Screening Chapter 32 –Screening Chapter 32 –Financial control (PIFC and External audit)Screening meeting on 18 May 2006 for Croatia and Turkey andPederJAKOBSSONDG BUDG B.3 1????????ContentPublic Internal Financial Control (PIFC)External AuditPoints for the bilateral meetingThe next stepsDG BUDG B.3 2??Public Internal Financial ControlManagerial accountability (basic principle)– Financial Management & Control systems (FMC)– Internal Audit– Central Harmonisation Unit (CHU)DG BUDG B.3 3??Managerial accountabilityAccountability ~ Responsibility–– Establishment of FMC systems and supervise operations– Establishment of Internal Audit–– Report on the state of play of the FMC systems– state play thesystemsDG BUDG B.3 4????????Public Internal Financial ControlManagerial accountabilityFinancial Management & Control systems (FMC)Internal AuditCentral Harmonisation UnitUnit (CHU)DG BUDG B.3 5????????Financial Management & Control (1)All kind of commitments (budget allocations/appropriations, contracts)All tendering and contracting aspectsAll kind of income, disbursements, management of assets and liabilitiesRecovery of unduly paid amountsDG BUDG B.3 6????????Financial Management & Control (2)Some elements to ensure sound financialmanagement and controlClear lines of responsibilitiesImplementing FMC manuals– Accounting, archiving, transparency– Authorization– Ex-ante financial control– ...
Screeni ng Chapter 32 Financi al control (PIFC and E xternal audit)
Screening meeting on 18 May 2006 for Croatia and Turkey
Peder JAKOBSSON
DGBUDGB.31
Content
Public Internal Financial Control
PIFC
External Audit
Points for the bilateral meeting
The next steps
DGBUDGB.32
BDGGDU3.B3laicnaniFlalrontCoterncInubliP
Financial Management & Control systems (FMC)
Internal Audit
Central Harmonisation Unit (CHU)
le
Mana erial accountabilit basic rinci
Manager ial accountability
Accountability ~ Responsibility
Establishment of FMC systems and supervise
operations
Establishment of Internal Audit
Report on the state of play of the FMC systems
DGBUDGB.34
lntroCo53
Central Harmonisation Unit (CHU)
.
BG
Financial Mana ement & Control s
Managerial accoun tability
Internal Audit
stems
FMC
anciFinalilcPbunrlanIetDGBUD
Financial Management & Control (1)
All kind of commitments (budget
allocations/appropriations, contracts)
All tendering and contracting aspects
All kind of income, disbursements,
management of assets and liabilities
Recovery of unduly paid amounts
DGBUDGB.36
iFancnialManag(e2m)ent&Co
Some elements to ensure sound financial mana ement and control Clear lines of responsibilities Implementing FMC manuals Accounting, archiving, transparency Authorization Ex-ante financial control Ex-post financial control, corrective actions. Risk analysis and management Follow-up of audit recommendations
DGBUDGB.3tnorl7
l
Managerial accountability
Central Harmonisation Unit (CHU)
n
Internal Audit
tro
Financial Management & Control systems (FMC)
lanaicoC38GDBDUG.BcliteInalrninFbuP
Internal Audit
Assessment of FMC systems Recommendations Functional Independence
1) drafting / implementing annual audit plan
2) performance (regularity/legality audits,
systems-based audits, performance audits,
e t c . )
3) reporting directly to the Head
4) n omination, d ismissal and transfer
DGBUDGB.39
PIF C guidelines
INTOSAI guidelines for internal control standards in the public sector
INTOSAI and IIA auditing standards including code of ethics