational restructure, potential savings have been identifi ed within the organisation itself. Funda-mentally the ACA achieves much more than it costs, as the follow-ing examples show:

HR overviewNumber on cut-off date 2009 (at 1/1/10) 2010 (at 1/7/10)

Positions 328 328

Headcount 314 309

– of which auditors (full-time equivalent; in %) 81.2 81.6

Proportion of women total (in %) 42.4 42.4

Proportion of women in audit service (in %) 33.5 33.6

Proportion of women in management (in %) 29.8 28.9

Fulfi lment of law on disability in employment +11 +10


51


• In the “ASFINAG telematics system” audit measures were intro-duced even during the audit. Through the re-dimensioning of the construction programme and the way the structure was built, evaluation of the effectiveness of the telematics systems and their construction lead to savings of around EUR 180 million, thanks to the ACA.

• In its audit of civil servant pensions on a federal and Laender level, the ACA demonstrated a savings potential of approximately EUR 714 million for the time period 2010 to 2049. The reforms carried out in Styria (2008) and Vorarlberg (2009) have already saved EUR 269 million.

For 2000 to 2009, the Federal Financial Statements show the follow-ing expenditure for the ACA (General Budget under consideration of Budget Law Reform 2009):

Year

Federal expen-diture

(EUR million) ACA expenditure(EUR million)

% of total expen-diture

2000 55,521.83 21.77 0.0392

2001 57,469.72 22.35 0.0389

2002 58,793.09 22.99 0.0391

2003 58,327.01 22.94 0.0393

2004 61,026.56 22.72 0.0372

2005 61,422.07 23.44 0.0382

2006 64,337.62 23.32 0.0362

2007 65,896.98 24.56 0.0373

2008 74,477.40 27.30 0.0367

2009 69,456.58 28.47 0.0410

The proportion of ACA expenditure against total federal expendi-ture was 0.0410% in 2009. It should be taken into account, however, that in 2009 a large amount of the fi nancial contribution of the ACA went on the refurbishment of the building.

Achievements

Alongside its core activities of auditing and consultation, the ACA undertakes other special functions. These include the Federal Finan-

52

cial Statements, countersigning all instruments relating to federal government borrowing, review of draft laws and regulations, tasks related to the Incompatibility Act as well as the Parties Act and the income survey.

Through sound recommendations and a demonstration of improve-ments, the ACA contributes to an increase in effi ciency and effec-tiveness in the public arena and therefore adds value for society.

Core activities of auditing and consultation

The core activities of the ACA are auditing and consultation. Audits are the strategically most important service of the ACA and the basis for its consultation activities. The ACA completes ex-post audits. This also facilitates the auditing of already completed steps of a project underway, e.g. planning or a sub-project, upon completion of the project step but in a timely way (Main Train Station Vienna, Bren-ner base tunnel).

At audit planning, the ACA follows the principle of independence anchored in the federal constitution. The themes are selected accord-ing to fi nancial management relevance, risk potential, changes of key indicators, current events, special public interest and prevent-ative impact.

The ACA carries out – depending on the subject and area of activity – various types of audits: selective audits, cross-cutting and sam-ple audits, follow-up audits and audits on EU themes (EU audits). It also supports the audits of the European Court of Auditors (ECA support audits), carries out coordinated audits with other audit insti-tutions, carries out sample audits on the annual accounts provided (Section 9 audits) and audits statutory professional representative bodies (chamber audits).

The ACA places its audit focus on all fi elds of administration. It uses all its strengths as audit institution for the federal, Laender and local levels of government and audits areas which other audit authori-ties in the network cannot audit or cannot audit as effi ciently and effectively.

Audits are carried out as a matter of principle in all fi elds of poli-tics (such as law and security, work, social welfare, health, family, education, research, art, culture, fi nance and economy, infrastruc-ture). Important strategic areas of focus for audits are economics (parity across the economy), administrative reform, and compre-


53

hensive environmental protection (air, water, ground, noise). Every year, new areas of focus are integrated into project planning. Topics of focus in the time period of this report were creating transparency in all state activities, measures to combat corruption and focussing on impact. In past years, enhanced cross-cutting audits were also carried out. These audit methods facilitate a comparison of certain activities between individual institutions and Laender.

Audits

In total, the ACA submitted 110 reports to the National Council, the Laender parliaments and the municipal councils in 2009. In the fi rst half of 2010, there were 37 reports (for details, see section “Reports for 2009 and fi rst half 2010” in this report). The audit programme plans just over 100 audits per year. In 2009, 98 audits were com-menced and in fi rst half of 2010 62 audits were commenced.

In detail audit services of the ACA can be broken down as follows:


Auditing services (audits commenced) 2009 2010

Number of audits 98 62

Special audits 17 17

Proactive audits 91 55

of which are selective audits 27 17

of which are follow-up audits 22 15

of which are sample audits 10 15

of which are EU audits 11 11

of which are ECA support audits 15 13

of which are chamber audits 13 –

of which are cross-cutting audits 23 14

Number of cross-cutting audits – federal 16 17

Laender 19 14

municipalities – –

overlapping (federal – Laender – municipalities comparisons) 18 13

Proportion of cross-cutting audits in total audits 23.5 % 22.6 %

Resources used for cross-cutting audits 36.6 % 36.0 %

54

Selective audits

In selective audits, the auditors concentrate on certain themes, areas of fi nancial management or on a certain project.

In 2009, the ACA performed 27 selective audits and in the fi rst half of 2010, it began 17 selective audits.

Cross-cutting audits

In cross-cutting audits, the auditors compare selected activities or areas in audit clients on a federal, Laender or municipal level or between various bodies. Through auditing and consultation for audit clients and political decision-makers spanning several public bod-ies or various entities, the ACA can add specifi c added value from its perspective as a federal organ for the state, Laender and munic-ipal levels of government.

In 2009, the ACA performed 23 cross-cutting audits, 23.5% of its total audit activity. In the fi rst half of 2010 it commenced 14 cross-cutting audits, making up 22.6% of its total audit activity. In the period covered by this reports, it provided comparisons on federal level in 13 of these audits, and 13 on a Laender level. In 11 of the cross-cutting audits, it performed comparisons on a federal, Laender and local level.

Sample audits

In order to enhance its pre-emptive and consultative impact, the ACA conducts sample audits to include bodies in the audit programme which would not otherwise be audited due to the risk-orientated approach of the ACA (e.g. due to their low overall fi nancial impact). The bodies to be audited are chosen at random.

In 2009, the ACA carried out ten sample audits and it began fi ve in the fi rst half of 2010.

Proactive audits and special audits

The ACA sets its audit programme independently. For the most part, it acts completely independently, so it audits on its own initiative. In 2009, these proactive audits made up approximately 93% of all audits in the ACA, and around 89% in the fi rst half of 2010.


55

The remaining audits are performed on request or petition from a member of the National Council or a Laender parliament or from a member of government or Laender government. The ACA complies with these requests or petitions through so-called special audits.

In 2009 there were seven special audits: Water Association of Mill-stättersee, Bregenz Tourismus und Stadtmarketing GesmbH, the Aus-trian Federal Financing Agency, the investments of housing promo-tion loans of Lower Austria, the Federal Accounting Agency, General Hospital Klagenfurt and the tendering process at the container truck carriers of the Austrian Federal Railways.

In the fi rst six months of 2010, seven requests for special audits were received: Fohnsdorf municipality, Water Association of South Burgenland, the Pension instituts Linz AG and for traffi c and public installations in Vienna, relaunch of the internet portal of the Parlia-mentary Administration, the town of Hohenems, real estate fi nan-cial management of the town of Krems and bank rescue packages.

Evaluating effectiveness, follow-up surveys and follow-up audits

The ACA evaluates its services and their effects. To this end, it has put in place a completely new system for monitoring effectiveness. At the fi rst level, the audit clients are asked which of the ACA’s re commendations of the previous year have been implemented. The results of the survey will be published in activity reports on a fed-eral, Laender and municipal level.

They will also form the basis for the second level of effectiveness monitoring, the “follow-up audits”, which are the most powerful instruments of effectiveness monitoring. In these, the ACA examines on site the actual implementation of recommendations. This effec-tiveness monitoring is an important contribution to the sustainabil-ity of auditing, as it increases the value of the audits and enhances the effectiveness of recommendations.

In 2009, the ACA started 22 follow-up audits and in the fi rst half of 2010 it has already commenced 15.

The survey process, carried out by the ACA on a federal, Laender and municipal level in 2009, found that 81% of the 1,140 recom-mendations, which the ACA had published in its reports in 2008, had been effective. They had already either been implemented or their implementation had been agreed. Through implementation of ACA


56

recommendations, construction costs had been reduced, effi ciency and effectiveness in the provision of grants had increased, measures to reduce administrative costs had been introduced, uniform basic principles for care allowance levels for children, young people and patients suffering from dementia had been created and control mech-anisms had been set up in many areas.

The follow-up survey has also shown that there is still need for action in eduction, care and health, but also in all those areas where cooper-ation between the different levels of government has to be improved, such as the protection from natural disasters or the administration for care allowance.

Audit of fi nancial management of the statutory professional representative bodies (chambers)

The chambers are audited by the ACA and, in compliance with the constitution (Art, 127b Fed. Const.), the responsibility of the audi-tors is confi ned to, “numerical correctness”, “compliance with exist-ing regulations” and “cost-effectiveness” and “economy”. The audit-ing criterion of “effi ciency”, which applies to all other audits, is not applied to the auditing of statutory professional representative bod-ies (chambers). Also the audit reports are not published by the ACA, but according to the law must be made available to the public by the corresponding chamber.

In the reporting period, the ACA audited three chambers, the Tyro-lian Chamber of Commerce, the Salzburg Workers Chamber and the Styrian Chamber of Commerce.

Consultation services

Audits represent the most strategically important service area of the ACA and they form the basis for its consultation service, the second element in the core area of auditing and consultation.

Already during the audit process, the ACA observes its consulting function. During the on-site inspection, it contributes with sugges-tions for improvements. It includes the standpoint of the audit cli-ent and agreed or ensuing measures in its reports.

It is very important to the ACA that cooperation between the audi-tors and audit clients is based on trust and partnership. Cooperation with the ACA and its consultation capacity are increasingly highly


57

valued, which is shown by the growing interest of municipalities in the auditing and consultation process.

However, the ACA is also requested to carry out consultation services independently from its audits. It can utilise the knowledge and expe-rience it has gained in the course of its auditing activity in particu-lar to give expert advice in the areas of draft laws and regulations. Through the publication of its reports, general recommendations, position papers and core fi ndings, the ACA acts in a pre-emptive way and contributes with its advice to the decision-making process in various bodies. In addition, it makes its expert knowledge avail-able to foreign expert committees in the context of the INTOSAI.

In all, these consultation services add value in that they effectively enhance the usefulness of the individual audits and the effective-ness of public auditing.

Collaboration in the working group “New administration”

In its capacity of consultation provision, the ACA sees itself as lead-ing the way in innovation and reform. Since the beginning of 2009, in line with its constitutional position, and together with representa-tives from the Austrian Institute of Economic Research, the Austrian Institute for Advanced Studies and the Austrian Centre for Public Administration Research, the ACA has made proposals in the context of the working group “New administration”, set up by the govern-ment. Experts come up with analyses on issues and make suggestions for solving them in eleven work packages in total. Issue analysis has already been performed in the areas of “pensions”, “health”, “effi cient grant provision”, “effi ciency in administration”, and “school admi-nistration”, as well as “function reform and re-structuring”.

Publication of general recommendations and position papers

The ACA also carries out its consultation function by publishing general recommendations on certain themes. An example of this is the guidelines for government information and publicity measures, which the ACA brought out in 2005. On the basis of the ACA guide-lines, the government enacted new guidelines for government pub-licity at the beginning of 2010. The ACA proposals were predomi-nantly taken on board.


58

In 2009, the ACA published the second edition of its position paper [Administrative Reform II]. Building on the proposals of the 2007 position paper, the new edition contains 315 recommendations on a range of topics such as the provision of services, health, education, research and administrative control.

The ACA has also acted in a consultation capacity via its reports on the fi nancing instruments applied by public authorities on federal and Laender level. With the audit fi ndings contained in these, the ACA triggered a media storm and ensuing political talks in the sum-mer of 2009. As a result, on the basis of recommendations from the ACA, new guidelines for the fi nancing management of the Austrian Federal Financing Agency and an amendment to the federal fi nanc-ing law were enacted.

In addition to this, and in cooperation with other experts from the Government Debt Committee, the fi nancial market supervisory authority, the Austrian Central Bank and the Austrian chamber of chartered public accountants and tax consultants, the ACA has also used its audit knowledge in the working group set up by the Aus-trian Association of Municipalities to work on new guidelines for the fi nancial transactions of municipalities.

Finally, with guidelines for fi nancing and investment management in municipalities, the ACA made a signifi cant contribution to the crea-tion of a draft regulation in the Lower Austrian parliament.

Core fi ndings

Following its audit activity, the ACA publishes its core fi ndings. These make up the ACA standpoint on various issues and there-fore, in the context of its consultation service, they act as a guide for public bodies.

Of a total of 24 topics, from papers on combating corruption and deception to publicity measures, the ACA has published its core fi ndings, which all stem from audits that have taken place. The ACA publishes its core fi ndings according to themes on its website, www.rechnungshof.gv.at.

Participation in consultation for general representative bodies

The ACA also administers its consultation function at the National Council and Federal Council, and in the Laender parliaments and the


59

municipal councils. This takes place, for example, in the context of discussing its reports and reviewing draft laws and regulations with regard to their fi nancial impact.

Review of draft laws and regulations

The ACA reviews draft laws and regulations with regard to their fi nancial impact in accordance with its audit fi ndings. In this way, in accordance with the resolution of the National Council of 19th March 1981, it brings the fi ndings from its audit activity to bear on the law-making process, enhances the usefulness of its audits and helps to avoid unintentional consequential costs in the planned legislation. The ACA also publishes its comments on federal laws on its website.

In 2009, the ACA performed 325 reviews and in the fi rst half of 2010, 140 drafts were reviewed.

Reviews of particular interest

Of particular public interest were the ACA reviews of a draft fed-eral fi nance law, a constitutional amendment of the administrative courts of second instance and of the law concerning the Austrian Broadcasting Association.

With regard to amendments on the federal fi nance law and the fed-eral budget law, various recommendations by the ACA, arising from its audit of fi nancing instruments, were implemented. The ACA wel-comed this in its comments.

On the draft of second instance administrative jurisdiction, the ACA indicated the interdependent steps required in terms of administra-tive reform measures in task, structure and organisational reform. Furthermore the ACA also established that the draft contained no discernible estimate of costs linked with the new legislation (costs of


Drafts reviewed 2006 2007 2008 20091st half 2010

Federal laws and international agreements 48 144 105 96 52

Federal regulations 184 173 161 165 65

Laender laws and regulations 77 51 72 64 23

Total drafts reviewed 309 368 338 325 140

60

rebuilding the administrative courts, salary costs, costs for the dis-solution of authorities), and no demonstration of total cost-benefi t weighting for the planned reform.

In its statement on the amendment of the legislation concerning the Austrian Broadcasting Association, the ACA remarked critically that many recommendations in its report on the audit of the Austrian Broadcasting Association had either not been or had only been par-tially implemented. It criticised above all the lack of legal guidelines for a mandatory implementation of the reform requirements in the Austrian Broadcasting Association, the unchanged structure and size of its foundation board and the ambiguously legislated requirement to implement measures for a substantial reduction of its cost base.

Special tasks of the ACA

Federal Financial Statements

The Federal Financial Statements (FFS) illustrate annual budget implementation. In particular they highlight any discrepancies ver-sus estimates, i.e. planned budget spend, and look at sustained budget development. In this way, the FFS serve, as do other ACA reports, fi rst and foremost as the basis for an exercise of legal control for the National Council. The FFS contain information on the fi nances of the state, on public debt and various data on economic development.

The FFS are compiled by the ACA on the basis of the annual fi nancial statements of the federal ministries, and the accompanying audits, in accordance with Section 9 of the Court of Audit Act (Section 9 audits) and – upon statement of the Ministry of Finance – they are submitted to the National Council no later than 30th September of the following fi nancial year.


61

The FFS consist of:

• a complete representation of the federal budget,

• estimate comparison statement, where the actual income and expenditure is compared to the budget estimate,

• the annual asset statement as a balance of wealth,

• the annual profi t and loss statement,

• an analysis on the state of federal debts and liabilities,

• fi nancial statements of public entities.

For the FFS reporting year 2009, the federal fi nancial statements were adapted to fi t in with the fi rst stage of the budget reform law and so already in April 2010, the interim fi nancial statements (fed-eral fi nancial statements 2009 – volume 1) were submitted. Con-tained in these, are the estimate comparison statement, and a com-plete representation of the federal budget. Through this process, it was possible for audited fi gures for the previous budgetary year and a sound analysis to be available for parliamentary debate on the budget framework law.


annual financial statements of the Ministry of Finance

National Council

Statement of the Ministry of Finance

MinistryMinistry Ministry

audits pursuant to Section 9 Court of Audit Act

redress of errors

federal financial statements

62

In the reporting period, the ACA achieved the following:

FFS 2008 FFS 2009

Audits pursuant to Section 9 (1) Court of Audit Act 1 2

Corrections pursuant to Section 31 RLV 8 33

Audited samples 1,974 3,275

Audited chapters/subdivisions 29 33

Review of movements in reserves:Release of reserves 40 7

Allocation from reserves 317 360

To cover higher-than-budgeted expenditure/total spending require-ments of the federal government in the amount of

EUR 1,139.1 million

EUR 802.9 million

Income report on the average income of the total population

This report contains information on the average income of the Aus-trian population, broken down for men and women, and by trade, profession and position. It also contains the income of employed and self-employed workers, data from agriculture and forestry and the income of pensioners.

The infl ation-adjusted development of average gross annual income for workers in comparison with the consumer price index (CPI) and for pensioners in comparison to the price index for pension incomes is presented. In addition, the report delivers a comparison between income in the private and public sectors. That such comprehensive data is available in such detail and with such accuracy is unique in Austria. The income report delivers the fundamental bases for public discussion, economic debate and political reform measures.

The ACA submits its income report every two years (in years ending in even numbers), in line with its legal obligation, to the National Council, the Federal Council and the Laender parliaments. This report is generated in close cooperation with “Statistik Austria”. The ACA last submitted an income report on the average income of the total population in 2008. On March 12th 2009, the report was discussed in parliament. The next submission is planned for December 2010.


63

Income report on the average income of the federal public sector

According to Art. 121 Subsection. 4 Fed. Const., the ACA must report every two years (in years ending in odd numbers) on the average income, including social and technical benefi ts, severance pay and pension benefi ts for management, members of the board and all employees of all federal enterprises and bodies which lie under its control.

According to Art. 121 Subsection. 4 Fed. Const. and § 14a Court of Audit Act, for the research and creation of the report, there must be an analysis of the average income of certain groups of people, who in the respective report year have a certain relationship with the bodies out-lined. Furthermore, it must not be possible to determine the actual sal-ary of an individual in the analysis. This is mainly because the average values may also contain fi gures relating to individuals from the enter-prises or bodies. That means that even in very small reported groups no reference to personal income details is permitted in the results.

The average incomes are made up of annual gross income including bonuses and voluntary social payments. Names of people are not notifi ed and not published. The data sent to the ACA by the organ-isations are checked for plausibility but not checked for their mate-rial correctness.

The ACA submitted its report on the average income of the federal public sector for 2008 and 2009 to the National Council in December 2009. On 11th February 2010 the report was discussed in the court of audit committee, on 24th February in a plenary session and taken note of. For 2009 and 2010, submission is planned in December 2011.

Cooperation on the fi nancial debt statement

All records on fi nancial liabilities, insofar as a federal duty arises from them, are to be countersigned by the president of the ACA, who confi rms the legality (not the economy or effectiveness) of the bor-rowing and its proper entry in the national debt ledger. For borrow-ing on the part of the Laender and the municipalities, there is no obligation for the ACA president to countersign.

Financial debts are all federal cash accounts payable which have the aim to make money available to the state coffers. Differentiated from fi nancial debts are administrative debts. These are the result of the activity of the state as a consumer or employer. They are not


64

entered into in order to “make money available”. In addition, so-called “transactions raising short-term liquidity” are also viewed separately to fi nancial debts. These are intended as an aid to liquid-ity and must be repayed within the same fi nancial year. If this does not occur, they automatically become fi nancial debts.

In 2009 and the fi rst half of 2010, the ACA assisted with the follow-ing fi nancial debts:

20091st half 2010

number

Federal government borrowing trans-actions 183 51

of these, countersigned 170 32

Volume in billion EUR

Financial debt incurred 33.31 16.39

Transactions raising short-term liquidity 10.96 11.48

Parties Act

Under the Parties Act, every year the political parties must submit a list of donations in excess of EUR 7,260 to the ACA president, by 30th September of the following year. Excluded from these are dona-tions from public bodies, from professional and economic associa-tions with voluntary membership, from institutes, foundations and funds. The ACA president must oversee that the list arrives on time and keep it safe. The Chancellor must be notifi ed of any late submis-sion or submission not in due time and must then withhold grants until submission.

At the request of a political party, the ACA president must issue a public statement on whether a donation to the party in question was properly declared. The ACA does not have the power to check whether the submitted list of donations is correct and complete.

Incompatibility Act

Under the Incompatibility Act, since 1983 all government members on a federal and Laender level and state secretaries must lay their fi nan-cial circumstances open to the offi ce of the ACA president every two


65

years and when they enter and leave offi ce. In the case of unusual increases in fi nances, he must inform the president of the National Council or of the relevant Laender parliament.

As in the case of the Parties Act, the ACA president also has a notarial role. However, he has no auditing or control power with regard to the material correctness or completeness of records.

Limitation on Payments Act

In 1997, the National Council enacted the Limitation on Payments Act, which is based on a salary pyramid and allocates payment levels depending on role, from the Federal President to the Federal Council representatives and from the Laender governors to the Laender rep-resentatives. Income thresholds are also standardised for roles in the National Bank, in statutory interest bodies, and in social insurance. Pensions and severance pay for politicians are abolished with this law.

The Limitation on Payments Act provides for the following tasks for the ACA and its president:

• declaration of the adjustment factor for payments to public sec-tor representatives,

• submission of a report on the average income of the total popu-lation (Income Report).

Facts and Figures

Media coverage

The media is an important partner for the ACA, and is seen as the ACA’s link to the public. Public discussion and reporting on the pub-lished reports increase the transparency of the ACA’s activities and enhance its effectiveness.

The debates surrounding many of the ACA reports – for example on the fi nancing instruments applied by public authorities or on the investment of housing promotion loans in Lower Austria – and the ACA mandate in connection with the terminal building “Skylink” at Vienna airport have triggered a media storm in the past 18 months. In the print media alone, the ACA had well over 10,000 mentions during the reporting period.


66

The ACA held a press conference on 10th September 2009 in the func-tion room of the refurbished ACA building in Dampfschiffstrasse to present its 2008/9 annual report. Amongst other things, the ACA president, Dr Josef Moser, spoke at the event on the results of the customer survey in the report and confronted current issues with regard to audit fi ndings and administrative reform.

On the periphery of the parliamentary consultation of the ACA on the investment of the housing promotion loans in the Lower Austrian Laender parliament, President Dr Josef Moser held a press confer-ence in St. Pölten on 15th July 2010. As before in the audit commit-tee of the Lower Austrian Laender parliament, he set out the incon-trovertible facts and fi gures from the report.

ACA website

All information about the ACA, all reports and publications can be found on the website: www.rechnungshof.gv.at. The ACA website has been set up barrier-free in terms of W3C guidelines and laid out to meet the needs of users.

In March 2007, the ACA relaunched its website with a new design and broader content. The success of this relaunch can be seen in user fi g-

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67

ures: in the reporting period there were 418,000 hits. In 2009 alone, there were approximately 278,000 hits. In comparison in 2007 there were about 84,200 hits.

The content of the website is constantly updated. News is put on the home page and, if wished for by users, RSS feeds can be set up for updates.

The ACA and the National Council

The National Council is responsible for budgeting, is the control organ for the government and, in auditing and fi nancial manage-ment control, it supports the audit activity of the ACA. In addition, the federal constitution has established the ACA as the independent organ of the National Council and tasked it to “audit the management of the state, of Laender, of municipal associations and municipali-ties with more than 20,000 inhabitants and other statutory entities”.

The rules of procedure of the National Council grant the right to the ACA president to participate in National Council debates dealing with ACA reports, the federal fi nancial statements, motions for spe-cial audits to be performed and with regard to sections of the Fed-eral Finance Bill which are pertinent to the ACA, as well as to take part in relevant plenary sessions and grants him the right to speak.

The reports which the ACA submits to the National Council are dis-cussed in the Court of Audit committee. This is made up of the poli-tical parties represented in the National Council. Following the com-mittee discussions, to which people are generally brought in for information purposes, the ACA reports are discussed in a plenary session of the National Council and taken note of.


68

Both in the discussion of the federal fi nancial statements and dur-ing discussion of the chapter of the Federal Finance Bill pertinent to the ACA, the ACA president also has the right to participate and speak up in the budget committee.

The ACA president took part in ten sessions of the Court of Audit committee in 2009 and in eight plenary sessions of the National Council; in the fi rst six months of 2010 he participated in seven ses-sions of the Court of Audit committee and in four plenary sessions of the National Council.

In addition, the recommendations of the ACA are incorporated into the work of the National Council via its members. In 2009, 251 par-liamentary questions referred to the work of the ACA. In this way, its audit fi ndings and recommendations entered the parliamentary right of interpellation. In the fi rst six months of 2010, there were 105 questions referring to ACA reports.

Reporting to the National Council

In 2009 the ACA submitted 14 reports, the ACA report on average income of the federal public sector, and the 2008 federal fi nancial statements to the National Council. In the fi rst six months of 2010, seven reports and volume 1 of the federal fi nancial statements 2009 were submitted.

Incompatibility Committee

According to the Incompatibility Act, members of the National Coun-cil or the Federal Council must make it known when they take an executive position in a corporation or limited company in certain sectors (construction, trade, industry, transport). Before discussions on these matters in the Incompatibility Committee, the president of the National Council asked the ACA which of the companies involved fell under the competence of the ACA. In addition, she asked the ACA to establish whether the share participation notifi ed by members of government was in excess of 25% and whether these companies fell under the competence of the ACA. In order to answer these ques-tions, the ACA checked the data of the company in question.

Parliamentary enquiries

• The National Council has the right to raise questions concerning the ACA’s budget management, independence and organisation.


69

• In 2009 and 2010 the president of the ACA responded in writing to the following parliamentary enquiries:

• Parliamentary enquiry 5145/J by member Bernhard Themessl and colleagues with regard to interpretation of Employment Law, on 23rd April 2010

• Parliamentary enquiry 4899/J by member Mag. Christine Lapp and colleagues with regard to organisational changes, on 23rd March 2010

• Parliamentary enquiry 4880/J by member Mag. Helene Jarmer and colleagues with regard to compliance with Disability Employment Obligations 2008 and 2009, on 19th March 2010

• Parliamentary enquiry 4748/J by member Helene Jarmer and col-leagues with regard to implementation of the UN Convention on Rights of People with Disability, on 26th February 2010

• Parliamentary enquiry 4747/J by member Dr Peter Pilz and friends with regard to hotel operation of the People’s Party academy and new building on the Marillenalm, on 26th February 2010

• Parliamentary enquiry 2890/J by member Mag. Dr Manfred Haim-buchner and colleagues with regard to an audit of election cam-paign cost refund to HMP, on 13th July 2009

• Parliamentary enquiry 2193/J by member Dr Peter Fichtenbauer and colleagues with regard to the national fund for victims of National Socialism/compensation fund, on 27th May 2009

• Parliamentary enquiry 1033/J by member DDr Werner König-shofer and colleagues with regard to share capital to the value of EUR 900 million from the bank rescue package of the Republic of Austria to the Hypo Group Alpe Adria, on 25th February 2009.

The ACA and the Laender parliaments

The ACA acts as an organ of the Laender parliaments in matters relat-ing to the fi nancial management of the Laender, municipalities and municipal associations as well as the statutory professional repre-sentations (chambers), to the extent that these operations fall under the scope of implementation of the Laender. It coordinates its audit programme, in line with agreements of 2004 and 2005, with the audit institutions of the Laender and the City of Vienna.


70

In terms of the Laender, the ACA is responsible for the auditing of

• fi nancial management in the area of effective independence of the Laender,

• fi nancial management of all donations, funds and establishments, which are administered by Laender bodies or by people who have been tasked by a Laender body,

• fi nancial management of companies

– which are run by one of the Laender either alone, or together with other legal entities, which lie under the audit mandate of the ACA,

– those in which one of the Laender alone or together with such legal entities have at least 50% participation, or

– over which one of the Laender alone or together with other such legal entities has de facto control due to fi nancial, eco-nomic or other organisational reasons;

• fi nancial management of public legal bodies with Laender funds,

• auditing of the management of statutory professional represent-ative bodies (chambers).

In addition, the Laender parliaments must submit their estimates and fi nancial statements every year to the ACA.

The ACA offers services to the Laender parliaments which only it can supply, due to its comprehensive competence in the overall public sector and to its international audit experience. In particular it can audit on a comprehensive Laender basis and by virtue of its special position offer an overall and networked perspective. With its theme-specifi c audit focuses, it can provide a horizontal com parison, e.g. between two or more Laender, or a vertical comparison, e.g. between several institutions, and with its audit fi ndings it can supply bench-marks and recommendations for the federal, Laender and munici-pal level.

Relationships to individual Laender parliaments are set up in different ways, by law. Some Laender parliaments (and the municipal coun-cil of the City of Vienna, which acts as the Viennese parliament) are very involved with the reports. With few exceptions, the Laender par-


71

liaments also make great use of the opportunity to involve the presi-dent and the auditors of the ACA in discussions involving the reports. More specifi c regulations in this regard are found in the Laender con-stitutions and rules of procedure of the Laender parliaments.

In 2009 and the fi rst six months of 2010, employees of the ACA took part in 57 committee meetings in Laender parliaments. In the Laender parliaments 120 ACA reports were registered.

The ACA and other audit institutions

Alongside audit clients and the general representative bodies, the ACA regards other audit institutions, such as the European Court of Auditors, the supreme audit institutions of other countries, the audit institutions of the Laender and municipalities and internal auditing bodies, as part of its auditing network.

Public auditing is carried out by this network of auditing bodies, who all work together in an atmosphere of trust and partnership. Cooperation ensures comprehensive, necessary and effi cient audit-ing, achieves transparency and signifi cantly contributes to trust in the democratic bodies.

When setting its goal of increasing effi ciency and effectiveness of auditing in the public arena, the ACA works with other auditing insti-tutions and further enhances this cooperation.

Audit institutions of the Laender

The ACA and the audit institutions of the Laender support each other in their roles. They coordinate their audit programmes in order to avoid overlapping. While the audit institutions of the Laender have the advantage of close proximity to their audit clients and a famil-iarity with local issues, the ACA can bring its international expe-rience and overall perspective to the audit process. As it has audit competence on all levels of government, it can audit across Laender and make benchmark comparisons with cross-cutting audits. Due to the close connection between the fi nancial fl ows between federal, Laender and municipal levels of government, this networked perspec-tive is essential for comprehensive external public auditing. In par-ticular, the ACA can audit projects which have been jointly fi nanced by federal, Laender and municipal level of government.


72

Municipal audit offi ces

The ACA also has a good working relationship with the municipal audit offi ces (town audit offi ces and audit institutions). It nurtures this cooperation in its auditing activity with regular exchanges of experience and regular participation at events, particularly in talks on a Laender and municipal level, in which it takes part.

Internal auditing

The ACA has always striven to have a good relationship with inter-nal auditing bodies and considers them, due to their “insider know-ledge”, to be their fi rst point of contact when carrying out audits. Accompanying control mechanisms through internal auditing is seen by the ACA as an ideal complement to its external ex-post audit-ing measures. In its audits, the ACA has therefore recommended a strengthening of internal auditing and has pointed to a lack in per-sonnel and material resourcing and an alteration to functions which are not audit-friendly, amonst others.

73


Audit result Report CommitteePlenaryassembly

Financial transactions of Austrian Federal Railways Holding AG and individual companies of Deutsche Bank AG Infrastructure funding for private railways; follow-up audit Use of additional revenues from petrol tax increases Universities for music and performing arts of Graz and Vienna, Uni-versity Mozarteum Salzburg: preparatory courses; follow-up audit

Fed. gov. 2010/7

Transport link and city development main train station Vienna Barracks and property purchases through SIVBEG Police emergency service Laboratory costs at certain health insurance funds

Fed. gov. 2010/6

10/6/10

Partial aspects of 2005 health reform with Laender focus in Tyrol and Vienna Merger of the pension insurance funds for workers and employ-ees; follow-up audit VERBUND: Austrian Hydro Power AG: pumped storage hydro power plant Limberg II Austrian Federal Railways: speed restriction areas

Fed. gov. 2010/5

10/6/10

Supportive deployment of the Federal Armed Forces in border areas Federal travel cost provision in the Federal Chancellery and cen-tral travel organisation in Bundesbeschaffung GmbH Federal agency Statistik Austria; follow-up audit Annual summary of audits and statements to the European Com-mission according to Art. 53b, Subs.3 of EU budget regulation Austrian embassy in Budapest; follow-up audit IT HR management project – NEW Procurator General; follow-up audit

Fed. gov. 2010/4

25/3/10

Reports for 2009 and fi rst half 2010

Reporting at a federal level

In 2009 the ACA submitted 14 reports to the National Council, the 2008 EU f nance report, the ACA report on average income and additional benef ts for pensioners of companies and entities in the public sector in 200 7 and 2008, in accordance with Art. 12 1 Subs. 2.4 Fed Const, and the 2008 federal f nancial statements. The reports contained 54 contributions and 52 re-submissions.

In the f rst half of 2010 the ACA submitted seven reports to the National Council. These reports contained 34 results.

74


Implementation of care benefits Trauma surgery care in the Laender capital Linz; follow-up audit State prosecution service Vienna Single farm payment; participation in an audit of the European Court of Auditors Special offer of Austrian Federal Railways Personenverkehr AG

Fed. gov. 2010/3

25/3/10

Implementation of the PPP concession model east region, pack-age 1 Investment in tunnel security Security research programme KIRAS Lending of collection by federal museums Employee investment; follow-up audit

Fed. gov. 2010/2

25/3v10

In-house auditing of spin-off federal bodies Employment market service Austria, service for companies – key account management GIG AG for building and infrastructure ownership Impact of personnel autonomy on total cost of Vienna University and Vienna University of Economics and Business1) Austrian polytechnics2)

Fed. gov. 2010/1

6/5/101)2)

11/3/10

19/5/10

Annual activity report General section Special section Follow-up enquiries 2008 International section

Fed. gov. 2009/14

11/2/10 24/2/10

Healthcare in the Federal Armed Forces – military plans VAT on foreign companies Refugee care; follow-up audit2) Jail Stein; follow-up audit1) Organisation and effectiveness of school inspection; follow-up audit

Fed. gov. 2009/13

10/6/101)2)

6/5/10

11/3/10

21/1/10

Austria Wirtschaftsservice GmbH Vienna Public Transport – 3rd development phase of lines U1 and U2 Harmonisation of train safety Austrian Federal Railways company group: mobile phone infra-structure and mobile telephone provision Duration of proceedings in civil law processes Federal sport sponsorship in the Laender of Upper Austria and Tyrol

Fed. gov. 2009/12

10/6/10

26/11/09


75


Cooperation in development aid in the Austrian Ministry of For-eign Affairs and the Austrian Development Agency A4 Business Solutions GmbH Decision preparation in high courts Environmental situation in the three border area of Austria-Hun-gary-Slovenia; follow-up audit Western railway – selected construction projects; follow-up audit

Fed. gov. 2009/11

10/6/10

26/11/09

Reform of the public service pension system on federal and Laender level

Fed. gov. 2009/10

15/10/09

Knowledge and technology transfer, procurement and management of third party funds in the Technical Universities of Graz and Vienna Technical Universities of Graz and Vienna – evaluation of research findings Structure of foreign language classes; follow-up audit Pension fund: implementation of federal care allowance law Measures to combat technical staff shortage Financing of motorways and highways company ASFINAG: trans-port telematics1)

Fed. gov. 2009/9

26/11/091)17/9/09

29/1/10

Financing instruments applied by public authorities Reform of public sector pension system in the Laender of Tyrol, Vorarlberg and Vienna

Fed. gov. 2009/8

17/9/09

Climate-relevant measures for housing sanitation on a Laender level1) Payment guideline regulations and economic situation of not-for-profit housing associations Selected support processes (presidential reform); follow-up audit Employment market service Austria; follow-up audit Role fulfilment of the chief and senior medical personnel of the health insurance funds; follow-up audit

Fed. gov. 2009/7 21/1/101)17/9/09

29/1/10

Efficiency and quality of vocational schools Employment market service of Upper Austria, Salzburg and Styria – measures to tackle youth unemployment Energy taxation in Austria; follow-up audit Control of illegal employees; follow-up audit IG Immobilien Invest GmbH; follow-up audit build! Gründerzentrum Kärnten GmbH Company group Austrian Federal Railways: external advisory ser-vices; follow-up audit

Fed. gov. 2009/6

6/5/1011/3/1025/6/09

Role fulfilment and organisation of the forestry services in the Laender

Fed. gov. 2009/5

21/1/10 29/1/10


76


Internal audit system in the area of EU structural funds – oper-ational programme phasing out Burgenland 2007 to 2013 EFRD Implementation of the European social fund through Employment market service Burgenland Insurance fund for railways and mining: implementation of fed-eral care allowance law Austrian Federal Railways Dienstleistungs GmbH: implementation of federal care allowance law Austro Control Austrian limited liability company for civil aviation Report on the Audit of the Management and Control Systems of the EU Structural Funds

Fed. gov. 2009/4

25/3/09

Austrian Research Centers GmbH – ARC1) Railway project Semmering base tunnel, development of the exist-ing Semmering section; follow-up audit2) GIS Gebühren Info Service GmbH (service company for the admin-istration of public broadcasting fees); follow-up audit Federal property administration Animal identification and animal database; follow-up audit Water utility company Gnasbach regulation and supervision on water regulation companies

Fed. gov. 2009/3

26/11/091)2)25/3/09

29/1/10

Control and monitoring of the performance of the Austrian uni-versities (“university controlling”) Medical University of Innsbruck; Department for Hygiene, Micro-biology and Social Medicine Schoolchild and apprentice transport subsidy Austrian Broadcasting Corporation

Fed. gov. 2009/2

15/10/09 17/4/09 19/2/09

21/10/09

Selected investigative measures Areas of financial management including healthcare through the Ministry of Health, Family and Youth; follow-up audit Austrian federal forestry AG; real estate and property management and share management Land of Vienna: implementation of the Vienna care benefits law and the federal care benefits law and overlapping management of social funds Vienna “Volkstheater” Ges.m.b.H Vienna port, GmbH & Co KG Flood prevention measures on the March Marchfeld Castles renovation and operation company m.b.H. Institute of Science and Technology – Austria

Fed. gov. 2009/1 Bd 6 (WV 2008/10)

11/3/1017/4/09 19/2/09

22/4/10


77


Social fund of the Federal President – Austrians in need Air surveillance planes: comparison of the Republic of Austria with the Eurofighter Jagdflugzeug GmbH Cooperation of the Veterinary Medicine University of Vienna with the Spanish Riding School – federal stud Piber Veterinary Medicine University of Vienna; follow-up audit Physical education in schools Waste disposal logistics Austria GmbH Motorways and Highways financing company ASFINAG

Fed. gov. 2009/1 Bd 5 (WV 2008/9)

25/6v0905/3/0919/2/09

10/7/09

Federal procurement GmbH Protection from natural disaster; use of resources from the dis-aster fund Forensic medicine; follow-up audit Implementation of Natura 2000 network in Austria Electronic data management in waste management IMC Technical College Krems GmbH; federal provision of services Patient compensation funds in the Laender of Lower Austria, Sty-ria and Vienna Deployment of Austrian teachers abroad (foreign schools) Freight costs for re-location; follow-up audit Federal pension office: implementation of federal care allowance law

Fed. gov. 2009/1 Bd 4 (WV 2008/8 und 2008/7)

17/9/0917/4/09 25/3/09 19/2/09

23/9/09

Internal auditing bodies; follow-up audit Austrian embassies in Madrid and Lisbon Austrian bank notes and security printing GmbH; follow-up audit Measures for the protection of the environment and health in road construction in Austria A9 Pyhrn motorway Inzersdorf – Schön; follow-up audit Brenner base tunnel BBT SE – construction planning of the Bren-ner base tunnel Real estate management of the Austrian Federal Railways Holding AG and individual Austrian Federal Railways companies

Fed. gov. 2009/1 Bd 3 (WV 2008/5 und 2008/6)

17/4/09 17/6/09

Comparison of the Vienna health insurance fund with the Upper Austrian health insurance fund Advancement of women Resources for citizen training by political parties Austrian advertising Austrian Students’ Union Austrian Students’ Union in the Technical Universities of Graz and Vienna

Fed. gov. 2009/1 Bd 2 (WV 2008/2 und 2008/4)

25/3/09 21/4/09


78


Common initiative INTERREG III A – Austria – Hungary; partici-pation in an audit of the European Court of Auditors on the DAS for the budget year 2006 Federal police authority Salzburg; follow-up Federal police authority Vienna; follow-up Administrative and control system for resources of the European social fund in Austria Göttlesbrunnerbach water company; supervision of water com-panies Army photo and film archive; follow-up audit Implementation of federal railways structure law Retirement in Austrian Federal Railways; follow-up audit Collection of tax arrears Single farm payment; participation in an audit of the European Court of Auditors Constitutional protection and combating terrorism Housing and security of federal further education schools Medical Universities of Vienna, Graz and Innsbruck and Veter-inary Medicine University of Vienna – regulations on entry to higher education

Fed. gov. 2009/1 Bd 1 (WV 2007/14, 2007/15 und 2008/3)

19/2/09 12/3/09

79


Reporting at a Laender and local level

In 2009 the ACA submitted 63 reports to the Laender parliaments. T o the town represent-ative bodies, municipalities and municipal associations it submitted 33 reports. The reports contained a total of 112 audit results.

In the f rst six months of 2010 (to 30th June 2010), the ACA submitted a total of 30 reports with 55 contributions on audits (of which eight were resubmissions), of which 25 were reports to the Laender parliaments and f ve were reports to representative bodies of towns, munici-palities and municipal associations.

80

Burgenland

The ACA submitted eight reports in Burgenland in 2009, of which seven were submitted to the Laender parliament and one to an association assembly. They contained eleven contributions on audit results and the follow-up enquiry of 2008. In the fi rst six months of 2010, there were two reports to the Burgenland parliament, with three contributions.

Audit subject Recipient Report CommitteePlenaryassembly

City of Vienna; water, sewage and refuse charges and energy prices

Land Burgenland

Burgenland 2010/2

Implementation of care benefi ts Childcare; follow-up audit

Land Burgenland

Burgenland 2010/1

15/3/10 18/3/10

Follow-up enquiry Waste Water Association Mittleres Strem and Zickenbachtal

association assembly

Burgenland 2009/8

– –

Annual activity report General section Follow-up enquiry Burgenland

Land Burgenland

Burgenland 2009/7

15/3/10 18/3/10

Climate-relevant measures of the Land in the area of energy Environmental situation in the three border area of Austria, Hungary and Slovenia; fol-low-up audit Procurement and work funds; follow-up audit Esterhazy Castle Management Ges. mbH; fol-low-up audit Heiligenkreuz logistic and foundation cen-tre GmbH

Land Burgenland

Burgenland 2009/6

4/11/09 19/11/09

Reform of the public sector pension system on Federal and Laender level

Land Burgenland

Burgenland 2009/5

14/10/09 29/10/09

Financing instruments applied by public authorities Budget structure of the Laender

Land Burgenland

Burgenland 2009/4

14/10/09 29/10/09

Climate-relevant measures for housing sani-tation on Laender level

Land Burgenland

Burgenland 2009/3

23/9/09 1/10/09

Follow-up enquiry 2006/2007 EU fi nance report 2008 Role fulfi lment and organisation of the for-estry service in the Laender

Land Burgenland

Burgenland 2009/2

20/5/09 28/5/09

Internal audit system in the area of EU struc-tural funds – operational programme phasing out Burgenland 2007 to 2013 EFRE

Land Burgenland

Burgenland 2009/1

25/3/09 16/4/09

81


Carinthia

The ACA submitted eleven reports in Carinthia in 2009, of which seven were submitted to the Laender parliament and four to muni-cipal councils. They contained eleven contributions on audit results and the follow-up enquiry of 2008. In the fi rst six months of 2010, there were three reports to the Carinthian parliament, with fi ve con-tributions on audits.


VERBUND: Austrian Hydro Power AG: pumped storage hydro power plant Limberg II

Land Carinthia Carinthia 2010/4

23/6/10

Implementation of care benefi ts Land Carinthia Carinthia 2010/3

School municipal association Greater Klagen-furt

Municipal council

Carinthia 2010/2

– –

School municipal association Greater Klagen-furt Austrian Polytechnics GIG real estate and infrastructure holding AG


Water provision Villach town, Laender capi-tal Klagenfurt am Wörthersee, Laender cap-ital Innsbruck

Municipal council

Carinthia 2009/11

– –

Water provision Villach town, Laender capi-tal Klagenfurt am Wörthersee, Laender cap-ital Innsbruck Follow-up enquiry Klagenfurt

Municipal council

Carinthia 2009/10

– –

Annual activity report General section Water provision Villach town, Laender capi-tal Klagenfurt am Wörthersee, Laender cap-ital Innsbruck Follow-up enquiry Carinthia


18/3/10

Climate-relevant measures of the Land in the area of energy


29/4/10



26/11v09


82


Financing instruments Villach Municipal council

Carinthia 2009/6

– –

Financing instruments Villach Financing instruments applied by public authorities Budget structure of the Laender


Measures for administrative reform; follow-up audit

Municipal council

Carinthia 2009/4

– –

Climate-relevant measures for housing sani-tation on Laender level Measures for administrative reform; follow-up audit


Effi ciency and quality of vocational schools Build! Gründerzentrum Kärnten GmbH


29/10/09

Role fulfi lment and organisation of the for-estry service in the Laender Follow-up enquiry 2006/2007 EU fi nance report 2008


19/5/09 28/5/09

83


Lower Austria

Altogether, the ACA submitted 13 reports to the Land of Lower Aus-tria in 2009, of which six were submitted to the Lower Austrian par-liament and seven to municipal councils. They contained seven con-tributions on audit results and the follow-up enquiry of 2008. In the fi rst six months of 2010, there were fi ve reports, three to the Lower Austrian parliament and two to municipal councils. They contained seven contributions on audits.


Investment management of the Land of Lower Austria with regard to revenues from housing promotion loans and sale of shares

Land Lower Austria

Lower Austria 2010/5

Community association of waste management of the administrative area of Korneuburg

Municipal council


– –

VERBUND: Austrian Hydro Power AG: pumped storage hydro power plant Limberg II City of Vienna; water, sewage and refuse charges and energy prices Community association of waste management of the administrative area of Korneuburg

Land Lower Austria


12/5/10 20/5/10

Charges of the towns of Amstetten and Leoben Municipal council


– –

Implementation of care benefi ts Integration of sustainable development in the Laender of Lower Austria, Styria and Vorarl-berg Charges of the towns of Amstetten and Leoben

Land Lower Austria


18/3/10 20/5/10

Follow-up enquiry Wiener Neustadt Municipal council


– –

Follow-up enquiry Klosterneuberg Municipal council


– –

Follow-up enquiry community association for sewage disposal, Pöchlarn area

Municipal council


– –

Follow-up enquiry community association school association of the Polytechnic School, Krems an der Donau

Municipal council


– –

Follow-up enquiry Baden Municipal council


– –

Follow-up enquiry Mödling Municipal council


– –


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Annual activity report General section Follow-up enquiry Lower Austria Follow-up enquiry Baden Follow-up enquiry Mödling Follow-up enquiry community association sewage disposal Pöchlarn area Follow-up enquiry community association school association of the Polytechnic School, Krems an der Donau Follow-up enquiry Wiener Neustadt Follow-up enquiry Klosterneuberg

Land Lower Austria


14/1/10 21/1/10

Climate-relevant measures of the Laender in the area of energy

Land Lower Austria


12/11/09 21/1/10


Land Lower Austria


24/9/09 1/10/09

Budget structure of the Laender (excluding Vienna) General hospital St. Pölten-Lilienfeld; fol-low-up audit

Land Lower Austria


24/9/09 1/10/09


Land Lower Austria


24/9/09 1/10/09

Land capital St. Pölten: HR, organisation and IT; follow-up audit

Municipal council


– –

Role fulfi lment and organisation of the for-estry service in the Laender Land capital St. Pölten: HR, organisation and IT; follow-up audit Follow-up enquiry 2006/2007 EU fi nance report 2008

Land Lower Austria


7/5/09 14/5/09

85


Upper Austria

Altogether, the ACA submitted 19 reports to the Land of Upper Austria in 2009, of which eight were submitted to the Upper Austrian parlia-ment, ten to municipal councils and one to a municipal association. They contained 15 contributions on audits and the follow-up enquiry of 2008. In the fi rst six months of 2010, a total of six reports were published, of which fi ve were for the Upper Austrian parliament (one was a re-submission) and one was for a municipal council. They con-tained six contributions on audits and seven re-submissions.



Land Upper Austria

Upper Austria 2010/6

Budget structure of the Laender (excluding Vienna) Financing instruments applied by public authorities, focussing on the town of Wels Regional trade association of Grieskirchen, St. Georgen and Tollet Reform of the public sector pension system on Federal and Laender level Climate-relevant measures of the Laender in the area of energy Upper Austria Landesbank AG, follow-up audit Comparison of charges of the Laender capi-tals of Linz and Salzburg

Land Upper Austria


Trauma surgery care in the Laender capital Linz; follow-up audit Linz AG for energy, telecommunication, trans-port and community services; biomass heat-ing factory; follow-up audit

Local council Upper Austria 2010/4

– –

Implementation of care benefi ts Trauma surgery care in the Laender capital Linz; follow-up audit Linz AG for energy, telecommunication, trans-port and community services; biomass heat-ing factory; follow-up audit

Land Upper Austria


8/4/10 15/4/10

Investments in tunnel safety Land Upper Austria


8/4/10 15/4/10

Austrian Polytechnics Land Upper Austria


8/4/10 15/4/10


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Follow-up enquiry Linz Local council Upper Austria 2009/19

– –

Follow-up enquiry Wels Local council Upper Austria 2009/18

– –

Annual activity report General section Follow-up enquiry Upper Austria Follow-up enquiry Wels Follow-up enquiry Linz

Land Upper Austria


8/4/10 15/4/10

LAWOG, not-for-profi t Land housing associa-tion for Upper Austria; follow-up audit


– –



– –

LAWOG, not-for-profi t Land housing associa-tion for Upper Austria; follow up audit


– –

LAWOG, not-for-profi t Land housing associa-tion for Upper Austria; follow-up audit Town of Steyrr


– –



– –

LAWOG, not-for-profi t Land housing associa-tion for Upper Austria; follow-up audit Sports promotion on federal level and in the Laender of Upper Austria and Tyrol Town of Steyr

Land Upper Austria


10/12/09 28/1/10

Comparison of charges of the Laender capi-tals of Linz and Salzburg


– –

87



Climate-relevant measures of the Laender in the area of energy Upper Austrian Landesbank AG; follow-up audit Comparison of charges of the Laender capi-tals of Linz and Salzburg

Land Upper Austria


verfallen


Land Upper Austria


verfallen

Regional trade association of Grieskirchen, St. Georgen and Tollet

Association assembly


– –

Financing instruments applied by public authorities, focussing on the town of Wels


– –

Budget structure of Laender (excluding Vienna) Financing instruments applied by public authorities, focussing on the town of Wels Regional trade association of Grieskirchen, St. Georgen and Tollet

Land Upper Austria


verfallen


Land Upper Austria


2/7/09 9/7/09

Effi ciency and quality of vocational schools Land Upper Austria


2/7/09 9/7/09

LINZ SERVICE GmbH; follow-up audit Municipal council


– –

Role fulfi lment and organisation of the for-estry service in the Laender Child care; follow-up audit LINZ SERVICE GmbH; follow-up audit Follow-up enquiry 2006/2007 EU fi nance report 2008

Land Upper Austria


2/7/09 9/7/09


88

Salzburg

Altogether, the ACA submitted eight reports to the Land of Salzburg in 2009, of which six were submitted to the Salzburg parliament, one to a municipal council and one to an association assembly. They contained seven contributions on audits and the follow-up enquiry of 2008. In the fi rst six months of 2010, three reports were submitted to the Salz-burg Land parliament, containing a total of four audit contributions.


Administration of city of Salzburg: audit sys-tem – personnel administration

Land Salzburg Salzburg 2010/3

Implementation of care benefi ts Donation Haus Fuschl


24/3/10 5/5/10

Austrian Polytechnics Land Salzburg Salzburg 2010/1

24/2/10 17/3/10

Follow-up enquiry Registry Offi ce and state cit-izenship association Sankt Michael im Lungau


Salzburg 2009/8

– –

Annual activity report General section Follow-up enquiry Salzburg Follow-up enquiry Registry Offi ce and state citizenship association Sankt Michael im Lun-gau


24/2/10 17/3/10

Comparison of charges of the Laender capi-tals of Linz and Salzburg

Local council Salzburg 2009/6

– –

Climate-relevant measures of the Laender in the area of energy Comparison of charges of the Laender capi-tals of Linz and Salzburg


2/12/09 16/12/09



21/10/09 4/11/09

Budget structure of the Laender (excluding Vienna) Financing instruments applied by public authorities, focussing on the Land of Salzburg


21/10/09 4/11/09



7/10/09 4/11/09



27/5/09 10/6/09

89


Styria

In 2009 the ACA submitted nine reports to the Land of Styria, of which seven were submitted to the Styrian parliament and two to the muni-cipal council. They contained nine contributions on audits and the fol-low-up enquiry of 2008. In the fi rst six months of 2010, four reports were published, three for the Styrian Land parliament and one for a municipal council, containing fi ve audit contributions.



Land Styria Styria 2010/4

Charges of the towns of Amstetten and Leoben Local council Styria 2010/3 – –

Implementation of care benefi ts Integration of sustainable development in the Laender of Lower Austria, Styria and Vorarl-berg Charges of the towns of Amstetten and Leoben

Land Styria Styria 2010/2 4/5/10 18/5/10

Austrian Polytechnics Land Styria Styria 2010/1 4/5/10 18/5/10

Follow-up enquiry Graz Local council Styria 2009/9 – –

Annual activity report General section Follow-up enquiry Styria Follow-up enquiry Graz


Climate-relevant measures of the Laender in the area of energy Environmental situation in the three border area of Austria-Hungary-Slovenia; follow-up audit


Reforms of federal and Laender public sector worker pension systems


Sewage plant Graz – Gössendorf; follow-up audit

Local council Styria 2009/5 – –

Budget structure of the Laender (excluding Vienna) Sewage plant Graz – Gössendorf; follow-up audit



90


Climate-relevant measures for housing sani-tation on Laender level Land capital Graz: cooperation in hospital care

Land Styria Styria 2009/3 3/11.09 17/11/09



Water association Gnasbach regulation and supervision on water regulation associations


91


Tyrol

In 2009 the ACA submitted ten reports to the Land of Tyrol, of which seven were submitted to the Tyrolean parliament, two to a municipal council and one to an association assembly. They contained a total of eleven contributions on audits and the follow-up enquiry of 2008. In the fi rst six months of 2010, two reports were submitted to the Tyrolean parliament, containing three audit contributions.

Audit subject Recipient Report CommitteePlenary

assembly

Areas of health reform 2005 with Laender focus on Tyrol and Vienna VERBUND: Austrian Hydro Power AG: pumped storage hydro power plant Limberg II

Land Tyrol Tyrol 2010/2 21/4/10 5/5/10

Implementation of care benefi ts Land Tyrol Tyrol 2010/1 10/3/10 24/3/10

Water provision town of Villach, Land capi-tal Klagenfurt am Wörthersee, Land capital Innsbruck Follow-up enquiry Innsbruck

Local council Tyrol 2009/10 – –

Annual activity report General section Follow-up enquiry Innsbruck Follow-up enquiry Tyrol Water provision town of Villach, Land capi-tal Klagenfurt am Wörthersee, Land capital Innsbruck

Land Tyrol Tyrol 2009/9 20/1/10 3/2/10

Sports promotion on federal level and in the Laender of Upper Austria and Tyrol

Land Tyrol Tyrol 2009/8 2/12/09 17/12/09

medex medical exhibition company m.b.H. Local council Tyrol 2009/7 – –

Climate-relevant measures of the Laender in the area of energy medex medical exhibition company m.b.H.

Land Tyrol Tyrol 2009/6 4/11/09 18/11/09


Land Tyrol Tyrol 2009/5 16/9/09 30/9/09

Waste management association Unterland Association assembly

Tyrol 2009/4 – –


92

Audit subject Recipient Report CommitteePlenary

assembly

Budget structure of the Laender (excluding Vienna) Reforms of public sector worker pension sys-tems in Tyrol, Vorarlberg and Vienna Financing instruments applied by public authorities, focussing on the Land of Tyrol Waste management association Unterland

Land Tyrol Tyrol 2009/3 16/9/09 30/9/09


Land Tyrol Tyrol 2009/2 16/9/09 30/9/09


Land Tyrol Tyrol 2009/1 17/6/09 1/7/09

93


Vorarlberg

In 2009 the ACA submitted ten reports to the Land of Vorarlberg, of which seven were submitted to the Vorarlberg parliament (one a re-sub-mission), two to a municipal council and one to an association assem-bly. They contained a total of seven contributions on audits and fi ve re-submissions, as well as the follow-up enquiry of 2008. In the fi rst six months of 2010, one report was submitted to the Vorarlberg par-liament, containing two audit contributions and one re-submission.


Implementation of care benefi ts Integration of sustainable development in the Laender of Lower Austria, Styria and Vorarl-berg Climate-relevant measures for housing sanita-tion on Laender level (re-submission)

Land Vorarlberg

Vorarlberg 2010/1

24/3/10 14/4/10

Follow-up enquiry school association sec-ondary school Sulz-Röthis


Vorarlberg 2009/10

– –

Follow-up enquiry Bregenz Local council Vorarlberg 2009/9

– –

Annual activity report General section Follow-up enquiry Vorarlberg Follow-up enquiry Bregenz Follow-up enquiry school association sec-ondary school Sulz-Röthis

Land Vorarlberg

Vorarlberg 2009/8

27/1/10 3/2/10

Budget structure of the Laender (excluding Vienna) Reform of the public sector pension system in Tyrol, Vorarlberg and Vienna Follow-up enquiry 2006/2007 Financing instruments applied by public authorities, focussing on the town of Dorn-birn Reform of the public sector pension system on Federal and Laender level

Land Vorarlberg

Vorarlberg 2009/7

27/1/10 3/2/10


Land Vorarlberg

Vorarlberg 2009/6

verfallen


Land Vorarlberg

Vorarlberg 2009/5

verfallen


94


Financing instruments applied by public authorities, focussing on the town of Dorn-birn

Local council Vorarlberg 2009/4

– –

Budget structure of the Laender (excluding Vienna) Reform of the public sector pension system in Tyrol, Vorarlberg and Vienna Follow-up enquiry 2006/2007 Financing instruments applied by public authorities, focussing on the town of Dorn-birn

Land Vorarlberg

Vorarlberg 2009/3

verfallen


Land Vorarlberg

Vorarlberg 2009/2

24/3/10 14/4/10


Land Vorarlberg

Vorarlberg 2009/1

3/6/09 verfallen

95


Vienna

In 2009 the ACA submitted eight reports to the Land of Vienna. They contained nine contributions on audits and the follow-up enquiry of 2008. In the fi rst six months of 2010, three reports with twelve con-tributions were submitted to the Viennese Land parliament.


Transport connection and city development, main train station, Vienna

Land Vienna Vienna 2010/3 9/6/10

City of Vienna; water, sewer and waste tariffs and energy prices Social aid of the City of Vienna Vienna communal environmental protection project company mbH Areas of health reform 2005 with Laender focus on Tyrol and Vienna VERBUND: Austrian Hydro Power AG: pumped storage hydro power plant Limberg II TINA VIENNA Urban Technologies and Strat-egies GmbH Project “The new Vienna River”; follow-up audit Approval and supervisory duties in construc-tion; follow-up audit

Land Vienna Vienna 2010/2

Implementation of care benefi ts Orthopedics in selected Vienna hospitals Muthgasse Immobilienbeteiligung Zwei GmbH


Annual activity report General section Follow-up enquiry Vienna

Land Vienna Vienna 2009/8 14/4/1011/3/109/3/102/3/1015/2/10

Vienna Public Transport – 3rd development phase of lines U1 and U2

Land Vienna Vienna 2009/7 4/12/09 18/12/09

Climate-relevant measures of the Laender in the area of energy Franziska Papp von Maczedonfy donation





96


Reform of the public sector pension system in Tyrol, Vorarlberg and Vienna Park area management and park space con-trol; follow-up audit





Land Vienna Vienna 2009/2 3/11/09 9/10/09 8/10/09 7/10/09 6/10/09 5/10/09 11/9/09

Kunsthalle (exhibition hall) Vienna; follow-up audit



97

International section

The ACA within the INTOSAI frameworkThe ACA as General Secretariat of the INTOSAI

In its role as the General Secretariat of the INTOSAI, the ACA acts as a link, both within the organisation and outside it, with partners of the audit institutions. It identifi es and communicates current and globally-relevant themes and the focus content of external govern-ment auditing and in this way, true to the motto of the INTOSAI, “experientia mutua omnibus prodest” (exchange of experience helps all), it is an innovator and stimulates action.

The ACA carries out its responsibilities as General Secretariat of the INCOSAI on the basis of its statutes, its strategic plan and INCO-SAI decisions and therefore, in the interests and for the good of all, it helps to enhance the INTOSAI and its members as independent, competent and effective public audit institutions, tasked to increase transparency, accountability and credibility.

Correspondingly, the role of the ACA as General Secretariat is to support the INTOSAI in its strategic role fulfi lment in so far as pos-sible. Therefore, as General Secretariat, it maintains contact with and between members in between congresses. It organises seminars and symposia and takes part in meetings of the Governing Board, in congresses and in sessions of the steering committees for the stra-tegic goals of the INTOSAI. Moreover, it supports the Governing Board, the commissions and various committees, working groups and task forces to fulfi l their roles. Part of its function is to imple-ment the internal and external communication policy of the INTO-SAI. This occurs both through the INTOSAI website and other pub-lications such as leafl ets.

Finally, the ACA is also responsible for planning and managing the budget of the INTOSAI.

As General Secretariat of the INTOSAI, the ACA also works inten-sively with other globally-active partners, such as the United Nations, the World Bank and the Inter-Parliamentary Union.

98

Strengthening the independence of the audit institutions

In its work with the United Nations, in recent years the ACA has especially pursued the INTOSAI year theme of “strengthening the independence of audit institutions”. Its aim, in particular, has been to anchor independence and the Declarations of Lima and Mexico in a UN document.

After intensive preparations during the course of the past two years, both within the INTOSAI and on a UN level, in April 2010 the ACA emphasised the benefi ts of external public auditing for the creation of transparency in public administration in a presentation at the UN Committee of Experts on Public Administration (CEPA) and under-lined the importance of autonomy for audit institutions to be able to carry out their work.

In recognition of the importance of auditing, the committee stressed the need for independence of audit institutions to ensure transpar-ency and accountability in public administration and recommended the Economic and Social Council (ECOSOC) to adopt a correspond-ing resolution.

Therein, the UN committee of experts underlines the importance of the independence of audit institutions for the creation of transpar-ency and accountability and good governance and expressly wel-comed the Declarations of Lima and Mexico on the independence of supreme audit institutions. These support the work of the INTO-SAI and encourage a strengthening of transparency and accounta-bility as well as effi cient and effective application and use of public resources for the good of citizens. As a concrete step, the committee recommended creating a timetable for a full anchoring of this basic principle under international law.

The initiative of the ACA and the INTOSAI General Secretariat to anchor the independence of audit institutions and the De-clarations of Lima and Mexico in a UN document has therefore cer-tainly borne fruit. The ECOSOC will set out further steps in its next meeting.

Conference on strengthening external public auditing

In international terms, the spring of 2010 was especially concerned with the organisation and implementation of the international confer-ence on strengthening of external public auditing in INTOSAI regions, which took place on 26th and 27th May in the Viennese parliament.


99

The ACA within the INTOSAI framework

The aim of the event was to develop a concrete approach with regard to optimisation in the areas of independence, development of tech-nical and personnel resources, auditing standards, capacity build-ing, training and development, exchange of knowledge and experi-ence and the value and benefi ts of audit institutions.

The theme of the conference attracted great interest worldwide. Not only did 80 heads and representatives of 43 supreme audit insti-tutions from all seven regional working groups of the INTOSAI – AFROSAI, ARABOSAI, ASOSAI, CAROSAI, EUROSAI, OLACEFS and PASAI – actively take part in the conference, but also representatives of numerous international organisations such as the United Nations, the World Bank, the Inter-Parliamentary Union and the international donor community.

The value of audit institutions in a well-functioning system of gov-ernment was the central theme of the fi rst day of the conference. The speakers stressed the importance of auditing in a democratic sys-tem to ensure effi cient and transparent administration and for the promotion of good governance. Also highlighted in particular, was the role of audit institutions in tackling corruption and their role in implementing the millennium development goals of the United Nations. The growing interest of international development organ-

INTOSAI conference in the Viennese par-liament

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isations in working together with external public audit institutions was stressed on many occasions by the speakers.

Also underlined was the necessity for a stronger partnership between the audit institutions and parliaments on a national and regional level, as well as between the INTOSAI and the Inter-Parliamentary Union on a global level; correspondingly, partnership between the INTOSAI and the Inter-Parliamentary Union is to be developed.

The speakers repeatedly stressed that the basic requirement for effec-tive role fulfi lment in external public auditing is independence, as outlined in the Declaration of Lima and in the eight pillars of the Dec-laration of Mexico. The conference participants expressly welcomed the fact that the theme of independence has now been included in both the Declarations of Lima and Mexico and in the CEPA report, and they highlighted the need for the basic principle of independ-ence to be anchored in international law.

The second day of the conference was taken up with resource develop-ment of the SAIs. There was particular focus on cooperation between the INTOSAI and the donor community for institutional capacity building in developing countries and emerging markets. In concrete, a report was given on the current activity of the INTOSAI Develop-ment Initiative (IDI) in this area, and the role of the IDI in terms of cooperation between the INTOSAI and the donor community.


101


In the conclusions which were jointly drawn up, in the area of resource development for audit institutions the conference partici-pants recommended that particular attention be paid to the follow-ing issues, on the basis of the concrete needs and challenges that had been expressed by the audit institutions themselves:

• Independence

• Institutional capacity building as well as the development of tech-nical and HR competencies

• Development and use of professional auditing standards and meth-ods

• Training and development

• Knowledge sharing and knowledge services

• Value and benefi ts of independent audit institutions.

The precise results of the conference have been integrated into the current work of the INTOSAI on the development of technical and HR competencies.

Preview of XX. INCOSAI 2010

The international highpoint of 2010 will certainly be the 20th world congress of the INTOSAI (XX. INCOSAI), taking place from 22nd to 27th November 2010 in Johannesburg, South Africa. A record number of around 800 representatives from audit institutions from all continents and representatives of numerous international organ-isations and institutions such as the UN, OECD and the World Bank,

102

are expected to attend this International Congress of Supreme Audit Institutions (INCOSAI).

At this grand meeting of external public audit institutions, which occurs every three years, particular attention will be paid to the fol-lowing areas:

• Value and benefi ts of audit institutions (Theme I)

• Environmental audit and sustainable development (Theme II)

• Offi cial approval of the ISSAIs (International Standards of Supreme Audit Institutions) and INTOSAI GOVs (INTOSAI Guidance for Good Governance).

Theme I is aimed at representing, from different perspectives, the value and benefi ts for society of the activities of audit institutions, at organising the business of auditing and explaining it to stake-holders in an appropriate way.

Theme II carries the call of the United Nations to its member coun-tries to map out strategies for the development of sustainable devel-opment in their countries. It takes into consideration that of the three pillars of sustainable development – environment, economy and soci-ety – the environment is the most important and most sensitive, and that corresponding audit approaches and strategies of audit institu-tions should be created and discussed.

Finally, during the XX. INCOSAI, numerous guidelines and standards (around 50), on a wide range of themes such as state debt, internal auditing, national key indicators, communication of audit fi ndings or peer reviews will be approved. The aim is to build increased aware-ness with regard to the ISSAIs and the INTOSAI GOVs and therefore to increase their acceptance, their prevalence and their use by audit institutions. The resulting standards will become the focus for 2011.

The seven regional working groups and around 30 expert groups of the INTOSAI, working on the guidelines, methods, benchmarks and best practices for the different areas of external auditing, will present their reports on working results and consequences since the last INCOSAI in 2007, as well as their plans for the next three years.

Finally, after its successful implementation of the 2005-2010 stra-tegic plan, the INTOSAI plans to enact a new strategic plan 2011-2016 during its XX. Congress in November 2010. The development


103


of the new plan will basically follow that of the previous plan and will concentrate on the following strategic priorities: independence of the SAIs, implementation of the ISSAI guidelines, capacity build-ing of the SAIs, model of the value and benefi ts of the SAIs, tack-ling corruption and INTOSAI communication.

In addition, the stated aim of the host, the audit institution of South Africa, is that during the XX. INCOSAI, an environment is achieved whereby knowledge exchange, fruitful discussion and lively debate are made possible and encouraged. There should be suffi cient oppor-tunity to establish new relationships, strengthen ties and foster con-nections.

104

1 – 6/3/2009 – The audit of the EUFOR mission in Chad is contin-ued, with Austrian participation. Together with a British and a Span-ish auditor, the books of the oper-ation are scrutinised under Aus-trian leadership.

30 – 31/3/2009 – Around 150 delegates from 58 member coun-tries of the regional INTOSAI work-ing groups, the ARABOSAI and EUROSAI, meet in Paris to discuss “The role of the SAIs in modern-ising state authorities”. The aim of the ARABOSAI/EUROSAI meet-ing is to further strengthen coop-eration between the European and Arabic SAIs.

International chronology 2009/ fi rst half 2010Chronology of international highlights in the reporting period 2009/2010

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11 – 13/2/2009 – Symposium entitled: “INTOSAI – Active partners in the international anti-corruption network; Ensuring transparency to promote social security and poverty reduction” takes place in the United Nations in Vienna. Many presidents of SAIs as well as high-ranging rep-resentatives from international organisations such as the UNO, the OSZE, the OECD, the bureau of the UN Offi ce on Drugs and Crime (UNODC), the World Bank, INTERPOL, OLAF and the Institute of Internal Auditors (IIA), take part in the symposium.

9 – 11/3/2009 – In Sun City in South Africa, the INTOSAI Working Group on the Value and Benefi ts of SAIs meets for the fi rst time. They reach agreement on terms of reference and develop a matrix as the basis for a questionnaire for all SAIs. At the meeting of the working group, SAIs from the UK, France, Sweden, China, Namibia and Tanzania take part, as well those from South Africa and Austria.

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International chronology 2009/fi rst half 2010

13 – 16/5/2009 – Sixth EURO-SAI/OLACEFS conference in Vene-zuela. The environment and pro-tection of natural resources are the focus. Participants are representa-tives from EUROSAI and OLACEFS, the Chinese SAI, the IDI and the INTOSAI General Secretariat.

25 – 28/5/2009 – Two repre-sentatives from the ACA take part in the 10th global working group meeting in Bergen, Norway. The ACA creates a Laender paper on the subject of “deceit and corrup-tion” for this occasion.

30/3 – 3/4/2009 – At the eighth conference of the Committee of Experts on Public Administration of the ECOCOC (CEPA) in New York, representatives of the General Secretariat of the INTOSAI take part in order to pave the way to anchor the independence of external audit insti-tutions in a UN resolution. In this way, it is hoped that the Declarations of Lima and Mexico can be included in a UN document for the fi rst time.

19/5/2009 – Visit of the executive committee of the Norwegian SAI. The head of the SAI, Jørgen Kosmo, and the general secretary, Bjørg Selas, meet with the ACA president, Dr Josef Moser. Alongside strategic planning of the INTOSAI, cooperation of the IDI with the General Sec-retariat of the INTOSAI is discussed.

GLOBAL WORKING GROUP

MAY 2009

CONTRIBUTION OF THE AUSTRIAN COURT OF AUDIT ON

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6 – 30/7/2009 – ESOCOC annual conference in Geneva. Represent-atives of the General Secretariat of the INTOSAI take part in cer-tain sessions as observers, with a particular view to making a case for the INTOSAI initiative to be achieved that the Declarations of Lima and Mexico be anchored in a UN resolution.

25 – 30/7/2009 – Visit to Israel by the ACA president Dr Josef Moser in his role as General Secre-tary of the INTOSAI, on the invita-tion of the head of the Israeli SAI, Micha Lindenstrauss. On the pro-gramme is working talks with the chairman of the Israeli audit com-mittee, Yoel Hasson, as well as with other members of the committee, the chairman of the Knesset, Reu-ven Rivlin, and the Israeli social welfare minister, Yitzhak Herzog.

3 – 6/8/2009 – Eighth meet-ing of the steering committee of the working group on environ-mental auditing in Ubud, Indone-sia. The ACA contributes consid-erably towards the international auditing project “climate change” and to the creation of the docu-ment “Guidance Climate Change”.

11 – 15/10/2009 – Participa-tion of the ACA president Dr Josef Moser in the 40th and 41st govern-ing board meetings and in the 11th general meeting of the ASOSAI in Islamabad, Pakistan, underlines the importance of the ASOSAI as an active regional working group of the INTOSAI. In this visit, the fi rst discussions regarding INCO-SAI 2013 are carried out.

29/6 – 1/7/2009 – The fi rst session of the Global Task Force on the fi nancial crisis takes place in Washington. Representatives of the SAIs, including the ACA, exchange fi rst audit experiences and information on state rescue packages. The subject areas of minimising future fi nan-cial risks, state aid measures and challenges for SAIs are established as future work for the task force.

LIMA DECLARATION

MEXICO DECLARATION

DÉCLARATION DE LIMA

DÉCLARATION DE MEXICO

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19 – 21/10/2009 – The INTOSAI and representatives of 17 donor institutions sign a memorandum of understanding for the promo-tion of public auditing in develop-ing countries. Individual national SAIs in the developing countries will be encouraged to have the aim of enhancing the effectiveness of their audits and strengthening their independence.

27 – 30/10/2009 – The third OECD World Forum on “Statistics, Knowledge and Policy” takes place in Busan, Korea. During this forum, a representative of the INTOSAI General Secretariat presents the role of the SAIs in the context of development and use of interna-tional key indicators. The EU struc-tural indicators of the Lisbon strat-egy are used as an example, and it is stressed that these indicators give SAIs the opportunity to sug-gest a need for reform measures in their audits.

22/10/2009 – The third meeting of the steering committee for capac-ity building takes place in Paris. The meeting focuses on the reports of the three sub-committees for capacity building, the signing of a memo-randum of understanding between the INTOSAI and the international donor community, the implementation of the INTOSAI initiative for the anchoring of the Declarations of Lima and Mexico in a UN document, and the activity of the UN/INTOSAI platform “public accountability”.

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5 – 6/11/2009 – The independence of external public auditing is the focus of the Visegrad 4+2 meeting in Zakopane in Poland. Participants are the audit institutions of the Czech Republic, Poland, Slovakia and Hungary (V4) and the Slovenian and Austrian audit institutions. The V4+2 meeting stresses that, given the developments in Poland and the Czech Republic, the meaning of independence in external public audit-ing should also be brought to the table as an “emerging issue” to this year’s contact committee of the presidents of SAIs of the EU and the European Court of Auditors.

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15/11/2009 – Second meet-ing of the task force on commu-nications strategy in Cape Town, South Africa: Subject of the meet-ing is the optimisation of INTO-SAI internal communication. The subject “the meaning of independ-ence as set out in the Declarations of Lima and Mexico” is established as the INTOSAI focus for 2010 and the subject of “ISSAIs and INTOSAI GOVs” is established as the focus for 2011.

11/12/2009 – Federal president, Dr Heinz Fischer, awards the presi-dent of the SAI of Morocco and the chairman of Goal 2 of the INTO-SAI, Dr Ahmed El Midaoui, the Grand Gold Decoration on the Sash for services rendered to the Repub-lic of Austria.

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16 – 18/11/2009 – The 59th Governing Board conference of the INTO-SAI takes place in Cape Town. The focus is on the independence of the SAIs. The SAI heads who are present sign a resolution on the independ-ence of the SAIs in support of the initiative by the General Secretariat of the INTOSAI to anchor the Declarations of Lima and Mexico in UN law.

30/11 – 1/12/2009 – The presi-dents of the SAIs of member coun-tries and the European Court of Auditors meet in Budapest for the annual contact committee meet-ing. During the meeting, a state-ment on the subject of independ-ence is adopted, which is directed towards the European Parliament, the Council of Europe and the European Commission. ACA pres-ident and INTOSAI General Sec-retary, Dr Josef Moser, takes the opportunity to underline the cur-rent activities of the INTOSAI to strengthen the independence of SAIs and points in particular to the INTOSAI initiative.

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27/12/2009 – 2/1/2010 – Dur-ing the visit of the ACA president Dr Josef Moser to Oman, increased cooperation between the ACA and the SAI of Oman, as well as a greater involvement of the SAI of Oman in the activities of the INTO-SAI, is established. Increased coop-eration is the aim, above all, in the areas of performance audits, IT audits and capacity building.

16 – 18/2/2010 – Meeting of the subcommittee for internal audit measures in Moscow. At the event, two documents are fi nalised: on the independence of internal audit-ing in the public sector (INTOSAI GOV 9140) and on the coordina-tion and cooperation of SAIs and internal auditing (INTOSAI GOV 9150) in the public sector.

22 – 23/2/2010 – On the basis of a memorandum of understand-ing signed in October 2009, the steering committee of the INTO-SAI donor funding project con-venes in Marrakesh for its fi rst meeting on the invitation of the SAI of Morocco. With strong SAIs, it should be ensured that donor funds for emerging and developing markets are audited in a structured, economical and effective way.

3/3/2010 – The annual board meeting of the INTOSAI develop-ment initiative (IDI) takes place in the headquarters of the IDI in Oslo. The agenda includes the presenta-tion of the IDI annual report and handbooks on the subjects of “stra-tegic planning” and “quality assur-ance”. The defi nition of coopera-tion between the INTOSAI and the donor community is also discussed.

15 – 16/3/2010 – During the international conference on envi-ronmental audits, focussing on water pollution in New Delhi, India, the ACA president Dr Josef Moser makes a presentation in his role as General Secretary of the INTOSAI. The conference affords the opportunity for a compre-hensive exchange of experience between members of the SAIs and NGOs.

15 – 17/3/2010 – INTOSAI working meeting in Moscow on the value and benefi ts of external public auditing. The focus of the intensive deliberations is the dis-cussion paper for the XX. INCO-SAI, taking place in November 2010 in Johannesburg. The aim of the working group is to develop a reference model, which can be used to measure the value and benefi ts of SAIs.

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31/3 – 1/4/2010 – In Caracas, Venezuela, the sixth meeting of the fi nance and administration com-mittee is held. In his role as Gen-eral Secretary of the INTOSAI, ACA president Dr Josef Moser reports on his vision for the new struc-turing of the INTOSAI budget, on the current situation regarding occupation of the post of direc-tor for strategic planning and on the INTOSAI completion of the due process document.

19 – 23/4/2010 – The Commit-tee of Experts on Public Adminis-tration (CEPA) expressly recognises the independence of the SAIs to ensure transparency and account-ability in public administration. In this way, the ACA and the Gen-eral Secretariat of the INTOSAI can achieve decisive progress in terms of anchoring independence in a UN document.

29/4/2010 – Visit of a Swiss delegation. Representatives of the fi nancial committee of the Swiss federal assembly, together with the head of the Swiss supreme audit institution, Kurt Grüter, meet with the ACA president, Dr Josef Moser. Alongside the issue of independ-ence of external public audit insti-tutions, international issues arising from the fi nancial crisis are dis-cussed.

20 – 21/5/2010 – At the third meeting of the sub-committee for the promotion of best practice and quality assurance through peer review in Bonn, draft guidelines and a draft checklist lie at the cen-tre of intense discussions.

26 – 27/5/2010 – The strengthening of external public auditing is addressed in the INTOSAI conference in the Austrian parliament. Par-ticipants are heads of SAIs from the regional working groups of the INTOSAI, representatives from the UN, the World Bank, the Inter-Par-liamentary Union, the donor community and external experts. The con-ference participants recommend in their joint conclusions, for attention to be paid to the following issues: independence; institutional capacity building and the development of technical and personnel competencies; development and use of professional audit standards and methods; train-ing and development; knowledge exchange and management services and the representation of the value and benefi ts of independent SAIs.

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28/5/2010 – The third meeting of the task force on communica-tions strategy takes place in the INTOSAI General Secretariat. The agenda includes INTOSAI commu-nication guidelines drawn up by the task force for the improvement of internal and external commu-nication, and a SWOT analysis of the INTOSAI.

8/6/2010 – During an event of the Austrian Development Agency, the INTOSAI General Secretariat gives a presentation on the mean-ing of functioning supreme audit institutions and the conditions necessary for them.

21 – 23/6/2010 – At the work-shop “Engaging citizens in devel-opment management for the achievement of millennium devel-opment goals” in Barcelona, the INTOSAI General Secretariat has the opportunity to highlight the contribution that public auditing makes to development goals.

24/6/2010 – Representatives of the INTOSAI General Secretar-iat take part in the parliamentary north-south dialogue, focussing on the issue of Mozambique, in the Austrian parliament. They report on the experiences of the SAI in Mozambique in the area of audit-ing.

27 – 30/6/2010 – Working visit of a delegation from the Oman SAI, headed by president Sayyid Abdul-lah Bin Hamad Bin Saif Al-Busaidy. The aim of the visit is to intensify cooperation between the ACA and the SAI of Oman. A corresponding memorandum of understanding is discussed and ultimately prepared. Both the participation of an Omani guest auditor in an IT audit and the appointment of the SAI in Oman as an external auditor of the INTOSAI are discussed.

29/6 – 1/7/2010 – Fourth meet-ing of the capacity building com-mittee, in Washington. The Gen-eral Secretariat of the INTOSAI reports on the latest developments of the INTOSAI, particularly on the planned steps of the task force on communications strategy, the INTOSAI initiative for the strength-ening of independence and the results of the INTOSAI conference on strengthening of external public auditing in INTOSAI regions.

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Intellectual Capital Statement of the ACA

An intellectual capital statement is an instrument for the targeted representation and develop-ment of the “intellectual capital” of an organisation. It demonstrates the link between the aims of an organisation, the management of knowledge, business processes, intellectual capital and the achievements and results of the organisation.

Using indicators, values are represented which a traditional, fi nan-cial statement based on fi nancial fl ows (a balance sheet in the con-ventional sense) cannot capture or can only partly capture.

The value of knowledge can be seen in intellectual capital. This can be understood as numerically calculable knowledge capital. However, it can also be expressed as potential that can be realised through the application of knowledge. So, intellectual capital has a future focus.

Intellectual capital statement for the ACA

The ACA sees itself as a knowledge institution, which means that the personal knowledge of all its employees has a special value in terms of the high quality of their achievements. Therefore, the ACA follows a strategy of constant knowledge improvement and compre-hensive knowledge management.

Intellectual capital is intrinsic for the representation of value and benefi ts in auditing.

Knowledge, which in knowledge organisations is today regarded as a resource, has the valuable characteristic that through its sharing, i.e. its passing on to others, it can be multiplied. The knowledge of the ACA is passed on for the benefi t of audit clients to help them to achieve their goals and increase their effectiveness, as well as opti-mise their performance and costs.

The employees at the ACA constantly develop their knowledge through auditing and consultation activities, through targeted train-ing and development and through in-house knowledge exchange, for the benefi t of audit clients. The potential for optimal effective-ness of the ACA lies in the application of its employees’ knowledge and experience in the core activities of auditing and consultation.

As a supreme audit institution, the ACA has developed an intellec-tual capital statement. This is aligned with the function of the ACA and was published for the fi rst time in 2007. This is now the fourth time that the intellectual capital statement is an important part of

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the annual report. Its focus lies on the areas of training and devel-opment of employees, factors that are intrinsic for the knowledge of an organisation.

Design of the intellectual capital statement

The intellectual capital statement of the ACA is based on the meth-odology of Koch and Schneider’s “Austrian intellectual capital state-ment model” which is widely used in Europe and is comprised of:

1. Objectives of intellectual capital as a part of strategic objectives

2. Management of intellectual capital for all employees

3. Intellectual property as intellectual potential of the ACA, split into the standardly recognised areas of human resources, struc-tural resources and relationship resources

4. Business processes, of which the most important core process is the auditing process.

The correlation between the strategic aim for intellectual capital of inserting benefi ts into the business processes in order to get results back, is illustrated the following diagram:

Strategic Direction

Mission statement and strategy

Objectives

Intellectual capital objectives

Human resources

Structural resources

Relationship resources

Audit reports to National Council, Laender parliaments and municipal councilsAuditing of international institutions

Review of draft laws and regulations

Federal financial statementsRegulating budget affairsPublic debtIncome survey

International affairs

Auditing

Consultation

Special tasks

Internal processes

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Business Processes ResultsProfit & Loss

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Strategic intellectual capital objectives of the ACA

The four strategic intellectual capital objectives ensure a clear align-ment of intellectual capital in the ACA. They form the basis of the annual training programme and facilitate the sound creation of oper-ational intellectual capital objectives for the organisational units and the agreement of individual intellectual capital objectives for its staff.

Intellectual capital objective of “transmitting the value of the ACA”

The values of the ACA are established in its mission statement and strategy. Its employees live out these values, such as independence, objectivity, credibility, in a responsible way and transmit the image of the ACA as represented in its mission statement. They safeguard against any infringements and ensure a certain code of behaviour.

For example, in the basic training programme for employees of the ACA, as well as technical knowledge, there is particular value placed on the correct behaviour of auditors in auditing situations. Also, fur-ther special training sessions are offered in the training programme, such as on the independence of the ACA and integrity of auditors.

Intellectual capital objective of “excellence in auditing and consultation”

The ACA is valued for its profound technical expertise, for its fed-eral, Laender and municipal-wide perspective and for its independ-ence and objectivity. Its competence, especially in its core activities of auditing and consultation, is vital for the quality of its perform-ance and for its fi ndings to be accepted. This expertise is safeguarded and developed on the highest level.

For example, the quality standards for the auditing process, which stem from international auditing standards, are transmitted to employees in a comprehensive training programme and form part of the basic training programme for new entrants to the ACA. General management, auditing and auditing methods are important parts of the professional MBA programme Public Auditing, which each audi-tor must complete as part of their basic training. A broader training follows, for example on public management, methodology and on individual audit topics.


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Intellectual capital statement of the ACA

Intellectual capital objective of “ensuring value and benefi t of resources”

The ACA strives for the best possible use of public resources. To be effective, the ACA expresses factually solid, constructive criticism, points out possibilities for improvements and makes convincing, future-orientated and implementable recommendations. It focuses on highlighting system lacks, on prevention and on lasting effects. By means of an active application of its knowledge and experience, it adds value to society and paves the way for innovation and reform.

For example, an audit-specifi c communications training programme for all auditors encourages intensity and an acceptance of knowledge exchange with the audit client. The profound and results-orientated discussions on the public sector economy, the fi nancial sector and accountancy procedures in the MBA in Public Auditing, build spe-cifi c knowledge for valuable and effective recommendations. For all employees, training courses on offer such as those on effectiveness analysis, auditing of contracts or internal auditing systems, increase technical knowledge.

Intellectual capital objective of “networking with national and international partners”

The ACA works on strengthening links with other knowledge insti-tutions as partners in an auditing network. Enhanced cooperation with national and international audit institutions and with academia brings with it new stimuli. With the benefi t of synergies through cooperation, it increases the effi ciency and effectiveness of audit-ing in the public sector.

For example, in the knowledge communities, networking with national and international partners of the ACA is especially intense and practiced. Additional training events, such as, for example, on data supplied by Statistik Austria or the working techniques of foreign audit institutions, generate knowledge benefi ts through networking.

Intellectual capital management in the ACA

The ACA is aware of the strategic importance of its intellectual cap-ital and has therefore set up a department responsible for this area. It is particularly important for intellectual capital management that it is carried out with the cooperation of all employees. The service offer of this department is therefore being constantly developed in terms of its application to employees.

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As a part of management responsibility, intellectual capital manage-ment combines, as an interdisciplinary function, aspects which are important to knowledge, which come from the area strategy, from demands from the audit programme and from personnel manage-ment. It develops and utilises recognised intellectual capital instru-ments (e.g. database, knowledge communities).

Structure

The branches of responsibility for the knowledge areas of the ACA are structured on the following levels:

• Individual level: The personal work input of employees of the ACA is considerably supported by the intellectual capital management offering.

• Department level: All departments of the ACA operate as cen-tres of expertise for certain themes of responsibility, and several departments of a section make up a theme cluster. Intellectual capital management supports them in this.

• Knowledge communities: Forums for department-wide and sec-tion-wide knowledge exchange in certain knowledge areas con-stitute 12 knowledge communities, whereby auditors organise a networked exchange of knowledge and institutionalised oppor-tunities of knowledge generation.

• ACA as a whole: The generation and supply of relevant key know-ledge for the whole organisation is aligned to the current need and administered by an expert department.

Pillars

Intellectual capital management is carried by the following pillars:

• Quick, need-orientated availability and innovative further devel-opment aligned to the audit programme and the valuable appli-cation of intellectual capital, which is strategically meaningful for the performance of the ACA: The database and the library of the ACA offer the basis for this.

• Networked knowledge exchange and institutionalised opportuni-ties for knowledge generation: Knowledge communities facilitate this for all participants.


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• Management of knowledge along the core process for optimisa-tion of services and products: This calls for a supply of know-ledge to be applied in the core processes (knowledge input) and for usefulness in the knowledge generated in the core processes (knowledge output).

• A knowledge culture which places value on trust, constructive criticism and innovative problem-solving and confl ict-resolution expertise.

Intellectual property

The intellectual property of the ACA includes statistics which facili-tate conclusions to be drawn regarding knowledge potential.

The three forms of intellectual capital resources are:

• Human resourcesIn human resources, data showing the employee structure and a summary of personnel details with a focus on qualifi cations and abilities of employees is represented, and the transfer of personal knowledge (its acquisition and transfer) to intellectual capital is shown.

• Structural resources Structural resources provide information on organisation mem-bership, on communication, on the technical infrastructure and quality assurance tools.

• Relationship resources Relationship resources portray the intensity and the quality of cooperation with our customers and partners (auditees, general representative bodies, media and public) as well as networking with other audit and knowledge institutions.

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HUMAN RESOURCES 2008 2009First half

2010

Personnel structure Personnel headcount 311 314 309Personnel according to full employment equivalent 290 293 288Number of auditors according to full employment equivalent in % 79.7 81.2 81.6Average age 45.5 45.7 45.9Average length of service 13.1 13.1 13.3Proportion with academic qualifi cations in % 69.7 72.1 72.1

of which law in % 41.3 40.1 40.7of which economics in % 39.7 40.1 40.7of which technology in % 13.0 12.7 12.4of which other in % 6.0 7.1 7.2

Those with more than one academic qualifi cation 16 16 16Fulfi lment of compulsory employment of disabled people +12 +11 +10Personnel cost as a percentage of total expenditure in % 72.7 75.7 78.2

Turnover rateNew entrants 28 16 5Leavers 11 14 8Turnover rate in % 0.66 1.61 1.28Average retirement age 62.1 59.9 61.5

Gender MainstreamingTotal percentage of women in % 42.4 42.4 42.4Percentage of women auditors in % 32.8 33.5 33.6Percentage of women in management in % 29.2 29.8 28.9

Intellectual capital transfer Training and development 1,775 2,006 1,505

of which doing the MBA Public Auditing 659 300 390of which in IT training 219 189 167

Training and further education proportion in % 66.9 74.3 77.9Training and further education expenditure in EUR 1,000 225.4 240.0 180.7

of which on MBA in EUR 1,000 121.0 115.0 119.0of which on IT training in EUR 1,000 9.4 4.1 1.7

Knowledge community events 13 10 8Internal participants in knowledge communities 549 400 337External participants in knowledge communities 151 95 92Job rotation 24 30 11


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Personal knowledge of all employees is decisive for the value of the ACA and represents the greatest part of human resources. In the mid-dle of 2010, there were 309 employees at the ACA. In line with the ambitious range of services carried out by the ACA, its proportion of employees with academic qualifi cations increases all the time and is now at over 72%. In line with the importance of human resources, at around 75% (2009), personnel costs make up the largest budget-ing area of the ACA.

The turnover rate remains low, at 1.3%. The quality of personnel selection and the successful integration of new employees under-line this. The proportion of women remains the same at around 42%, and at over 30% in auditing. The proportion of women in manage-ment, as in previous years, is at almost 30%, and in terms of direc-tors general, as much as 40%. In terms of social responsibility, the ACA is fulfi lling its employment duty according to disability employ-ment law, employing ten people over the legal minimum requirement.

As a knowledge organisation, the training and development of its employees is of prime concern to the ACA. The training and edu-cation fi gures are increasing particularly rapidly; training days and training proportions increased in 2009 on 2008, by more than 10%, and the increase in costs remained under this rate.

There are now twelve knowledge communities in the ACA and these play an important part in knowledge exchange and in the generation of new knowledge. Starting from a high base in 2008, the number of events and participants decreased in 2009; at the beginning of 2010, there was another sharp increase, however, so that by the end of Q2 it was almost at the same level of the entire previous year. Auditors of the Laender audit institutions, the town audit offi ces and internal auditors readily accept invitations to take part in knowledge commu-nity events at the ACA. Above all, the annual two-day expert con-ference for construction auditors garners great interest.

In the trainee programme, individual auditors from other audit departments take part as guest auditors in the context of job rota-tion and during shared audits with several departments, a consistent and structured knowledge transfer occurs within the ACA.

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The ACA is split into fi ve sections, according to theme clusters. Each section is comprised of seven theme-specifi c departments. These fulfi l the core function of auditing and consultation, such as, for example, the auditing of construction or banking management; other depart-ments have special tasks, such as compiling the income survey, and internal organisation functions, such as creating training and devel-opment programme agendas.

The focus for business processes lies with auditing and consulta-tion. For internal communication, which is important for knowledge exchange, there are nine institutional forums available. The devel-opment of the intranet communication platform can be seen in the sharp rise in hits in 2009, compared to 2008.

IT availability is vital for the work of the ACA and this was held at the highest level in the reporting period.

STRUCTURAL RESOURCES 2008 2009First half

2010

Organisational Structure

Core business processes 5 5 5

Decision levels 3 3 3

Departments 35 35 35

Department size 7.2 7.0 7.0

Communication Structure

Institutional communication forum 12 12 12

Directors general discussion forum 24 19 14

Employee event forum 2 1 2

Communication platforms 4 4 4

Intranet platform (hits) 118,538 123,562 59,893

Technical Infrastructure

IT applications 172 172 172

Server availability % 99.7 100.0 100.0

Workstations 3072 319 318

of which mobile 223 230 231

IT expenditure per workstation (in EUR) 2,458 1,931 NA

Quality Assurance Structure - Auditing Process

Tools used 20 22 22

Audits through internal auditing 1 1 0


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The ACA sees its core function of auditing and consultation as one of mutual value and cooperation with the audited entity. The number of audit clients increased on 2008 and at the end of Q2 2010, was in excess of 4,600.

Also on an international level, the ACA works together with its part-ners, e.g. with the European Court of Auditors and with the national audit institutions. The closeness of international links and inter-national knowledge exchange is refl ected in visits to international events, in the numerous international contacts fostered and in the

RELATIONSHIP RESOURCES 2008 2009First half

2010

Customers and Partners General representative bodies, for which the ACA is active 34 34 34Participation in debates of general representative bodies 36 56 32Reports accepted by the general representative bodies 100 93 82Motions for audits to the ACA 2 4 1Parliamentary motions with ACA reference 397 251 105Audit requests to the ACA 2 3 6Audited legal entities 4,594 4,624 4,638Reports in the print media 5.504 7,071 3,092Press releases 55 63 37Press conferences 2 1 -Interviews 24 51 19Publications 1 2 -ACA website (hits) 247,740 277,346 140,754

National and International Networking International dossiers 545 351 307Institutional contact with national audit institutions 8 8 8Institutional contact with other intellectual capital institutions 24 26 26Austrian visitors 96 200 17National conferences visited 25 22 14International visitors 152 232 190International events visited 44 44 29

of which INTOSAI events 20 15 16International contacts 64 58 37Requests from other SAIs 16 23 37INTOSAI membership organisations overseen 189 193 193INTOSAI website (hits in 1,000s) 3,390 3,808 1,686

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number of international visitors to the ACA. In 2009, and the fi rst half of 2010, there were increases in these fi gures.

The General Secretariat of the INTOSAI, which is run by the ACA, is an independent, autonomous and non-political umbrella organ-isation of the supreme audit institutions, and it now oversees 189 supreme audit institutions and four member associations worldwide and forms the basis for considerable international intellectual cap-ital exchange.

Business processes

The business processes of the ACA, many of which are intellectual capital-intensive processes, comprise core and specialised processes:

• On the core activities of auditing and consultation: audit pro-cesses, audits of international institutions and review of draft acts and regulations,

• On special functions of the ACA: processes for the creation of the federal fi nancial statements and income survey,

• On internal services: training processes with part-processes on the training and development of employees.

Example: Master of Business Administration (MBA) programme in Public Auditing as part of the training process

The training process of the ACA builds on the training already under-taken by new entrants to the ACA before they arrive and the sev-eral years of professional experience of its employees. The ACA’s in-house basic training programme starts in the probationary year and covers, in particular, the audit process of the ACA, accountancy pro-cedures, public services law and remuneration law.

The greatest and by far the most challenging component, as well as the high-point, of the basic training programme for auditors, after they have completed their probationary year, is the professional MBA in Public Auditing from the Vienna University of Economics and Business and the ACA.

This course was developed by the Vienna University of Economics and Business with the ACA in 2006, in the context of the Univer-sity’s MBA programme. It takes four semesters to complete and is held in a block system (generally one week blocks in which several


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teaching modules are included). This format allows participants to carry out their studies alongside their job.

On the starting point and aim of the MBA programme, ACA presi-dent, Dr Josef Moser, has commented: “With the dynamic changes in the public sector, the role of auditors in public auditing has also developed beyond the traditional auditing activities of regularity and economy. The aim of the MBA is to successfully build experts so that in their role as auditors, advisors and pioneers they can operate in a networked way to enhance the performance of audit clients.” (Infor-mation folder on the MBA in Public Auditing).

The MBA programme is made up of management fundamentals (“busi-ness core”) and specialised modules (“specialisations”). The business core ensures a broad economic basis with concrete reference to the public sector. The specialisations offer specifi c training on the sub-jects of auditing processes, economy of the public sector, fi nancial management and accounting, as well as certain areas of law.

Each teaching block of four or fi ve days (“core module”) takes place after a two week gap, which is the preparation period for the core module (“pre-module”), where there is, in particular, literature to be read, and sometimes tasks to be solved via e-learning. After com-pletion of the core module, learnings are established and the parti-cipants have tasks to solve (individual or group-work) – “post-mod-ule”. The participants are mainly judged on tasks and work during the core module but also, to a certain degree, on their performance in the pre and post-module activity.

Before fi nishing the course, the participants work on their master thesis, in which they deal with relevant issues on public auditing on a scientifi c basis and also on a practical level.

The course is recognised by international accrediting institutes (e.g. AMBA = Association of MBAs, London) and therefore internation-ally recognised.

Up to now – starting in 2006 – two groups have completed the course; a total of 46 participants have successfully fi nished, 29 of whom were from the ACA. A third intake started the course in autumn 2009.

The MBA in Public Auditing is being intensively further developed by the Vienna University of Economics and Business and the ACA. Feedback from the students who completed the course was particularly taken into consideration. When structuring the course,

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particular attention is paid to the logical and didactic sense of the contents.

In order to intensify exchange of intellectual capital and experience between audit institutions, the ACA places particular value on the fact that not only its own auditors may take part in the course, but that also other individuals – predominantly those carrying out audits in the public sector - may participate. This possibility has been taken up well, up to now, by external institutions, in particular by internal auditors, e.g. those from federal ministries and Laender audit insti-tutions. The course should therefore ensure a scientifi cally sound and, at the same time, practical education with experience exchange with external students.

Alongside lecturers who are appointed by the Vienna University of Economics and Business, and who are respected representatives from the fi elds of learning and research, there are also several employees of the ACA who have practical and teaching experience and who are accredited for the teaching body and work as lecturers. Special emphasis on international networking has also been placed on the third course being run. Therefore, high-ranking representatives from foreign supreme audit institutions (Germany, Switzerland, Slovenia) gave seminars on the working methods of their respective institu-tions, including the head of the Swiss SAI, Director Kurt Grüter.


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Defi nition of key data

HUMAN RESOURCES

Key data Defi nition

Personnel structure

Personnel headcount Number of employees (established posts occu-pied) at beginning of the year

Personnel according to full employment equivalent Employee resources available at beginning of year (taking into account notice periods, job-sharing etc.)

Number of auditors according to full employment equivalent

Employee resources available in auditing (in %)

Average age Average age of employees in auditing

Average length of service Average length of service of employees in auditing

Proportion with academic qualifi cations Proportion of employees with a university degree (not including postgraduate study) in auditing (in %)

of which law of which have a degree in law (in %)

of which economics of which have a degree in economics (in %)

of which technology of which have a degree in technology (in %)

of which other of which have a degree in another subject area (in %)

Those with more than one academic qualifi cation Number of those with more than one academic qualifi cation (not including postgraduate train-ing)

Fulfi lment of compulsory employment of disabled people

Number of disabled people employed above that required by the law on disability

Personnel costs as a percentage of total expenditure Proportion of expenditure on personnel as a percentage of total expenditure (in %)

126

Turnover rate

New entrants New recruits during the reporting period

Leavers Personnel leaving during the reporting period

Labour turnover rate Number of those leaving (not including retire-ment) compared to the average number of per-sonnel (in %)

Average retirement age Average age of those going into retirement

Gender Mainstreaming

Total percentage of women Proportion of women in total staff (in %)

Percentage of women in auditing Proportion of women in auditing (in %)

Percentage of women in management Proportion of women in management functions with personnel responsibility (in %)

Intellectual capital transfer

Training and development Amount of training and development of all employees in the reporting period

of which doing an MBA of which number of days for MBA training

of which in IT training of which number of days for in-house IT train-ing

Training and development proportion Number of employees who have completed at least one internal or external training course in the reporting period compared to total head-count (in %)

Training and development in EUR 1,000 Expenditure on training and development in the reporting period

of which on MBAs in EUR 1,000 of which expenditure on MBA training

of which on IT training in EUR 1,000 of which expenditure on internal IT training

Knowledge community events Number of knowledge community events

Internal participants in knowledge communities Number of participants in knowledge commu-nity events amongst the headcount of the ACA

External participants in knowledge communities Number of external participants in knowledge community events

Job rotation Number of audits begun in the reporting period in which employees from other departments have been involved


127


HUMAN RESOURCES


Organisational Structure

Core business processes Number of strategically important business processes

Decision levels Number of decision-making levels in the hierarchy of the audit process

Departments Number of departments

Department size Average number of employees in a department

Communication Structure

Institutional communication forums Number of institutional forums outside the audit process, which serve to convey information

Director General discussion forum Number of meetings between the President and Directors General in the reporting period

Department Head discussion forum Number of meetings between Directors General and their Department Heads in the reporting period

Employee event forum Number of information briefi ngs for employees in the reporting period

Communication platforms Number of technical platforms to convey information

Intranet platform (hits) Number of hits on the ACA intranet site

Technical Infrastructure

IT applications Number of IT applications used

Server availability Proportion of time that ACA data servers are available without disruption in the reporting period (in %)

Workstations Number of work stations with IT equipment

of which mobile Number of workstations with laptop computers

IT expenditure per workstation (in EUR) Average IT expenditure per workstation

Quality Assurance Structure – Auditing process

Tools used Number of tools used for quality assurance in the audit process

Audits by internal audit service Number of audits by internal audit service

128

RELATIONSHIP RESOURCES


Customers and Partners Here: the clients audited, the general representational bodies, the federal government, the Laender assemblies, the media and the public

General representative bodies on behalf of which the ACA operates

National Council, Laender parliaments, municipal or local councils

Participation in debates of general representative bodies

Number of times the President or employees of the ACA have taken part in debates at the general representative bodies

Reports acknowledged by general representa-tive bodies

Number of reports accepted by the National Council and the Laender parliaments

Motions for audit to the ACA Number of motions for audit by general representative bodies to the ACA

Parliamentary enquiries related to the ACA Number of parliamentary motions with reference to the ACA in the reporting period

Audit requests to the ACA Number of audits requested by members of the federal and Laender governments in the reporting period

Legal entities subject to audit by the ACA Number of legal entities which can be audited by the ACA

Press releases Number of press releases from the ACA

Press conferences Number of press conferences by the ACA

Interviews Number of interviews with the president

Publications Number of publications not including audit reports

Hits on the ACA website Number of external hits on the ACA website

National and International Networking

International fi les Number of fi led international letters and emails (ACA and INTOSAI)

Institutional contact with national audit institutions

Amount of institutional contact with national audit institutions

Institutional contact with other intellectual capital institutions

Number of types of intellectual capital institutions with whom there is regular contact

Austrian visitors Number of Austrian guests visiting

Visits to national conferences Number of national conferences attended

International visitors Number of international guests visiting (including EU contact committee)


129


International events visited Number of international events visited

of which INTOSAI events Number of INTOSAI events in Austria and abroad, visited

International contacts Amount of international contact (including EU contact)

Requests from other SAIs Number of requests from other SAIs

INTOSAI membership organisations serviced Number of membership organisations serviced by the INTOSAI General Secretariat

INTOSAI website (hits in 1,000s) Number of hits on the INTOSAI website

For information

ACA

1031 Vienna, Dampfschiffstraße 2

Tel: +43 (1) 711 71 8471

Fax: +43 (1) 712 4917

Email: [email protected]

Website: www.rechnungshof.gv.at

Publication details

Published by: ACA, 1031 Vienna, Dampfschiffstraße 2

Edited by: ACA

Layout, graphics, production: SOLTÉSZ. Graphics. Print. Internet.

offi ce@soltesz-grafi k.at

Cover photo: Manfred Seidl

Published: Vienna, September 2010 (English version November 2010)

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