Development Strategy of the State Audit Office 2006 -1010.d…

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• Publié par: Shyan
• Nombre de lectures: 61
• Langue: English

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              Republic of Macedonia State Audit Office   Marsal Tito 12/3, Palata Makedonija, Skopje Те l ++389 (0) 2 3211-262 Fax ++389 (0) 2 3126-311 E-mail: [e-mail] Web: http://www.dzr.gov.mk     The Development Strategy of the State Audit Office for the period 2006-2010 was adopted by the General State Auditor on June 13, 2006.   SAO publishes this Strategy as a Guide for the activities in the upcoming years.   The strategy contains the five strategic goals closely related to the SAO mission.                              

 

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  DEVELOPMENT STRATEGY OF THE STATE AUDIT OFFICE 2006 – 2010   CONTENTS page   Introduction...........................................................................................................................3  Basic operational principles of SAO......................................................................................5 Mission, vision, strategic goals.............................................................................................6 Strategic goal 1 (Independence) ...........................................................................................7  Strategic goal 2   (Strenghtening institutional capacities) .......................................................8  Strategic goal 3 ( Developing new types and improving the quality of the performed audits )10                                   Strategic goa   ( T system). l 4 I .............................................................................. ..................12 Strategic goal 5   (Communication policies )............................................................................13  Implementation of the strategic goals........................................................................... 15 Monitoring and indicators for following the strategic goals............................................. 15 Risk factors for successful implementation of the strategic goals.........................................16                                                                          

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  DEVELOPMENT STRATEGY OF THE STATE AUDIT OFFICE FOR THE PERIOD 2006-2010       INTRODUCTION     The strategic goal of the Republic of Macedonia is joining the European community which means that SAO needs to comply with the rules, standards and the best practices of the European Union.   In 2004, the State Audit Office prepared for the first time the Strategy for development of state audit and the SAO for the period 2005-2009. Given the existing circumstances, experience, practices and standards of the state audit the SAO publishes this Strategy as a guide in the forthcoming years. The Strategy contains the five strategic goals closely related to the SAO mission.    The legal framework of state audit and the SAO operations has been specified by the State Audit Law (SAL) adopted for the first time in 1997 and based on the fundamental audit principles of the Lima Declaration. The legal framework   regulating the independence of SAO should be harmonized with the standards and the EU legislation and the level of financial independence should be achieved in accordance with the Lima Declaration as adopted by the International Organization of Supreme Audit Institutions (INTOSAI).   Since its establishment the State Audit Office has been developing under severe economic problems in the country; intensive reforms in all spheres of the economic and political life; public administration reforms especially in the financial control system; intensive activities and processes for cooperation with international financial and political institutions and an intensive process of EU approximation.   The SAO competencies have been specified by the Law on State Audit under which the state audit is defined as reviewing of documents and reports of the performed internal control and internal audit; accounting and financial procedures and other records in order to determine whether the financial reports reflect the financial status and the results of financial operations objectively and in accordance with the adopted accounting principles and standards and the International Auditing Standards of INTOSAI.   The state audit covers the legal and relevant use of funds in financial transactions which are treated as state expenditures and evaluation whether the funds have been used economically, effectively and efficiently.   The SAO competencies are executed with limited human and financial resources which results in a reduced scope of realization of the goals specified in the Law on State Audit. At the beginning of 2006 it had 75 employees or 60% of the total of 125 as specified by the SAO acts.   The SAO staff need continuous training and experience in implementation of the International Auditing Standards, other standards and regulations, and the most recent achievements in audit practices according to EU standards and criteria.   The World Bank Project for development of the SAO was implemented between 2003 and 2005 and it provided training for the SAO personnel; a manual for performance audit INDEPENDENCE COMPETENCE OBJE   CTIVITY NEUTRALITY RATIONALITY CONFIDENTIALITY PROFESSIONALISM Т EAM WORK 3

  and a program for sharing experience and knowledge were prepared and study trips were organized as well.   The financial audit manual is an expert aid of audit practices issued by SAO during 2005. It outlines the general approach of SAO when performing financial audit in the public sector and covers the key questions of the methodological approach that need to be reviewed, analyzed and valued according to the relevant audit standards. In the forthcoming period SAO will work on the preparation of series of detailed guidelines on various topics and issues in accordance with the INTOSAI Auditing Standards.   The Twinning Project with the Netherlands Court of Audit (NCA) began in September 2005. This project will enable adoption of the best audit practices from the NCA colleagues. This means building and strenghtening the SAO capacities where SAO will be in a position to successfully implement the European legislation. At the same time a high level of competence and efficiency of performing the audit will be secured in accordance with the EU rules and regulations and the relevant International Auditing Standards.                                                                      

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  Basic principles of SAO operations       Independence. Tendency to ensure full independence from the judicial and executive power and provide sufficient funding as a prerequisite for efficient exercise of the SAO powers.    Competence.  Tendency to acquire knowledge, skills, objectivity and authority, and while preparing audit opinions, conclusions and recommendations paying due attention and care to the adherence to the INTOSAI Auditing Standards.   Objectivity.  Tendency to maintain impartiality, intellectual honesty and consistent interest and provide opinions in accordance with INTOSAI, while performing the state audit.   Neutrality. Tendency to maintain the auditors independence from political influence and impartial performance of audit tasks.   Rationality.  Tendency to perform the state audit at a minimum cost which implies economic, effective and efficient utilization of the audit time.   Confidentiality.  Tendency to keep confidential the data acquired during the audit and to prevent their unauthorized disclosure to other parties.   Professionalism.  Tendency to follow the news in the area of state auditing; apply the most recent and top audit techniques and aids, and to continually improve the auditors skills.   Teamwork.  Tendency to practice comprehensive, constructive and creative cooperation between auditors having due respect for the auditors and enhance the sense of responsibility, ethics and professionalism as a prerequisite for accomplishing the vision, mission and the strategic goals of the SAO.           Mission   The State Audit Office is a Su reme Audit Institution the oals of which are to control and improve the regularity, accountability, efficinecy, effectiveness and the integrity of auditees that manage public funds     Vision   The State Audit Office is to be the bearer of the im rovement of ublic fund mana ement, accountabilit and trans arenc in the le islative, executive and judicial power by proposing economical, rational and effective solutions.      

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  STRATEGIC GOALS  

        Goal 1:Independence   Ensuring full independence of the state audit as a constitutional category, in accordance with the principles of the Lima Declaration;     Goal 2:Strenghtening institutional capacities   Ensuring optimal technical and human resources as a prerequisite for exercising the functions of the state audit;       Goal 3: Introducing new types and improving the quality of performed  audits     Introducing new types and improving the quality of performed audits in   compliance with the INTOSAI standards, and monitoring the effects of the performed audits;     Goal 4:Information systems and IT     Establishing and developing the information system of the SAO, application of the IT, and its rational and efficient utilization in audit;     Goal 5:Communication policies     Improving the communication system and information sharing with national and international legal entities and informing the public on the SAO operations.         STRATEGIC GOAL 1   Independence     Ensuring full independence of the state audit as a constitutional category, in accordance with the principles of the Lima Declaration.   Immediate goal 1.1 Defining the legal status of the State Audit Office as an autonomous and independent supreme audit institution in the Constitution of the Republic of Macedonia in accordance with recommendations of the Lima Declaration.   Activities • The State Audit Office will undertake activities and initiate a procedure for adoption of amendments to the Constitution of the Republic of Macedonia for the purpose of defining the independence and the autonomy of the state audit and the SAO as a supreme audit institution, by the end of 2006; INDEPENDENCE COMPETENCE OBJE   CTIVITY NEUTRALITY RATIONALITY CONFIDENTIALITY PROFESSIONALISM Т EAM WORK 6

  • Preparing a list of regulations that need to be amended for the purpose of strengthening the autonomy and independence of the SAO, between December 2006 and December 2008; • Continuous following and drafting proposals for amendments of the SAL for the purpose of improving and upgrading the solutions, in the period 2006- 2007; • Promotion of the operation and independence of the SAO, continuosly • Adoption of a new SAL, in accordance with the standards and EU criteria not later than the end of 2007; • Monitoring of the level of independence of the SAO as a prerequisite for objectivity and impartiality in all areas of operation, continuously.     Immediate goal 1.2 Establishing a legal framework for an independent and autonomous budget of the state audit and its implementation     Activities • Preparing a list of regulations that need to be amended, primarily the Law on Budgets, for the purpose of establishing an independent and autonomous budget of the SAO until the end of 2006; • Amending the Tariffs of the State Audit Office for the purpose of making a realistic planning of operation funds, end of 2006   • Preparing and proposing an independent and autonomous budget in a form of a proposal that would be submitted directly to the parliamentary bodies by January 1, 2007       STRATEGIC GOAL 2   Strenghtening institutional capacities   Ensuring optimal technical and human resources as a prerequisite for exercising the functions of the state audit.     Immediate goal 2.1   Improving the functional and organizational structure of administrative capacities and the personnel structure     Activities   • Drafting modifications to the existing regulations on organization and operation, and systematization of positions of the SAO, beginning on September 1,2006 and their continuous development; • Improving the organizational structure and specific responsibilities within SAO by drafting new acts on organization and systematization by January 1, 2008;  

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  • Staffing by the end of 2006 with 80 employees and in 2007 up to 90 employees, and in the years until 2010 reaching the optimal number of employees; • Preparing a Strategy for Development of Personnel Structure for the purpose of defining a concept of recruiting and retaining the personnel with the best knowledge and skills; assistance to new employees in order to include them in the working process; a long term development of the SAO managerial structure by identifying and retaining potential managers; strengthening the capacity for responsible conduct and ethical communication, June 2007.     Immediate goal 2.2   Risk assessment and Risk Management in SAO   Activities   • Prescribing procedures for assessment, identification, measuring, control, ensuring, and accepting or rejecting risk, second quarter of 2007; • Prescribing procedures for protection and safety of property and personnel in SAO, end of 2006.       Immediate goal 2.3.   Development of professional and expert capacities of SAO   Activities   • Defining policies for expert and professional advanced training of the SAO employees (training for audit methodology, foreign language courses, applied IT, use of IT software for auditing), ongoing as of 2006;   • Developing and implementing annual training plans, ongoing; • Developing a plan for organizing regional conferences and its implementation in order to gain experience, knowledge and best practices from other SAIs, ongoing as of 2006;   • Continuous organizing and holding the exam for an authorized state auditor, in the period 2006-2010 and organizing an appropriate training for interested candidates from October to December in the current year; • Conducting evaluation among the SAO employees as a prerequisite for assessing the quality of the conducted trainings, knowledge acquired and the best practices of other SAIs, and assessing the need to amend the appropriate plans, ongoing; • Updating the Financial Audit Manual on the basis of practical experience and the practices of the Twinning Project, end of June, 2007; • Updating the Performance Audit Manual on the basis of practical experience and the practices of the Twinning Project, end of June, 2007; • Prescribing, adopting and implementing standards as criterion for assessing the quality of audit work and their future harmonization with the standards of the SAI of EU member states, first quarter of 2007;

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  • Evaluating the annual mentor reports as a prerequisite for assessing the expertise and capability of auditors for both independent and team work, ongoing 2006;           STRATEGIC GOAL 3   Developing new types and improving the quality of performed audits   Developing new types and improving the quality of performed audits in compliance with the INTOSAI auditing standards, and monitoring the effects of the performed audits.   Immediate goal 3.1   Development of audits in terms of assessment of the economy, effectiveness and the efficiency; audit of public revenues; use of EU funds; audit of enviromental protection projects and IT systems audit.   Activities   • The new State Audit Law should define the scope of the state audit by including the audit of the revenues collected by the auditees as well as plan authorization of SAO to audit the EU funds and EU programs and the projects funded by such assets, not later than the end of 2007; • Developing public revenues audit by performing regularity audits on the collection of public revenues, testing the efficiency of the system of collection of public revenues; assessing the achievements relative to the revenues and the need to give proposals for improvement of legislation, during 2008;   • Developing activities related to audit of EU funds and implementing the procedure for harmonization of the internal acts and developing appropriate procedures for performing such type of audit activities in SAO, during 2008; • Developing activities related to audit of environmental protection projects and developing appropriate procedures for performing this type of audit activities in SAO, during 2007; • Defining the audit of IT systems and preparing methodology guidelines for performing audit of IT systems, during 2008; • Organizing training, seminars and practices for auditors in performing IT system audit, first half of 2009; • Developing the Performance Audit Department and increasing the number of performance audits in the SAO Annual Progranne, ongoing.            

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Immediate goal 3.2   The results from the performed state audit should be of high quality; reports should contain logical findings and other statements supported by competent and relevant audit evidence.   Activities   • Providing a minimum scope of auditees in the annual program by including all ministries, all funds at national level, 50% of LGU budgets and two to three state owned enterprises, by 2010; • Defining the criteria for accepting the audits upon request, during 2007; • Establsihing procedures for quality assurance, in accordance with the INTOSAI standards, by the end of 2007; • Analyzing and assessing the degree of improvement in writing, presentation and readability of SAO audit reports, each year ongoing; • Defining a new format of audit reports, in the course of 2007; • Monitoring the systemic weaknesses outlined in audit reports for the purpose of improving the governance and use of public funds, ongoing.   Immediate goal 3.3   Developing the recommendations tracking system that will enable SAO to better monitor and report on the dynamics of implementing the audit recommendations by auditees and the effects of performed audits.   Activities   • Assessing the level of clarity, concreteness and manner of presentation of the   findings and recommendations in the audit reports as a possibility for the competent bodies to act upon them, ongoing • Developing and implementing a system for monitoring recommendations and analyzing the effects, ongoing • Preparing summary reports on audit recommendations with special emphasis on the level of accepted recommendations by entities, ongoing • Planning the timeframe in the annual and operational programs for monitoring the recommendations and measures arising from audits performed, insight by audit teams, ongoing         STRATEGIC GOAL 4   Information systems and IT     Establishing and developing the information system of the SAO, application of the IT and its rational and efficient utilization in audit.  

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