nataša prah, director ministry of finance, slovenia
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Co-operation Between the Ministry of Finance and the Court of Audit Regarding the Public Financial Control. Nataša Prah, Director Ministry of Finance, Slovenia Workshop on “Audit/Evaluation of Public Internal Financial Control (PIFC) Systems” Ankara , 8 – 9 July 2008. Slovenia. - PowerPoint PPT PresentationTRANSCRIPT
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Co-operation Between the Co-operation Between the Ministry of Finance and the Ministry of Finance and the
Court of Audit Regarding the Court of Audit Regarding the Public Financial ControlPublic Financial Control
Nataša Prah,Director Ministry of Finance, Slovenia
Workshop on “Audit/Evaluation of Public Internal Financial Control (PIFC) Systems”Ankara , 8 – 9 July 2008
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
2
Slovenia
Area: 20,273 km2Population: 2,008,516 (30.6.2006)Budget expenditures (2007): 8.148 Mio € Budget spending centers: 2.730
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
3
Introduction
External Control of Public Finances Internal Control of Public Finances Preconditions for the implementation of the PIFC The support of the Court of Audit Forms of co-operation between the Ministry of
Finance and the Court of Audit Ministry of Finance response to the Court of Audit
results
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
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External Control of Public Finances
1. Parliamentary Commission for Public Finance Control discusses: Budgetary Inspection Reports Court of Audit reports Specific case by case issues
2. Court of Audit performs: regular Annual Audit of the State Budget Specific audits of annual accounts, compliance and
performance audits based on risk analysis and upon special requests from the Parliamentary Commission
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
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Internal Control of Public Finances
1. Budget Spending Centers Mission, Objectives and Criteria for follow-up Risk Registers Internal controls Monitoring Declaration on Internal Controls Internal Audit Service
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
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Internal Control of Public Finances (2)
2. Ministry of Finance (Budget Supervision Office of the RS) Regulations Guidelines Monitoring Support Analysis and Reporting to the Government and the
Court of Audit
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
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Preconditions for the implementation of the PIFC
Accountability
Stakeholders (Taxpayers, Business, Public, Voters,..)
require: Economical, Efficient, Effective and Ethical Operations Compliance with Laws and Regulations Protection of Resources against Negligence and Misuse Transparency, Reliable Reporting and Accountability
Court of Audit reports are listened to and followed up.
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
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Preconditions for the implementation of the PIFC (2)
Awareness
Heads of Budget Spending Centers
are accountable for :
compliance with laws and regulations,
economic, efficient, effective and ethical operations,
protection of resources against loss and misuse,
transparency and reliable reporting.
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
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Preconditions for the implementation of the PIFC (3)
are responsible and interested in
setting up an appropriate and effective system of internal control backed by internal audit
sign a Declaration on Internal Controls as a component of Annual Report
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
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Preconditions for the implementation of the PIFC (4)
Resources and Guidance by the Ministry of Finance that provide:
Guidelines and Standards for Internal Controls and Internal Auditing
Training Monitoring the compliance with Guidelines and Standards Reporting to the Government and to the Court of Audit on
PIFC
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
11
The support of the Court of Audit
While performing it’s audits the Court of Audit:
identifies weaknesses in internal control systems,
supports internal audit,
monitors compliance with guidelines and regulations on IC and IA,
monitors the procedure and reliability of the declarations on internal controls
supports and cooperates with the Ministry of Finance regarding the improvement of the PIFC
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
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Forms of co-operation between the Ministry of Finance and the Court of
Audit
Based on mutual interest it is natural that there exists a good cooperation without the formal agreement given the specific position of the two institutions.
The different forms of cooperation are: Meetings Development of Regulations, Guidelines, Methods Training, Participation at Workshops, Conferences
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
13
Forms of co-operation between the Ministry of Finance and the Court of
Audit (2)
Bilateral recognition of Professional Certificates Transmission of the Ministry of Finance reports:
Compliance Assessment of IAS Annual Reports on PIFC other information created within the Ministry of Finance
Other
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
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Meetings
Representatives of the MF and CoA meet on a regularly bases to exchange information and discuss different issues regarding the implementation and development of internal control.
Besides this a daily exchange of information and opinions on different matters per phone or e-mail takes place.
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
15
Development of Regulations, Guidelines, Methods
According to the Public Finance Act (Art. 100) MF submits to CoA for the approval drafts of guidelines
MF and CoA exchange the knowledge and participate in the development, e.g.
methodologies for the new EU financial perspective, performance audit, audit trails, declaration on internal controls,..
MF and CoA cooperate in translations of standards and on a joint glossary development
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
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Training
Both institutions strive to satisfy the training needs and assure continuous professional development of theirs’ employees:
setting up of the initial basic Training Programme for the acquisition of professional titles State Auditor (CoA) and State Internal Auditor and it’s further development taking into account specific needs of each institution (experts of the CoA are represented in the Training Programme Committee, exchange of lecturers
mutual participation as speakers at conferences organized by each institution
participation at workshops,...
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
17
Certification
Bilateral recognition of certificates: Ministry of Finance under the Public Finance Act issues
professional certificates: State Internal Auditor Verified State Internal Auditor
Court of Audit under the Court of Audit Act issues professional certificates: State Auditor Verified State Auditor
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
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Exchange of information
According to the Public Finance Act (Art. 101) MF sends a copy of annual report on PIFC to the CoA
As agreed between the two institutions, MF sends to the CoA Audit reports on Assessment of IAS regarding the compliance with the Guidelines on State internal Auditing
Different information are exchanged on a daily basis e.g. regarding the interpretation of guidelines in view of CoA findings and preparation of recommendations
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
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Ministry of Finance response to the Court of Audit results of PIFC
In 2007 within the Compliance Audit of the Budget Execution the CoA assessed the preparation of the annual declaration on internal control by budget Spending Centers and
expressed it’s support to the effords of the MF as the body responsible for the PIFC development, harmonization and monitoring,
acknowledged the contribution of the declaration to the raising of the managerial awareness regarding internal controls
recommended the further development of the methodology regarding the detailed explication of certain points in self assessment questionnaire
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
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Ministry of Finance response to the Court of Audit results of PIFC (2)
Ministry of Finance responded to recommendations and further developed the methodology related to completion the self assessment questionnaire as the basis for the annual declaration with the help of:
Working groups of internal auditors from different BSC that submitted in advance their contributions,
Experts for public administration, human resources,..
in close cooperation with the CoA.
Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance
Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia
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The end
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