Document Sample
					2008                                                                                            No. 14
 E u r o p e a n   O r g a n i s a t i o n   o f   S u p r e m e   A u d i t   I n s t i t u t i o n s

                       VII EUROSAI CONGRESS
                             Krakow (Poland), 2-5 June 2008
ISSN: 1027-8982
ISBN: 84-922117-6-8
Depósito Legal: M. 23.968-1997
EUROSAI magazine is published annually on behalf of EUROSAI (European Organisation of Supreme Audit Institutions) by the EUROSAI Secretariat.
The magazine is dedicated to the advancement of public auditing procedures and techniques as well as to providing information on EUROSAI activities.
The editors invite submissions of articles, reports and news items which should be sent to the editorial offices at TRIBUNAL DE CUENTAS, EUROSAI
Secretariat, Fuencarral 81, 28004-Madrid, SPAIN.

Tel.: +34 91 446 04 66 - Fax: +34 91 593 38 94 - E-mail: - tribunalcta@tcu. es - www:
The aforementioned address should also be used for any other correspondence related to the magazine.
The magazine is distributed to the heads of all the Supreme Audit Institutions throughout Europe who participate in the work of EUROSAI.

EUROSAI magazine is edited and supervised by Manuel Núñez Pérez, EUROSAI Secretary General; and María José de la Fuente, Director of the EUROSAI
Secretariat; Pilar García, Fernando Rodríguez, Jerónimo Hernández, and Teresa García. Designed and produced by DiScript, S. L. and printed by Star Press.
EUROSAI magazine is printed on environmentally-friendly, chlorine-free (EFC) 110 gsm coated art paper which is bio-degradable and can be recycled.

Printed in Spain - Impreso en España

The opinions and beliefs are those of the contributors and do not necessarily reflect the views or policies
of the Organisation.

                                                                                     No. 14 - 2008

EDITORIAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   3


VII EUROSAI Congress in Krakow (Poland), 2-5 June 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            4
Conclusions and Recommendations of the VII EUROSAI Congress. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                   6
Minutes of the XXXII EUROSAI Governing Board Meeting (13 September 2007). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                             14
Summary of the Decisions of the XXXIII EUROSAI Governing Board Meeting (2 June 2008). . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                     22
Summary of the Decisions of the XXXIV EUROSAI Governing Board Meeting (5 June 2008). . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                      24
Minutes of the XV EUROSAI Training Committee Meeting (8-9 March 2007). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                          25
Summary of the XVI EUROSAI Training Committee Meeting (27-28 March 2008). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                               42
Workshops and seminars organised by the EUROSAI Chairman: Sharing information - sharing opinions -sharing lessons learnt. . .                                                                     44
EUROSAI Activities in 2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     47
EUROSAI Activities in 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     48
Advance of the EUROSAI Agenda 2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               48
New Chairman of EUROSAI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        49
New Secretary-General of EUROSAI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             49
New EUROSAI Members. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        50
Appointments on EUROSAI members. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                50


Mr. Vitor Manuel Da Silva Caldeira, elected as new President of the European Court of Auditors. . . . . . . . . . . . . . . . . . . . . . . . . . .                                               51
Three new Members join the European Court of Auditors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        51
Annual Report on the implementation of the budget concerning the financial year 2006. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                         52
Other reports and opinions published by the European Court of Auditors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                               53
Meeting of the Heads of the Supreme Audit Institutions (SAIs) of the European Union in Helsinki (3-4 December 2007). . . . . . . .                                                                55


AUDIT INSTITUTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         56
Dr. Josef Moser, President of the Austrian Court of Audit and Secretary General of INTOSAI.
FIFTEEN YEARS OF EXISTENCE OF THE SUPREME AUDIT OFFICE OF CZECH REPUBLIC. . . . . . . . . . . . . . . . . . .                                                                                     58
Dr. Frantisek Dohnal, President of the Supreme Audit Office of Czech Republic.
THE COURT OF ACCOUNTS OF MOLDOVA: FROM EXTERNAL CONTROL TO EXTERNAL AUDIT. . . . . . . . . . . . .                                                                                                59
Ala Popescu, President of the Court of Accounts of the Republic of Moldova.
AUDITS IN THE FIELD OF EDUCATION PERFORMED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                             63
Dr. Valentyn Symonenko, Chairman of the Accounting Chamber of Ukraine.
XIX INTOSAI CONGRESS, MEXICO 2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            68
The Supreme Audit Institution of Mexico.
INTERNATIONAL STANDARDS OF SUPREME AUDIT INSTITUTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                              70
Kristoffer Blegvad and Ane Elmose.
Advisers. (PSC/Rigsrevisionen-Supreme Audit Institution of Denmark).
INTOSAI WGEA CHAIR MOVED TO NATIONAL AUDIT OFFICE OF ESTONIA - A MEMBER OF EUROSAI. . . . . . .                                                                                                   72
The Supreme Audit Institution of Estonia and INTOSAI WGEA Secretariat.
OF COOPERATION AMONG SUPREME AUDIT INSTITUTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                        73
Dr. Pál Becker, First Associate Director General. The Supreme Audit Office of Hungary.

                                                            EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
OF NETHERLANDS COURT OF AUDIT AND STATE AUDIT OFFICE OF HUNGARY. . . . . . . . . . . . . . . . . . . . . . . . . . . .             78
The Supreme Audit Office of Hungary.
RUSSIA AND NORWAY IN GROUNDBREAKING AUDIT COOPERATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   84
The National Audit Office of Norway.

Dear Colleagues,
I am pleased to have the opportunity to address you a few words from this forum that regularly brings us together.
I would like to take this occasion to make some reflections on the event of special significance that got us together
this year, the VII EUROSAI Congress; held in June under the splendid organization of the Supreme Audit Institution
(SAI) of Poland, the Najwyzsza Izba Kontroli.
I would first like to reiterate here, on behalf of EUROSAI Members, the congratulations to the President of the
mentioned SAI, Mr. Jezierski, for his appointment in said Congress as President of our Organisation, wishing him
a very fruitful and successful mandate. I would also like to cordially thank the President of the SAI of Germany,
Dr. Engels, for the great work done during his three years as EUROSAI President and congratulate him on the
momentum that his initiatives, his personal and professional attitude, and his dedication have meant. It has been
an honour for the EUROSAI Secretariat and for the ones who have served as General Secretaries during this
period, Mr. Ubaldo Nieto, to whom I would also like to dedicate a special mention and thanks for his ten years
of painstaking performance, and for myself, to have such a valuable collaboration.
The VII EUROSAI Congress has shown the maturity of our Organisation to address the analysis and discussion
of issues of common interest to contribute, from the performance of each SAI mandate, to improve the management
of public funds. The Themes chosen for this Congress, establishing an audit quality management system within a
SAI, and auditing social programmes in the fields of education and professional integration of disabled, led to
interesting presentations and exchanging of experiences. The Conclusions and Recommendations resulting from
the presentations, study cases, contributions and oral statements made during the Congress showed the high
technical level of the debate. The exchanges of knowledge and experiences contribute, no doubt, to discussion,
critical analysis and mutual enrichment; as assessing problems and sharing eventual solutions reveal that we are
operating in common areas with shared challenges.
EUROSAI provides a clear framework, a large open space for the promotion of cooperation and professional
exchanges. Our Organisation has made obvious efforts and achievements during its eighteen years of existence.
It is clear the value added by EUROSAI to SAIs in the development of its activities leading to approach action
strategies and share experiences that would lead towards the harmonization of auditing procedures and standards,
and to design common guidelines and best practices to make audits more useful and with greater impact.                   3
But EUROSAI does not only provide a complement to our SAIs through exchanges, but it has also emerged as an
operational unit itself. As an Organisation, it has set up internal structures such as the Training Committee, Working
Groups and Taskforce. It has also established and strengthened relationships among its Members, with INTOSAI
and its Regional Organisations, with IDI, SIGMA, and other external partners with whom it shares interests; acting
under a sole individuality.
EUROSAI has also assumed a major commitment to training. The VII Congress adopted the Strategy for 2008-
2011, based on the previous three-year one and designed taking into account a detailed assessment of the
performance and results of the training strategy 2005-2008. The new Strategy is founded on three priorities: to
provide training to SAI staff so that they are able to develop and maintain the skills and experience necessary for
the discharge of their functions, to encourage the sharing of knowledge and experience so that SAIs in the
Region are able to access best practice in the field of public sector audit, and to contribute to institutional
development to build strong, independent and multidisciplinary SAIs.
Each EUROSAI Congress represents a further step in strengthening the Organisation and its Members as constituent
of a whole. On one hand, exciting and new horizons and prospects are opening up before us; but, on the other
hand, obligations and tasks to achieve them must be also addressed. Let’s assume, fully committed, the challenges
proposed by the VII Congress. This responsibility will require an effort on our part but it will offer us in return,
from the solid platform that cooperation provides, a valuable pillar for a more effective contribution to improving
public funds management.
I would not like to end these words without expressing the availability of the EUROSAI Secretariat to all, as well as
the most sincere thanks to the contributors who have made possible the publication of this issue of the EUROSAI
Magazine. I would also wish to offer this meeting point, whose fundamental mission is to serve as a vehicle for
information, communication and cooperation among the Members of our Organisation, to all those who wish to
contribute to this common task.

                                                                                                Manuel Núñez Pérez,
                                                                             President of the Spanish Court of Audit,
                                                                                     Secretary General of EUROSAI

                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                                  EUR      SAI

                                                   EUROSAI News
                                               VII EUROSAI CONGRESS1,
                                          Kraków (Poland) 2-5 June 2008

         On 2-5 June 2008 the Polish SAI (NIK)                   the EUROSAI Governing Board from Pro-
         hosted VII EUROSAI Congress in                          fessor Dieter Engels, the President of Ger-
         Kraków.                                                 man Bundesrechnungshof.
                                                                     In the afternoon, at the first plenary
             57 delegations – in total 229 guests -
                                                                 session of the Congress, chaired by Mr
         participated in the Congress, which in-
                                                                 Jacek Jezierski, after introducing theme
         cluded 48 EUROSAI member SAIs and
                                                                 Rapporteurs and Chairpersons of Theme
         delegations from AFROSAI, ARABOSAI,
                                                                 sessions of the Congress, delegates
                                                                 discussed and approved the General
         INTOSAI Journal on Government Audit-
                                                                 Secretary’s Report on the Activities of
         ing, OECD / SIGMA, and IDI.
                                                                 EUROSAI 2005-2008, the accounts and
                                                                 the financial reports of EUROSAI 2005-
         Day 1 – June 2nd                                        2007, EUROSAI Auditors’ Reports for
                                                                 2005-2007 and the EUROSAI Budget for
            In the morning, EUROSAI Governing                    the period 2009-2011. A report was also
         Board Members gathered at their XXXIII                  presented on the new Members incorpo-
         meeting.                                                rated to EUROSAI in 2005-2008 (Israel
                                                                 and Montenegro).
             At the opening session of the Con-
         gress, Prof. Lech Kaczyƒski, President of
         the Republic of Poland, had an inaugural                Day 2 – June 3rd
         address to delegates at the official Opening
         of the Congress.                                           Theme Session 1, “Establishing an
           Mr Jacek Jezierski, President of the                  Audit Quality Management System
         SAI of Poland, took over the presidency of              within a Supreme Audit Institution”,

                By the Polish Supreme Audit Institution (NIK).

EUR                SAI                    INFORMATION: EUROSAI NEWS                                No. 14

was co-chaired by Dr. Árpád Kovács, the
President of the SAI of Hungary, and Mr
Jacek Jezierski, with speakers from the
SAIs of Hungary, ECA, Bulgaria, Malta,
Denmark, the Russian Federation, Sweden,
Switzerland, Germany, France, Latvia. Be-
fore the Congress 32 SAIs delivered their
Country Papers for discussions.
    • The speakers discussed a variety of
possibilities of how SAIs can strengthen
audit quality management in their organi-
sations. Based on the discussed issues con-
cerning the establishment and operation of
an audit quality management system with-
in an SAI, the Congress recommended that
one of main objectives of each SAIs
should be the assessment and continuous
improvement of their audit quality man-
agement systems. In addition, it was de-
cided to develop a good practices guide on
audit quality be drafted in 2009 by a re-
spective EUROSAI working group,
chaired by Hungary.
    Theme Session 2, “Audit of Social
Programmes – Audit of Programmes in               abled”, was co-chaired by Mr Martin Sin-
the Field of Education”, was co-chaired           clair, Assistant Auditor General from the
by Mr Guilherme d’Oliveira Martins, the           SAI of the United Kingdom, and Mr
President of the SAI of Portugal, and Mr          Marek Zająkała, Vice-President of the            5
Józef Górny, Vice-President of the Polish         Polish NIK, with speakers from the UK,
NIK, with speakers from Portugal, Esto-           Sweden, Switzerland and Poland. 28 SAIs
nia, France, Sweden and Ukraine. Before           delivered their country papers for discus-
the Congress 32 country papers were de-           sions during that session.
livered for discussions.                              • Two of the speakers were guests from
    • All the speakers highlighted the fact       the outside of EUROSAI: Mr Chris Brace
that education is a key priority for every        from the British NGO “RADAR” and Mr
state, and therefore remains a priority area      Sławomir Piechota, the Chair of the Pol-
for all SAIs. Despite diversity of all Euro-      ish Parliamentary Committee on Social
pean countries, SAIs face many similar            Policy and Family. All the speakers empha-
challenges in auditing the effectiveness and      sized the fact that all the governments
legality of public expenditure on education.      should always recognise the many benefits
Therefore, it was decided that the extent of      of integrating disabled people into the
audits on education related topics should be      workplace. Therefore, the level of Govern-
relative to the scale of public expenditure on    ment spending, the social importance of the
specific publicly funded programs. There          programmes and the inherent risks such as
was a number of audit methods and audit           the difficulty of establishing eligibility for
topics proposed, i.a. ‘barriers to accessing      support, make this an important area for
high quality kindergarten education’, or ‘ed-     scrutiny by SAIs. It was recommended that
ucation initiatives designed to meet the          when planning their audit work, SAIs
needs of specific sectors of society, namely      should take account of the particular mate-
the disabled, the unemployed and offenders’       riality, risk and sensitivity inherent in pro-
                                                  grammes to promote the professional inte-
                                                  gration of the disabled, as well as should
Day 3 – June 4th                                  always consider obtaining first-hand infor-
                                                  mation from users of services or their rep-
   Theme Session 3, “Audit of Social              resentatives. A number of ways were rec-
Programmes – Audit of Programmes for              ommended, in which SAIs should work
Professional Integration of the Dis-              with their national governments in this area.

                                            EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                             EUR      SAI

         Day 4 – June 5th                                 Congress theme sessions, namely the SAI
                                                          of Hungary, Portugal and the United King-
             At the second plenary session, chaired       dom, and congratulated them on their ex-
         by Mr Jacek Jezierski, the Congress              cellent work.
         passed the “Kraków Conclusions and
                                                            After closing of the Congress, the
         Recommendations”, which has been pub-
                                                          XXXIV GB meeting was held.
         lished in full at the Congress website
             The SAIs of Ukraine and Turkey were          Social programme
         designated by the Congress as new mem-
         bers of the EUROSAI Governing Board.                 The day preceding the Congress, the
         Also, Congress participants were presented       delegates were invited to choose between a
         Activity Reports of EUROSAI Working              walking tour of the Kraków Old Town and
         Groups, as well as agreed to establish the       a tour of the historical saltmine in Wielicz-
         EUROSAI Task Force on “Audit of Natur-           ka. In the evening everybody was invited
         al, Man-Caused Disasters Consequences            to dinner in the folk-style restaurant in Za-
         and Radioactive Wastes Elimination”. Vari-       lesie near Kraków, with folk music and
         ous aspects of EUROSAI cooperation with          dancing.
         ARABOSAI, OLACEFS and IDI were pre-                  On Monday, 2 June, Mr Jacek Ma-
         sented. The chairmanship of the Working          jchrowski, the Mayor of Kraków, hosted a
         Group on Environmental Auditing was              Cocktail for Congress participants in the
         handed over by the Polish NIK to the SAI         manicured gardens of the Archaeological
         of Norway, whereas the SAI of the Nether-        Museum.
         lands passed the chairmanship of the IT              On Wednesday, 4 June, Mr Jacek Jezier-
         Working Group to the SAI of Switzerland.         ski invited his guests to an organ concert at
            The Congress unanimously accepted             the 13th c. Franciscan Basilica, and to the
         the offer of the Portuguese SAI to host          Congress closing dinner at the monastery of
         VIII EUROSAI Congress in 2011.                   the Franciscan Fathers. held on Wednesday
             In his closing speech, Mr Jacek Jezier-      evening, were both the highlight of the so-
         ski stressed his great appreciation and          cial program for many delegates.
         gratefulness for the support and advice             On Thursday, 5 June, after the Con-
         that his SAI received during the prepara-        gress had been officially closed, the dele-
         tion of the Congress from the SAI of Ger-        gates were invited to listen to the concert
         many, Spain, the Russian Federation and          of Fryderyk Chopin music by the pianist
         Hungary. He also thanked the chairs of the       Joachim Mencel.

                           OF THE VII EUROSAI CONGRESS
                                   (Krakow, Poland, 2-5 June 2008)
         Preamble                                         ry frameworks within which its members
                                                          operate. Each SAI’s independence and
             For nearly 20 years since its establish-     right to determine its own level of involve-
         ment in 1990, EUROSAI has encouraged             ment at any point in time is also respected.
         and supported friendly cooperation among         Within this context the EUROSAI Con-
         its members, the Supreme Audit Institu-          gress provides an invaluable opportunity
         tions (SAIs) within the region, in order to      once every three years, for all EUROSAI
         allow sharing of professional information,       colleagues to engage together to consider
         opinions and experiences. EUROSAI ac-            themes of current interest and common
         tivities recognize, and draw on, the diver-      significance to the SAI community as a
         sified environments and different regulato-      whole.

EUR                SAI                   INFORMATION: EUROSAI NEWS                               No. 14

Development of Congress Themes

    The VII EUROSAI Congress, organ-
ised in Krakow, 2-5 June 2008, considered
three key Themes, as outlined below. For
each Theme, the Theme chairs and assist-
ing SAIs prepared a Principal Paper giving
an overview of the theory and practice re-
lated to the topic and posing certain ques-
tions. EUROSAI members were invited to
respond or comment on the points raised
by the Principal Papers in the form of a             Theme 2 was led by the SAI of Portu-
written Country Paper, based on their own        gal, with support from the SAIs of Estonia,
national perspective and experience. The         France, Poland, Sweden and the Ukraine.
Country Papers provided an important and         In total, 33 SAIs contributed to developing
wide ranging source of information and           the Theme 2 Discussion Paper.
experience from which the Theme chairs
and assisting SAIs prepared three Discus-
sion Papers, one for each Theme.                 Theme 3 Audit of social programs for
                                                 professional integration of the disabled

Theme 1: Establishing an audit quality               Within the European Union and the
management system within a Supreme               OECD approximately one in seven people
Audit Institution                                are categorised as disabled and in many
                                                 countries the number claiming financial
    In order to be effective in its external
                                                 support due to incapacity is increasing.
audit role, an SAI needs to have the trust
                                                 Governments recognise the many benefits
of its national Parliament, public and other
                                                 of integrating disabled people into the
stakeholders. Audit quality is essential to
                                                 workforce and all Governments have pro-         7
achieving this status. Having systems that
                                                 grammes to do this. The level of Govern-
facilitate delivery of quality audits and re-
                                                 ment spending, the social importance of
sults, being able to guarantee to do so con-
                                                 the programmes and the inherent risks
sistently and being able to demonstrate
                                                 such as the difficulty of establishing eligi-
that this has been done are all central to an
                                                 bility for support, make this an important
SAI in achieving this goal.
                                                 area for scrutiny by SAIs.
    Theme 1 was led by the SAI of Hun-
                                                     Theme 3 was led by the SAI of the
gary with support from the SAIs of Den-
                                                 United Kingdom with support from the
mark, Malta, Poland, the Russian Federa-
                                                 SAIs of Estonia, Iceland, Poland, Sweden
tion and the European Court of Auditors.
                                                 and Switzerland. In total, 26 SAIs con-
In total, 33 SAIs contributed to developing
                                                 tributed to developing the Theme 3 Dis-
the Theme 1 Discussion Paper.
                                                 cussion Paper.

Theme 2: Audit of social programs
in the field education                           Congress Conclusions and
    Education is a key priority for every
state, and therefore remains a priority area         Clearly the three Themes cover diverse
for all SAIs. Countries have widely differ-      subjects. The first Theme is related direct-
ing education systems, and also vary wide-       ly to the challenge facing an SAI to ensure
ly in their approach to public spending on       that its work and outputs always meet the
education related programs and initiatives.      high quality standards that stakeholders
Despite this diversity, SAIs face many           expect. The second and third Themes deal
similar challenges in auditing the effec-        with specific, key social policy areas
tiveness and legality of public expenditure      where SAIs can and do make an impact
on education, and much can be gained             and, based on a discussion of existing ex-
from performing international compar-            periences and approaches, seeks to high-
isons of SAI approaches to auditing this         light areas for future consideration by
important and complex area.                      SAIs in their national work in these areas.

                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                              EUR      SAI

             During the VII Congress EUROSAI               importance to communication at all levels.
         members discussed the analysis and key            This is vital to direct an SAI’s mission and
         observations drawn together in the Discus-        goals, improve trust across the organisa-
         sion Papers, as well as additional informa-       tion, and promote professional knowledge.
         tion including presentations covering tech-
                                                               1.4 Most SAIs have a strategic plan to
         nical audit case studies from SAIs and
                                                           respond to the changing audit environment
         alternative perspectives from external
                                                           and to the expectations of stakeholders.
         stakeholders. On this basis the Congress
                                                           The majority of SAIs also carry out, as
         reached certain conclusions and developed
                                                           part of their strategic planning process, a
         several recommendations.
                                                           comprehensive assessment of risks associ-
             The Congress agreed that the recom-           ated with the audit environment.
         mendations and the brief exposition of the
         findings and conclusions that underpin                1.5 SAIs in many countries periodical-
         each Theme (as presented in Annexes one,          ly monitor and review progress made in
         two and three respectively), provide useful       the implementation of their strategy. The
         signposts for colleagues and other interest-      vast majority of SAIs indicated that the
         ed parties who may wish to access the             fulfilment of their strategic objectives is
         wealth and breadth of underlying detailed         evaluated through the implementation of
         and technical information to be posted on         the annual audit plan/programme. Some
         the EUROSAI website. The information,             SAIs mentioned that they use performance
         knowledge and guidance available to SAIs          indicators to measure the degree of the im-
         in this way will be of great value to them        plementation of the strategy.
         when considering or carrying out work in              1.6 SAIs indicated that they either
         the areas covered by the Themes of the VII        have, or are in the process of developing,
         EUROSAI Congress, held in Krakow,                 policies and systems for human resource
         Poland in June 2008.                              management. Most SAIs have also formu-
                                                           lated specific plans and procedures for the
                                                           recruitment and selection of employees,
                        ANNEX (1)                          for the promotion and advancement of em-
                                                           ployees, for the organisation of staff train-
                         Theme 1:                          ing and development, and for performance
               Establishing an audit quality               appraisals. However, different practices
               management system within a                  are in place depending on the SAI’s man-
                Supreme Audit Institution                  date, size, culture, resources, organisation-
                                                           al setup and stage of development.
         Conclusions                                           1.7 The majority of SAIs consider
                                                           comprehensive human resource planning
             The Congress has developed the fol-           and monitoring is essential to ensure the
         lowing main conclusions on how SAIs can           efficient and effective use of staff, as well
         strengthen audit quality management in            as more satisfied and better trained em-
         their organisations                               ployees. In addition, these SAIs regard as
             1.1 All participating EUROSAI mem-            vital the fair application of well-docu-
         bers are concerned about audit quality is-        mented and communicated human re-
         sues. However, audit quality management           sources policies and procedures, and the
         practices vary considerably from country          transparent treatment of staff.
         to country.                                           1.8 SAIs consider continuous supervi-
             1.2 SAIs expressed their continued in-        sion and regular review by management or
         terest on issues regarding leadership and         senior auditors during the audit process as
         recognise that leadership is an essential el-     the main measures for quality control. This
         ement in an effective quality management          also ensures that audit work is in accor-
         system. The key message was that through          dance with established audit standards and
         good leadership, an organisation benefits         practices. In the majority of SAIs, audit
         from a clear definition of purpose, identity      work is reviewed by an audit team, as well
         and direction.                                    as by internal and/or external advisors.
             1.3 The majority of SAIs emphasised              1.9 SAIs have developed documents
         that leadership should also give adequate         on their audit methodologies (e.g. guide-

EUR                SAI                   INFORMATION: EUROSAI NEWS                                No. 14

lines, manuals and checklists) that are          and other public sector organisations was
compliant with international and internal        emphasised. Good practices of other SAIs
audit standards. These are used to support       could also be emulated.
auditors in carrying out high quality au-
dits. Furthermore, most SAIs provide oth-
er kinds of support to auditors during the       Recommendations
audit process, including the introduction
of information technology tools to staff            Based on the discussed issues concern-
and the hiring of external expertise.            ing the establishment and operation of an
    1.10 SAIs recognise the importance of        audit quality management system within
external relations as an independent source      an SAI, the Congress makes the following
of information on the quality of the audit       recommendations:
activities. SAIs have established and main-          2.1 SAIs are encouraged to further
tained regular contact and rapport with          promote leadership. This can be achieved
stakeholders, and have undertaken initia-        by ensuring that an SAI’s mandate is in-
tives to obtain their feedback. Key stake-       corporated into the organisation’s mission
holders targeted by the SAIs are Parliament      and vision statements, its value frame-
and its committees, audited organisations,       work, the code of conduct, and in its
media, the general public and professional       strategic and operational plans. In order to
organisations.                                   assess and monitor the implementation of
    1.11 SAIs have various measures in           these goals, SAIs could also consider the
place to monitor the outcomes of their au-       development of performance indicators
dit activity and to obtain external feedback.    that report on inputs, outputs, outcomes,
The majority of SAIs track the degree of         efficiency and/or other measures.
implementation of audit recommendations.             2.2 SAIs should consider setting as an
This is done through follow-up audits and        objective the assessment and continuous
surveys with audited organisations. Other        improvement of their audit quality man-
methods used by SAIs include the organi-         agement systems. On the basis of these as-       9
sation of press conferences, the monitoring      sessments, SAIs could develop an action
and analysis of media reports on SAIs, and       plan focusing on priority issues that would
the collection of information from the pub-      serve as a foundation for initiatives aiming
lic through feedback forms on their web-         at the improvement of audit quality. SAIs
sites.                                           are ultimately encouraged to operate a total
    1.12 Most SAIs seek to continuously          quality management system focusing on all
develop and improve their audit quality          the functions and processes of the organi-
management system by carrying out inter-         sation and on the orientation of all staff to-
nal and/or external post-audit quality re-       wards the achievement of high quality.
views. Some SAIs also carry out self-as-             2.3 SAIs are encouraged to take fur-
sessments. These processes are used by           ther efforts to support their staff to achieve
SAIs to enhance their quality management         high quality standards. Further training
systems, as well as to determine the direc-      and professional development pro-
tion of further progress.                        grammes could be organised to encourage
    1.13 SAIs provide different opportuni-       staff members to continually learn and de-
ties for staff to submit constructive sugges-    velop new knowledge, skills and work
tions. Most SAIs take due consideration of       practices. Internal communication could
these suggestions in the preparation of          also be improved by effectively using dif-
their strategic or annual plans/pro-             ferent communication tools.
grammes, as well as during performance               2.4 SAIs could make use of reviews
appraisals. In addition proposals and com-       conducted by external experts, including
ments from staff are taken into considera-       peer reviews. SAIs may also consider es-
tion when compiling or updating docu-            tablishing an independent organisational
ments related to methodology.                    unit dedicated to quality issues.
    1.14 SAIs recognised the need to con-            2.5 SAIs should consider the strength-
tinue to focus efforts to achieve high qual-     ening of relations with key stakeholders,
ity audit work. The importance of learning       including the Parliament and its commit-
from the experiences of the private sector       tees, audited organisations, media, the

                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                              EUR     SAI

         general public and professional organisa-        Methods used in education-related audits
         tions. SAIs are also encouraged to contin-
         ue to develop their systems for the collec-         1. In terms of the methodologies
         tion, evaluation and use of external             adopted there are no substantial differ-
         feedback to enhance the quality of the au-       ences between the audits performed in the
         dit activity.                                    area of Education and in other areas;
             2.6 The Congress supports the devel-            2. All SAIs use document review as a
         opment of a good practices guide on audit        key audit method, and a majority gather
         quality to be drafted in 2009 by the work-       information through public opinion sur-
         ing group. The draft guide will be submit-       veys;
         ted for comments by the Secretary Gener-
         al of EUROSAI to EUROSAI members.                Reporting of the findings to decision
         The final document will then be submitted        makers and beneficiaries of
         to the EUROSAI Governing Board.                  education-related programs in order
                                                          to maximise the audit impact

                                                             1. The Internet is the most commonly
                        ANNEX (2)                         used medium to report SAI findings and
           Theme 2: Audit of social programs                  2. Parliament, the audited entities and
                in the field education                    the Government are the main recipients of
                                                          the outputs of SAI work;
         Conclusions                                          3. The evaluation of the impact of SAI
                                                          work is made essentially through monitor-
         Legal systems and expenditure                    ing the implementation of recommenda-
            1. The fundamental and programmatic
         norms of most countries are set out in a             4. The recommendations aimed at
   10    Constitution;                                    changing rules and regulations, as well as
                                                          the dissemination of good practices are the
            2. The investment in Education ranges
                                                          main methods used to maximize the im-
         from 95 M€ to 116.000 M€ in the differ-
                                                          pact of audits.
         ent countries, and the expenditure of the
         GDP varies between a minimum of 2%
         and a maximum of 8.5%;                           Recommendations

         Audits carried out in education                  Audit topic selection

             1. In the period 2004-2006, 109 audits           1. The extent of audits on education
         were performed, and 93 are planned for           related topics should be relative to the
         the period 2007-2009;                            scale of public expenditure on specific
             2. The audit scope of most of the au-        publicly funded programs. The following
         dits carried out was the financial proce-        potential audit topics have emerged as
         dures and the review of policies, and au-        worthy of consideration on a more univer-
         dits were particularly focused on Higher         sal basis from our review of the detailed
         Education;                                       responses provided by SAIs:
                                                              a) barriers to accessing high quality
         Selection of education-related topics            kindergarten education, in particular those
                                                          related to geographical location of service
             1. The most commonly used sources            providers, parental financial capacity to
         of information for selecting the audit top-      cover school fees and the quality of
         ics is the follow-up that is made by the SAI     kindergarten education services
         itself, along with the statistical informa-          b) the quality and effectiveness of ed-
         tion available;                                  ucation services and initiatives aimed at el-
             2. Compliance/legality and economy           ementary and high school level, in raising
         and efficiency are the most commonly             education achievement levels and reducing
         used criteria for evaluating education-re-       drop out rates of students between 15 and
         lated issues;                                    18 yrs of age

EUR                SAI                    INFORMATION: EUROSAI NEWS                                No. 14

    c) the quality of vocational education            2. In addition to the more commonly
programs and initiatives and the extent to        used methods such as document/ file re-
which these programs meet labour market           view, audits of education programs partic-
needs and the demands for continuing ed-          ularly benefit from using a number of oth-
ucation                                           er techniques, which might include:
    d) education initiatives designed to          surveys of beneficiaries, interviews, re-
meet the needs of specific sectors of soci-       views of internal audit work, focus groups
ety, namely the disabled, the unemployed          and expert panels. Benchmarking is also
and offenders                                     seen as a key tool for comparing the per-
                                                  formance of education service providers
    e) the quality of university level edu-
                                                  across regions/ countries.
cation, including issues around the effec-
tiveness of management as well as provi-              3. Throughout the audit process, ef-
sion of financial aid to students                 fective communication should be main-
                                                  tained with the auditee. This should in-
    2. In order to decide on the focus of au-
                                                  clude regular feedback on audit progress,
dit themes, it is important to consider these
                                                  as well as early discussions on initial find-
programs in a European context as well as
                                                  ings. Maintaining a closer worker relation-
on a national level, using data and statistics
                                                  ship between auditor and auditee has
available from information management
                                                  shown to facilitate discussions and accep-
systems worldwide. Audit themes should
                                                  tance of post-audit conclusions and recom-
be selected that are particularly of parlia-
mentary interest, and more specifically, of
interest to key parliamentary committees,             4. Taking on board work done by oth-
as far as possible.                               er national audit bodies where applicable,
                                                  and working with them where appropriate,
    3. The following risk areas could be
                                                  can provide many benefits. Their reviews
considered by SAIs when selecting audit
                                                  will provide a very useful insight into the
                                                  auditee’s work, and using their results can
    a) the materiality of public expendi-         avoid duplication of work on an area,            11
ture on a program, particularly where there       which will also reduce the disruption
have been significant changes in expendi-         caused to the audited entity personnel by
ture over the course of the program dura-         distracting them from their core duties.
    b) complex management structures or           Reporting audit conclusions
unclear division of duties and responsibil-       and post-audit recommendations
                                                      1. In order to ensure audit effective-
    c) incomplete or imprecise legal regu-
                                                  ness, it is advisable to provide audit re-
                                                  ports to the decision and policy makers,
    d) lack of existing program effective-        who can help ensure the implementation
ness indicators                                   of post-audit conclusions.
    e) programs involving local autonomy              2. Although the Internet is a popular
and public tendering and procurement              and highly valuable medium for present-
processes                                         ing audit results, it is also worth using oth-
   Joint or parallel audits involving sev-        er channels to communicate audit conclu-
eral SAIs may be of particular benefit.           sions and recommendations.
Such audits should enable auditors to
                                                      3. One of the key ways used by some
share experiences and evaluate education
                                                  SAIs in evaluating their audit impact is
systems on a regional and even European
                                                  monitoring of the actions taken as a result
                                                  of post-audit recommendations. In prac-
                                                  tice, simply introducing a systematic mon-
Audit methods                                     itoring process in an SAI should itself lead
                                                  to greater implementation of post-audit
    1. It is important for SAIs to use or de-
velop measurable and comparable perfor-
mance indicators for specific programs, in           4. The added value of education audits
evaluating the effectiveness of education         can be ensured through specific recom-
policies or initiatives.                          mendations which lead to changes in regu-

                                            EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                             EUR      SAI

         lations governing education programs, as          money. In practice, audits by SAIs have
         well as through wider dissemination of au-        confirmed that these difficulties, amongst
         dit findings and identified good practice         other things, add to the risk that pro-
         examples.                                         grammes can fail to deliver their intended
                                                           benefits. Indeed some audits have found
                                                           programmes to have significant weakness
                                                           and very limited success.
                        ANNEX (3)
                                                               Recommendation 2: In conducting
           Theme 3: Audit of social programs               their planning and carrying out their work
              for professional integration                 SAIs should consider obtaining the views
                    of the disabled                        of users of services or their representa-
             Recommendation 1: In planning their               SAIs have found significant benefits
         future audit work SAIs should take ac-            from obtaining the views of service users
         count of the particular materiality, risk and     or their representatives. Such benefits in-
         sensitivity inherent in programmes to pro-        clude getting first hand information on
         mote the professional integration of the          how effectively programmes are working,
         disabled. They should also note the experi-       information on the quality of the employ-
         ence of many SAIs that such audits have           ment opportunity and experience which is
         produced significant findings, conclusions        not always measured by providers and in
         and recommendations.                              getting information about proposed devel-
                                                           opments in policy and administration. This
             In many countries the significant             can be achieved in a number of ways, for
         amount of government funding provided             example surveys and contact with groups
         to promote the employment of disabled             representing disabled people. Care has to
         people makes the area one that merits au-         be taken, however, that auditors retain
         dit attention. Added to this there are also a     their objectivity and independence and are
   12    number of particular factors which in-            able to evaluate particular services without
         crease the priority that SAIs might give to       becoming advocates for them in the politi-
         this subject. These include that improving        cal arena.
         the professional integration of the disabled
         is a sensitive issue that people hold strong          Recommendation 3: Where their statu-
         opinions about and the public interest in         tory remit permits, SAIs should make full
         such programmes might be high. Experi-            use of the opportunities for collaboration
         ence shows that the risks in such pro-            with other inspectors but must have
         grammes may be correspondingly high.              arrangements in place to assure them-
         Firstly there is some evidence that, at the       selves of the accuracy and completeness of
         political level, governments may set tar-         data provided by third parties.
         gets that are ambitious – sometimes high-
         er than anything that may have been previ-            Auditors in some jurisdictions are not
         ously achieved and may, in practice not be        able to audit work programmes on their
         realistic or achievable. Secondly, there are      own and need to collaborate with other or-
         often increased risks to delivery of such         ganisations in discharging their duties. In
         programmes such as the difficulty of chal-        many jurisdictions work programmes are
         lenging legacy systems.                           delivered by non-governmental bodies,
                                                           perhaps charities or private sector bodies.
             Although governments will be looking          The role of the SAI in the audit of pro-
         to make good use of public funds in this as       grammes can be made harder in these cir-
         in any other area of spending, there may be       cumstances. The auditor may need to gain
         circumstances in which normal expecta-            a detailed understanding of a system that
         tions of performance (eg in sheltered em-         involves a high number of small organisa-
         ployment) are tempered by a recognition           tions or a long delivery chain.
         of wider social benefits from helping dis-
         abled people. As a consequence, auditors              Recommendation 4: In developing na-
         have to use particular skill and judgement        tional approaches SAIs should take full ad-
         in assessing performance, particularly if         vantage of the opportunity to benefit from
         their work could lead to it concluding that       sharing the knowledge and experience al-
         certain programmes were poor value for            ready gained by EUROSAI colleagues.

EUR                 SAI                    INFORMATION: EUROSAI NEWS                               No. 14

    The Congress has highlighted that                  Eligibility for programmes and support
SAIs already have considerable experi-             arrangements for the disabled often centre
ence of auditing these programmes and of           on an assessment of disability usually car-
addressing the particular risks inherent in        ried out by medically qualified staff. Audi-
them. Therefore, although this is a broad          tors cannot question the medical judge-
and complex area, SAIs have the opportu-           ments on which decisions will have been
nity to draw on the existing experience of         made about eligibility for disability support
colleagues and the techniques they have            or for admission to a work programme.
used in developing their own audit ap-             Nevertheless, auditors will need to have a
proach appropriate to their national situa-        good understanding of the relevant medical
tions.                                             decisions and the classification of disabled
                                                   people and must find ways of assessing
   Recommendation 5: SAIs should en-               whether administrations have a strong de-
courage governments to adopt good ad-              cision making process in place. In order to
ministrative practice.                             do this there may be a need for specialist
    The scale of the funds used for work           assistance in carrying out the audit.
programmes for disabled people means
that SAIs have an important responsibility             Recommendation 8: In view of the dif-
for ensuring that funds are spent as in-           ficulty of making judgements in pro-
tended and not directed into other activi-         grammes for the support of the disabled,
ties. Yet audits by SAIs have often found          SAIs should pay particular attention to ob-
that administrative arrangements put in            taining a range of sources of evidence that
place by governments are not fully effec-          can provide further corroboration of find-
tive. SAIs should encourage governments            ings and conclusions.
to introduce clear legislation and regula-             Where there is difficulty in making an
tions, design robust and transparent deci-         audit judgement, for example where it is
sion-making arrangements for assessing             not feasible to come to judgement on how
eligibility, and maintain clear and accu-          the medical profession is applying eligibil-
rate records of support provided to indi-          ity criteria, it is important to seek a range   13
viduals.                                           of other sources of evidence. For example,
    Recommendation 6: SAIs have a role             information showing trends of usage or
in helping encourage governments to im-            participation can often be an indicator of a
prove the information they collect on out-         problem in applying eligibility criteria.
comes in terms of gaining and retaining            Such sources of evidence are often more
jobs and ensuring that programmes are de-          objectively verifiable.
signed in ways which allow for evaluation              Recommendation 9: In scoping work
of success.                                        in this broad and complex area SAIs
    Many SAIs found data reliability a             should look for indicators from a variety
problem. These include difficulty in deter-        of sources in order to identify areas that
mining the number of participants in any           their work should focus on.
given programme, or that data was some-
times just not available. Where data is                SAIs have found that there are indica-
available, the number of organisations in-         tors that help to reveal trends or problem
volved in delivering services can mean             areas within programmes. For example a
there are different datasets that must be          high level of benefit appeals, repeat enrol-
cross referenced or combined to gain an            ments by individuals within training and
overall understanding of the programmes.           skills programmes or a high number of
Such work can be time consuming and of-            people returning to a reliance on benefits
ten difficult. In addition, the difficulties in    may all indicate areas of risk or unintend-
tracking what has happened to people after         ed or unforeseen consequences of pro-
they have been through work programmes             gramme implementation. Not all of the in-
is likely to make assessing the effective-         formation needed will necessarily be held
ness of programmes very difficult.                 by the audited body. Other entities, for ex-
                                                   ample Non Governmental Organisations,
    Recommendation 7: SAIs should con-             will often be a valuable source of relevant
sider whether they need specialist skills          information on whether programmes are
and support in assessing programmes for            providing sustained employment for dis-
the disabled.                                      abled people.

                                             EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                             EUR      SAI

                                 BOARD MEETING
                             Bern (Switzerland), 13 September 2007
             The EUROSAI Governing Board held              and welcoming the participants, with a
         its XXXII meeting in Bern (Switzerland)           special greeting to the Presidents of the
         on 13 September 2007, with the atten-             SAIs of Italy and Poland. Next, he present-
         dance of the Members, Observers and               ed the EUROSAI Activity Report 2006-
         guests whose list is attached as Annex, and       2007. The actions carried out since the last
         under the chair of Prof. Dr. Dieter Engels,       Governing Board meeting were sum-
         President of the SAI of Germany and Pres-         marised. Those actions were directed fun-
         ident of EUROSAI.                                 damentally to make effective the agree-
             Dr. Engels opened the Session and he          ments adopted by the VI EUROSAI
         thanked the host for his hospitality and the      Congress, to execute the training policy, to
         EUROSAI Secretary General for the work            develop the Working Groups Programs, to
         carried out in the preparation of the meet-       promote cooperation with INTOSAI and
         ing. He welcomed the participants with a          its Regional Organizations, and to the
         special mention to the Heads of the SAIs          preparation of the VII EUROSAI Con-
         of the Governing Board designated after           gress. The Activity Report also described
         the XXXI Governing Board Meeting took             the current state of the projects, and the
         place, the Presidents of the SAIs of Italy        programming of activities and pending
         and Poland.                                       events for 2007, with an advance for 2008.
                                                           The membership application received from
             Mr. Grüter, Director of the SAI of            the SAI of Israel was reminded by the Sec-
         Switzerland and Host of the meeting, wel-         retary General; it would be submitted to
   14    comed the participants and expressed his          the Governing Board at this Meeting. He
         satisfaction to host it, earnestly hoping for     provided information on the publications
         the attainment of fruitful results.               (Magazine and Newsletter) produced by
             Dr. Engels took the floor to begin the        the Secretariat in the period and the updat-
         discussion of the agenda.                         ing made in the EUROSAI website.
                                                               The Governing Board thanked the Sec-
                                                           retary General for his report and took note
         1. Approval of the Agenda                         of it.
            of the XXXII meeting

            The agenda of the XXXII meeting was            4. Presentation of the accounts,
         approved in the proposed terms.                      the Financial Report and the
                                                              Auditors’ Report related to financial
                                                              year 2006
         2. Approval of the minutes
            of the XXXI meeting                                Mr. Nieto de Alba presented the
                                                           EUROSAI accounts and the Financial Re-
            The minutes of the XXXI EUROSAI                port related to financial year 2006; remind-
         Governing Board Meeting (Reykjavik, Ice-          ing that it was the first one in which the
         land, 13 September 2006) were approved.           three-year Budget approved in the VI Con-
         The minutes will be sent to all EUROSAI           gress (2005) was applied. He made special
         members by the Secretary General.                 mention to the procedure that, in agreement
                                                           with the Spanish legislation as mentioned
                                                           in article 17.2 of the EUROSAI Statutes,
         3. EUROSAI Activity Report 2006-2007              the EUROSAI Secretariat abides for con-
                                                           tracting services in the performance of its
            Mr. Nieto de Alba, President of the            activity; being mainly services of transla-
         Spanish Court of Audit and EUROSAI                tion and production of publications and be-
         Secretary General, opened his intervention        ing small amounts contracts. He also made
         thanking for the hospitality of Mr. Grüter        reference to the justification of the subsi-

EUR                SAI                   INFORMATION: EUROSAI NEWS                               No. 14

dies granted by EUROSAI in 2006 in               port previously distributed. She made ref-
favour of the SAI of the Czech Republic,         erence to the triple performance environ-
for an amount of 9,600 € for the partial fi-     ment in which the ETC develops its activ-
nancing of a Seminar on “Audit of Subsi-         ity: impelling and promoting the training
dies and Public Aids” (Prague, 6-8 Novem-        policy, working in diverse aspects related
ber 2006), as well as of the INTOSAI             to ETC own organisation, and preparing
Development Initiative (IDI) for the execu-      proposals for the VII Congress (2008).
tion of the Program of “Public Debt Audit-       She focussed in the actions developed in
ing” in the Countries of the Commonwealth        execution of the works mandated by the VI
of Independent States (CIS) for an amount        Congress to perform the agreed common
of 40,000 €. He also referred the justifica-     Training Strategy, in the initiatives adopt-
tion by IDI of the pending credit amount         ed in this respect, and in the pending chal-
(2,000 €) of the subsidy granted to them by      lenges; highlighting cooperation and the
EUROSAI, at the financial year 2005, for         commitment of EUROSAI and its Mem-
the execution of the II Phase of the Long        bers as a key piece for the effective imple-
Term Regional Training Program (PRFLP).          mentation.
    The Secretary General pointed out,               Ms. Lamarque, SAI of France and
likewise, that the EUROSAI Auditors had          ETC co-chair, deepened in the activities
made the field audit at the EUROSAI Sec-         that are being developed to strengthen the
retariat regarding those mentioned ac-           ETC internal organisation and structures
counts and financial statements, issuing a       in order to make more effective its opera-
report without observations. The report          tion, for facilitating the issue of proposals
showed that the financial statements pro-        in matters mandated by the Governing
vided a faithful image of the EUROSAI fi-        Board and distributing responsibilities and
nancial situation and of the revenues and        tasks; as well as those ones aimed at the
expenses of the financial year. Mr. Nieto        establishment of guidelines for organising
de Alba commented the Recommenda-                training events. She also highlighted the
tions made by the Auditors.                      works to evaluate the impact of the train-
                                                 ing developed in EUROSAI in order to            15
    The Governing Board took down the
accounts, the financial report and the re-       propose the VII Congress quantifiable per-
port of the EUROSAI Auditors, consider-          formance objectives for the future.
ing appropriately justified the referred             Mr. Nieto de Alba presented to the
subsidies. Following the Auditors’ Rec-          Governing Board an ETC Proposal (XV
ommendations, they reiterated the need           ETC Meeting, Bonn, 8 and 9 March 2007)
that the bank transfers of contributions to      suggesting to keep a single EUROSAI
EUROSAI were made free of expenses for           website, managed by the Secretariat of the
this one. They also agreed to leave without      Organisation, incorporating training con-
effect, for practical reasons and to preserve    tents; having the support of the SAI of
information, the provision included in the       France that would centralise the informa-
“Instructions for drawing up, presentation       tion related to this area and it would elab-
and auditing of the accounts of EUROSAI”         orate it, remitting it to the EUROSAI Sec-
settling down the duty of publication of         retariat for being uploaded in the website.
the EUROSAI accounts and financial                   The Governing Board approved the
statements in the Newsletter. The Govern-        ETC Proposal related to the website; they
ing Board congratulated the EUROSAI              also took down the Activity Report pre-
Secretariat for the sound financial man-         sented and congratulated the ETC for its
agement of the Organisation carried out.         work.

5. Presentation of the Activity Report
   of the EUROSAI Training                       6. Information on the development
   Committee. Proposal regarding                    of the Seminars and Workshops
   incorporation of training issues into            organised by the Presidency
   the EUROSAI website.                             of EUROSAI for 2006-2008

    Ms. De la Fuente, SAI of Spain and co-           Dr. Engels presented to the Governing
chair of the EUROSAI Training Commit-            Board the performances developed in exe-
tee (ETC), presented the ETC Activity Re-        cution of the training Initiative promoted

                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                               EUR      SAI

         by his SAI, as EUROSAI Presidency, dur-            the Russian SAI and confirmed its readi-
         ing the period 2006-2008, as well as its           ness to host next ETC meeting in Moscow
         impact in participation and training pro-          in April 2008.
         vided terms. This Initiative, that is carried
         out with the technical and financial coop-
         eration of the European Academy of Law             8. Analysis and consideration of the
         at Trier and the German Organisation for              application for a EUROSAI subsidy
         International Technical Cooperation                   of the SAI of Lithuania
         (GTZ), has the purpose of reinforcing the
         training strategic objectives identified by            The EUROSAI Secretary General pre-
         EUROSAI. Dr. Engels detailed the train-            sented an application of the SAI of the
         ing events carried out and the ones that           Lithuania for a subsidy of 7,500 Euros, to
         will be performed in execution of each ob-         be paid in 2008 financial year, for the or-
         jective.                                           ganisation of a Seminar on “Financial Au-
             The Governing Board congratulated              dit Standards” to be held in Vilnius on 2
         the EUROSAI Presidency for this Initia-            and 3 October 2008. This aid would have
         tive, standing out the special interest of the     the objective of financing the participation
         Seminar on SAIs management that will               of an external moderator and an expert of
         take place in this context in 2008 and that        IFAC as well as to contribute to the expens-
         will allow to reflect and exchange experi-         es for the provision of the necessary tech-
         ences on a strategic topic of common and           nical equipment for the event. Mr. Nieto in-
         high-priority interest.                            formed that the application met the
                                                            requirements expressed in articles 5.2 and
                                                            14.3 of the EUROSAI Procedure Stan-
                                                            dards, as well as the Principles and Stan-
         7. Proposal for consideration                      dards concerning the subsidies to be grant-
            of granting EUROSAI Training                    ed for events approved by the V EUROSAI
            Committee membership to the                     Congress. He expressed that this request
   16       SAI of the Russian Federation                   had been informed favourably by the ETC
                                                            in its XV meeting, as for its suitability and
             Following the application submitted by         amount.
         the President of the Russian Federation                The EUROSAI President submitted to
         SAI, Mr. Stepashin, and following the              the Governing Board the financial applica-
         ETC approach (XV Meeting) and the                  tion presented by the SAI of Lithuania that
         precedents of previous decisions in this           was approved unanimously.
         field, the EUROSAI Secretary General
         presented a Proposal aimed at the consid-
         eration of granting ETC membership to
                                                            9. Information on the results
         the mentioned SAI, that already had for-
                                                               of the V EUROSAI-OLACEFS
         mal Observer’s status as a previous step.
         The membership would be granted keep-
         ing in mind their EUROSAI Governing
         Board membership, as well as their in-                 Mr. D’Oliveira Martins, President of
         volvement in promoting training, their             the SAI of Portugal, informed on the de-
         contribution to this one, and its perfor-          velopment, participation and main results
         mance at the ETC contributing to it and            of the V EUROSAI-OLACEFS Confer-
         hosting its meetings.                              ence; held in Lisbon on 10 and 11 May
                                                            2007. He highlighted the relevance of
             The EUROSAI President submitted the            these Meetings as debate forum on topics
         Proposal to the Governing Board that sup-          of common interest between both Region-
         ported it, agreeing to grant ETC member-           al Organisations of INTOSAI, making
         ship to the SAI of the Russian Federation          special mention to the interest and reach of
         with the same status recognised to the             the discussions had and to the main Con-
         original members.                                  clusions and Recommendations adopted in
             Mr. Stepashin thanked the EUROSAI              the Conference.
         Secretary General and the Governing                    The Governing Board took down the
         Board members for the support of his ap-           information provided and congratulated
         plication on granting ETC membership to            the host thanking the organisation.

EUR                SAI                   INFORMATION: EUROSAI NEWS                               No. 14

10. Information and adoption of                  the VI Congress to develop a regular
    agreements on EUROSAI-                       cooperation between EUROSAI and
    ARABOSAI cooperation                         ARABOSAI, and that it had got its first
                                                 expression in the I Joint Conference host-
10.1. Results of the Meeting between             ed by the ARABOSAI Secretariat in
      the Governing Board of EUROSAI             2006. The SAI of France offered, at the
      and the Executive Council of               XXX Governing Board Meeting (2 June
      ARABOSAI in 2006; approval                 2005), to host the II Conference; offer that
      of the minutes                             was taken note of. The SAI of the Russian
                                                 Federation also made an invitation, in the
    Mr. Nieto de Alba made a brief re-           framework of the Meeting between the
minder of the Meeting between the Gov-           Governing Boards of both Organisations
erning Board of EUROSAI and the Execu-           in November 2006, to organise a Confer-
tive Council of ARABOSAI held in Tunisia         ence under the topic of energy resources
on 30 November 2006, and about the de-           auditing.
bates had and the agreements reached in or-
der to establish a stable cooperation be-            Mrs. Lamarque took the floor to ex-
tween both Organizations. He highlighted         plain the first ideas of her SAI regarding
the four essential areas of cooperation iden-    the II Conference EUROSAI-ARABOSAI
tified: training, exchange of information        that will be organised possibly in March or
and experiences, holding joint Conferences       April 2009. The French Court of Audits
on topics of common interest, and coopera-       proposed as Theme for it “The Role of
tion between the respective Working              SAIs in the Modernization of the State”,
Groups; the respective General Secretaries       including institutional relations, sector is-
were commended its coordination, imple-          sues and study cases.
mentation, follow up and evaluation.                 Mr. Stepashin reiterated the initiative
   The minutes of the referred Meeting           of the SAI he presides over of holding a
were approved by the Governing Board,            Conference on the audit of energy
urging the Secretary General to send a           resources, that could be materialized in        17
copy to the EUROSAI Members.                     hosting the IV Conference EUROSAI-
                                                 ARABOSAI; what would be discussed in
                                                 the XXXIII Governing Board Meeting.
10.2. I EUROSAI-ARABOSAI Conference                  The EUROSAI President presented to
                                                 the Governing Board the terms and Theme
    Dr. Engels informed on the develop-
                                                 of the II Conference following the propos-
                                                 al of the SAI of France as host, that were
Conference, held in Tunis on 1 and 2 De-
                                                 accepted; requesting the EUROSAI Secre-
cember 2006, suggesting that these joint
                                                 tary General to communicate it to the
Conference would take place every three
                                                 ARABOSAI Secretariat for submission to
years. He reminded the Themes discussed
                                                 the Executive Council.
and the great number of contributions
made by the participants in the Conference,
as well as its practical character by
                                                 10.4. Consideration of the invitation
analysing study cases; constituting this
                                                       of ARABOSAI for a technical
way an excellent starting point. He thanked
                                                       meeting in Kuwait in 2008
Mrs. Stuiveling, President of the SAI of
The Netherlands, for her intervention in the
                                                     Dr. Engels reminded the invitation
establishment of the first contacts with
                                                 sent by the SAI of Kuwait, through the
ARABOSAI following a request of the
                                                 ARABOSAI Secretariat, to some EUROSAI
Governing Board, and the contribution of
                                                 SAIs to participate in a Meeting to take
the EUROSAI Secretariat in the organisa-
                                                 place in this country in February 2008, for
tion and coordination of the I Conference.
                                                 the exchange of information and experi-
                                                 ences on its operation. He suggested that,
10.3. Adoption of agreements on the              as the invitation was addressed to each
      II EUROSAI-ARABOSAI Conference             SAI, the decision on the participation and
                                                 the most convenient date for holding it out
   The EUROSAI President reminded the            of the ones proposed by the SAI of Kuwait
antecedents of the agreement reached by          would not correspond to the EUROSAI

                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                               EUR      SAI

         Governing Board but it should be taken in-        consequences of the Chernobyl disaster
         dividually by each SAI.                           and to elaborate guidelines for this type of
             The Governing Board accepted the              controls. Mr. Jezierski reminded the deci-
         EUROSAI President’s suggestion, com-              sion of the SAI of Poland of leaving the
         mitting each SAI to communicate their de-         Chair of this Working Group starting from
         cision to the EUROSAI Secretariat for in-         the VII Congress, proposing the SAI of
         forming the ARABOSAI Secretariat and,             Norway as successor in the position given
         through this one, to the hosting SAI.             their great contribution to the Group.
                                                               Mr. Kosmo took the floor to thank the
                                                           Working Group Chair for the work carried
         11. Information on the cooperation                out and to express the willingness of his
             EUROSAI-IDI                                   SAI to assume it in the future and to coor-
                                                           dinate its activities for the special interest
             Mr. Kosmo, Auditor General of Nor-            of the topic for the Institution that he pre-
         way and Chair of the IDI Board, made a            sides over.
         presentation on the IDI Activity Report               The Governing Board acknowledged
         2006 and on the performances developed            the Report and congratulated the Working
         in cooperation with EUROSAI. He paid              Group for the work carried out, supporting
         special attention to the Program “Public          the suggestion of informing the VII Con-
         Debt Auditing” executed in 2006 in the            gress of the change of the Chair to the SAI
         countries of the CIS, in English and Rus-         of Norway.
         sian; thanking EUROSAI for the contribu-
         tion of 40,000 € to it. He highlighted the
         collaboration with the EUROSAI Training
                                                           13. Information on the activities of the
         Committee, offering to organize training
                                                               EUROSAI IT Working Group.
         events in cooperation with this Committee
                                                               Decision on the change of Chair
         in the future, and the “e-learning” activi-
         ties developed on-line; he advanced details
         on the Plan 2007-2011.                                Mrs. Stuiveling, President of the
                                                           EUROSAI IT Working Group, presented
             The Governing Board received the Re-          the activities carried out in the diverse
         port and congratulated IDI for the work           working areas of this Group in execution
         that it carries out.                              of the Plan approved by the VI Congress.
                                                           She provided data on the situation of the
                                                           projects begun in the previous period (self-
         12. Information on the activities                 assessment by the SAIs in IT area, and
             of the EUROSAI Working Group                  preparation of a framework for e-govern-
             on Environmental Auditing.                    ment audit) and on the new projects in
             Decision on the change of Chair               course, highlighting that some of them
                                                           were presenting difficulties for their
             Mr. Jezierski, President of the SAI of        launching. She informed on the situation
         Poland and Chair of the EUROSAI Work-             of the study mandated by the VI Congress
         ing Group on Environmental Auditing,              about the relevance of IT in the audit of
         provided information on the main activi-          fraud in the public revenues that will be
         ties of this Group in execution of the 2005-      presented to the VII Congress. She sum-
         2007 Working Plan approved by the VI              marized the training actions developed in
         Congress. He detailed the audit activities        cooperation with the EUROSAI Training
         developed (parallel audits in environmen-         Committee and the collaboration with the
         tal issues) and the organized and pro-            homologous Working Groups of other Re-
         grammed training events in cooperation            gional Organisations of INTOSAI, funda-
         with the Training Committee and the               mentally OLACEFS, ARABOSAI and
         EUROSAI Presidency. He highlighted the            AFROSAI. Mrs. Stuiveling reminded the
         effective constitution of a Sub-group on          decision of her SAI about leaving the
         the Audit of Natural, Man-Caused Disas-           Chair of this Working Group starting from
         ters Consequences and Radioactive Wastes          the VII Congress, proposing the SAI of
         Elimination, coordinated by the SAI of            Switzerland as successor in said position
         Ukraine, to carry out a parallel audit on the     due to its great contribution to the Group
         use of the funds donated to eliminate the         and its implication in the topic.

EUR                SAI                   INFORMATION: EUROSAI NEWS                               No. 14

    Mr. Grüter thanked the Working Group         thanked the EUROSAI SAIs for the infor-
for the work carried out and he expressed        mation provided in the answers to the sur-
the willingness of his SAI to assume the         vey distributed with the purpose of making
Chair in the future.                             evaluations. He made a general presenta-
    Dr. Engels commented the interest of         tion of the essential aspects of the Report
the problem derived from the management          that will include data on the organization
of IT in the public sector leading even to       of the Tax Administrations, identification
corruption cases; suggesting this area for       of methods to contribute to improve them
future activities of the Working Group.          and particular suggestions that could
                                                 favour their operation. The final report will
    The Governing Board acknowledged             be submitted to the VII Congress.
the Report presented and congratulated the
Group for the work carried out, supporting           The Governing Board acknowledge the
the suggestion of informing the VII Con-         information and congratulated the Study
gress of the transfer of the Chair to the SAI    Group.
of Switzerland.

                                                 16. Decision on the EUROSAI
14. Information on the activities                    membership application presented
     of the EUROSAI Working Group                    by the SAI of Israel
    on Coordinated Audit of Tax
    Subsidies                                        The EUROSAI Secretary General re-
                                                 minded the application to become Mem-
    Dr. Engels, Chair of the EUROSAI             ber of the Organisation presented by the
Working Group for the Coordinated Audit          SAI of Israel. He analysed the concur-
on Tax Subsidies, informed on the current        rence in this SAI of the requirements set-
composition (18 SAIs), the meetings held         tled down by article 3 of the EUROSAI
and the actions carried out by the referred      Statutes for this purpose. He made refer-
Group since its constitution in the VI Con-      ence to the approach taken by the Govern-       19
gress in execution of the mandate given.         ing Board in previous cases to evaluate the
He detailed the performance lines of each        applicant’s condition as SAI of an “Euro-
one of the Sub-groups set up in it related to    pean State”, not only attending to strictly
“Value Added Tax”, “Corporate Tax” and           geographical criteria but to whether the
“Transparency/Subsidies Report”. He              country belonged to the European Re-
pointed out that the Report of the Working       gional Group of the United Nations Or-
Group would be presented at the VII              ganisations.
EUROSAI Congress and he thanked the                  Dr. Kovacs, President of the SAI of
participant SAIs for their contribution.         Hungary, Mr. Stepashin, Chairman of the
    The Governing Board took down the            SAI of the Russian Federation and Mr.
information and congratulated the Work-          Jezierski, President of the SAI of Poland
ing Group.                                       took the floor to support the application of
                                                 the SAI of Israel. Mr. Stepashin reminded
                                                 that, in previous cases such as considera-
15. Information on the activities                tion of the application of Kazakhstan’s
    of the EUROSAI Study Group                   SAI for EUROSAI membership in 2003,
    on Benchmarking the Costs                    the Governing Board did not strictly fol-
    and Performance of Tax                       lowed by geographical criteria and pointed
    Administrations                              out that SAI of Israel had been closely co-
                                                 operating with many European SAI in-
                                                 cluding Russian SAI.
    Mr. Grogan, SAI of the United King-
dom and Chair of the EUROSAI Study                   The EUROSAI President submitted
Group on Benchmarking the Costs and              the application of the SAI of Israel to the
Performance of Tax Administrations, in-          consideration of the Governing Board that
formed on the meetings held and he pre-          approved it, being this way integrated as
sented the works carried out, counting on        EUROSAI Member; the Secretary Gene-
the support of the SAIs of Finland, France,      ral was requested to communicate this de-
Poland, The Netherlands and Sweden. He           cision to the applicant.

                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                            EUR      SAI

         17. Information related to the                   Russian SAI. He expressed his opinion
             preparation of the VII EUROSAI               that SAI of Ukraine is meritorious candi-
             Congress. Adoption of Procedure              dacy as a new member of the EUROSAI
             Standards                                    Governing Board.
                                                              The Governing Board acknowledged
             Mr. Jezierski presented the advances in      the information provided by the EUROSAI
         the preparations of the VII EUROSAI              Secretary General.
         Congress, that will take place in Krakow
         from 2 to 5 June 2008. He reminded the
         essential terms and he presented the draft       19. XXXIII and XXXIV EUROSAI
         Procedure Standards that follow the out-             Governing Board Meeting
         line of previous Congresses. He thanked
         for the work carried out by the Themes               Mr. Jezierski reminded that the XXXIII
         Coordinators and the support received            and XXXIV Governing Board Meetings
         from the EUROSAI Presidency and Secre-           would take place in Krakow (Poland) on 2
         tariat.                                          and 5 of June 2008, respectively, immedi-
             Dr. Kovacs and Mr. Grogan thanked            ately before and after the VII Congress;
         for the support of the EUROSAI Members           inviting all to participate in them.
         for the preparation of Themes I and III of           The Governing Board acknowledged it
         the Congress, coordinated respectively by        and thanked for the invitation. Mr. Nieto de
         their SAIs.                                      Alba offered the readiness of the EUROSAI
            The Governing Board expressed the             Secretariat for supporting the organisation
         agreement with the draft Standard Proce-         of the Meetings.
         dures, that will be presented to the ap-
         proval of the VII Congress and they
         thanked the organisers for the works de-         20. Information on INTOSAI
         veloped for its preparation and good devel-
         opment.                                          20.1. Information on the development
                                                                of the 2005-2010 INTOSAI
                                                                Strategic Plan
         18. Information on candidacies
             received for the election of new                 Dr. Kovacs, Chairman of the INTOSAI
             Members of the EUROSAI                       Governing Board, summarised the actions
             Governing Board by the                       of the Organisation since the XVIII Con-
             VII Congress                                 gress (2004). He reminded the most im-
                                                          portant proposals contained in the 2005-
             Mr. Nieto de Alba informed that, up to       2010 Strategic Plan: objectives and goals,
         that date, the SAI of Ukraine and the Eu-        the creation of the necessary structures to
         ropean Court of Auditors had presented           implement them, and the relations among
         their candidacies as new Members of the          the members. He made reference to the
         EUROSAI Governing Board, to be nomi-             agreements reached to this effect by the
         nated by the VII Congress in substitution        INTOSAI Governing Board and the main
         of the SAIs of Italy and Lithuania that will     activities of the different Committees,
         finish at that date their six-year mandate.      Sub-committees and Working Groups of
         The agreement on the definitive proposal         the Organisation and of the Finance and
         to be presented to the Congress will be          Administration Committee. He thanked
         adopted by the Governing Board at its            for the work of the Chairs and Goal Li-
         XXXIII Meeting.                                  aisons, as well as for the support received
             Mr. Stepashin attracted attention of the     from the INTOSAI General Secretariat.
         Governing Board Members to the fact that            The EUROSAI Governing Board ac-
         SAI of Russia also would finish its man-         knowledged the information provided.
         date of the Governing Board member at
         the VII Congress. In order to ensure a bal-
         anced geographic representation of the           20.2. XIX INCOSAI
         seats in the Governing Board a SAI from
         East European region could be nominated              Dr. Kovacs reminded the general terms
         by the Congress in substitution of the           of the XIX INTOSAI Congress, to be held

EUR               SAI                    INFORMATION: EUROSAI NEWS                               No. 14

in Mexico in November 2007. He referred         Board and the SAIs invited for their contri-
to the two Themes to be discussed in it,        butions. Dr. Engels ended the Governing
that would be coordinated by the SAI of         Board Meeting 2007 and he closed the
Germany and the SAI of the United               Session.
States, as well as to the SAIs that would
act as moderators and rapporteurs. He re-             THE EUROSAI PRESIDENT
ferred to the Congress website for further                  Dieter Engels
   The EUROSAI Governing Board not-                  THE EUROSAI SECRETARY
ed down the information provided.                           GENERAL
                                                        Ubaldo Nieto de Alba

21. Other items
    Mr. D’Oliveira Martins asked for the
floor with the purpose of making some
                                                        LIST OF PARTICIPANTS
considerations on the VIII EUROSAI
Congress, that the Governing Board will
                                                    XXXII EUROSAI GOVERNING
propose to the VII Congress to be held in
                                                         BOARD MEETING
Portugal in 2011. He pointed out that it
would be of interest to begin to meditate
on the themes that could be proposed for        Bern (Switzerland) – 13 September 2007
it. He suggested that one of them could be
the responsibilities and liabilities result-    I. Members
ing from the management of public funds
and the role of SAIs in their assessment.           Germany:
He also congratulated the EUROSAI                   Mr. Dieter Engels
President for leading the present Govern-           Mrs. Francisca Schmitz                       21
ing Board Meeting and the Host for its or-          Mrs. Beate Korbmacher
ganisation.                                         Mr. Jan Eickenboom
    Mr. Nieto de Alba supported the ini-            Poland:
tiative of the SAI of Portugal for the              Mr. Jacek Jezierski
VIII Congress and he suggested that it              Mrs. Aleksandra Kukula
would be interesting that the proposed              Mr. Bogdan Skwarka
topic, should it be accepted, could be ex-          Lithuania:
tended to the demand of the different               Mrs. Rasa Budbergyté
types of responsibility, included those of          Mrs. Dainora Venckeviciené
management and organisation; making
some reflections about its relevance in             Spain:
the operation of the system and the pos-            Mr. Ubaldo Nieto de Alba
sible moral hazard that might have im-              Mrs. María José de la Fuente y de la Calle
plicit. He suggested that the Governing             Mr. Jerónimo Hernández Casares
Board Meetings could also serve as a fo-            Iceland:
rum to promote the technical debate and             Mr. Sigurdur Thordarson
the exchange of experiences on topics of            Mr. Thorir Oskarsson
common interest, enriching this way
their content. He thanked, likewise, the            Italy:
work developed in this XXXII Meeting                Mr. Ennio Colasanti
by the EUROSAI President and the Host.              Russian Federation:
                                                    Mr. Sergey V. Stepashin
                    ***                             Mr. Nikolay Paruzin
                                                    Mr. Fyodor Shelyuto
   The EUROSAI President thanked Mr.
                                                    Mrs. Nina Myltseva
Grüter, Director of the SAI of Switzerland
and Host of the Meeting as well as his col-         Switzerland:
laborators, the EUROSAI Secretariat, the            Mr. Kurt H. Grüter
Members and Observers of the Governing              Mr. Arthur Taugwalder

                                          EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                               EUR      SAI

         II. Observers                                         United Kingdom:
                                                               Mr. Frank Grogan
            Dr. Josef Moser
            Hungary:                                       III. Guests
            Dr. Arpad Kovacs
            Mr. Istvan Somogyvari                              France:
                                                               Mrs. Danièle Lamarque
            Mr. Jorgen Kosmo                                   The Netherlands:
            Mrs. Elisabeth T. Hyllseth                         Mrs. Saskia Stuiveling
                                                               Mr. Hayo Van der Wal
            Mr. Guilherme P. D ‘ Oliveira Martins
            Mr. José F. Tavares

                     GOVERNING BOARD MEETING
                                      Krakow (Poland), 2 June 2008
             The Governing Board of EUROSAI                by the General Secretary, along with the
         held its XXXIII Meeting in Krakow                 candidacies of new members of the Gov-
   22    (Poland) on 2 June 2008, under the Presi-         erning Board (SAIs of Turkey and
         dency of Dr. Dieter Engels, President of          Ukraine) and of the EUROSAI Auditors
         the SAI of Germany and of EUROSAI.                (SAI of the Slovak Republic and the Euro-
         The minutes will be submitted to the ap-          pean Court of Audit), to be submitted to
         proval of the Board in its XXXV Meeting,          Congress for approval.
         and will later on be distributed to all Mem-
                                                               4. The Co-chair of the EUROSAI
         bers of the Organisation. Nevertheless, it is
                                                           Training Committee gave an account of
         considered to be of interest to provide a
                                                           the Activities Report 2005-2008, setting
         summary of the main discussions and
                                                           out the general lines of its action in execut-
                                                           ing the Training Strategy, the works relat-
             1. Approval of the Minutes of the             ing to the organisation and internal struc-
         XXXII Meeting of the Governing Board              ture of the Committee itself, along with
         (Berne, Switzerland, 13 September 2006).          those developed with a view to the VII
             2. The General Secretary presented            EUROSAI Congress. This report was ac-
         the Activities Report of the Organisation         companied by an evaluation document on
         2005-2008, for being passed on to Con-            the execution of that Strategy. The Gov-
         gress, placing special emphasis on actions        erning Board declared its support for the
         carried out since the last Governing Board        draft Training Strategy 2008-2011 and
         Meeting. It also put forward a proposal           draft resolution, drawn up by the Training
         aimed at the design of a global strategy for      Committee, and decided on its presenta-
         EUROSAI, taking account of the transfor-          tion to Congress.
         mations produced in its environs and the              Information was provided on the results
         new challenges to be faced by SAIs; the           of the Training Initiative 2006-2008 en-
         proposal was backed by the Governing              couraged by the Presidency of EUROSAI,
         Board. He also presented the accounts, the        in collaboration with the Academy of
         financial report and the report drawn up by       European Law of Trier and the German
         the auditors corresponding to 2007.               Cooperation Agency GTZ, as a comple-
             3. The Governing Board supported              ment for the execution of the EUROSAI
         the draft budget for 2009-2011 prepared           Training Policy.

EUR               SAI                    INFORMATION: EUROSAI NEWS                              No. 14

    The Governing Board agreed to grant         Audit, which confirmed the transfer of
the financial aid requested by the SAIs of      their Presidencies to the SAIs of Switzer-
Estonia and the Czech Republic charged to       land and Norway, respectively, also set out
the existing EUROSAI Budget, in order to        their work programme for the forthcoming
organise training seminars in 2008 on the       three-year period and the corresponding
application of the COBIT tool to auditing,      draft resolution for approval by Congress.
and on the auditing of social security sys-     The Working Groups chaired by the SAIs
tems, respectively.                             of Germany and the United Kingdom,
    The SAI of Norway presented the IDI         which presented the reports that had been
Activities Report corresponding to 2007         assigned to them when being set up by the
and 2008, along with an evaluation of their     VI Congress in 2005, considered that they
results. Projects in progress and future        had fulfilled their mandate and that their
prospects were also reported on, with spe-      activity was thus concluded.
cial attention being paid to the new strate-         An evaluation was made of the propos-
gies and areas of action.                       al presented by the SAI of Ukraine to form
    5. The cooperation of EUROSAI with          the current Subgroup on “Auditing of Nat-
other Regional Groups of INTOSAI was            ural and Man-Caused Disasters Conse-
also reported on. Within this framework,        quences and of Radioactive Waste Elimi-
the Governing Board supported the pro-          nation” into a Working Group independent
posal of OLACEFS in relation to the VI          of the Environmental Audit Working
EUROSAI-OLACEFS Conference, to be               Group. The Governing Board stated that it
held on Isla Margarita (Venezuela) from         had certain reservations regarding the ini-
13 to 16 May 2009; the suggested theme          tiative under the terms that had been pro-
for debate being “Current and future envi-      posed, and it asked the General Secretary
ronmental challenges and the protection         of EUROSAI to conduct the necessary
and conservation of natural resources”.         steps in order to arrive at a proposal that
                                                would be agreed by all.
    An account was also given of the
results of the technical encounter of              7. The Governing Board approved the          23
ARABOSAI organised in February 2008             application from the SAI of Montenegro to
by the SAI of Kuwait, in which EUROSAI          become a Member of EUROSAI.
Members participated. Also, of the II Joint         8. The SAI of Poland, host of the VII
Conference between both Organisations,          Congress, gave an account of its organisa-
to be held in France in 2009.                   tion and the programme for its development.
    6. The EUROSAI Working Groups on                9. The General Secretary of INTOSAI
Information Technology (SAI of Holland),        and President of the SAI of Austria pro-
Environmental Audit (SAI of Poland), Co-        vided information on the results of the
ordinated Audit of Tax Subsidies (SAI of        XIX INCOSAI, held in Mexico City in
Germany) and the Study Group on Bench-          November 2007; as well as on the new
marking Costs/Performance Tax Adminis-          Committees, Subcommittees, Working
tration (SAI of the United Kingdom) pre-        Groups and Taskforces created on the oc-
sented their respective Activities Reports      casion thereof. He detailed the situation of
for the last three years, for submitting to     the INTOSAI Strategic Plan 2005-2010,
Congress. The Working Groups on Infor-          which is the subject of review with regard
mation Technology and Environmental             to its development.

                                          EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                             EUR      SAI

                    GOVERNING BOARD MEETING
                                     Krakow (Poland), 5 June 2008
              The Governing Board of EUROSAI                  • To approve, in a future meeting of
         held its XXXIV Meeting in Krakow                 the Board, the Draft Guidelines on Audit
         (Poland) on 5 June 2008, under the Presi-        Quality which is going to be prepared by
         dency of Mr. Jacek Jezierski, President of       the coordinating Working Group for
         the SAI of Poland and of EUROSAI. The            Theme I of the VII Congress, once the
         minutes will be submitted to the approval        suggestions of EUROSAI Members have,
         of the Board in its XXXV Meeting, and            as appropriate, been considered and incor-
         will later on be distributed to all Members      porated; this procedure is to be channelled
         of the Organisation. Nevertheless, it is         through the Secretariat of the Organisa-
         considered to be of interest to provide a        tion.
         summary of the main discussions and
                                                              • To ask the Training Committee to
                                                          put into practice the EUROSAI Training
             1. The new President of EUROSAI              Strategy 2008-2011 and to conduct an
         welcomed the three new members of the            evaluation of its effectiveness at the end of
         Governing Board, the Presidents of the           that three-year period.
         SAIs of Portugal, Turkey and Ukraine;                • To carry out a periodical follow-up of
         with the First Vice-Presidency of the Or-        the activities and actions of the EUROSAI
         ganisation corresponding to the Court of         Working Groups on Information Tech-
         Audit of Portugal as host of the VIII Con-       nologies (SAI of Switzerland) and on En-
         gress in 2011. Approval was given to the         vironmental Auditing (SAI of Norway);
   24    proposal of President of EUROSAI to des-         along with the Taskforce on the Audit of
         ignate the Auditor General of Iceland as         Funds Allocated Disasters and Catastro-
         Second Vice-President of the Organisa-           phes (SAI of Ukraine), this one in coordi-
         tion.                                            nation with the Environmental Auditing
             2. The President of EUROSAI gave a           Group.
         summary of the results of the VII Con-              • To support the organisation of the
         gress, along with the Conclusions and            VIII EUROSAI Congress (SAI of Portu-
         Recommendations adopted in its thematic          gal), of the II EUROSAI-ARABOSAI
         sessions, presenting the Governing Board         Conference (SAI of France) and of the VI
         with the allocation of mandates so that the      EUROSAI-OLACEFS Conference (SAI
         agreements of that Congress could be put         of Venezuela); the General Secretary be-
         into practice. For this purpose it was de-       ing given the task of maintaining perma-
         cided:                                           nent contacts with the organisers of the
             • To set up a Taskforce to study and
         design a proposal of global strategy for             3. Note was taken of the operating
         EUROSAI, to be presented to the VIII             programme 2008-2009 proposed by the
         Congress. This Taskforce, which will be          Training Committee for putting into prac-
         assisted by the Training Committee and           tice the EUROSAI Training Strategy
         the Working Groups within the scope of           2008-2011. The Training Committee was
         their respective competencies, will ini-         also asked to revise its own structure with-
         tially be made up of representatives of the      in the framework of the design of a global
         SAI of Poland, which will coordinate             strategy for EUROSAI entrusted to the
         matters, Germany, Portugal and Spain, in         Governing Board by the VII Congress,
         their respective conditions of previous,         evaluating the advisability of the Presiden-
         present and future Presidency of EUROSAI         cy of the Organisation participating in its
         and of Secretariat General, notwithstand-        chairing, as coordinator between the
         ing the possibility of other interested          Training Committee and the Governing
         SAIs being able to contribute their              Board. For that purpose, a Taskforce was
         works.                                           set up.

EUR               SAI                    INFORMATION: EUROSAI NEWS                                No. 14

    4. It was agreed to grant the financial         5. The SAI of Portugal, host of the VIII
aid requested by the SAI of the Czech Re-       Congress, provided initial information on
public charged to the EUROSAI Budget            the general lines of its organisation.
2009-2011 in order to organise a training          6. It was agreed to hold the XXXV
seminar on performance audit, in April          meeting of the Governing Board in Kiev
2009.                                           (Ukraine) at the end of the first half of 2009.

                        COMMITTEE MEETING
                     Bonn (Germany), 8 and 9 March 2007
    Nine members of the EUROSAI Train-              María José de la Fuente (SAI of Spain),
ing Committee (ETC), consisting of the          presented the draft agenda circulated for
SAIs of the Czech Republic, France, Ger-        the XV ETC meeting. She thanked the host
many, Hungary, Lithuania, Poland, Portu-        and the participants for having made fruit-
gal, Spain and United Kingdom, and co-          ful comments on the initial version of the
chaired by France and Spain, hold their         draft agenda. She made a special reference
XV meeting. As from the very beginning a        to the proposal of Helene Morpeth (SAI of
representative of the European Court of         the U.K.) for reviewing the structure of the
auditors (ECA) was invited as observer.         agenda in the future in view of a more effi-      25
Due to the agenda, representatives of the       cient management of issues that would
SAIs of Austria and Morocco, of the             need further discussion.
INTOSAI Development Initiative (IDI)                Danièle Lamarque proposed then to
and the European Academy of Law of Tri-         adopt the agenda of the meeting just
er also participated.                           changing the order of presentation of some
    The meeting was organized and hosted        items, at the request of the participants for
by the German SAI (Bundesrechnungshof)          practical reasons. Since nobody objected,
and therefore Beate Korbmacher wel-             the agenda was adopted.
comed the participants in the name of Pres-
ident Dr. Dieter Engels, the EUROSAI
Chairman. Ms. Korbmacher reminded the           2. Adoption of the draft minutes
participants of the agenda and presented           of the XIV ETC Meeting
some guests: Mr. Wilhelm Kellner (Direc-
tor in the Austrian Court of Audit), invited        Danièle Lamarque proposed to adopt
to present the professional MBA of “Public      the final version of the minutes of the pre-
Auditing” organised and offered since Feb-      vious ETC meeting (held in Luxembourg,
ruary 2006 by the university of Vienna; Mr.     in June 2006). All participants agreed.
Andreas Krull, in charge of the training
section at the German Court and Mr. Jean-
Philippe Rageade from the European              3. Operational plan
Academy of Law.
                                                3.1. Building operational plan

1. Adoption of the draft agenda                 • Presentation of a draft summary
                                                  of the EUROSAI training strategy and
    Danièle Lamarque (SAI of France) al-          the operational plan to perform it
so welcomed the participants and thanked,
on behalf of the co-presidency of the ETC,          Danièle Lamarque first dealt the issue
the German SAI, for hosting the meeting.        of the ETC training strategy. She present-

                                          EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                             EUR      SAI

         ed an overview of the current strategic               – Objective 4: provide key training
         framework of the ETC activities, based on         available on Internet: that issue should be
         a series of documents which she listed and        tackled along with objective 1.
         reminded the participants of (mainly the              – Objective 6: expand the use of web-
         questionnaire 2003 and the EUROSAI 29th           sites for communication and information
         Governing Board Resolution). She noticed          sharing: Ms. Lamarque did not insist on
         that most of those documents had already          that objective that had to be discussed lat-
         been studied and summarized by the                er during the meeting (Item 3.6.). Yet she
         EUROSAI Congress. Ms. Lamarque then               emphasized the importance of all kinds of
         tried to draw a comparison between the 8          seminar materials.
         priorities defined according to the ques-
         tionnaire of 2003 and the 9 specific train-           – Objective 7: expand the cooperation
         ing objectives that could be derived from         with RAIs in the training area. Ms. Lamar-
         that questionnaire. Ms. Lamarque particu-         que stressed the fact that the ETC involve-
         larly insisted on the need to confront both       ment should not exceed its role as a train-
         classifications so as to select some key ob-      ing partner.
         jectives that should be focused on:                   Having confronted and discussed those
             – Objective 1: delivering training            objectives, Ms. Lamarque proposed to
         through seminars and training events. Ms.         combine them so as to put forward 3 main
         Lamarque raised the question of up-dating         missions: enhancing professional develop-
         the questionnaire circulated in 2003 so as        ment, exchanging experiences and sharing
         to really meet the needs of the SAIs.             information in order to strengthen profes-
         Should the questionnaire not be up-dated,         sional capacities.
         2 main subjects should nevertheless be                The synthesis drafted by Ms. Lamar-
         dealt with: performance audit and IT audit.       que was intended to provide the partici-
                                                           pants and their SAIs with a useful basis
            – Objective 2: supporting EUROSAI-
                                                           that could help to organize the great
         IDI LTRTP activities: that objective seems to
                                                           amount of information produced since
   26    have been correctly implemented until now.
                                                           2000 by the ETC members. The classifica-
            – Objective 3: supporting needs of             tion proposed by Ms. Lamarque should of
         working and regional groups: several suc-         course be opened to discussion and remain
         cessful seminars already took place.              pending as long as a common document

         Group Photograph of the XV ETC Meeting.

EUR                SAI                    INFORMATION: EUROSAI NEWS                               No. 14

would not have been accepted by all par-          vious ETC meeting, the convenience of
ticipants.                                        drafting a written summary of the EUROSAI
    Helene Morpeth (SAI of the U.K.)              Training Strategy 2005-2008, in order to
agreed that a lot had been achieved since         reach that objective of diffusing and sharing
2000. She also called attention to some de-       information among the SAIs about training
velopments that could not be ignored by the       strategy and activities related. The ETC
ETC and had to be taken into account: the         agreed that the SAI of France would prepare
approval of the creation of the INTOSAI           a first draft summary to be circulated to the
Capacity Building Committee; the develop-         ETC participants for comments. The final
ment of the IDI strategy and the impact of        text would be presented to the Governing
the INTOSAI strategic plan for 2005-2010.         Board for information and would be made
                                                  available in the EUROSAI website.
    Magnus Borge (IDI) shared the opin-
ion of Ms. Morpeth and expressed the                 Danièle Lamarque again asked for the
same concern especially regarding the new         support of the participants and their ap-
strategy developed by the IDI.                    proval of the three main strategic goals she
                                                  had put forward earlier:
   Helena Abreu Lopes agreed again with
                                                      – Enhance professional capacities.
Mr. Borge but wanted to add three com-
ments on Ms. Lamarque’s presentation:                 – Share information and experiences
                                                  in the field of audit.
     – Responding to the wish of her
French colleague, she proposed to change              – Share information with the partners
the order of the main objectives. The issue       of the SAIs (such as universities).
of the certification of the auditors being            That basic classification could help to
still controversial and having not obtained       clarify the strategic plan of the ETC to be
a general approval, it should not rank first.     submitted to the next EUROSAI Congress.
    – Along with Ms. Lamarque, Ms Abreu               Zuzana Holoubkova (SAI of the Czech
Lopes suggested that as part of the review of     Republic) raised the question of the finan-
the ETC, it would be important for the ETC        cial support provided by the ETC to the         27
to evaluate the impact of training that has       SAIs for the organisation of training events.
taken place in the region during the period       According to Ms. Holoubkova, that issue
2005-2008 with a view to proposing some           should belong to the most crucial items of
quantifiable performance targets for future       the ETC strategic and operational plan.
training provided by the ETC.
                                                     María José de la Fuente highlighted the
    Danièle Lamarque reasserted her con-          importance of training, not as an ultimate
viction that great benefits could actually        goal itself but for ensuring the efficiency
emerge from the exchange of experiences           and the quality of the SAIs and for im-
in the audit and training fields. According       proving their operational capacities.
to Ms. Lamarque, enhancing the exchange
of experiences should be defined as the 1st
strategic objective of the ETC. Concerning        • Strategic issues of the ETC
the question of certification, though it has
not been generally accepted, the question-            María José de la Fuente opened the dis-
naire circulated by the ECA showed that it        cussion on the overall effectiveness of the
seemed to raise the interest of the majority      training delivered in the scope of EUROSAI.
of the SAIs.                                      She made a review of the main goals of the
                                                  EUROSAI Training Strategy and highlight-
    Elisabeth Türk (ECA) supported Ms.            ed key elements to be taken into account for
Abreu Lopes’ suggestion concerning the            performing it in an efficient way: attending
connection to be established between di-          EUROSAI priorities, providing high quality
rectors of training units (building a sort of     events, supervising training effectiveness,
informal network). She also welcomed -            guarantying sufficiency and training ade-
the idea of having small working groups           quacy, appropriately supporting (financial-
established within the ETC dealing with           ly, materials, organisation) training from
the different tasks to get up with proposals      EUROSAI/ETC, increasing training im-
in a shorter period.                              pact/reducing costs. She pointed out the
    María José de la Fuente reminded the          need to review the real efficiency and im-
participants, as already discussed at the pre-    pact of the EUROSAI Strategy 2005-2008

                                            EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                             EUR      SAI

         in order to propose the Governing Board           That should also be done by means post-
         its revision, if needed, taking into account      seminars assessments for example.
         the new developments in the scope of
                                                               – Evaluate how relevantly the partici-
         EUROSAI, INTOSAI and IDI.
                                                           pants’ needs were met, their language
             Ms. de la Fuente also made reference to       comfort level, the usefulness of the materi-
         the relevance of getting the maximum effi-        als provided and of the professional net-
         ciency of the ETC operation. She suggest-         works established.
         ed, in this line: the convenience of studying
         a more efficient organisation of the agenda           – Let the participants comment openly
         for the meetings, of decentralising the per-      on the seminars (suggest improvements,
         formance of the work setting up taskforces        put forward specific needs).
         and subgroups responsible for developing             She stressed some questions that still
         concrete tasks and studies, of promoting          remain pending, such as the length of the
         more debate and discussion and exchange           questionnaires and the best way to take
         of experiences inside the ETC, and of mak-        profit from the results of the evaluation.
         ing a higher use of the opportunities of-
         fered by the new technologies for improv-             Helene Morpeth put in a good word for
         ing the usefulness and impact of the work.        Ms. de la Fuente and thanked her for hav-
                                                           ing listed the main challenges concerning
             Helene Morpeth supported Ms. de la            the effectiveness of training events.
         Fuente’s proposal for producing a short
         document summarising the key elements                 Radek Majer (SAI of the Czech Re-
         related to the EUROSAI training strategy.         public) supported the idea of drafting
                                                           some guidelines on the organisation and
            A small group was set in the ETC               the evaluation of seminars.
         scope, made of the SAIs of France, UK,
         Hungary and Spain, for drafting a paper               Magnus Borge also agreed with his col-
         with proposals for the EUROSAI Training           leagues on the idea of clarifying and stan-
         Strategy 2008-2011 to be circulated for           dardizing the evaluation practices. Yet he
   28    comments to the ETC. The definitive pa-           also insisted on the need to remain flexible
         per would be presented to the XXXIV               on the subject. The question of the appro-
         Governing Board meeting.                          priate length of a training seminar depends
                                                           for instance on the specific objectives of
                                                           the event. According to Mr. Borge, gather-
         • Evaluation of the quality of training           ing the information needed to establish a
           events: towards a common model of               kind of best practices guide has to be done
           questionnaire                                   by one ETC member rather than by the
                                                           whole Committee at a meeting. It would be
             Helena Abreu Lopes took the floor in          much better to entitle one SAI with that
         the name of her Danish colleague –Lisbeth         specific task.
         Sorensen who could not attend the meet-               Beate Korbmacher (SAI of Germany)
         ing- to present a “Common model of sem-           reminded the Committee of the German
         inar’s evaluation questionnaire” elaborated       experiences in the field of evaluation and
         in cooperation by the SAIs of Denmark,            of the work achieved by the German SAI
         Portugal and UK and with comments from            jointly with the European Academy
         the IDI. After having underlined the speci-       of Law (ERA). She introduced Jean-
         ficity of seminars (due to their short dura-      Philippe Rageade who had been invited
         tion, seminars can not be evaluated in the        to make a presentation on that specific
         same way as longer training events), Ms.          issue.
         Abreu Lopes summed up the main con-
         cerns underlying the draft that has been              Jean-Philippe Rageade (ERA) referred
         distributed to participants of this meeting:      to the presentation he would do later and
                                                           the meeting and also remarked that those
            – Ensure that the seminars actually            in charge of analysing afterwards such
         have learning goals.                              questionnaires should keep in mind the
             – Measure the achievement of those ob-        fact that most of the questionnaires re-
         jectives (how have they been perceived by         turned to the ERA have been filled in by
         the participants? Are there any evidences         the participants who were actually not sat-
         that those objectives have been reached?).        isfied by the events.

EUR                SAI                   INFORMATION: EUROSAI NEWS                               No. 14

    Elisabeth Türk supported the idea of         IT audit despite the length of those ques-
giving participants the possibility to com-      tionnaires.
ment the seminar/workshop.                           Helene Morpeth, for her part, consid-
    Helene Morpeth proposed to circulate         ered it also necessary to discuss the issue
pre-seminar sheets as well as post-seminar       not only at a national level and for each
sheets since the participants are often tired    training event but also at the international
at the end of a workshop and are not al-         level in order to answer the following ques-
ways willing to fill in long questionnaires.     tions : has the training actually been deliv-
                                                 ered to the SAIs which have the greatest
    María José de la Fuente also suggested       needs? Is the ETC meeting their needs?
including in the questionnaire questions re-
garding the attitude of speakers and partici-        María José de la Fuente wondered
pants in the seminars in order to promote        whether it would be convenient to draft a
the debate and the exchange of experi-           sort of guideline for training activities in
ences, and enriching their results. She pro-     order to help the organizers. She proposed
posed that the replies to the questionnaires     to set up a task force or a working group
could be analysed for learning lessons, im-      that would be in charge of designing those
proving training and getting conclusions.        guidelines.
    Magnus Borge supported the idea of              Magnus Borge again expressed his per-
condensed questionnaires (rather than            sonal scepticism concerning any attempt
long ones) focusing on clear questions. He       to develop standards of evaluation that
reasserted his earlier remark and invited        could be applied to any SAI and to any
his colleagues to keep in mind the fact that     seminar or workshop.
the organisation of the ETC training events          Radek Majer also took the floor to
depends on many variable national factors.       remind his colleagues of the existing
Mr. Borge also brought out another inter-        INTOSAI guidelines: they could facilitate
esting element of the ERA questionnaires         the ETC work and be used as a good basis.
presented by Mr. Rageade: they aim at                Elisabeth Türk and Danièle Lamarque
gathering information not only on the sem-                                                       29
                                                 both brought out the fact that evaluating
inar’s participants but also on the presen-      experienced auditors involved as instruc-
ters and speakers.                               tors in some training events is a quite sen-
    Danièle Lamarque underlined at this          sitive issue. It is delicate to bring into
stage of the discussion differences be-          question the training competences of audi-
tween the ERA and the ETC that should            tors acting as trainers and this issue has to
not be forgotten while debating on the best      be treated in a very diplomatic way.
way to assess training quality: contrary to          Magnus Borge considered however
the ERA which is a permanent training            that it should be possible to distinguish
provider, the ETC organizes episodic spe-        their auditor’s quality from their instruc-
cial training events.                            tor’s quality and to teach them how to be-
    Ms. Lamarque thus fully supported the        come better trainers.
idea of getting both the trainers and the            Danièle Lamarque summed up the
participants involved in the evaluation.         overall discussion in proposing a road map
                                                 to her colleagues:
    To encourage the ETC participants,
Wilhelm Kellner again referred to the Aus-           – Redraft a sort of standardized ques-
trian MBA: 90 % of the information con-          tionnaire (an evaluation form) inspired by
cerning the changes to implement had actu-       the EUROSAI experiences presented by
ally been obtained through evaluation            Ms Abreu Lopes and divided into pre-
questionnaires. He agreed with Ms. Lamar-        seminar and post-seminar assessments.
que who was perfectly right to distinguish          – Evaluate the convenience of drafting
permanent training such as offered by the        guidelines for organising EUROSAI semi-
ERA and “extraordinary” seminars such as         nars. The documents drafted should be cir-
provided by ETC members.                         culated among the ETC members to be
    Helena Abreu Lopes wanted to insure          amended and commented before getting a
her colleagues of the good feedback of the       general approval.
questionnaires circulated after seminars             – Draft a questionnaire on the expecta-
organized by ETC members in the field of         tions of participants in EUROSAI seminars.

                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                            EUR      SAI

             – Launch a larger enquiry for the ETC             – The ETC presidency.
         to evaluate the global effectiveness of the           – The working language and opera-
         training strategy towards the targeted            tional rules.
         SAIs. That should be circulated by Sep-
         tember-October 2007.                                  Danièle Lamarque asked for some pre-
                                                           cisions on the differences existing between
             The SAIs of UK, Portugal, Denmark,
                                                           the ETC rules and the rules applying to
         Hungary and Czech Republic were put in
                                                           other EUROSAI working groups.
         charge of drafting the guidelines for organ-
         ising seminars and the evaluation ques-               María José de la Fuente reminded the
         tionnaires. The SAI of Portugal will re-          participants the procedure of creation
         draft the reaction questionnaire as soon as       and operation of each kind of body in
         possible, incorporating the suggestions           EUROSAI. The “working groups” are cre-
         made out in this meeting, the SAIs of Hun-        ated by the Congress, as EUROSAI bod-
         gary and Czech Republic will draft a first        ies, for dealing with specific studies and
         version of guidelines for organising semi-        works on topics of common interest for
         nars and the SAI of UK will deal with the         EUROSAI members. The ETC, on the
         guidelines relating to pre-seminar assess-        other hand, was created by the EUROSAI
         ments and settlement of learning goals re-        Governing Board to support it in training
         lated to design of training events.               issues; so, it works for the Governing
                                                           Board and it depends on it.
            That should be done until September-
         October 2007.                                         Danièle Lamarque then suggested that
                                                           the ETC co-chair should propose to the
            The documents drafted should be cir-
                                                           other ETC members those “operational
         culated among the ETC members to be
         amended and commented before getting a
         general approval.                                     Magnus Borge urged his colleagues to
                                                           do it since it is now nearly 10 years since
                                                           the ETC has been set up.
   30    • Presentation of the results
           of the questionnaire for updating                   Helene Morpeth proposed – as she had
           the EUROSAI training needs and                  made it earlier during the discussion con-
           preferences                                     cerning the ETC training strategy - to make
                                                           a distinction between matters relating to
             Jan Eickenboom (SAI of Germany) in-           the composition of the Committee, rotation
         formed the participants that the complete         of membership etc, and those matters of a
         results of the survey and their analysis had      more operational nature such as the draft-
         been made available to the ETC Chair.             ing minutes, the preparation of the agenda
                                                           that have a more pragmatic dimension.
                                                               Danièle Lamarque and her colleagues
         • Provisions on structure, organisation           then welcomed Ms. de la Fuente offer to
           and operation of the ETC                        go on with the work she had proposed, in
                                                           two different documents as suggested by
             María José de la Fuente opened the dis-
                                                           Ms. Morpeth, and to circulate a first ver-
         cussion concerning the ETC operational
                                                           sion to the ETC for comments.
         plan by presenting to her colleagues some
         proposals regarding the structure, the organ-
         isation and operation of the ETC. Consider-
         ing the growing importance of the ETC             3.2. Building operational plan-
         which is becoming a wide permanent body,               Objective 1: Delivering training
         it could indeed be necessary to rationalize            through seminars and events
         its procedures so as to share in an efficient
         way its tasks. It could be useful to clarify      • Information on the performance of the
         that information and gather and tackle writ-        Training Programme promoted by the
         ten provisions on the following items:              Presidency of EUROSAI for the period
                                                             2006-2008. Information on the
            – A brief presentation of the ETC.               Academy of Law in Trier
            – A description of the ETC objectives
         and of the ETC composition (the mem-                 Jean-Philippe Rageade (ERA) briefly
         bers, the observers, the guests).                 described the activities carried out by the

EUR               SAI                   INFORMATION: EUROSAI NEWS                               No. 14

ERA before dealing with the specific           • Information on the Conference on the
question of evaluating the training pro-         role of the SAIs in the fight against
vided. Mr. Rageade circulated two ques-          fraud and corruption (Kiev, Ukraine,
tionnaires used to assess ERA workshops          19/21 September 2006)
and highlighted the major aspects of the
seminars evaluated thanks to those ques-           María José de la Fuente gave some in-
tionnaires: the needs of the participants,     formation concerning the Conference, that
their comments regarding not only the          counted with representatives of 26 SAIs.
materials but also the speakers and their      Special attention was paid to the recom-
remarks on the global organisation of the      mendations produced at the end of the
seminar.                                       meeting. Further information on the con-
                                               ference is available on the EUROSAI web-
    Magnus Borge reacted to the com-
ment made by Mr. Rageade on the ERA
publications. Mr. Rageade had stressed
the fact that the ERA makes no academic        • Information on the seminar on audit
research. Yet Mr. Borge considered that          of public aids and subsidies (Prague,
the documents produced by the ERA in             Czech Republic, 6/8 November 2006)
so far as they are exclusively produced
for the ERA on the occasion of the train-          Radek Majer invited his colleagues to
ing seminars might be considered as re-        look at the CD he circulated and which
search work. That point raised the ques-       contains all the information and documents
tion of protecting such materials or           related to that seminar (those documents
making them available for everyone. Mr.        being also available on the website pre-
Borge also welcomed all the efforts made       pared by the Supreme Audit Office and
until now in the field of cooperation be-      dedicated to the seminar
tween the EUROSAI community and the            seminars/eurosai-prague-2006). Mr. Majer
ERA.                                           also drew the participants’ attention on the
    Aleksandra Kukula (SAI of Poland)          specific question of evaluation for it had       31
declared that the Polish SAI also would be     been raised and discussed earlier. In the
very interested in developing such cooper-     specific case of that seminar, a question-
ation.                                         naire had been launched afterwards and the
                                               results of that survey were incorporated in
    Beate Korbmacher provided the partic-      the CD. Mr. Majer underlined the fact that
ipants with some information on the work-      a careful selection of the speakers involved
shops organized by the German SAI as           in such a training event, if not an easy task,
Presidency of EUROSAI which had been           was undoubtedly worth the effort.
quite successful (as proved by the ERA
evaluation). She also presented the train-         María José de la Fuente asked Mr. Ma-
ing events to be held in 2007/2008 on          jer whether a link in the EUROSAI web-
structure and functions of the European        site could be made to the mentioned semi-
Union (in cooperation with the ERA and         nar website. Mr. Majer welcomed the
also intended for OLACEFS members              initiative and kindly requested that the ma-
which seem to be very interested in it); a     terials of this event were included in the
workshop on performance audit (in coop-        EUROSAI website for public information.
eration with the ECA); a seminar on “the
management of a SAI” (a current crucial
issue for many SAIs).                          • Information on the seminar on audit
                                                 quality (Budapest, Hungary,
    María José de la Fuente asked whether        1-2 March 2007)
the SAI of Germany was thinking on mak-
ing a study, based on the results of the           Eszter Dürr (SAI of Hungary), follow-
questionnaires, concerning the training        ing the example of her Czech colleague,
initiative of the EUROSAI Presidency           just took the floor to present the context of
2006-2008 in terms of efficiency of coop-      that event. 20 delegates coming from 9 dif-
eration with external entities in providing    ferent countries took part in the seminar or-
EUROSAI training. Ms. Korbmacher clar-         ganized jointly by the Hungarian SAI and
ified that a final evaluation would be made    the ECA. Ms. Dürr then invited the parti-
when this initiative is finished.              cipants to look at the EUROSAI website in

                                         EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                            EUR      SAI

         order to find the complete information on         quire some new additional competences
         that seminar (available in English and in         and a good opportunity to confront and ex-
         Russian) that could unfortunately not be          change mutual experiences. Such audit
         presented in depth at the meeting. The rep-       might also be a good way to meet the con-
         resentatives of the SAI of Hungary kindly         crete technical needs of some SAIs and to
         requested that the materials of this training     turn “theoretical” seminars into effective
         event were included in the EUROSAI web-           practical training.
         site for public information.                          Kamal Daoudi (SAI of Morocco) re-
                                                           minded his colleagues of the tasks as-
                                                           cribed to the recently created INTOSAI
         • Training event on performance audit             Capacity Building Committee (CBC). The
           (4-6 December 2007 in Luxembourg)               SAI of Morocco, as a member of one of
                                                           the CBC sub-committees, should for in-
             Elisabeth Türk reported on the prepara-       stance take part in designing a database
         tory work already done. This seminar will         aimed at gathering information on retired
         be organised in cooperation with the Bun-         available auditors.
         desrechnungshof and is planned to take
         place from 4-6 December 2007 in Luxem-                Magnus Borge tried to make the partic-
         bourg. It will deal with recent develop-          ipants aware of the implications of such a
         ments in the field of performance audit           project: if the ETC should embark on the
         (new trends, techniques…). Case studies           development of pilot audits included in a
         will be prepared by different national SAIs       greater program that would mean entering
         which will allow participants to exchange         a totally new area. Besides, Magnus Borge
         experience and to learn from each other.          considered that the training of young audi-
         The number of external participants will be       tors should maybe not be ascribed to re-
         restricted to 50.                                 tirees.
                                                               Danièle Lamarque agreed on that re-
                                                           mark since retirees may not be used to new
   32    • Training event on financial audit               audit methods and standards. Ms. Lamar-
           standards (Vilnius, Lithuania,                  que also stressed the inconvenient put for-
           2-3 October 2008)                               ward by Mr. Borge concerning the length
                                                           of “pilot audits”. The auditors invited to
             Ina Baruseviciene (SAI of Lithuania)          take part in “pilot audits” would have to
         acknowledged that the preparation of that         stay 1 or 2 months abroad. That would in-
         seminar was still at a very early stage. 4/5      crease the costs borne by the SAIs which
         EUROSAI experts had been invited. Other           organise those audits. In other words, “pi-
         professionals should be contacted (coming         lot audits” might be effective but they
         for example from Denmark, Sweden). The            would be very expensive.
         expenses covering the organisation should
                                                               Circulating a database, as proposed by
         be presented later to the EUROSAI Gov-
                                                           Mr. Daoudi, could nevertheless be inter-
         erning Board.
             Danièle Lamarque reacted to that last
                                                               Having reviewed the list of training
         remark and acknowledged the importance
                                                           events to be organized and confronted it to
         of discussing the financial organisational
                                                           the list of training already performed and
         aspects of training events promoted by the
                                                           planned, María José de la Fuente re-
         ETC. The ETC would go into detail with
                                                           marked that some topics were still pend-
         this crucial issue later during the meeting.
                                                           ing: social security auditing, public poli-
                                                           cies evaluation, audit of international
         • Other possible training events to be            organisations and managing SAIs; the IT
           organised considering the priorities fixed      and environment audit are always a prior-
                                                           ity for EUROSAI members. Ms. de la
             Jan Eickenboom expressed his convic-          Fuente asked her counterparts whether the
         tion that “pilot audits” conducted by some        ETC should contact the SAIs which had
         retired auditors could be part of the ETC         said to be interested in those subjects.
         training activity, concrete example and              Radek Majer agreed on the proposal
         specific case studies being one the best          and offered, in the name of the SAI of the
         way to improve individual skills, to ac-          Czech Republic, to host one seminar on a

EUR                SAI                   INFORMATION: EUROSAI NEWS                               No. 14

topic that would be discussed and ap-            the ETC training website was not very
proved of by the SAI.                            useful. Since all the materials are in most
                                                 cases available on the SAIs official web-
   In reaction to Ms. de la Fuente’s previ-
                                                 sites or on the EUROSAI website (some-
ous remark, Jan Eickenboom suggested to
                                                 times even on both kind of websites), a
contact some of the 15 SAIs that had an-
                                                 specific ETC website seems to be a redun-
swered positively to the questionnaire cir-
                                                 dant initiative.
culated in 2005 and seemed to be willing
to organize training events even if they
were no ETC members.
                                                 3.3. Building operational
    So as to complete the list of events al-
                                                      plan- Objective 2: Supporting
ready planed for sure, Alexsandra Kukula
                                                      EUROSAI-IDI activities
announced that a seminar would be orga-
nized in Bratislava, in October 2008, by
the EUROSAI Environment Audit Work-              • Information on the training programme
ing Group.                                         on “Public Debt Audit”

   Elisabeth Türk proposed to up-date the            Magnus Borge described that issue as
questionnaire elaborated by the German           the first priority of the IDI countries. He
SAI in 2005.                                     listed and briefly presented the various
    Jan Eickenboom firmly expressed his          meetings/seminars/workshops organised
reluctance since a great amount of work          in 2005, 2006 and 2007. He particularly
had already been achieved through that           emphasized the follow-up of the support
survey in spite of the difficulties faced by     provided to the 11 SAIs which took part in
the German SAI (which had to urge some           the seminar held in Baku in February
of its partners). Conducting such a survey       2006. Those SAIs were first required to
being a long lasting mission, Mr. Eicken-        present their audit plan, then to go through
boom considered that the time for ques-          a self assessment procedure. That was
tioning the SAIs was now over and that the       checked by experts and professional audi-       33
next useful step would be to contact the         tors who helped the SAIs to redevelop the
SAIs interested in collaborating to training     audit plans brought to the workshops.
projects.                                        A post-workshop assessment was also
                                                 planed so as to supervise carefully the fol-
   Helene Morpeth strengthened that
                                                 low-up of the recommendations formulat-
opinion. The ETC would probably anyway
                                                 ed at the workshops. The eleven corrected
need to launch quite soon another survey
                                                 audit plans were forwarded to all partici-
to gather up-dated information to be re-
                                                 pating SAIs in order to share experiences.
ported to the GB at the next congress. The
                                                 A follow-up letter has also been sent to
ETC should therefore not waste time and
                                                 them. Until now, 3 SAIs responded and
avoid duplicating its surveys.
                                                 commented on the implementation of
    Jan Eickenboom also considered that          those final audit plans. Magnus Borge ad-
repeating training events should not be          mitted that improvements still had to be
seen as an organisational mistake. Dupli-        made concerning the translation of the
cation may even be part of the overall ETC       training materials.
training strategy. Whatever the topic, a sin-
gle seminar is often not sufficient to pro-
vide all the competences and knowledge           • Evaluations in IDI, including
needed by the participants.                        evaluation of IDI-EUROSAI LTTP
   María José de la Fuente proposed that           (Long Term Training Program) Phase II
the co-chair could get in touch with the
most willing SAIs.                                   Magnus Borge referred to the “Kirk-
                                                 patrick” evaluation model consisting of 4
    Danièle Lamarque raised the question
                                                 levels (reaction, learning, transfer and im-
of language. Most SAIs hosting events
                                                 pact) and which aims at measuring the dif-
would probably be unable to afford inter-
                                                 ferences between the pre-workshop skills
preters’ costs.
                                                 and the post-workshop skills of the parti-
   Regarding the information circulated          cipants (what have they actually learnt?)
on websites, Ms. Lamarque admitted that          and at taking into account the impact of

                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                            EUR      SAI

         the training on the SAIs’ work (the audits          – Enhance the professional capacity of
         conducted, the reports made…). The IDI          the IDI staff.
         has moved to a mid-stage (between step
                                                             – Strengthen the institutional organi-
         n°2 “learning” and step n°3 “transfer”)
                                                         sation of the SAIs.
         though it must be acknowledged that the
         improvements of the SAIs do not exclu-             – Contribute to the SAIs knowledge
         sively derive from the IDI’s program.           sharing.
             Magnus Borge also reminded his col-             – Secure the environment of the SAIs.
         leagues of the fact that not all the SAIs
                                                             The IDI could also work with groups
         participating in the LTTP Phase II were
                                                         of countries to target and meet the specific
         IDI members. Mr. Borge then briefly de-
                                                         needs of each group (some SAIs are more
         scribed the various workshops organized
                                                         developed than others and therefore do not
         since 2002 in order to help selected coun-
                                                         have the same needs). The IDI also planed
         tries/SAIs (provide them with a theoreti-
                                                         to develop the assessment of SAIs (gather
         cal background, with some practical exer-
                                                         tools and methods). The IDI also would
         cises on IT-audit, performance audit and
                                                         like to measure what it has already
         management, some knowledge about in-
                                                         achieved before going on: evaluating the
         teractive instruction methods). The work-
                                                         work done until now is the first step of the
         shops were delivered in English and in
                                                         next IDI strategic plan.
         Russian. In 2006 the IDI began to evalu-
         ate the LTTP: a questionnaire (drafted in           Radek Majer asked for additional ma-
         English and in Russian) was addressed to        terials from the IDI that could be very use-
         the trainers and to the participants of         ful but is not available for every SAI (the
         those trainings events to know if the           IDI’s website contains a restricted area
         workshops had indeed met the goals de-          that can only be entered by IDI-SAIs).
         fined. Though the response rate of the              Helena Abreu Lopes raised the ques-
         Russian speaking group was lower than           tion of e-learning: how is it developed and
         the rate of the English speaking group,         how efficient is it (or could it be)?
   34    some important conclusions could be
         drawn form the survey:                              Magnus Borge told his counterparts
                                                         that the IDI indeed tested e-learning in
             – The LTTP reached the 1st objective        Latin America (with OLACEFS) on the
         (an important number of specialists were        occasion of a course on performance au-
         certified by the IDI) and succeeded in en-      dit. 60 participants and 10 facilitators took
         hancing the training systems and process-       part in that course that was very positive-
         es implemented in the targeted SAIs.            ly received and proved possible to turn a
             – But the LTTP did not reach the 2nd        traditional training course into an e-learn-
         objective: no real duplication of the IDI       ing course. Further e-learning training
         training programs on the local level has        events were organized in 2006 and man-
         been observed until now.                        aged by OLACEFS. No doubt that e-
            The IDI also tried to evaluate the fol-      learning has a great potential. Developing
         lowing points:                                  e-learning systems of course costs a lot
                                                         but the products of it can then easily be
             – To what extent has its systematic         duplicated.
         training approach been duplicated?
                                                             Helene Morpeth wondered how the tra-
            – How do the SAIs use their training         ditional ETC training system should co-
         specialists?                                    exist in the future with the activities
             According to Mr. Borge, the IDI             carried out by the INTOSAI Capacity
         should certainly get more experienced au-       Building Committee.
         ditors involved on long term programs.              Magnus Borge answered that coopera-
                                                         tion would probably be established be-
                                                         tween the INTOSAI CBC and regional
         • Information on other activities of IDI        training committees that could turn into
           and activities programmed for the future      capacity building sub-committees. The
                                                         challenge would then be to align all train-
            Magnus Borge listed the main future          ing plans implemented by all training or-
         objectives defined by the IDI:                  ganisations.

EUR                SAI                   INFORMATION: EUROSAI NEWS                                 No. 14

3.4. Building operational                        ing events. As for the coming events their
     plan- Objective 3: Supporting               organisation would depend on the next Co-
     cooperation with Working Groups             ordinator of the Working Group.
                                                     María José de la Fuente also noticed
• Co-operation with EUROSAI IT                   that the Working Group was in fact about
  Working Group                                  to reach the end of the program adopted at
                                                 the last Congress.
    Helena Abreu Lopes presented to her
colleagues how the main projects of the
ITWG relate to the priority training needs       • Co-operation with the EUROSAI
identified (needs of the auditors, of the          Working Group on the Coordinated
SAIs managers and of the IT specialists),          Audit of Tax Subsidies
also considering the fact that some needs
are satisfied by the market (such as provid-         Jan Eickenboom made a short presen-
ing the SAIs with specific software’s).          tation of the Seminar held on the 21 and 22
                                                 February in Bonn on tax subsidies. The
    The ITWG chose to focus on e-govern-
                                                 Seminar was organized at the invitation of
ment audit approach, ERM audit, IT-audit
                                                 the Chairman of EUROSAI and President
self-assessment and IT audit of revenue
                                                 of the German SAI, Prof. Dr. Dieter En-
fraud, developing audit guidance that can
                                                 gels. More than 60 participants from 23
be spread to SAIs through training, also
                                                 EUROSAI member countries discussed
meeting their training needs.
                                                 subsidy policies as well as the effective-
    The seminars hosted in Lisbon (2004)         ness and audit of subsidies. Presentations
and Vilnius (2005) aimed at preparing the        were given by delegates from the OECD,
SAIs to IT self-assessment. The seminar          Germany’s technical cooperation organi-
held in Bern (2006) dealt with ERM audit         sation (GTZ), Cologne University and the
guide. Further seminars should take place        Netherlands’s SAI. The workshop was de-
in Luxembourg (2007) and Tallinn (2008).         signed to provide a professional frame-
Those events should be very practical sem-       work for the EUROSAI-wide coordinated             35
inars. The 2007 one was initially intended       audit of tax subsidies and it succeeded in
for priority SAIs which have not yet gone        establishing a common background. The
through the IT self-assessment project           last meeting planned so far by the Working
(mainly because of a language problem or         Group should be held in January 2008.
financial difficulties). But since those SAIs
                                                    María José de la Fuente stressed the
did not seem willing to get involved in such
                                                 great activity of that Group (consisting of
a project, the Luxembourg seminar should
                                                 17 members).
rather focus on the follow-up of the self-as-
sessments made by the participating SAIs.           Beate Korbmacher also emphasised the
                                                 complexity of that field of audit. It is often
    Concerning the Tallinn seminar, that
                                                 very difficult to organize a parallel audit in-
probably will deal with IT systems or IT
                                                 volving various SAIs while taking into ac-
projects audit, an external expert may be
                                                 count the great variety of taxation systems.
required and a financial request may be
addressed to the ETC so as to cover the re-
lated costs.
                                                 3.5. Building operational plan-
    No further events are planned due to              Objective 4: Supporting cooperation
the fact that the ITWG has yet no plans for           with Regional Working Groups and
the activity beyond 2008.                             the wider INTOSAI family

• Co-operation with the EUROSAI                  • Information about cooperation
  Environmental Audit Working Group:               EUROSAI-OLACEFS

    Alexsandra Kukula rapidly provided               Helena Abreu Lopes invited the partic-
her colleagues with some information on          ipants to consult the information available
the events organized in the past and             on the website of the SAI of Portugal. Ms.
stressed the fact that the next step for the     Abreu Lopes just took the opportunity to
participating SAIs should be to implement        indicate a slight change concerning the
the knowledge acquired during those train-       next Conference (to be held in May 2007):

                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                               EUR      SAI

         the Bank President will end the meeting           Morpeth took the floor to remind her col-
         and not open it. She also urged her col-          leagues of the main task ascribed to that
         leagues to register as soon as possible.          Subcommittee: promote increased capaci-
                                                           ty building activities. A draft has already
                                                           been elaborated that should be discussed
         • Information about cooperation                   in London, on the 19th of March, and then
           EUROSAI-ARABOSAI                                be circulated.
                                                               Speaking in the name of the leading
             María José de la Fuente gave some in-         SAI of the Sub-committee n°3, Jan Eick-
         formation regarding the Meeting between           enboom emphasised the current promotion
         the EUROSAI Governing Board and the               of best practices for peer reviews. The
         ARABOSAI Executive Council which                  guideline drafted so far (focusing on prac-
         took place in Tunisia (on 30 November             tical issues) should be debated in June
         2006), providing the participants an op-          2007, at the next meeting of the Subcom-
         portunity to establish a first contact and to     mittee. This document will be designed to
         discuss on possible ways and tools for            help those SAIs involved in such peer re-
         cooperation between both Organisa-                views. The ETC might be interested in the
         tions. The Presidents of EUROSAI and              section concerning human resources (re-
         ARABOSAI described their Organisation;            cruitment, staff management…). The
         the General Secretaries proposed initia-          guideline still is opened to comments.
         tives for cooperation. A presentation was
                                                               María José de la Fuente asked for pos-
         made by the President of the Dutch SAI in
                                                           sible ways to strengthen future coopera-
         relation to cooperation on IT field. Discus-
                                                           tion between the ETC and the INTOSAI
         sion was open and possible ways of coop-
         eration were put forward such as: cycled
         scientific symposiums, SAIs study visits,            Kamal Daoudi acknowledged that the
         mutual participation in training events, ex-      CBC would have to wait until the overall
         change of experiences and share of infor-         project has become more mature.
   36    mation, promotion of joint activities in
         areas of common interest, cooperation be-
         tween working groups of both Organisa-            • Information on the implementation of
         tions.                                              the INTOSAI strategic plan 2005-2010

            Martina Hampel of the German SAI                   Eszter Dürr briefly described the con-
         made a report on the Conference held in           text and presented the content of the docu-
         Tunisia in December 2006. That meeting            ment adopted. The 4 goals defined were:
         dealt with the topic of privatisation and a
         comparison was made between the Euro-                 – Goal 1: accounting and professional
         pean approach and the Arabic approach. 8          standards.
         specific cases were studied during a pro-             – Goal 2: institutional capacity building.
         ductive discussion and a fruitful exchange.           – Goal 3: knowledge sharing.
                                                               – Goal 4: model international organi-
         • Cooperation with the INTOSAI
           Capacity Building Committee                         Ms. Dürr also reported on the extraor-
                                                           dinary INTOSAI Governing Board meet-
             Kamal Daoudi thanked his colleagues           ing (held in March 2005, in Budapest) and
         for having the opportunity to attend the          on the next meetings planned, among
         ETC meeting and reminded them of the              which the next INCOSAI meeting (the
         most important developments. The CBC              first Congress organised after the adoption
         created for example “sub-committees” and          of the Strategic Plan).
         Mr. Daoudi also noticed that the EUROSAI              Jan Eickenboom asked for some de-
         members were quite well represented in the        tails concerning the attendance fees.
         Steering Committee. Until now, the CBC                Eszter Dürr evaluated the fees up to
         has designed its website and prepared a pi-       290 € per participant and 330 € per ac-
         lot project on capacity building.                 companying individual. She also stressed
            Since it is the SAI of the U.K. which is       the rules concerning the possible number
         leading the Sub-committee n°1, Helene             of delegation members.

EUR                 SAI                     INFORMATION: EUROSAI NEWS                               No. 14

3.6. Building operational                               María José de la Fuente drew the atten-
     plan- Objective 5: Expand the use              tion of the participants on the responsibili-
     of web sites and publications                  ty of each SAI in helping to keep updated
                                                    the EUROSAI website. The EUROSAI
• Information on the EUROSAI website                Secretariat is open to create additional
                                                    links in the website but the information
    María José de la Fuente reasserted the          provided has to be regularly checked by
fact that the EUROSAI website was main-             the interested parties. In relation to the
tained as up-dated as it could be. Any in-          suggestion made by Ms. Lamarque, Ms.
formation or modification provided by a             de la Fuente said that the EUROSAI Sec-
SAI is incorporated into the website. New           retariat would be happy to include the in-
links have been added, others will soon be.         formation concerning training in the
The calendar of the events has been up-             EUROSAI website, maintaining only one
dated. The last EUROSAI magazine and                website in the scope of EUROSAI. But she
newsletter have been up-loaded and are              remarked that the Secretariat could not af-
now available on the website. As for the            ford to take also the task of collecting and
contact details of each SAI, they are up-           elaborating the information concerning
dated when necessary according to the in-           training. Ms. de la Fuente wondered
formation provided by each SAI. Some re-            whether the French SAI would accept to
cent resolutions concerning the ETC also            do it. Ms. Lamarque agreed with that pro-
have been added to the website. The next            posal.
step will be to collect all documents relat-            The ETC agreed to propose the Gov-
ed to all previous EUROSAI Congresses               erning Board to take the decision of main-
and to up-load them. But the older the con-         taining only the EUROSAI website hosted
gress is, the more difficult it is to gather all    by the Secretariat that would include in the
the information related to it.                      future the information concerning training.
    Ms. de la Fuente also informed her col-         The SAI of France would take the task
leagues that the item “Newsgroup” of the            of collecting and drafting the information
                                                    on the issue that should be sent to the         37
website had been deleted as it was not being
appropriately used She reminded the possi-          EUROSAI Secretariat for being uploaded.
bility to incorporate into the EUROSAI
website national information regarding the
audit of revenues, since that suggestion            • Information on EUROSAI publications
has been raised by the VI EUROSAI Con-
gress.                                                  María José de la Fuente provided infor-
                                                    mation on the EUROSAI publications pro-
                                                    duced since the last ETC meeting (2006):
                                                    Newsletter (issues no. 36, 37 and 38) and
• Information on the EUROSAI training
                                                    Magazine (issue no. 12). She announced
                                                    that Magazine nº 13 was being prepared,
                                                    remembering the ETC participants the in-
    Danièle Lamarque repeated the re-               vitation to send a contribution for it).
marks she had made earlier in the discus-
sion. The ETC website seems quite redun-
dant with the EUROSAI website as well as
                                                    3.7. Building operational
with the official website of each SAI. A
                                                         plan- Objective 6: Expand the
better solution –also an easier one to man-
                                                         co-operation with Universities
age- could be to up-date regularly the links
existing between the calendar of events
                                                    • Further development of co-operation
available on the EUROSAI website and
the webpage dedicated to each event (on
a specific website or on the website of                 Elisabeth Türk reminded the intention
the SAI which organized the event).                 of the questionnaire to be launched by the
Ms. Lamarque therefore proposed to                  SAI of France.
maintain only the EUROSAI website.                      Danièle Lamarque supported that idea
Each SAI should then ensure the availabil-          while re-affirming the need to get informa-
ity of the information concerning its own           tion on the co-operation existing between
training activities.                                the SAIs and some partner universities.

                                              EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                             EUR      SAI

         She confirmed that a questionnaire would         The questionnaire helped to gather a great
         be drafted to be circulated among the            amount of fruitful information and Ms.
         SAIs.                                            Türk therefore expressed her satisfaction
                                                          regarding the very good feed-back of that
                                                          survey. The following main conclusions
                                                          could be drawn from the answers provided
         4. Exploring other issues                        by the various SAIs: qualification appears
                                                          to be a relatively new topic/field which is
                                                          tackled in very different ways by each
         4.1. Certified European Public Sector            SAI. It is very difficult to combine those
              Auditor Qualification                       specificities into a kind of general syllabus
                                                          that could be applied to each country. Any-
             A pre-meeting on this issue was held in      way, in most cases, the costs of the audi-
         the afternoon of the day before the meet-        tors’ qualification were borne by the SAIs.
         ing, in which representatives of the SAIs
         of Austria, the Czech Republic, Denmark,             All those mid-term conclusions lead to
         France, Germany, Hungary, Lithuania,             the following question: where do we want
         Poland and of the ECA participated and           to go? What are the SAIs’ needs: an aca-
         where Mr Kellner presented, as a case            demic diploma; a professional accredita-
         study, the Austrian MBA of Public Audit-         tion? What are they ready to implement?
         ing. A discussion about the issue of certi-      For which targeted groups should the
         fication took place.                             training services be intended: students; au-
             During the meeting of the ETC a short
         overview of this discussion and the devel-           Describing the global project as a train
         opments within EUROSAI members were              consisting of an ETC-locomotive and
         given by Elisabeth Türk. In addition, Mr         SAIs-wagons, Ms. Türk proposed at the
         Kellner presented again the Austrian pro-        end of her presentation to follow a kind of
         fessional MBA of Public Auditing. This           road map linked to some main tasks such
   38    MBA was launched in February 2006 by             as launching a questionnaire on the exist-
         the University of Vienna in cooperation          ing cooperation between SAIs and univer-
         with the ACA. As the ACA has always              sities (that could be done by the French
         needed experienced auditors, only col-           SAI); trying to develop a common syl-
         leagues with professional experience have        labus and draft a report to be presented at
         been recruited. In addition, all newly re-       the next meeting of the PSAD working
         cruited auditors had to pass internal ex-        group.
         ams, for which the training was provided
         by the ACA in cooperation with the other              Magnus Borge (IDI) noticed that the
         ministries. As this cooperation finished,        same topics were discussed within the
         the ACA developed together with the Vi-          INTOSAI community which meant that
         enna Economics and Business University           the question of certification was indeed a
         a specific MBA of Public Auditing.               global issue. Concerning the scope of the
                                                          questionnaire circulated by the ECA, Mr.
            Elisabeth Türk then presented an              Borge wanted to undermine a little bit the
         overview of the Danish certification             satisfaction expressed by Ms. Türk. Mr.
         scheme on behalf of the delegates from           Borge stressed first the fact that most
         the Danish SAI who had attended the              EUROSAI members are EU members and
         preparatory meeting the day before, but          he noticed that not all the “old” EUROSAI
         could unfortunately not take part in the         members responded to the questionnaire
         ETC meeting.                                     which he found a bit disappointing. He al-
             Ms. Türk moved afterwards to the dis-        so expressed his concern about the atti-
         cussion of the creation of a European Pub-       tude of the Eastern European countries.
         lic Sector Audit Diploma (PSAD). She             They don’t seem very involved so far:
         summarised the history of that project (re-      why is that so? Why are they not interest-
         viewing the training strategy adopted in         ed in the project? How could they join the
         Lisbon, the resolutions adopted in War-          project? They may have not answered the
         saw, the ETC meetings held in London and         questionnaire but they certainly have the
         in Luxembourg and, the launch of the             same needs in terms of training and qua-
         questionnaire by the ECA end of 2006,).          lification.

EUR                SAI                    INFORMATION: EUROSAI NEWS                               No. 14

     María José de la Fuente referred to the      ing from limitations imposed by the legal
specific case of Spain (presented in the          systems of each country. It would be good
analysis of the questionnaire as a “no-no”        to make reference also to the problems
country: it has no PSA programme and is           raised and possible solutions. Ms. Türk
not interested in the creation of a common        agreed on this perspective.
PSAD). She remarked that the initiative               Referring to the preparatory meeting,
proposed was very interesting and that it         Danièle Lamarque agreed with Ms. de la
had no opposition at all from the Spanish         Fuente : the national backgrounds (the legal
side (the replies of the SAI to the question-     framework and the academic system) still
naire should not be understood as the ones        differ so much from one country to another
of a “no-no” country), but that it was sub-       that the SAIs have to be very cautious and
jected to some legal limitations taking into      to take into account the specific needs and
account the system operating in each coun-        possibilities of each country. Therefore Ms.
try. In the case of Spain, becoming a public      Lamarque suggested clarifying first the
auditor requires that the candidates hold a       kind of certification that each SAI would
university degree in concrete specialities        like to provide its auditors with. Some SAIs
legally regulated and to pass an official         may be interested in a real academic “diplo-
competitive examination. Having a good            ma” whereas others may prefer a kind of
university background would not be suffi-         “qualification certification” aimed at recog-
cient and passing the competitive examina-        nizing the auditors’ professional capacities.
tion is compulsory. A European PSAD (an           Certification certainly is a very interesting
MBA) would be very good for completing            issue but it is also a sensitive one.
training and for improving the background
but it would not be enough and not even be            In the same way as Ms. de la Fuente
a prerequisite to become a public auditor.        presented the specific Spanish case, Ms.
                                                  Lamarque made a special reference to the
    Wilhelm Kellner reacted and made              French National School of Public Admin-
clear that the MBA offered by the Vienna          istration (ENA). The school consists of 50
University was now a prerequisite to be-          % of students and 50 % of already experi-       39
come an auditor of the ACA (it is compul-         enced public servants. Trying to convince
sory to have attended it and the MBA is           them of the necessity to go back to univer-
mentioned in the hiring contract).                sity in order to attend an MBA and then ob-
    Elisabeth Türk reaffirmed her opinion         tain a diploma would certainly raises great
that it should be possible to agree on a          protests and be very hard to achieve. For all
common syllabus. It could be especially           those reasons, Ms. Lamarque suggested to
interesting in the field of auditing EU           focus first on gathering information on the
funds. The ECA could act as a coordinator         kind of relations existing between some
(since it has an overview) and the IDI            SAIs and universities, as well as on the hir-
could act as an initiator trying to involve       ing system of each SAI (who do they hire?
the Eastern European countries.                   What are their requirements?). That work
                                                  could be done by a small group of ETC
    Helene Morpeth congratulated the              members, if the ETC would accept the cre-
ECA for the survey conducted and pro-             ation of such a working group. That pro-
posed to post the Excel sheet summarizing         posal was indeed unanimously accepted.
the results of the questionnaire in a very
                                                     The SAIs of Hungary, Poland and
clear and useful way on the EUROSAI
                                                  Czech Republic were asked to draft a syl-
website. The most advanced SAIs and
                                                  labus of the PSAD and present it at a meet-
their partners (courses’ providers) should
                                                  ing that would be held in Luxembourg,
be identified and contacted so as to benefit
                                                  hosted by the ECA.
from their experience and resources.
    María José de la Fuente, in relation to       4.2. Key training available on internet
the results of the questionnaire, proposed
that rather than posting the full sheet relat-        Magnus Borge briefly summarized the
ed to them on the website – as suggested          main conclusions that could be drawn
by Ms. Morpeth –it would be more advis-           from the IDI experiences. Some informa-
able to incorporate a summary of the re-          tion was indeed made available afterwards
sults, without details of the replies of each     on the IDI website. Not the full training
SAI, for avoiding misinterpretations com-         materials were available but so called “ses-

                                            EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                                 EUR      SAI

         sions at a glance” were created. The full          information and documents on the Internet
         information can yet be obtained for free by        but on a restricted area (or closed part) of
         the SAIs on request. Mr. Borge also                the websites that could only be entered with
         stressed the fact that the materials put on        a password. Ms. de la Fuente accepted to
         the IDI website were standardised materi-          study, from the EUROSAI Secretariat, the
         als contributing to the implementation of          initiative of creating a restricted area in the
         the IDI’s “systematic approach”.                   website for training materials and informing
            Beate Korbmacher suggested that the             the ETC for further decisions to be taken.
         ETC should follow the IDI example and
         incorporate on the EUROSAI website
         summaries of the training events organized         4.3. Guidelines for managing training
         and adequate contact details rather than                within SAIs
         posting all the information on the Internet.
                                                            • Discussion on national papers provided
            All the meeting’s participants agreed
         with that proposal.                                    Due to the little time left, Maria José de
             María José de la Fuente raised the             la Fuente proposed to postpone the discus-
         question of the recommendations and con-           sion of this item to the next ETC meeting.
         clusions usually formulated at the end of
         the meetings: could they be posted on the
         website? Since they are not technical in-          • New Mentor Manual
         formation. The participants accepted to
         have them incorporated into the website.               Elisabeth Türk offered information on
                                                            the New Mentor Manual drafted by the
             Beate Korbmacher just invited her col-         European Court of Auditors to those ones
         leagues to remain careful and sensitive to         that could be interested on it.
         what they wanted to make available for
         anybody on their website.
   40        Whilst recognising that there may be           • Discussion on the opportunity of
         certain copyright issues around some of              drafting orienting guidance for training
         the training material produced, Helene
         Morpeth also commented that a ‘blanket’               María José de la Fuente raised the
         restriction on all training material may not       question of the opportunity and the useful-
         be necessary. It would be preferable to            ness to draft orienting guidance for train-
         consider any potential copyright issue on a        ing in EUROSAI. A discussion on the is-
         case by case basis.                                sue followed.
             Danièle Lamarque agreed with Ms.                  The SAIs of Hungary and of the Czech
         Korbmacher and stressed again the need to          Republic were asked to draft the first ver-
         be very cautious that the documents circu-         sion “guidelines/recommendations” for
         lated could not be used for commercial pur-        hosting and organising seminars and these
         poses. The availability of training supports       should then be circulated among ETC
         should then depend on the type of informa-         members for additional comments.
         tion. Each SAI should then decide whether
         it would like to keep restricted access to
         some specific information or not. It may           5. EUROSAI financial contributions
         thus not be necessary to cut off all the mate-        to seminars and training events:
         rials already posted on websites but simply
         to check carefully what is made available.         • Information on the financial support for
                                                              training agreed at the XXXI Governing
             María José de la Fuente proposed to              Board Meeting
         stick to the idea of posting on the websites
         a list of documents that could then be giv-            María José de la Fuente reminded the
         en to the interested SAIs on request.              participants of the agreements taken by the
             Helena Abreu Lopes expressed her               EUROSAI Governing Board granting the
         scepticism. Since we are considering the           financial support requested by the SAIs of
         ETC as an information sharing organiza-            the Czech Republic and Hungary for or-
         tion, we should be flexible on that issue. A       ganising EUROSAI training Seminars,
         good solution might be to post all training        and by IDI for partially financing the pro-

EUR                SAI                   INFORMATION: EUROSAI NEWS                                 No. 14

gramme on “Auditing Public Debt”. Ms.              agreed on accepting the ETC membership
de la Fuente drew the attention of her col-        request of the SAIs of Lithuania and Hun-
leagues on the amount of money still avail-        gary, taking into account their previous
able in the EUROSAI budget for support-            condition as ETC observers, as well as
ing training events.                               their strong involvement in EUROSAI
    Ms. de la Fuente informed also that the        training. The Governing Board had insist-
Governing Board had not considered nec-            ed, once more, in the main principles for
essary to include in the EUROSAI grant-            ETC membership: inclusive character of
ing of subsidies for training, as it has been      the ETC with a simultaneous maintenance
advised by the Auditors of EUROSAI, any            of a small structure to guarantee and effi-
specific requirement concerning justifica-         cient operation. She welcomed the new
tion; except in the case of the requests           ETC members.
made by IDI, that should follow the specif-
ic justification system initiated in relation
to the request made in 2003 referred to the        • Request of the SAI of the Russian
Phase II of the Long Term Regional Train-            Federation for ETC membership
ing Programme.
                                                       María José de la Fuente presented to
                                                   the Governing Board the request made by
• Request of financial support of the SAI          the Russian SAI for EUROSAI member-
  of Lithuania                                     ship, making reference to the precedent
                                                   action followed with the SAIs of Lithuania
    The request made by the SAI of Lithua-         and Hungary. She reminded the contribu-
nia for partially supporting a EUROSAI             tion of the Russian SAI to EUROSAI
training Seminar on “Financial Audit Stan-         training and to the cooperation of the Or-
dards”, to be held in Vilnius in 2008, was         ganisation with IDI and ARABOSAI. She
presented to the ETC, that supported it            announced that the Russian SAI was will-
unanimously.                                       ing to host the following ETC meeting.
                                                   Ms. de la Fuente suggested that, if the         41
                                                   ETC would support the Russian’s request,
• Drafting a guidance on ETC criteria              the proposal to be raised to the Governing
  for financial contributions for training         Board on the issue could follow a double
  events                                           step procedure- first, observer; and later
                                                   on, membership, as it had been done in
    Danièle Lamarque pointed out the in-           previous cases.
terest of having uniform ETC criteria in
                                                       Eszter Dürr acknowledged that the
relation to financial contributions to be
                                                   Russian SAI had provided the SAI of Hun-
granted from EUROSAI for training
                                                   gary with a great help for the organization
events. She suggested to include a refer-
                                                   of the training events hosted by the Hun-
ence to this issue while preparing the pa-
                                                   garian SAI.
per with proposals for the EUROSAI
Training Strategy 2008-2011 and the one                Danièle Lamarque reacted to the wish of
referred to the ETC operation (see items           the Russian SAI to host the next EUROSAI
3.1.3 and 3.1.5 of the minutes).                   –ARABOSAI joint Conference. The infor-
                                                   mation has not been confirmed until now
   The ETC agreed the initiative proposed
                                                   (is it a solid proposal?) and it is up to the
by Ms. Lamarque.
                                                   Governing Board to decide. Besides, Ms.
                                                   Lamarque reminded her colleagues of the
                                                   fact that the question had in fact already
6. Information on ETC membership
                                                   been solved in Bonn and again in Tunis
                                                   considering the proposal made by the SAI
• Information on the agreement of the
                                                   of France. Danièle Lamarque again
  XXXI EUROSAI Governing Board in
                                                   stressed the fact that such proposals do not
  relation to the request for ETC
                                                   have to be discussed at the meeting of the
  membership for the SAIs of Lithuania
                                                   ETC for it is the EUROSAI Governing
  and Hungary
                                                   Board that will have to decide.
   María José de la Fuente informed that              Magnus Borge considered that if
the EUROSAI Governing Board had                    the ETC should go on like this, all the

                                             EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                               EUR      SAI

         EUROSAI members would soon also be-                events (in Russian and in English). Such
         long to the ETC. It is of course good that         events are quite difficult to set up yet the
         so many SAIs seem interested in joining            Russian Federation membership could
         the ETC, but the larger the ETC will be,           perhaps facilitate it.
         the more difficult it will be to manage. As            Considering all those previous re-
         for the specific case of the Russian Federa-       marks, the participants accepted to support
         tion, there is no reason to reject its request     the Russian request and to submit it to the
         according to the ETC resolutions. Mr.              EUROSAI Governing Board on the condi-
         Borge also acknowledged that the Eastern           tion that the Russian Federation should
         European Countries were among those                first be granted the “observer” status (in
         countries which now have the greatest              the same way as it had been done for
         needs in the field of training.                    Lithuania and Hungary).
             Helena Abreu Lopes also supported
         the idea that Russia could be a “voice” for
         the Eastern European Countries.                    7. Date and place of the next meeting
              Helene Morpeth emphasised the bene-
                                                                María José de la Fuente again referred
         fits provided until now by the Russian par-
                                                            to the Russian proposal. It was agreed that
         ticipation in the ETC as a guest. It may be
                                                            the ETC should get in touch with the Russ-
         time to move toward the question of join-
                                                            ian SAI.
         ing the ETC as a full-fledged member.
                                                                María José de la Fuente and Danièle
              Radek Majer declared that the Russian
                                                            Lamarque, ETC co-chair, thanked the Ger-
         Federation could hardly be denied the
                                                            man SAI for hosting so kindly and effi-
         right to be represented at the ETC. As for
                                                            ciently the XV ETC meeting; as well as
         its status, it could be further discussed.
                                                            the participants for their contributions and
             Zuzana Holoubkova raised the ques-             the fruitful debates. The ETC meeting was
         tion of organizing 2-languages training            closed.

               Moscow (Russian Federation), 27 and 28 March 2008
            The EUROSAI Training Committee                      1. The Training Committee discussed
         held its XVI Meeting in Moscow on 27               aspects related to the triple scope of action
         and 28 March 2008, under the host of the           in which it undertakes its work: the execu-
         Accounting Chamber of the Russian Fed-             tion of the 2005-2008 Training Strategy,
         eration. In addition to the Committee              the works on its own organisation and in-
         Members, the meeting was also attended             ternal structure, and the proposals for the
         by representatives of the European Court           VII EUROSAI Congress (June 2008).
         of Auditors, of IDI and of the Presidency
                                                                2. Recent activities and events devel-
         of the Capacity Building Committee of
                                                            oped and scheduled in application of the
         INTOSAI; entities with which EUROSAI
                                                            operating plan for putting into practice of
         has been cooperating on a regular basis.
                                                            that Strategy were reported on, as were the
                                                            results of the execution of the complemen-
             Although the minutes will be submitted
                                                            tary training initiative promoted by the
         to the approval of the Training Committee
                                                            Presidency of EUROSAI in collaboration
         in its forthcoming Meeting (Lisbon, Portu-
                                                            with the Academy of European Law of
         gal, at the beginning of 2009), it is consid-
                                                            Trier and the German Entity GTZ.
         ered to be of interest to provide some brief
         prior information on the main themes dealt            3. The development of the EUROSAI
         with and decisions adopted in it:                  Training Strategy, approved by the VI

EUR                SAI                     INFORMATION: EUROSAI NEWS                             No. 14

Group Photograph of the XVI ETC Meeting.

Congress, was examined, and its results          focused its efforts on examining its func-
and effectiveness of its management were         tioning during the three-year period, eval-
assessed. For this, a detailed analysis was      uating the efficacy of operations in the de-
conducted of the actions developed and the       velopment of the mandate assigned to it,
impact obtained in application of each of        and the challenges pending in view of the
the strategic objectives. The achievements       results obtained and lessons learnt. It was
obtained were weighed up, along with the         resolved to continue working on the de-
weak points of the system, the aspects and       sign of systems that would facilitate an ef-
areas that deserve to be reinforced and          ficient action and an adequate distribution     43
those which revealed themselves to be of         of functions and responsibilities within the
less interest for the Organisation.              Committee, on the drawing up of guide-
    The promotion of quality training            lines for organising training events in
obeying the effective needs of each of the       EUROSAI, on the continual updating of
subregions of EUROSAI, the conducting            the information on the training needs of
of a closer monitoring of that quality and       the Organisation, and in improving formu-
the homogenisation of the evaluation sys-        las that will permit a proper monitoring
tems, the promotion of cooperation at all        and evaluation of the training. The Train-
levels in order to increase the impact of the    ing Committee will likewise continue with
training, and the effective constitution of      works directed towards the homogenisa-
networks of experts: these were some of          tion of criteria in the adopting of agree-
the aspects highlighted in the analysis. It      ments on different matters relating to
was stressed that the training promoted          training in which it assists the Governing
from EUROSAI had to complement and               Board of EUROSAI.
contribute towards reinforcing the respec-           5. The Training Committee also ori-
tive internal strategies of its Members. Al-     ented the debate towards proposals to be
so, emphasis was placed on the interest in       presented to the VII EUROSAI Congress.
developing innovative training initiatives       In view of the evaluation of the execution
and in searching for complementary for-          of the 2005-2008 Training Strategy, it was
mulas for financing, the provision of train-     agreed to propose a revised Strategy for
ing via the Internet and intensification in      the period 2008-2011, with a statement of
the use of information technologies for in-      the objectives to tackle and guidelines for
creasing the number of beneficiaries and         carrying them through. A definition will
reducing costs; along with the use of the        also have to be made of quantifiable indi-
EUROSAI web site and publications as             cators of action in view of the new circum-
training vehicles.                               stances of the environment and of the con-
    4. In relation to its organisation and       current challenges with respect to the
internal structure, the Training Committee       training to be given in the future.

                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                                EUR      SAI

             6. As far as financial aspects were             possibility of reconsidering in the future
         concerned, emphasis was placed on the               the indices established for the setting of
         need to strengthen the commitment of                each of the financial aids requested, in line
         EUROSAI to training in this field, and              with the quota groups to which the re-
         possible measures were discussed aimed at           questing SAI belongs.
         homogenising the criteria for the granting
                                                                 7. Information was provided on activi-
         of subsidies charged to its budget.
                                                             ties undertaken during the last year by IDI
              The Training Committee supported re-           and by the Capacity Building Committee
         quests for financial aid presented by the           of INTOSAI and their future strategies. A
         SAIs of Estonia and of the Czech Repub-             discussion was entered into on new cooper-
         lic in order to organise two training events        ation formulas with the EUROSAI Train-
         in 2008 and another in 2009.                        ing Committee, fundamentally based on
                                                             the exchange of experiences and on sharing
             It was agreed to propose maintaining            information, experiences and knowledge,
         the amount of credit dedicated to training          promoting a greater exchange of training
         in the EUROSAI Budget for 2009-2011, to             materials and of information available in its
         be approved by the VII Congress; with the           databases.

                          WORKSHOPS AND SEMINARS ORGANISED
                              BY THE EUROSAI CHAIRMAN1
                              SHARING INFORMATION - SHARING OPINIONS -
                                     SHARING LESSONS LEARNT

             These were the key words governing              widely different constitutional and histori-
         Prof. Dr. Dieter Engels’s activities who            cal backgrounds of EUROSAI Member
         initiated a series of training events and           SAIs, sharing lessons learnt among the
         workshops during his term as EUROSAI
         Chairman in keeping with the training               Fig. 1
         strategy of EUROSAI’s Capacity Building
         Committee. The activities undertaken
         were guided by three objectives:                        Training events for the EUROSAI
                                                                         Working Groups
             The first objective was the strengthen-
         ing of the close cooperation and the ex-               ✔ Working Group on Coordinated
         change of experience within the organisa-                Audit of Tax Subsidies:
         tion. As technical cooperation and the                   Basic initial workshop, 21-22
         sharing of lessons learnt are intensified                February 2006
         and extended above all in EUROSAI’s                    ✔ IT Working Group:
         working groups, the EUROSAI Chairman                     Workshop on European Data
         organised workshops for each of the or-                  Protection Law, 9-10 November 2006
         ganisation’s working groups. (see fig. 1).
                                                                ✔ Working Group on Environmental
             The second objective was to provide                  Auditing:
         support for further development of the                   Workshop on Nature Protection, 6-7
         EUROSAI members. The fundamental                         February 200
         historic changes of the last 20 years of the             Workshop on Climate Change, hosted
         past century made imperative reorienting,                jointly with the Working Group Chair,
         further developing and modernising gov-                  11-12 March 2008
         ernmental institutions. As a result of the

                Bundesrechnungshof/EUROSAI Chairman Support Team.

EUR                SAI                   INFORMATION: EUROSAI NEWS                                 No. 14

EUROSAI audit community is particularly          EUROSAI chairmanship. We would be
fruitful. Three workshops on new trends          happy to share with EUROSAI members
and approaches supported this exchange of        the vast experience we gained while deliv-
experiences (see fig. 2). They provided          ering the capacity building events:
EUROSAI members with forums for dis-
cussions and with the possibility to share
information, opinions and lessons learnt as      1. Evaluating the merits of seminars
well as to update on new trends and to              and workshops
identify common approaches and best
practises.                                           One merit of events with international
                                                 attendance is that all participants are of-
Fig. 2                                           fered know-how from a broader perspec-
                                                 tive and more options for making compar-
         Workshops on new trends                 isons than this is the case in events of a
             and approaches                      purely national nature. A precondition for
                                                 making the difference, however, is on the
  ✔ Workshop on Budgetary Reform                 one hand that the matters discussed are of
    Approaches, 26-27 October 2006
                                                 common interest and significance. On the
  ✔ ETC Training Event on Performance            other hand, each group of delegates needs
    Audit in cooperation with the                to be carefully composed to ensure that all
    European Court of Auditors,                  participants can mutually benefit from the
    4-6 December 2007                            matters presented and from each other’s
  ✔ Seminar on Management of an SAI,             know-how.
    9-11 April 2008
                                                     Seminar topics were selected on the
                                                 basis of a prioritised needs list as part of an
                                                 ETC survey which has proven a very ef-
    The third objective, enhancing the rela-     fective tool. The survey also served to
tionships with the other regional organi-        identify events proposed or conducted so          45
sations ARABOSAI and OLACEFS,                    far thus helping us avoid any duplication
was based on a decision made by the VI           of effort or other inefficiencies. We were
EUROSAI Congress. This decision is re-           pleased to offer a seminar on a high-prior-
flected above all in interregional confer-       ity matter such as performance audit
ences such as the EUROSAI–OLACEFS                which was hosted jointly by the EUROSAI
Conferences held in Lima in November             Chairman and the President of the Euro-
2005 and in Lisbon in May 2007, as well          pean Court of Auditors in Luxembourg.
as the newly established interregional con-      Also the EUROSAI Chairman has worked
ference with ARABOSAI that took place            closely with the Polish SAI that is current-
in Tunisia in December 2006.                     ly chairing the working group on environ-
    In addition, Prof. Dr. Engels contributed    mental audit and will succeed the German
to this development by inviting Member           SAI as EUROSAI Chair.
SAIs of both ARABOSAI and OLACEFS                    The composition of the participants’
to participate in some of the workshops and      group depends on a large extent on the
seminars. The invitations were accepted by       contents and the purpose of the event con-
representatives of the ARABOSAI member           ducted: The more specific the matter for
SAIs Algeria, Tunisia and Morocco and of         training and sharing information, the more
OLACEFS member SAIs Ecuador and Pe-              limited will be the number of those who
ru, all of them enriching the discussions by     can effectively provide input. The more
reporting the developments in their coun-        fundamental and general the matter, the
tries or regions.                                larger the number of potential participants
                                                 will be. This is illustrated by the example
                                                 of a training event designed to impart ba-
Experience                                       sic knowledge to provide a footing for
                                                 more specific work to follow. The ETC
   The German SAI has gained new in-             proposed to conduct a survey of individual
sights and valuable experience when              situations and expectations of participants
organising and conducting a series of            beforehand. This worked very well for a
seminars and workshops as part of the            seminar of the Working Group on environ-

                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                              EUR      SAI

         mental audit. At a preliminary meeting             EUROSAI member SAIs, we have en-
         they defined their training needs and coor-        gaged experts from academia (Universities
         dinated the programme desired directly             of Cologne, Paris X Nanterre and Munich)
         with the European Legal Academy.                   to provide high-quality training. Their task
             We have also found that it may be              was to complement the papers presented
         worthwhile holding a joint seminar before          by SAIs placing the topic chosen in scien-
         a new working group embarks on a pro-              tific, legal or policymaking environments
         ject. Such an event can help reach a com-          and discussing it more in detail from a dif-
         mon level of understanding among all par-          ferent perspective. Apart from that, it has
         ticipants and enable them to better define         also been a most enriching experience to
         and structure their future task.                   let external experts join EUROSAI mem-
                                                            bers’ discussions thus offering SAIs assur-
              Retrospective programme evaluation            ance and external feedback on their ap-
         of capacity building courses is an absolute        proaches.
         requirement. Discussions held in the
                                                                Working closely with an academic ed-
         course of ETC meetings have clearly illus-
                                                            ucational institution such as the Academy
         trated that diverse criteria may be applied
                                                            of European Law has the merit, that such
         to this end which are especially tailored to
                                                            an institution operates a dense network of
         the needs of EUROSAI. The large number
                                                            excellent subject-matter experts with var-
         of registrations for a training course may
                                                            ied professional backgrounds from differ-
         serve as an initial indicator of the interest
                                                            ent international universities, authorities
         among the EUROSAI community for the
                                                            and organisations. It was a huge advantage
         topic chosen. Frequent and meaningful
                                                            for us to rely on their training infrastruc-
         comments and vivid discussions also show
                                                            ture and organisational skills when con-
         the training host that the papers have been
                                                            ducting some training events. As a matter
         well received, well understood and have
                                                            of course, we had to bear the resulting
         stimulated thought. Most decisive howev-
         er, is the question as to whether in their lat-
   46    er audit work participants will live up to             Usually the close liaison with academ-
         the standards set in the workshop. This            ic education and research institutions en-
         question is difficult to answer by any host-       sures high-quality papers and a profession-
         ing organisation. The positive response            al presentation style. The matters presented
         may be confirmed, for example, if after            need to build on the assumed level of
         participating in a specific training event a       knowledge of the respective participants’
         working group engages in a successful              group. Pragmatic aspects such as concrete
         joint or parallel audit mission. Hosting or-       case studies should also be included in the
         ganisations also need to rely on the feed-         paper.
         back by participants and trainers. The ETC             It has been for us a special challenge
         has prepared a very useful questionnaire           to find a suitable number of lecturers from
         for each of the two groups. The question-          academia with pertinent backgrounds who
         naires have already been used for the sem-         are also well acquainted with current gov-
         inar on performance audit.                         ernment auditing aspects. For this reason,
                                                            it has been rather helpful to thoroughly
                                                            discuss relevant matters from the point of
         2. Lessons learnt from working with                view of external audit beforehand in a re-
            academic institutions                           flective dialogue with the relevant lectur-
                                                            er. An alternative option was to request
             In accordance with the wish expressed          subject matter experts from academia to
         by the ETC to rely more strongly on aca-           present the general legal or scientific fun-
         demic institutions in training and audit           damentals and entrust pragmatic papers
         activities of EUROSAI and its member               on audit case studies to audit specialists
         SAIs, the EUROSAI chairman has con-                from EUROSAI member SAIs. It would
         ducted some training seminars at the               be helpful if we could build on the con-
         Academy of European Law which is a                 tacts established so far to operate and
         public foundation set up at the initiative         maintain a network of EUROSAI with
         of the European Parliament and encom-              academia in which government audit
         passing by now twenty patron countries in          know-how and approaches may be further
         Europe. In other training events for               developed.

EUR               SAI                    INFORMATION: EUROSAI NEWS                               No. 14

3. Lessons learnt from working with             nance matters and external audit in various
   development organisations                    parts of the world.
                                                    The ETC has rightly made the point
    Three seminars offered by the EUROSAI       that the independence of EUROSAI and its
Chairman have been hosted jointly with the      members need to be safeguarded when
“GTZ” a German non-profit organisation          working together with external organisa-
for technical cooperation with developing       tions. This applies especially to respecting
countries. Working in collaboration with the    the prioritisation of training topics made
GTZ took various forms ranging from joint       by the ETC. As a result, cooperation with
planning to establishing contacts with audit    development organisations and others can
practitioners and using their locations and     take place in a limited context only, i.e. ar-
facilities.                                     eas of overlapping interests where devel-
    Building on the wealth of experience        opment tasks and EUROSAI needs coin-
gained from development cooperation pro-        cide and synergies may evolve. This is all
jects and the professional know-how on          the more true if financial support and/or
the global state of external audit, the GTZ     in-kind support is provided.
provided additional impulses for training           Finally we wish to stress the fact that
matters. When preparing the seminars the        all courses delivered during the German
EUROSAI Chairman could also draw on             EUROSAI chairmanship have benefited in
the didactic experience available at the        the first place from involving EUROSAI
GTZ. They advised us to carefully struc-        members both as participants and instruc-
ture capacity building events and offer a       tors. The training courses have only been
range of diverse activities such as comple-     possible, because member SAIs have been
menting lectures by plenary or panel dis-       unstinted in their effort and support pro-
cussions or discussion groups, workshops        vided, committed to sharing their SAI’s
and case studies.                               experience with all participants, frankly
    Apart from operating a network of           exchanging views and new ideas on how to
training specialists from other organisa-       deal with current challenges. We sincerely       47
tions the GTZ can draw on a pool of its         hope that in return expected benefits have
own experts having gained experience in         accrued to all those involved as partici-
development cooperation on good gover-          pants or instructors.

                             EUROSAI ACTIVITIES IN 2007
   • WORKSHOP ON “EUROPEAN                        • I MEETING OF THE SUB-
TRIER, Trier (Germany), 6-7 February            (WORKING GROUP ON ENVIRON-
2007.                                           MENTAL AUDIT), Kiev (Ukraine), 16
                                                March 2007.
DIT ON TAX SUBSIDIES”, Warsaw                   SEMINAR, Vienna (Austria), 28-30
(Poland), 16 February 2007.                     March 2007.
                                                   • V MEETING OF THE WORK-
                                                ING GROUP OF EUROSAI ON IN-
EUROSAI, Budapest (Hungary), 1-2
                                                FORMATION TECHNOLOGY. SEMI-
March 2007.
                                                NAR ON “ANALYSIS OF THE MOST
MITTEE MEETING, Bonn (Germany),                 GARDING IT”, Luxembourg (European
8-9 March 2007.                                 Court of Auditors), 17-18 April 2007.

                                          EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14     INFORMATION: EUROSAI NEWS                                                       EUR     SAI

           • V EUROSAI-OLACEFS CONFER-                       • SEMINAR ON “STRUCTURE
         ENCE, Lisbon (Portugal), 10-12 May 2007.         OF THE EUROPEAN UNION”, in co-
            • V MEETING OF THE WORK-                      operation with The Academy of European
         ING GROUP “COORDINATED AUDIT                     Law, Trier (Germany), 23-25 October
         ON TAX SUBSIDIES”, Bratislava (Re-               2007.
         public of Slovakia), 11-12 September 2007.           • XIX INTOSAI CONGRESS, Mex-
            • XXXII EUROSAI GOVERNING                     ico DF (Mexico), 5-10 November 2007.
         BOARD MEETING, Bern (Switzerland),                  • SEMINAR        ON      “PERFOR-
         13 September 2007.                               MANCE AUDIT – WHERE DO WE
            • EUROSAI SEMINAR ON “AU-                     STAND?” in collaboration with EUROSAI,
         DIT OF THE EXECUTION OF THE                      Luxembourg (European Court of Auditors
         KYOTO PROTOCOL”, Bratislava (Slo-                and SAI of Germany), 4-6 December
         vak Republic), 3-5 October 2007.                 2007.

                                     EUROSAI ACTIVITIES IN 2008
            • CONCLUSION MEETING OF                       QUENCES OF NATURAL, MAN-
         FOR A COORDINATED AUDIT ON                       DIOACTIVE WASTES” (Working
         TAX SUBSIDIES, Bonn (Germany) 29-                group on Environmental Audit), Kiev
         31 January 2008.                                 (Ukraine), 13 May 2008.
             • MEETING OF THE EUROSAI                        • VII EUROSAI CONGRESS,
         WORKING GROUP ON INFORMA-                        Krakow (Poland), 2-5 June 2008.
         TION TECHNOLOGY, Ljubljana (Slove-                   • XXXIII MEETING OF THE GOV-
         nia), 18-20 February 2008.                       ERNING BOARD, Krakow (Poland),
   48                                                     2 June 2008.
           • SEMINAR        ON      “CLIMATE
         THE EUROSAI WORKING GROUP                        BOARD MEETING, Krakow (Poland), 5
         ON ENVIRONMENTAL AUDIT AND                       June 2008.
         LAW, Trier (Germany), 11-12 March 2008.             • SEMINAR ON “FINANCIAL AU-
                                                          DIT STANDARDS”, Vilnius (Lithuania),
            • XVI EUROSAI TRAINING                        2-3 October 2008.
         COMMITTEE MEETING, Moscow,
                                                              • SEMINAR “UNDERSTANDING
         (Russian Federation), 27-28 March 2008.
                                                          COBIT, IN SUPPORT OF AN AUDIT
            • SEMINAR ON “SAI MANAGE-                     OF IT GOVERNANCE”, Tallinn (Esto-
         MENT”, Berlin (Germany), 9-11 April              nia), 9-10 October 2008.
                                                             • SEMINAR ON “AUDIT OF SO-
           • III MEETING OF THE SUB-                      CIAL SECURITY SYSTEMS”, Prague
         GROUP “AUDIT OF THE CONSE-                       (Czech Republic), 10-12 November 2008.

                        ADVANCE OF THE EUROSAI AGENDA 2009
            • XVII EUROSAI TRAINING                         • II EUROSAI-ARABOSAI CON-
         COMMITTEE MEETING, Lisbon (Por-                  FERENCE, France, 29-31 March 2009.
         tugal) January/February 2009.                       • VI EUROSAI-OLACEFS CON-
           • SEMINAR ON “EXPERIENCE                       FERENCE, Margarita Island, 13-16 May
         WITH THE IMPLEMENTATION AND                      2009.
         REACTION TO NEW CHALLENGES                       BOARD MEETING, Kiev (Ukraine),
         AND CHANGES OF THE ENVIRON-                      End of first half of 2009.
         MENT”, Prague (Czech Republic), April 2009.
EUR                SAI                      INFORMATION: EUROSAI NEWS                             No. 14

                             NEW CHAIRMAN OF EUROSAI
   On 2 June, at the VII EUROSAI Con-                President Jezierski is an active alpinist
gress in Kraków, Prof. Dieter Engels, the         and polar explorer. He is also a great bird
President of the German Bundesrechnung-           lover.
shof handed over the chairmanship of the
EUROSAI to his Polish colleague, Mr
Jacek Jezierski, President of the NIK.
    Mr Jezierski was appointed President of
the Polish SAI by the Sejm on 1 July 2007.
He was sworn-in and took the office on
22 August 2007. Before that, he had served
as NIK Vice-President (since August 1998),
and earlier, in the years 1992-98, as Deputy
Director of the Team for Environmental
Protection and Land Development.
    A graduate from the Faculty of Biology
and Earth Sciences of the Gdansk Univer-
sity, Mr Jezierski started his professional
career in 1983 at the Ornithological Station
of the Zoology Institute of the Polish Aca-
demy of Sciences. He also worked for at the
Office for Ecology of the National Com-
mission of the Independent and Self-Gov-
erning Trade Union of “Solidarnosc”.


   In the Full Session meeting of the             appointed by Royal Decree 1539/2007 of
Spanish Court of Audit, held on 12 No-            23 November 2007. He was designated as
vember 2007, Mr. Manuel Núñez Pérez               such by H.M. the King of Spain.
was elected President of the Institution and          In his capacity as President of the
                                                  Spanish Court of Audit, he holds the posi-
                                                  tion of Secretary General of the European
                                                  Organisation of Supreme Audit Institu-
                                                  tions (EUROSAI).
                                                     Mr Núñez was elected Member of the
                                                  Spanish SAI by the Parliament, on 30 Oc-
                                                  tober 2001. He was appointed Vice Presi-
                                                  dent of the Spanish Court of Audit and res-
                                                  ponsible for Department of Autonomous
                                                  Regions and Autonomous Cities, by the
                                                  Full Session of the Court of Audit, held on
                                                  12 November 2001.
                                                      The new President of the Spanish Court
                                                  of Audit has Law Degree. He was MP
                                                  where he chaired several Committees.
                                                  Among other positions, he was also Secre-
                                                  tary of State for Employment and labour
Mr. Manuel Núñez Pérez, Secretary-General         and Minister of Health and Consumer Af-
of EUROSAI.                                       fairs during several Legislatures.

                                            EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14   INFORMATION: EUROPEAN UNION                                                        EUR      SAI

                                       NEW EUROSAI MEMBERS
         • STATE AUDIT OFFICE OF MON-                    approved the request from the SAI of the
           TENEGRO                                       Republic of Montenegro to become a
         The XXXIV EUROSAI Governing Board               EUROSAI Member.

                         APPOINTMENTS ON EUROSAI MEMBERS
         • EUROPEAN COURT OF AUDI-                       Tim Burr was designated Comptroller and
           TORS                                          Auditor General of the National Audit
                                                         Office of the United Kingdom.
         Mr. Vitor Manuel da Silva Caldeira, was
         elected President of the European Court of      • THE CHAMBER OF CONTROL OF
         Auditors.                                         GEORGIA
         • THE STATE AUDIT OFFICE OF                     Mr. Levan Bezhashvili has been appointed
           ESTONIA                                       as the Chairman of the Chamber of Con-
                                                         trol of Georgia.
         Mr. Mihkel Oviir, was re-elected President
                                                         • THE NATIONAL AUDIT OFFICE
         of the SAI of Estonia.
                                                           OF ICELAND
         • THE STATE AUDIT OFFICE OF                     Mr. Sveinn Arason has been appointed as
           THE FORMER YUGOSLAV RE-                       Auditor General of the Icelandic National
           PUBLIC OF MACEDONIA                           Audit Office.
   50    Ms. Tanja Tanevska, was designated as           • THE NATIONAL AUDIT OFFICE
         Auditor General of the State of the Former        OF MALTA
         Yugoslav Republic of Macedonia.
                                                         Mr. Anthony C. Mifsud has been appoint-
         • THE NATIONAL AUDIT OFFICE OF                  ed as Auditor General of the National Au-
           THE UNITED KINGDOM                            dit Office of Malta.

EUR               SAI                INFORMATION: EUROPEAN UNION                                   No. 14

                                   European Union
                     OF AUDITORS
   The Members of the European Court
of Auditors elected on 16 January 2008
Mr. Vítor Manuel da Silva Caldeira as the
Court’s 11th President for a period of three
    Mr. Caldeira, of Portuguese nationali-
ty, became a Member of the European
Court of Auditors in March 2000. He has
been the Dean of the Group responsible
for coordination, evaluation, assurance,
development and communication since
                                                Mr. Vitor Manuel Da Silva Caldeira, President of
March 2005 and the Member directly re-          the European Court of Auditors.
sponsible for audit development and re-
ports. From January 2002 to March 2006,
he was the Member responsible for the           2000) and before that he was Senior In-
Court’s Statement of Assurance (DAS).           spector of Finance (1989-1995).
Prior to his appointment to the Court, Mr.          The President’s role is that of primus
Caldeira was responsible for the coordina-      inter pares. He is responsible for the effec-      51
tion of the European Community audit and        tive and sound management of the Court’s
internal audit system of the Portuguese         activities and represents the institution in
State’s Financial Administration (1995-         its external relations, in particular with the
2000), was Deputy Inspector General of          other institutions of the European Union
Finance at the Inspectorate General of the      and the Supreme Audit Institutions of the
Portuguese Ministry of Finance (1995-           Member States.

                     COURT OF AUDITORS
    In accordance with the Treaty and after     dates of the following current Members of
having consulted the European Parliament,       the Court were renewed by the Council for
the Council of the European Union appoint-      a term of six years: Mr. Hubert Weber (Aus-
ed on 10 December 2007 three new Mem-           tria), Mr. Maarten B. Engwirda (Nether-
bers of the European Court of Auditors for      lands), Mr. David Bostock (United King-
a renewable term of six years, starting from    dom), and Mr. Ioannis Sarmas (Greece).
1 January 2008: Mr. Michel Cretin               The Members of the Court are independent
(France), Mr. Henri Grethen (Luxem-             in their functions, representing solely the
bourg), and Mr. Harald Noack (Germany).         interests of the European Union.
They replaced Mr. Jean-François Bernicot,
Mr. François Colling, and Mrs. Hedda von           The Court’s new organisation chart is
Wedel respectively. In addition, the man-       available at

                                          EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14   INFORMATION: EUROPEAN UNION                                                                EUR      SAI

                                   YEAR 2006
            On 15 November 2007, the European               transactions of the European Development
         Court of Auditors published its Annual             Funds, with the exception of payments au-
         Report on the implementation of the 2006           thorised by the Commission’s delegations
         EU general budget.                                 in the beneficiary states, are legal and reg-
             The European Court of Auditors is of           ular.
         the opinion that the 2006 consolidated ac-            In terms of expenditure area the Court
         counts on the implementation of the EU             reports that:
         general budget present fairly, in all mater-
                                                                • for agriculture as a whole (€49.8
         ial respects, the Communities’ financial
                                                            billion in 2006), the Court found a marked
         position and results for the year, except for
                                                            reduction in the estimated overall level of
         an overstatement of the amounts recorded
                                                            error, although it remains just above the
         for accounts payable and pre-financing in
                                                            materiality threshold. Agricultural spend-
         the balance sheet. The European Commis-
                                                            ing is characterised by different types of
         sion has made further progress with its im-
                                                            transactions, which are subject to different
         plementation of accruals-based account-
                                                            risks and control systems. IACS, which
         ing, although some weaknesses still
                                                            covers about 70% of CAP spending, is ef-
                                                            fective in limiting the risk of irregular ex-
             The European Commission has made               penditure, where properly applied. The
         considerable efforts to address the weak-          Court notes that, while the Single Payment
         nesses in the management of the risks to           Scheme simplifies claim and payment pro-
         the EU funds. Some changes are already             cedures, it has side effects, such as the al-
   52    having a positive impact, such as a marked         location of entitlements to landowners
         reduction in the Court’s estimated level of        who never exercised previous agricultural
         overall error in agricultural transactions –       activity, leading to a substantial redistribu-
         although it remains just above the materi-         tion of EU aid away from farmers to land-
         ality limit. This positive development un-         lords. Among new beneficiaries for EU
         derlines the effectiveness of the integrated       agricultural aid are railway companies,
         administrative and control system (IACS)           horse riding or breeding clubs and golf or
         and the simplification of claim and pay-           leisure clubs and city councils.
         ment procedures in the newly introduced
         Single Payment Scheme.                                 • for spending on structural policies
                                                            (€32.4 billion in 2006), the situation re-
             The Court gives an unqualified opinion         mains similar to previous years. The Court
         on the transactions underlying EU rev-             identified a material level of error, estimat-
         enue, commitments, administrative expen-           ed to represent at least 12% of the total
         diture and pre-accession strategy, exclud-         amount reimbursed to beneficiaries. The
         ing SAPARD. Furthermore, external                  most frequent errors were claims for ineli-
         actions’ payments managed directly by              gible expenditure and failure to carry out
         Commission delegations in 2006 showed              tender procedures as well as a lack of evi-
         only a low incidence of error.                     dence to support the calculation of over-
             The Court, however, gives an adverse           heads or the staff costs involved. The su-
         opinion on the legality and regularity of          pervisory and control systems in the
         the majority of EU expenditure: primarily          Member States were generally ineffective
         the part of agricultural spending not cov-         or moderately effective, while the Com-
         ered by IACS, structural policies, internal        mission maintains only a moderately ef-
         policies and a significant proportion of ex-       fective supervision of their functioning.
         ternal actions. In these areas there is still a        • for internal policies directly man-
         material level of errors found in the pay-         aged by the Commission (€9.0 billion in
         ments to final beneficiaries.                      2006), the Court again found a material
            In addition, the Court is of the opinion        level of error in the legality and regularity
         that, taken as a whole, the underlying             of the underlying transactions, mainly due

EUR                SAI                 INFORMATION: EUROPEAN UNION                                No. 14

to reimbursements to beneficiaries who            then President of the Court, explained:
had overstated the costs for projects. The        “Reasons for the errors in the underlying
Court’s audits showed that the internal           transactions include neglect, poor knowl-
control systems were only partly satisfac-        edge of the often complex rules and pre-
tory.                                             sumed attempts to defraud the EU budget.
    • external actions spending (€5.2 bil-        Furthermore, in the area of non-IACS ex-
lion in 2006) was satisfactory for the trans-     penditure in agriculture, structural policies
actions managed and checked by the dele-          and internal policies, checks on expendi-
gations, but not so for implementing bodies       ture claims, which are mainly based on in-
carrying out the projects in the field. Errors    formation supplied by the beneficiary, are
included claims of ineligible expenditure         in many cases insufficient in number and
and breach of tendering procedures.               coverage, and often of inadequate quality.
                                                  What is required is better management and
    • within pre-accession strategy (€2.3         control of Community spending in both
billion in 2006) the Court found that pay-        shared and direct management areas, un-
ments were legal and regular overall, al-         der the ultimate responsibility of the Com-
though significant errors were again found        mission.”
in the SAPARD transactions audited.
                                                      Mr. Hubert Weber concluded his pre-
    The Commission has taken measures             sentation by stating that “The Commission
to step up recoveries and improve the pro-        should lead by example by paying particu-
tection of the financial interests of the EU      lar attention to devising and operating its
over the past few years. However, due to          own internal control systems effectively in
the complexity of the shared management           the area of directly managed EU funds –
of these funds with the Member States, the        internal policies and external actions. This
Commission still does not have at its dis-        would provide a model and encourage-
posal reliable information on recoveries of       ment to Member States operating systems
undue funding – the amounts and benefi-           under shared management. The key to ef-
ciaries involved – nor of their financial im-     fective management of EU funds lies in ef-
pact on the EU budget.                            ficient and reliable internal control sys-      53
    Presenting the 2006 Annual Report             tems at all levels of administration. I
to the Committee on Budgetary Control             believe that the EU’s citizens are entitled
(COCOBU) of the European Parliament               to expect EU funds to be properly man-
on 12 November 2007, Mr. Hubert Weber,            aged and controlled across the Union.”

    Since the publication of the 2005 An-             SR 3/2007 concerning the management
nual Report, the European Court of Audi-          of the European Refugee Fund (2000-2004)
tors has issued 10 Special Reports and 11            SR 4/2007 on physical and substitution
Opinions covering different aspects of EU         checks on export refund consignments
finances and management issues.
                                                     SR 5/2007 on the Commission’s Man-
   The Special Reports (SR) are:                  agement of the CARDS programme
    SR 11/2006 on the Community transit              SR 6/2007 on the effectiveness of tech-
system                                            nical assistance in the context of capacity
    SR 1/2007 concerning the implemen-            development
tation of the mid-term process Structural             SR 7/2007 on the control, inspection
Funds 2000-2006                                   and sanction systems relating to the rules
   SR 2/2007 concerning the Institutions’         on conservation of Community fisheries
expenditure on buildings                          resources

                                            EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14   INFORMATION: EUROPEAN UNION                                                            EUR      SAI

            SR 8/2007 concerning administrative           agencies pursuant to Council Regulation
         cooperation in the field of value added tax      (EC) No 58/2003 laying down the statute
            SR 9/2007 concerning “Evaluating the          for executive agencies to be entrusted
         EU Research and Technological Develop-           with certain tasks in the management of
         ment (RTD) framework programmes –                Community programmes (SEC(2007) 492
         could the Commission’s approach be im-           Final)
         proved?”                                             5/2007 Opinion on the proposal for a
            The following Opinions have been is-          Council Regulation on the Financial Reg-
         sued by the Court since the 2005 Annual          ulation applicable to the Euratom Supply
         Report:                                          Agency

             7/2006 Opinion on a proposal for a               6/2007 Opinion on the annual sum-
         Regulation of the European Parliament            maries of Member States; ‘national decla-
         and of the Council amending Regulation           rations’ of Member States; and audit work
         (EC) No 1073/1999 concerning investiga-          on EU funds of national audit bodies
         tions conducted by the European Anti-                 7/2007 Opinion on a draft Council
         Fraud Office (OLAF)                              Regulation mending Regulation (EC,
             8/2006 Opinion concerning a proposal         Euratom) No 1605/2002 of June 2002 on
         for a Council Regulation repealing Coun-         the Financial Regulation applicable to the
         cil Regulation (EC) No 2040/2000 on bud-         general budget of the European Communi-
         getary discipline                                ties

             1/2007 Opinion on the draft Commis-               8/2007 Opinion on a proposal for a
         sion Regulation (EC, Euratom) amending           Commission Regulation (EC, Euratom)
         Regulation (EC, Euratom) No 2342/2002            amending Commission Regulation (EC,
         laying down detailed rules for the imple-        Euratom) No 2343/2002 on the framework
         mentation of Council Regulation (EC,             Financial Regulation for the bodies re-
         Euratom) No 1605/2002 on the Financial           ferred to in Article 185 of Council Regula-
         Regulation applicable to the general bud-        tion (EC, Euratom) No 1605/2002 on the
         get of the European Communities                  Financial Regulation applicable to the
                                                          general budget of the European Communi-
             2/2007 Opinion on the draft Council          ties
         Regulation amending the Financial Regu-
         lation applicable to the ninth European              9/2007 Opinion on the proposal for a
         Development Fund                                 Council Regulation on a Financial Regula-
                                                          tion applicable to the tenth European De-
             3/2007 Opinion on a proposal for a           velopment Fund
         Regulation of the European Parliament
         and of the Council amending Council Reg-            In 2007, the Court adopted 24 specific
         ulation (EC) No 515/97 on mutual assis-          reports pertaining to the European
         tance between the administrative authori-            agencies and other decentralised bod-
         ties of the Member States and cooperation        ies. Each report includes an opinion on the
         between the latter and the Commission to         reliability of their 2006 financial state-
         ensure the correct application of the law        ments and on the legality and regularity of
         on customs and agricultural matters              their underlying transactions.
             4/2007 Opinion on a draft Commis-               All Court reports and opinions that are
         sion Regulation (EC) amending Regula-            published in the Official Journal of the Eu-
         tion (EC) No 1653/2004 on a standard             ropean Union can be found on the Court’s
         financial regulation for the executive           website –

EUR               SAI                INFORMATION: EUROPEAN UNION                                 No. 14

                            (Helsinki, 3-4 December 2007)
    The National Audit Office of Finland        reach better cost-effectiveness and to min-
hosted the 2007 annual Contact Committee        imize risks.
meeting of the Heads of SAIs of the Euro-
                                                    The meeting also discussed and ap-
pean Union with participation of the Heads
                                                proved resolutions on the EU SAI Contact
of SAIs of the Candidate Countries (Turkey,
                                                Committee co-operation framework. The
Croatia, and the former Yugoslav Republic
                                                Task Force is to initiate, coordinate and con-
of Macedonia), as well as representatives
                                                tinue work in 2008 in the following areas:
from IDI, the EUROSAI Training Commit-
                                                further developing the Contact Committee
tee and SIGMA. The meeting was chaired
                                                website and the Procedural Guidelines, im-
by Auditor General Tuomas Pöysti.
                                                plementing the prioritisation mechanism,
    In conjunction to the meeting in Helsin-    evaluation of Contact Committee activities,
ki the Finnish NAO arranged a seminar on        developing a mechanism to exchange
risk management in European Union fi-           knowledge on audits in the EU area and
nances and definition of the tolerable risk     exploring the potential for deepening co-
level. Among the speakers in the seminar        operation between the ECA and Member
were Chairman of the European Parlia-           States’ SAIs during ECA audit missions.
ment’s Committee on Budgetary Control
                                                    The Contact Committee meeting also
Mr Herbert Bösch, Vice President of the
                                                reviewed the work carried out by the vari-
European Commission Mr Siim Kallas and
                                                ous Working Groups and Expert Groups
Chairman of the Audit Committee of the
                                                acting under the mandate of the EU SAIs
Finnish Parliament Mr Matti Ahde. Chair-
                                                Contact Committee and covering specific          55
man of the Finnish Parliament Mr Sauli Ni-
                                                areas of the management of EU funds. The
inistö also addressed the meeting.
                                                Contact Committee approved the present-
    Discussions focused on the surveil-         ed resolutions seeking endorsement and
lance of rules and regulations of the Euro-     adoption of the outputs of that work and a
pean Monetary Union as well as the ques-        renewed mandate for 2008.
tion how Supreme Audit Institutions could
                                                    The resolutions are published on the
produce better information about the con-
                                                Contact Committee’s website www.con-
dition and long-standing risks of public fi-
nances. Outlines for co-operation of the
SAIs in this field were planned in the              The next meeting of the Contact Com-
meeting. The idea was generally supported       mittee will be held on 1-2 December 2008
that rules and procedures concerning EU         hosted by the European Court of Auditors
funding should be simplified in order to        in Luxembourg.

                                          EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14                 REPORTS AND STUDIES                                                                          EUR             SAI

           Intellectual capital balance – an instrument
            for displaying the value of Supreme Audit
                                                DR. JOSEF MOSER
                     President of the Austrian Court of Audit and Secretary General of INTOSAI
         As part of the 19th UN/INTOSAI Symposium1, held in Vienna in March 2007, Günter
         Koch2 presented intellectual capital balance, a relatively new instrument for displa-
         ying the relation between the parameters of monetary and non-monetary perfor-

         What purpose is served by intellectual                      their value it is advisable to take into ac-             External
         capital balances?                                           count non-financial magnitudes as well as                financial
                                                                     profitability parameters, such as experi-
             As part of the 19th UN/INTOSAI Sym-                     ence, specialised knowledge and the ex-                  audit
         posium, held in Vienna in March 2007,                       pertise of the workers.                                  institutions
         Günter Koch presented intellectual capital                      For that reason, the Austrian Court of               are to a
         balance, a relatively new instrument for                    Audit drew up its first intellectual capital             special
         displaying the relation between the para-
         meters of monetary and non-monetary per-
                                                                     balance in the year 2007 on the basis of the             degree
                                                                     model of Koch and Schneider, which is the                knowledge-
   56    formance. Basing himself on surveys con-                    model of intellectual capital balance most
         ducted by US banks, Mr. Koch explained                      widely used in Europe. The model of intel-
         that the difference between the book value                  lectual capital balance is contained in the              institutions.
         and the market value of companies has                       performance report of the Court of Audit
         provided the opportunity to confirm that                    of Austria, published in October 2007, and
         the value of a company can be determined                    can be consulted and downloaded from the
         not only by what appears in the balance                     website ( in
         sheet but also, and to an equal degree, by                  “News-Publications-Report and intellectu-
         what can be observed with respect to val-                   al capital statement 2006/07”.
         ues that transcend it. He explained that sci-                                                                        The
         entific institutions in particular, whose                                                                            composition
         performance is difficult to express in clas-                Composition of the intellectual capital                  of the
         sical economic-business terms, opened the                   balance                                                  intellectual
         path to those methods of analysis and pre-
         sentation of reports.
                                                                         The composition of the intellectual                  balance of
                                                                     capital balance of the Court of Audit of
                                                                     Austria follows a logical process from                   the Court
         The intellectual capital balance                            strategic orientation to implementation of               of Audit of
         of the Court of Audit of Austria                            the commercial processes. The range ex-                  Austria
                                                                     tends from the knowledge objectives,                     follows a
             External financial audit institutions are               passing through knowledge management
         to a special degree knowledge-based insti-                  and intellectual patrimony up to commer-
         tutions. Because of that, in order to display               cial processes.                                          process from
                                                                                                                              orientation to
               Symposium on the value and benefits of government audit in a globalised environment, 28 to 30 March            implementa-
         2007, Vienna.                                                                                                        tion of the
                The valuation of qualities and the “intangible” values of an organisation by means of an “intellectual cap-
         ital balance” (Prof. DI Günter Koch, Director General of the “Central European Institute of Technology”,
         Schwechat/Austria; guest professor in Austrian universities).                                                        processes.
EUR               SAI                             REPORTS AND STUDIES                                              No. 14

Knowledge objectives                            eas of Human Capital, Structural Capital
                                                and Relational Capital. It consists of mag-
    The four strategic intellectual capital     nitudes that permit conclusions to be             The Court
objectives of the Court of Audit of Austria     reached on their potential for intellectual
(transmission of the values of the Court of     capital.                                          of Audit of
Audit of Austria, excellence in checking                                                          Austria
                                                    In Human Capital, what is fundamen-
and assessment, creation of value and ben-      tally displayed is personal data, focusing        considers
efit of use measured via the activity of        on the qualification and skills of the work-      Knowledge
checking and advice, as well as connection
with national and international partners),
                                                ers. Structural Capital provides informa-         management
                                                tion on the division of the organisation, the     to be an
are based on its ideal, as well as on its       communication, the technical infrastruc-
strategic bases. These assure a clear orien-    ture, and also on quality assurance instru-
tation of the intellectual capital in the       ments. Relational Capital displays the in-        nary part of
Court of Audit of Austria and permit the        tensity and quality of the collaboration of       management,
formation of operative and individual in-
tellectual capital objectives.
                                                the Court of Audit of Austria with its            which is
                                                clients and partners, as well as the connec-      experienced
                                                tion with other audit institutions and with
                                                intellectual capital institutions.                with the
Knowledge management                                                                              participation
                                                                                                  of all
    The Court of Audit of Austria consid-
ers Knowledge management to be an inter-
                                                Commercial processes                              workers.
disciplinary part of management, which is
                                                   The commercial processes of the Court
experienced with the participation of all
                                                of Audit of Austria can be subdivided into
workers. In the knowledge management of
                                                a variety of central and specialised
the Court of Audit of Austria there exist
                                                processes. Many of them are processes re-
three levels of responsibility:
                                                quiring intensive intellectual capital.           In Human
    • the departments as centres of ability
in the framework of their responsibility in         The strategically most important scope        Capital,         57
subjects,                                       of performance of the Court of Audit of           what is
                                                Austria – auditing and advice – is carried        fundamentally
    • the intellectual capital communities      out in a structured process consisting of
as forums of intellectual capital that are      several partial processes, for which there        displayed is
key in certain fields of knowledge and          are specified and concrete norms on quality.      personal
   • the department of Knowledge man-                                                             data, focusing
agement.                                                                                          on the
                                                Perspectives                                      qualification
Intellectual patrimony                              The Court of Audit of Austria is going to
                                                                                                  and skills of
                                                be perfecting its intellectual capital balance    the workers.
   The intellectual patrimony of the Court      in the coming years and will try to achieve
of Audit of Austria is divided into the ar-     the strategic intellectual capacity objectives.

                                          EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14              REPORTS AND STUDIES                                                            EUR           SAI

              Fifteen years of existence of the Supreme
                   Audit Office of Czech Republic
                                                 DR. FRANTISEK DOHNAL
                               President of the Supreme Audit Office of Czech Republic
         It is the year 2008 and the Supreme Audit Office (SAO) celebrates the 15th anniver-
         sary of its foundation. Fifteen years do not represent a long tradition from the histori-
         cal point of view, but our Office has gone through many changes since its foundation.
         I have been President of a supreme audit institution only for almost three years, but
         despite of this fact, I would like to make a short balancing, to congratulate, and to ex-
         press my thanks.

             It is the year 2008 and the Supreme           audit became part of a certain repressive        As far as the
         Audit Office (SAO) celebrates the 15th an-        system that was controlled by the Commu-         Czech SAO
         niversary of its foundation. Fifteen years        nist Party. The discussion about the role of
         do not represent a long tradition from the        the SAO began in the 1990’s when ways to         is concerned,
         historical point of view, but our Office has      set up a standard operation were sought.         the
         gone through many changes since its foun-             The independence lies mainly in the          Constitution
         dation. I have been President of a supreme        fact that the institution itself lays down and   stipulates
         audit institution only for almost three
   58    years, but despite of this fact, I would like
                                                           decides what will be audited. Nobody else        that the
                                                           can order us what to audit. On the other         Executive
         to make a short balancing, to congratulate,       hand, we have no executive power and thus
         and to express my thanks.                         we can only identify problems and inform
             The development of audit institutions         about them. The SAO does not substitute a        intervene in
         in countries of western and central Europe        court, it does not impose a penalty – this is    the audit
         was almost the same. The history of exter-        a duty of someone else. Parliament of the        planning and
         nal audit in our country began two hun-           Czech Republic is always our natural part-       performing.
         dred years ago. Independence of an audit          ner, because it delegates tasks to the Execu-
         institution from the executive is one of the      tive and checks their fulfilment subsequent-     This strategy
         main principles of external audit. As far as      ly. Everything what the Executive has done       results from
         the Czech SAO is concerned, the Constitu-         wrong or what differs from the Parliament’s      the common
         tion stipulates that the Executive cannot         assignment should be followed by an ap-          principles
         intervene in the audit planning and per-          propriate reaction. Parliament itself must
         forming. This strategy results from the           decide if there are any reasons for toleration
                                                                                                            that were
         common principles that were adopted by            of the government’s procedures or not.           adopted by
         the Lima Declaration many years ago,                  The Supreme Audit Institution does not       the Lima
         where basic principles of audit institu-          only perform audits, but it also promotes        Declaration
         tions’ work are stipulated.                       principles of good practice. These princi-       many years
             Unfortunately, the democratic develop-        ples should be generally used as examples        ago, where
         ment of audit in our country was interrupt-       by all who work in this area. Thus, it is im-
         ed in the 1950’s and that situation lasted        portant to us to state there were no serious
         until the year 1993. The supreme audit in-        shortcomings in a follow-up audit. It does       principles
         stitution had been really independent until       not mean that we just did not want deliber-      of audit
         the 1950’s, but the communist regime in-          ately to find any. We will be glad if the        institutions’
         cluded the audit system into the Executive,       used methods of management, accounting,          work are
         which resulted in establishing the Ministry       or economy evaluation in the public ad-
         of State Control. The Government dictated         ministration help identify breach of the law
         then, what the Ministry should focus on, or       or lack of economy while spending money
         possibly, what it should not focus on. The        from the public funds in time.

EUR                SAI                             REPORTS AND STUDIES                                            No. 14

    Since the beginning of the SAO, its          gether. Many people have done a lot of          Celebrations
representatives tried to find an appropriate     good work and we can be proud of work           of the 15th
and acceptable place for the headquarters,       results of all our colleagues. Not only gov-
where this institution could work properly.      ernmental and parliamentary political rep-      anniversary
The building inherited from the ex-Min-          resentations belong to our close partners,      honour
istry of State Control did not satisfy the       but also public and media are very impor-       everything
structural and later also space require-         tant to us. Personally, I am very happy         what we have
ments of the SAO. Consequently, at the           about the fact we maintain these contacts,
turn of 2006/2007, we moved to new rent-         which contribute to continual cooperation
                                                                                                 done together.
ed offices in a modern administration cen-       and help. I would like to wish all of us fur-   Many people
tre. Coincidentally, this building is located    ther development of these relationships.        have done a
on the other side of the street where the            Finally, I would like to take this oppor-   lot of good
SAO temporarily resided for 14 years. The        tunity to thank all ex- and current col-        work and we
18 storey building allowed to gather all the     leagues for their active cooperation, en-
SAO’s employees and representatives in                                                           can be proud
                                                 deavour, and diligence. Using the words of      of work
the capital city and still offers enough free    a poet, I express my thanks also to our oth-
space for possible enlargement of the audit      er partners, public, and the media: “Even       results of
institution’s activity.                          the small things contribute to the bigger       all our
   Celebrations of the 15th anniversary ho-      ones” (“Parvis quoque rebus magna iu-           colleagues.
nour everything what we have done to-            vantur.“ Horatius).

     The Court of Accounts of Moldova: from
        External control to external audit                                                                        59

                                          ALA POPESCU
                   President of the Court of Accounts of the Republic of Moldova
The European Union–Republic of Moldova Action Plan provides that Moldova shall
ensure the establishment and adequate functioning of an independent Supreme Au-
dit Institution in line with the internationally accepted and EU best practice external
audit standards (INTOSAI standards). This is a long-term undertaking involving a wi-
de range of inter-related actions.

Introduction                                     ment of Public Financial Management in
                                                 the Moldova public administration. It is
    The European Union–Republic of               crucial that the CoA will be able to act as
Moldova Action Plan provides that Moldo-         a supportive “change agent” for other ac-
va shall ensure the establishment and ade-       tors in the public finance sector.
quate functioning of an independent                  • Such an approach implies a paradigm
Supreme Audit Institution in line with the       shift from compliance control of individual
internationally accepted and EU best prac-       transactions towards an audit profession
tice external audit standards (INTOSAI           focused towards quality of information and
standards). This is a long-term undertaking      internal control systems in line with inter-
involving a wide range of inter-related ac-      nationally accepted auditing standards and
tions.                                           best European practices.
   We believe that:                                 • The creation of a new basic culture
   • The Court of Accounts (CoA) should          among managers at all levels in the public
be at the “cutting edge” of the develop-         sector is a huge challenge, and the CoA

                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14              REPORTS AND STUDIES                                                          EUR           SAI

         should be an active force in this process.           (4) The Court of Accounts submits an-
         This requires a well educated, trained and       nually to Parliament a report on the admin-
         equipped staff.                                  istration and utilization of public financial   The path
             • The challenges in developing the           resources.
                                                                                                          for the
         CoA require higher efficiency in the of-             (5) The Court of Accounts other pow-
         fice, but we must acquire the necessary fi-
                                                          ers, as well as its structure and function-
         nancial and human resources to become a          ing, will be established by organic law.        of the
         powerful instrument promoting account-               The Law on the Court of Accounts
         ability in the public sector.                    (adopted in 1994, last amended in 2005)         Audit
             • The new financial management and           specifies the powers of the institution as      Institution
         financial control paradigms, supported by        basically an institution responsible for        of Moldova
         a reinforced CoA, will contribute to in-         compliance control of individual transac-       (the Court of
         creasing public sector accountability, pro-      tions related to public money. We have a
         ductivity and providing better services for      court-type structure with collegial deci-
         the citizens of Moldova.                         sion-making procedures but it has no judi-      CoA) in line
                                                          cial powers. In addition to our control ac-     with the EU
                                                          tivities we have other duties of a non-audit    action plan is
         Overview                                         nature, such as providing advice on the an-     laid down in
                                                          nual draft state budget, the state social in-
             The path for the development of the          surance budget, and the compulsory health       a Strategic
         Supreme Audit Institution of Moldova (the        insurance funds budget.                         Development
         Court of Accounts, CoA) in line with the                                                         Plan covering
         EU action plan is laid down in a Strategic           We have an authorized staff of 150 po-
         Development Plan covering the period be-         sitions, of which 98 are auditors. Our lead-    the period
         tween April 2006 and December 2010.              ership consists of the Board: the President,    between April
         The plan is based on achieving four main         the Deputy President and 5 Members. The         2006 and
                                                          central office in Chisinau includes 83% of
         goals: institutional strengthening; profes-
                                                          staff, while the rest work in two regional
         sion building; developing people; and se-                                                        2010. The
         curing greater impact from its work.             offices. Our budget for 2008 amounts to
                                                          15.2 million lei, in Euro that would be 0.91    plan is based
             Technical assistance on the process of       million.                                        on achieving
         transformation the CoA is being provided
         (i) by the Swedish National Audit Office                                                         four main
         under a three year bilateral agreement of        Basis for assessing progress                    goals:
         cooperation (2007-2009), and (ii) through                                                        institutional
         a Multi Donor Trust Fund (MDTF) estab-               For this publication we decided to          strengthening;
         lished by the DFID and the Dutch Gov-            monitor our progress against the main
         ernment and managed by the World Bank            questions designed by SIGMA for assess-         profession
         which is to start its main activities in         ing the effectiveness of external audit in      building;
         2008.                                            the former EU applicant countries. In this      developing
                                                          context, I have found it important to also      people; and
                                                          provide you with information about
                                                          changes actually under way and efforts in-
                                                          vested under the current legal framework.       greater
             In Moldova, external audit in the pub-       By doing this I will provide you with a         impact from
         lic sector is a quite new feature. The exis-     glimpse of our situation today and what         its work.
         tence of the CoA is based on Article 133         have been achieved – but also about the
         of the Constitution (1994) stating that:         challenges that we are facing.
             (1) The Court of Accounts controls the           What has been done for the CoA to
         ways of creating, administering and utiliz-      have clear authority to satisfactorily au-
         ing public financial resources.                  dit all public and statutory funds and
            (2) The Court of Accounts is com-             resources, bodies and entities, including
         posed of 7 members.                              EU resources?
            (3) The President of the Court of Ac-             The 2005 amendments to the legal
         counts is appointed for a 5-year term by         framework expanded the CoA mandate,
         Parliament on proposal submitted by the          but a new audit law is required to meet all
         President of Parliament.                         the prerequisites for a modern Supreme

EUR                SAI                               REPORTS AND STUDIES                                               No. 14

Audit Institution. During 2007 a new draft             Currently we have almost complete
law on CoA has been produced with assis-           discretion in our control activity, although
tance from the SNAO and it has recently            the Parliament may require (and requires)         Current
been sent to the European Court of Audi-           a number of ad hoc controls per year (four
tors for their comments. The draft law is          during 2007). Our budget passes through           control
on the Parliament’s agenda for considera-          the Ministry of Finance; the Government           activity
tion and adoption before the summer break          has the authority to modify the CoA bud-          consists
2008. In all important respects, the CoA’s         get proposal and the budget dialogue leave        almost
audit authority in the draft law is fully ad-      room for improvement.
equate to meet the baseline standard.
                                                                                                     exclusively of
                                                       The President of CoA selects by con-          regularity
    The division of responsibilities be-           test, appoints and dismisses the staff, in-
tween CoA and the central financial con-           cluding civil servants, based on the labour
                                                                                                     control of
trol body under the Ministry of Finance is         laws and Civil Service Law.                       individual
addressed in the Public Internal Financial
                                                       The CoA ensures the public character
Control (PIFC) Policy paper and will be
                                                   of its sittings as well as makes available to     with the
clarified in the Public Finance Manage-                                                              main focus
                                                   the public all its control findings (deci-
ment laws under preparation.
                                                   sions). The President of CoA regularly in-        being on
   What has been done for the type of              forms the media about control findings of         legal
                                                   major significance.
audit work carried out to cover the full                                                             compliance.
range of regularity and performance                    The primary reservation in this area is       At present,
audit set out in INTOSAI auditing stan-            that the President and all the Members
dards?                                             were chosen reflecting the political situa-
                                                                                                     we lack the
                                                   tion in the Parliament. The new draft Law         full capacity
     The new draft Law on the CoA will en-
title the institution to carry out all types of    on the CoA comes with solutions for this          to perform
regularity and performance audit.                  reservation.                                      modern types
    Current control activity consists almost           What has been done for the CoA’s
                                                                                                     of financial
exclusively of regularity control of individ-      annual and other reports to be prepared           audit or          61
ual transactions, with the main focus being        in a fair, factual and timely manner?             performance
on legal compliance. At present, we lack                                                             audit.
the full capacity to perform modern types              In our view we have well exploited the
of financial audit or performance audit.           potential of our present setup that pro-
                                                   duces external control reports in line with
    Extensive on the job and other training        the present state of development of the
and staff development is underway with             Moldovan public sector and earlier per-
the aim of strengthening our capacity to           ceived needs. The Court of Accounts has
implement the new law on CoA gradually             already acquired new skills for producing
over the years to come. At the same time           its reports on state budget execution in a
the current external control activities will       timely manner and within the statutory
be successively phased out as the manage-          deadline (six months after the end of the
ment capacity to be and to be held ac-             year).
countable is strengthened and a proper in-                                                           President of
ternal audit function is introduced.                   Our traditional role as an external con-
                                                   trol body provides a strong foundation for
                                                                                                     CoA selects
    Up till now some assessments of inter-         assuring fair and factual reporting. Our          by contest,
nal control systems have been carried out as       staff has clear authority for full access to      appoints and
pilot projects, three attestation pilot audits     the premises and documentation with re-
are nearing completion and some studies of
                                                   spect to authorities controlled. All findings     the staff,
how the State Fiscal Service and Customs           must be supported by evidence contained
Service carry out fiscal administration.           in a report that is provided to the con-          including
                                                   trolled body, who may respond with ex-            civil servants,
    What has been done to ensure the
CoA has the necessary operational and
                                                   planatory material, before a decision is          based on the
                                                   taken in the Board. The quality of the con-       labour laws
functional independence required to                trol carried out is further assured by a col-
fulfill its tasks?                                 legial review process involving supervi-
                                                                                                     and Civil
    All major aspects of independence de-          sors in the first instance and the Board in       Service Law.
scribed in the INTOSAI Lima Declaration            the second. However, in view of the scope
are reflected in the draft Law on the CoA.         of current control it is clear that the current

                                             EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14              REPORTS AND STUDIES                                                             EUR             SAI

         procedures will not be sufficient when we         lic finances is carried out through the
         move to a full attestation audit.                 Standing Committee for Economic Policy,
                                                           Budget and Finances of the Parliament and          In addition,
            Is the work of the CoA effectively             other line Committees.                             the CoA
         considered by Parliament, e.g. by a des-
         ignated committee that also reports on               Has the CoA adopted internationally
                                                                                                              remits to the
         their own findings?                               and generally accepted auditing stan-              Parliament
                                                           dards compatible with EU require-                  audit reports
             The Court’s Annual Report is present-         ments, and how far have they been im-
         ed and discussed in a special plenary ses-
                                                           plemented?                                         that contain
         sion of the Parliament by July 15 of the
         year. The last Annual Report presented to             The development of audit standards has         useful
         the Parliament is a document that provides        permanently been on the agenda during the          information
         a more profound and deeper analysis of fi-        last years. The CoA has developed and ap-
                                                           proved 5 types of standards that include 15        for this body.
         nancial management trends and comes
         with recommendations to eliminate the ir-         auditing standards. These standards have           The CoA is
         regularities at this level. The report also       been produced based on the international           invited to
         has a chapter that informs the Parliament         standards of auditing and cover: (i) general       participate
         and public opinion on the challenges the          standards of auditing, (ii) standards applic-
                                                           able to the planning stage, (iii) standards
                                                                                                              in the
         Court faces as well as its strategic develop-
         ment objectives. The publication of the           applicable to the audit procedure stage, (iv)      examination
         Annual Report and of the results of each          standard applicable to the reporting stage,        of the
         audit in the Official Gazette of Moldova,         and (v) special standards of auditing. Ap-         reports as
         on the Court’s website and in other media         proval and implementation of its own stan-         appropriate.
         resources makes the budget process and            dards is the first step in the shift from exter-
         use of public assets more transparent by          nal control to external audit in line with the
         informing taxpayers about the violations          European guidelines for the implementa-
         and irregularities revealed.                      tion of the INTOSAI and IFAC audit stan-
                                                           dards. At present, we are developing an au-        We believe
   62        Taking note of the Court reports, the         dit manual and an audit quality framework          that we have
         Parliament adopts decisions forcing the           that are to be tested through pilot audits.
         Government to ensure the execution of the                                                            got strong
         Court decisions in ministries and other              Is the CoA fully aware of the re-               potential
         public authorities regarding the manage-          quirements set out in the Community                for future
         ment and use of public financial resources,       Acquis and of the impact of the Moldo-             development.
         to take measures for improving public fi-         va-EU Partnership?
         nancial management as well as to inform
                                                                                                              We understand
         the Parliament about the elimination of the           We believe that we have got strong po-         the problem
         gaps revealed by the CoA. The Govern-             tential for future development. We under-          and we have
                                                           stand the problem and we have chosen the
         ment, in turn, adopts its own decisions ori-
                                                           way to be followed. We have started to im-
                                                                                                              chosen the
         ented towards ensuring the execution of                                                              way to be
         the recommendations contained in the An-          plement audit processes on new bases in
         nual Reports of the CoA. Most of the mea-         parallel with the preparation of a gradual         followed. We
         sures contain a certain level of assurance        transformation to our new role. The future         have started
         of the situation improvement at the entity        major improvements, as set out in the draft        to implement
         and they contributed to the enhancement           Law on the Court of Accounts and our
                                                           Strategic Development Plan, will focus on
         of the state budget financial management,                                                            processes
         the formation and use of state social insur-      the clarification of the CoA’s role in the ac-
         ance budget, the improvement of the local         countability process and on a perceptible          on new bases
         budget management, and improvement of             application of an audit philosophy in line         in parallel
         public assets management.                         with the international standards and Euro-         with the
                                                           pean best practice. We are also fully aware
             In addition, the CoA remits to the Par-       of the fact that the current support for the       preparation
         liament audit reports (decisions) that con-       CoA operation will not be realistic in the         of a gradual
         tain useful information for this body. The        future. This also implies new ways of              transforma-
         CoA is invited to participate in the exami-       management for our institution.                    tion to our
         nation of the reports as appropriate.
                                                              We have identified in our Strategic De-         new role.
             Monitoring and documentation of the           velopment Plan the gaps and needs to be
         results of the controls over the use of pub-      covered in order to have an impact on the

EUR                SAI                             REPORTS AND STUDIES                                              No. 14

above mentioned paradigm. Our annual                 The CoA is determined to continue the
implementation plans specify in more de-         implementation of the activities set out in
tail the development activities for a year in    its Strategic Development Plan, being in-       Radical
question based on previous results.              spired by the strong will of the manage-
                                                 ment and staff, by the support of the Par-      changes in the
Conclusions                                      liament and other stakeholders as well as       activity, nature
                                                 by the close cooperation with other direc-      and efficiency
    Radical changes in the activity, nature      tions of reform in the public financial         of a SAI are a
and efficiency of a SAI are a long term          management sector carried out in Moldo-
task. The donor institutions that joined the     va. Institutional strengthening, profession
                                                                                                 long term
CoA to provide it with the support re-           building, developing people and securing a      task.
quired to achieve the goals set out in its       greater impact from the CoA’s work are
Strategic Development Plan have fully            further the four pillars in the development
recognized that.                                 of the CoA.

    Audits in the field of education performed
                                 DR. VALENTYN SYMONENKO
                           Chairman of the Accounting Chamber of Ukraine
The state policy in Ukraine in the field of education covers all levels of the education
- primary, secondary (obligatory), vocational and higher education.
According to the article 53 of the Constitution of Ukraine the State guarantees the ac-
cessibility and free primary, secondary, vocational and higher education in the public
and municipal educational institutions; development of the primary, secondary, non-
school, vocational, higher and postgraduate education, different types of training;
grants public scholarships and privileges for the pupils and students.

    The state policy in Ukraine in the field     about 6 percent of the GDP. According to
of education covers all levels of the educa-     the Law of Ukraine “On the State Budget
tion - primary, secondary (obligatory), vo-      of Ukraine for 2008” funds equivalent to
cational and higher education.                   3 billion Euro are provided for the render-
    According to the article 53 of the Con-      ing services on obtaining primary, sec-
stitution of Ukraine the State guarantees        ondary, vocational, higher, non-school and
the accessibility and free primary, sec-         postgraduate education. This amounts 9
ondary, vocational and higher education in       percent from the total amount of Ukrainian
the public and municipal educational insti-      State Budget expenditures.
tutions; development of the primary, sec-
ondary, non-school, vocational, higher and           The social importance of realizing one
postgraduate education, different types of       of the main State function which is ensur-
training; grants public scholarships and         ing the sufficient level of the education for
privileges for the pupils and students.          the young growing generation and train-
                                                 ing of the highly educated specialists that
    The financing of the primary and sec-        is considered as the foundation of the state
ondary education mainly relates to the lo-       development in all spheres (economic, so-
cal budget expenditures. But at the same         cial, cultural and scientific). Taking into
time only some Public Programs and mea-          account aforesaid as well as the amount of
sures of the abovementioned educational          the budgetary funds assigned annually for
levels are financed from the State Budget.       this function the Accounting Chamber of
   For the last five years the expenditures      Ukraine as the constitutional independent
on education in Ukraine reach annually           Supreme Audit Institution in Ukraine exe-
                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14               REPORTS AND STUDIES                                                          EUR            SAI

         cutes the permanent control over the funds         of the methodical centers that elaborate
         expenditures on this purposes mainly in            and publish the manuals for the secondary,
         respect to effectiveness, economy and le-          vocational and higher educational institu-     The
         gality.                                            tions. This fact had negative impact on the
                                                            immediate decision-making.                     Accounting
             The Accounting Chamber of Ukraine
         while conducting performance audit in the
                                                                Due to the lack of the necessary effi-
         field of education at the same time per-           ciency and flexibility the timeliness of       of Ukraine
         forms financial audit, compliance audit as         manuals publishing and delivery to the         while
         well as researches problems of the admin-          consumers haven’t been provided. As a re-      conducting
         istrative activity, audit object internal con-     sult the numbers of new manuals have           performance
         trol organization and in this field as a           been kept at the storehouses and have not
         whole, social effects of the administration        been used during the educational process.
                                                                                                           audit in the
         decision-making.                                   Moreover, the part of the pupils remained      field of
             The Annual Collegium Working Plan              without manuals according to the new pro-      education at
         foresees conducting control and analytical         grams (Ukraine should transfer for 12          the same
         measures on different themes in the field          year education period until 2010).             time performs
         of education, permanent monitoring and                 The Ministry of Education and Science      financial
         control over the implementation of the             of Ukraine didn’t ensure the transparency
         ACU proposals and recommendations on
                                                            of the copies selection that assisted the
         audit findings conducted earlier.                  lobbying of interests of particular authors    compliance
             Over the last years Accounting Cham-           and publishing houses including those          audit as well
         ber has conducted the number of audits re-         which received negative references while       as researches
         lated to the State Budget funds utilization        approbation and use of corresponding pub-      problems
         in the field of education.                         lications.
                                                                                                           of the
             As the result of performance of the Au-            The results of the audit on the provi-     administrative
         dit on the Provision of Educational Insti-         sion the educational institutions with the     activity,
         tutions with the Manuals we have come              manuals conducted by the Accounting
   64    to conclusion that the acting system estab-        Chamber of Ukraine have attracted atten-       audit object
         lished by the Ministry of Education and            tion of the public, the Parliament, the Gov-   internal
         Science of Ukraine is not perfect. First, the      ernment and the Ministry of Education and      control
         monopoly of publishing and manuals de-             Science. As a result of the audit the          organization
         livery by the Ministry of Education and            amendments were made to the legislative
                                                            in this field. Particularly, the Government
                                                                                                           and in this
         Science of Ukraine, without taking into ac-
         count the demands of the educational               Decree “On the improvement of the work         field as a
         process participants and the market econo-         related to the provision of the pupils and     whole, social
         my conditions, prevents from obtaining the         students of the educational institutions       effects of the
         necessary results. Secondly, existing sys-         with the manuals and training appliances”      administration
         tem doesn’t foresee the responsibility of          was passed; the amendments to the acting
         the officials of the regional educational au-      procedures on the pupils and students pro-     decision-
         thorities for the timeliness and complete-         vision with the manuals were made; the         making.
         ness of the providing students’ with the           system of the institutions responsible for
         manuals.                                           this direction was reorganized.
             During the audit there was found out               The Accounting Chamber of Ukraine
         that the Ministry of Education and Science         carries out the monitoring over the mea-
         of Ukraine doesn’t coordinate the activity         sures taken following the audit results.
                                                            However, revealed problems that had to be
                                                            solved by the Ministry of Education and
                                                            Science of Ukraine haven’t been eliminat-
                                                            ed completely.
                                                                The other audit on the Implementation
                                                            of the Public Program on Informatiza-
                                                            tion of the Secondary Educational Insti-
                                                            tutions and Computerization of the
                                                            Rural Schools was conducted by the Ac-
                                                            counting Chamber of Ukraine. The Pro-
                                                            gram goal was providing the teachers and

EUR               SAI                             REPORTS AND STUDIES                                             No. 14

pupils of the rural schools with the access         The auditors of the Accounting Cham-
to the domestic and world informational         ber of Ukraine have also investigated the
resources by equipping computer classes         problem regarding the efficiency of the         The auditors
and Internet networking.                        State Budget funds utilization assigned for
                                                the vocational education.                       of the
    The audit revealed that the Program                                                         Accounting
hasn’t provided the creation of equal con-          Along with unemployment problem in
ditions for the schools in the rural area.      the country there is a lack of qualified
This Program covered only 38 percent (2,5       working staff in Ukraine. By solving this       of Ukraine
thousands of schools) of the total number       problem the economic and industrial po-         have also
of 6,6 thousands of schools in Ukraine.         tential of the country could be strength-       investigated
                                                ened significantly.                             the problem
    The Accounting Chamber of Ukraine
also emphasized that the Program imple-             Since the function of the training the      regarding the
mentation management was not efficient.         above mentioned specialists based on the        efficiency of
The measures on the provision the rural         funds of the employers is at the initial de-
schools with the dedicated connection’s         velopment stage in Ukraine. Such training
                                                                                                the State
channels weren’t coordinated with the           in the vocational educational institutions is   Budget funds
available and necessary resources for their     realized for the state budgetary funds          utilization
creation. As the result the technical prob-     based on the public needs.                      assigned
lems with the Internet access in the distant                                                    for the
                                                    Taking into consideration the above
regions have appeared and this problem
has not been solved. Within the Program
                                                mentioned problems the Accounting               vocational
                                                Chamber of Ukraine has carried out the          education.
implementation only the computer soft-
                                                Audit on the utilization by the Ministry
ware was purchased, moreover the com-
                                                of Education and Science the State Bud-
puter software of different configuration.
                                                get Funds assigned for the training the
    The Accounting Chamber of Ukraine           working staff in the vocational educa-
has concluded that the Ministry of Educa-       tional institutions at the base of the pub-     Since the
tion and Science of Ukraine created the         lic needs.
non-transparent, uncontrolled and ineffi-
                                                                                                function of       65

cient system of the development and im-
                                                    The auditors of the Accounting Cham-        the training
                                                ber of Ukraine have revealed the main           the above
plementation of the Program on Informati-
                                                problems in the sphere of working staff
zation of the Secondary Educational
                                                training. These problems are the low level
Institutions and Computerization of the                                                         specialists
                                                of training; lack of the connections with the
Rural Schools. As the result – the main
task of this Program to increase the num-
                                                enterprises; the outmoded material re-          based on the
                                                sources base of the educational institutions    funds of the
ber of schools with the dedicated connec-
                                                and the state incapacity to realize training    employers is
tion’s channels and the Internet network-
                                                using complex technological equipment;
ing as well as the teachers’ and pupils’                                                        at the initial
                                                the non-perfect structure of the institutions
access to the Internet and other domestic                                                       development
                                                financing oriented at the ensuring of the so-
and world informational resources was not
                                                cial component of the expenditure (wages,       stage in
                                                scholarship and lack of the capital invest-     Ukraine.
    Taking into consideration the Ac-           ments); the psychological stereotypes of
counting Chamber’s recommendations the          the young persons who consider the career
                                                                                                Such training
Program on Informatization of the Sec-          of the qualified worker non-perspective;        in the
ondary Educational Institutions and Com-        the deficit of the working staff which can      vocational
puterization of the Rural Schools was           work with the high-technology equipment;        educational
brought in conformity with the National         inconsistency between the working staff         institutions is
Program on Informatization that has pro-        training and the regional needs and needs
vided additional control over its implemen-     of the particular employers. These facts        realized for
tation. So the monitoring system over the       lead to the disproportion at the labour mar-    the state
targeted procurements of the computer           ket due to the lack of the demands for the      budgetary
classes was implemented; the legal frames       trained staff of the mentioned qualification.   funds based
on the elaboration and implementation           At the same time, taking into consideration
of the software tools to the educational        the demand for the high-qualified workers
                                                                                                on the public
process were developed and adopted; the         who able to work with the complex tech-         needs.
system of IT teachers retraining was imple-     nology equipment, the Ministry of Educa-
mented.                                         tion and Science of Ukraine assigns only

                                          EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14                REPORTS AND STUDIES                                                          EUR                  SAI

         27,4 percent of the total volume of the pub-       introduced during 2006; the cooperation             The ensuring
         lic needs for their training.                      with the employers was established that             of the public
                                                            has led to the increased number of students
             The increased of the different types of
                                                            who were employed under the labour con-             needs in high-
         the modern working professions doesn’t                                                                 qualified
                                                            tract with the enterprises and organizations.
         assist to the elaboration of the correspond-
         ing standards for the training of the work-            At the same time some problems have             specialists is
         ing staff. For the 5 years the only one new        to be solved by the way of legislative con-         realizing for
         specialization was implemented.                    trol and change the state policy in this            the State
                                                            sphere. We conduct permanent monitoring             Budget funds
             The audits conducted by the Account-
                                                            over our recommendations implementation.            by the way
         ing Chamber of Ukraine has defined that
         the vocational institutions doesn’t execute            The use of the State Budget funds               of annual
         their main function – training of the quali-       assigned for the higher education is un-            forming,
         fied working staff. Moreover, they are             der the constant control of the Accounting
                                                            Chamber of Ukraine. During last years the           allocation and
         used for the social protection of the unpro-
         tected youth groups. Within the structure          number of audits in this sphere was car-            implementa-
         of the budget expenditures for the profes-         ried out in the Ministry of Education and           tion of
         sional training the expenditures for the as-       Science and other central executives au-            the public
         sistance, scholarship, food etc. are pre-          thorities.                                          order for
         vailed. The assignments for purchasing the             The ensuring of the public needs in             specialists’
         training equipment are not foreseen and as         high-qualified specialists is realizing for
         the result the training is conducted for sim-      the State Budget funds by the way of annu-
                                                                                                                training with
         ple and no prestige professions.                   al forming, allocation and implementation           higher
             Based on the audit findings the Ac-            of the public order for specialists’ training       education. For
         counting Chamber of Ukraine has put for-           with higher education. For these purposes           these purposes
         ward the proposals most part of which was          more than 5 percent of the State Budget ex-         more than
         realized. Particularly, the Ministry of Edu-       penditures are assigned annually.                   5 percent
         cation and Science of Ukraine has made                For the period from 2000 to 2008 the             of the State
   66    amendments to the procedure on forming             number of students which study in the
         the public needs in the working staff train-       higher educational institutions has in-
         ing taking into account regional and em-           creased more by one and a half and has              expenditures
         ployers needs; 51 new specializations ori-         consisted more than 2,8 million persons             are assigned
         ented at the modern technologies were              (Diagram 1).                                        annually.

                                                                                                            2786,6     2813,8
                      3000                                                                    2709,2
                      2500                                 2269,8

         of persons


                                2000/01    2001/02       2002/03    2003/04     2004/05     2005/06    2006/07       2007/08
                                                                       School year

                        Diagram 1. The dynamic of students in the higher educational institutions
EUR                SAI                              REPORTS AND STUDIES                                             No. 14

    The main problems related to forming          the public order for the specialists training
and realizing the public order for the train-     with the higher economic education (at 10
ing specialists with higher education are:        percent more in 2007 than in 2006). The         The
   – low level of the study of public             Ministry of Education and Science has
                                                  strengthened the control over licensing the     effectiveness
needs in the specialists taking into account
the long-term perspective by the public           higher educational institutions and realiza-    and efficiency
customers;                                        tion of the license provisions from their       of all control
                                                  side. As the result, more than 75 higher ed-    measures,
    – lack of the coordination between the        ucational institutions and their branches
customers, higher educational institutions        (7,7 % from the total number of higher ed-
                                                                                                  including in
and employers concerning the young spe-           ucational institutions) have stopped their      the sphere
cialists employment;                              activity. The control over the job place-       of education,
    – some questions related to higher ed-        ment of the graduated students has been         were achieved
ucation and public needs in specialists           strengthened. Establishment of the job          due to the
training are not regulated by legislative;        placement centers subordinated to the
                                                  higher educational institutions has been in-    transparent
    – lack of the control over the quality                                                        activity of the
                                                  troduced on a regular basis.
of the specialists training in the higher ed-
ucational institutions as well as lack of the         The effectiveness and efficiency of all
responsibility of the public customers for        control measures, including in the sphere       Chamber of
improper forming and realization of the           of education, were achieved due to the          Ukraine.
public order.                                     transparent activity of the Accounting
    As the result the internal labour market      Chamber of Ukraine.
on some popular specializations (lawyers,             The information on the audit findings
economists, some types of the physicians)         including conclusions, proposals and rec-
is oversaturated that lead to increased           ommendations were sent to the Parliament,
number of unemployed in these spheres.            the President of Ukraine, the Cabinet of the
The demand in the engineering specialists         Ministers, to the audit objects with the aim
is not satisfied. But the Ministry of Educa-      to eliminate the revealed infringements and                       67
tion and Science of Ukraine continued to          defects as well to the mass-media, placed
increase the scope of license for the high-       in the Internet and published in the infor-
er educational institutions that train spe-       mational bulletins. The constant monitor-
cialists who can not find a job in future.        ing of the implementation of the Account-
This situation testifies to irrational and in-    ing Chamber of Ukraine proposals and
efficient budget funds utilization.               recommendations by the audit objects are
    During the audits the facts of viola-         realized permanently.
tions of the license provisions concerning            Taking into account the urgency of is-
the enrolment and graduation of the spe-          sues related to the utilization of the budget
cialists in the higher educational institu-       funds assigned for granting the education
tions are revealed regularly.                     for all levels of population, the Accounting
    As the result of the audit conducted          Chamber plans to conduct regularly the
timely and qualitatively we could attract         performance audits on different problems
the attention of the government officials to      in the sphere of education and to elaborate
defining the appropriate needs in the spe-        the proposals and recommendations for the
cialists from the point of view of special-       improvement the effectiveness and efficien-
izations as well as to decrease the scope of      cy of the budgetary funds expenditures.

                                            EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14              REPORTS AND STUDIES                                                           EUR           SAI

                                   XIX INTOSAI Congress
                                                           Mexico 2007
                               THE SUPREME AUDIT INSTITUTION OF MEXICO
         The XIX Congress of the International Organisation of Supreme Audit Institutions
         (INTOSAI) was held in Mexico City from 4 to 10 November 2007.
         This was the most highly attended Congress in the history of the Organisation, brin-
         ging together as it did 480 delegates from 145 member SAIs, along with 21 observers
         and almost 60 companions.

             The XIX Congress of the International        agement, accountability and audit of pub-        The Governing
         Organisation of Supreme Audit Institu-           lic debt”, as Theme I, and “Performance          Board
         tions (INTOSAI) was held in Mexico City          evaluation systems based on universally
         from 4 to 10 November 2007.                      accepted key indicators”, as Theme II. In        approved the
                                                          both cases, various recommendations and          discussion of
             This was the most highly attended
         Congress in the history of the Organisa-         resolutions were drawn up after the debat-       two technical
         tion, bringing together as it did 480 dele-      ing sessions.                                    themes of
         gates from 145 member SAIs, along with               The Mexico Agreements set down the           relevance
         21 observers and almost 60 companions.           results achieved with these technical dis-       for the
         Among the international observers in at-         cussions. They will serve as the basic
         tendance were the Institute of Internal Au-
                                                          instrument of reference in terms of
         ditors (IIA), the Inter-American Develop-        the topics identified in those branches.
                                                                                                           for which
   68    ment Bank, the International Federation of       These Agreements also provide for the            Germany and
         Accountants (IFAC), the World Bank, the          creation of training programmes on the           the United
         Organisation for Economic Cooperation            subject of auditing of the public debt for all   States of
         and Development (OECD) and the United            INTOSAI regions, the dissemination of
         Nations Organisation.
                                                                                                           America were
                                                          technical information on audits on that sub-
                                                          ject and even proposals for developing and       responsible.
             The XIX INCOSAI offered partici-
         pants the opportunity to debate and share        applying key national indicators for SAIs.
         knowledge and experiences regarding                  As the second result deriving from the
         questions related to auditing and account-       XIX INCOSAI, mention can be made of
         ability. The Governing Board approved the        the evaluation of activities and achieve-
         discussion of two technical themes of rel-       ments reports from all the regional working
         evance for the community, for which Ger-         groups and technical bodies of INTOSAI.
         many and the United States of America                                                             The Mexico
                                                          So, two already existing working groups
         were responsible.                                were reappointed owing to an extension
             So, the discussions held in the Plenary      of their mandate: the Working Group on           set down the
         sessions of the Congress concerned “Man-         the Fight Against International Money            results
                                                                                                           achieved with
                                                                                                           these technical
                                                                                                           They will serve
                                                                                                           as the basic
                                                                                                           instrument of
                                                                                                           reference in
                                                                                                           terms of the
                                                                                                           identified in
         Group Photograph of the XIX INCOSAI.                                                              those branches.
EUR                SAI                             REPORTS AND STUDIES                                              No. 14

Laundering and Corruption, chaired by                4. Unrestricted access of SAIs to the
the SAI of Peru; and the Working Group           information they require for the develop-
on Privatisation, Economic Regulation            ment of their tasks.                             Mention can
and Public-Private Partnerships (PPP),
chaired by the SAI of the United King-
                                                    5. Right and obligation of SAIs to re-        also be made
                                                 port on their work done.                         that the list
    Within this framework of activities, var-
                                                    6. Freedom of SAIs to decide on the           of INTOSAI
                                                 content and appropriateness of their audit       members
ious changes were made in terms of Goal 3,
                                                 reports, as with their publication and dis-
Sharing Knowledge, with the creation of
                                                 semination.                                      has been
the Working Group “Value and Benefits of                                                          increased due
SAIs”, chaired by South Africa; the Work-            7. Existence of efficient mechanisms
ing Group “Key National Indicators”,             for following up the recommendations is-
                                                                                                  to the
chaired by the Russian Federation; the Task      sued by a SAI.                                   approved
Force “INTOSAI Communication Strate-                 8. Financial and managerial/adminis-
                                                                                                  of the
gy”, charged to the SAI of Austria (Gener-       trative autonomy of SAIs, and assurance          application for
al Secretariat) and the Task Force “INTO-        of the availability of appropriate and suffi-    membership
SAI Platform – United Nations”, to be            cient human, material and economic re-
conducted by the SAI of Korea.
                                                                                                  from two new
                                                 sources.                                         bodies: the
    Mention can also be made that the list
of INTOSAI members has been increased
                                                     Simultaneously with the Congress, the        SAIs of
                                                 56th and 57th meetings were held of the          Montenegro
due to the approved of the application for       Governing Board of INTOSAI, which was
membership from two new bodies: the              renewed with the incorporation of the            and of
SAIs of Montenegro and of Singapore.             SAIs of South Africa, China, Côte                Singapore.
With these, there are now 188 nations            d’Ivoire, Russian Federation and Libyan
making up this important organisation            Arab Jamahiriya.
dedicated to matters of government audit
and public control. Also, membership sub-            The Organising Committee of the Con-
scriptions were increased for the first time     gress, made up of close to a hundred mem-        Simultaneous      69
since 1983 in order to have the recourses        bers carefully selected for their linguistic
                                                 and administrative skills, leadership, com-      ly with the
needed for running the Organisation.
                                                 mitment and responsibility, concerned it-        Congress,
    Moreover, during Congress eighteen           self with planning and carrying out the          the 56th and
official products were approved, repre-          various activities related to the event. So,
senting the outlines and directives for ba-                                                       57th meetings
                                                 as well as the development of the technical
sic patterns and good practices in terms of      works of the Congress, attendants were al-
                                                                                                  were held
financial auditing and the environment, in-      so able to learn a little about the culture of   of the
ternal control standards, performance au-        the host country and they had some time          Governing
diting of the public debt, and communica-
tion policy of INTOSAI, among others.
                                                 for leisure and informal interaction with        Board of
                                                 other delegates in among the technical dis-      INTOSAI,
    Standing out among these products is         cussions.
the Mexico Declaration on Independence
                                                                                                  which was
                                                     The Opening Ceremony, in the pres-           renewed
of SAIs, for the better performance of enti-     ence of the Constitutional President of the
ties dedicated to auditing public resources.     United Mexican States, Lic. Felipe
                                                                                                  with the
In this declaration eight principles were        Calderón Hinojosa, took place in the Pala-       incorporation
heeded, namely:                                  cio Nacional, one of the most representa-        of the SAIs of
    1. Existence of an appropriate consti-       tive buildings of Mexico’s history. A cul-       South Africa,
tutional framework, and of secondary pro-        tural gathering was offered in the Palacio       China, Côte
visions guaranteeing their proper applica-       de Bellas Artes, one of the architectural
tion.                                            gems of Mexico City, with a spectacle of         d’Ivoire,
                                                 international standing, the presentation of      Russian
    2. Independence of the higher authori-
ty of SAIs, including the security of their
                                                 the Ballet Folclórico de México, demon-          Federation
                                                 strating the country’s artistic traditions.      and Libyan
post and legal immunity in compliance
                                                 Attendants also visited the archaeological
with their obligations.
                                                 site of Teotihuacan, an invaluable treasure-
   3. Sufficiently broad mandate, and full       house of Pre-Hispanic cultures. Compan-          Jamahiriya.
powers for the adequate compliance of the        ions were likewise offered a tour of Taxco,
functions of SAIs.                               a colonial city famous for its silverware

                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14              REPORTS AND STUDIES                                                          EUR           SAI

         and craftsmanship, among with a stroll           in charge of the Collaboration Tool offer-
         through the Historic Centre of Mexico            ing a means for continual interaction of all
         City, where the architecture gracing the         INTOSAI members, in such a way that the         On the
         original quarter of the city could be appre-     commitments that are had with regard to
         ciated. Finally, a Closing Dinner for the        the presidency of the Governing Body are        occasion of
         Congress was offered in the Palacio de           fulfilled properly and the advantages of        the XIX
         Medicina, with the participation of the          speed and immediacy offered by modern           Congress,
         Mayor of Mexico City.                            technology are exploited.                       the SAI of
             On the occasion of the XIX Congress,             In this way, the aim is to maintain the     Mexico,
         the SAI of Mexico, Supreme Audit Body            level of quality of INTOSAI from a per-         Supreme
         of the Federation, took over the Presidency      spective of continual improvement, so
         of the Governing Board of INTOSAI for            that, in 2010, when a new President of the
                                                                                                          Audit Body
         the period 2007 – 2010. In this regard the       Governing Board is chosen, it will be tak-      of the
         Supreme Auditor of the Federation, C.P.C.        ing over an organisation that is active,        Federation,
         Arturo González de Aragón, accepted the          functional and mindful of the principles of     took over the
         commitment to promote technical ad-              transparency and accountability.                Presidency
         vances and contacts among INTOSAI                    The XX INCOSAI will be held in Jo-
         members with the aim of exchanging expe-                                                         of the
                                                          hannesburg, South Africa, where new top-
         riences and knowledge among the world            ics will be discussed that are of relevance
         community of SAIs in accordance with the         for government auditing and management.         Board of
         spirit expressed in the INTOSAI slogan:          Only by means of the continual exchange         INTOSAI for
         “Mutual Experience Benefits Everyone”.           of knowledge and experiences can one            the period
            Work will also be carried out jointly         make progress in the auditing of public re-     2007 – 2010.
         and in coordination with the SAI of India,       sources for the good of nations.


                    International Standards of Supreme
                             Audit Institutions
                                    KRISTOFFER BLEGVAD AND ANE ELMOSE

            The XIX INCOSAI in Mexico, No-                ficial INTOSAI languages– all ready to
         vember 2007, endorsed the proposal from          print and apply.                                Though there
         the INTOSAI Professional Standards                   The documents are systematically            is still work
         Committee (PSC); that all official docu-
         ments of INTOSAI should be gathered in
                                                          numbered according to a set of classifica-      to be done
                                                          tion principles. This clarifies the hierarchy   in the next 3
         one common framework.                            between the documents and makes it easi-
             A new website has              er to see how each document fits into the
                                                                                                          years, you
         therefore been launched in order to make         overall framework. The numbers will also        will already
         INTOSAI’s standards and guidelines easi-         make it easy to make accurate references        now find
         ly available to auditors around the world.       to the various documents.                       many useful
         The website provides an enhanced                                                                 documents
         overview of all ISSAIs and INTOSAI
         GOVs currently in force and inform of            The ISSAIs and INTOSAI GOVs                     on the ISSAI
         new ISSAI’s in the pipeline. It contains all                                                     website.
         documents provided by the responsible                Though there is still work to be done in
         committee or working group in the five of-       the next 3 years, you will already now find

EUR                  SAI                                  REPORTS AND STUDIES                                                   No. 14

many useful documents on the ISSAI web-                 dards Committee for 2007-2010, setting
site. At the top of the hierarchy is the Lima           out an ambitious working plan for the next
Declaration, which is ISSAI 1. Level 2 in               3 years. The strategic plan gave PSC the               On
the INTOSAIs framework are ISSAIs con-                  task of developing principles on trans-
cerning the basic prerequisites for the prop-           parency and accountability of SAIs, which    
er functioning and professional conduct of              are now planned to become ISSAI 20. To                 you will also
SAIs. Level 3 of the hierarchy – indicated              complement level 2, PSC has decided that               find the
by three digit numbering – concerns the                 it will also develop a new ISSAI 40 con-               INTOSAI
Fundamental Auditing Principles. Here                   cerning audit quality control. The develop-
you can find the four chapters of the exist-            ment of these documents will be carried
ing INTOSAI Auditing Standards that have                through as two projects under the PSC                  These are a
been split into 4 separate documents num-               steering committee and will be chaired by              separate
bered ISSAI 100-400. Level 4 of the hier-               the SAIs of France and New Zealand re-                 class of
archy contains all the auditing guidelines              spectively.                                            documents
developed by PSC’s subcommittees and
the task forces and working groups under                    By the new mandate PSC has also                    because they
goal 3. This includes implementation                    made it it’s ambition to provide a compre-             do not
guidelines on financial auditing, perfor-               hensive set of guidelines for financial au-            concern the
mance auditing and compliance auditing.                 diting, performance auditing and compli-
                                                        ance auditing by 2010. In 3 years time the             conduct of
The financial auditing guidelines are being
developed in cooperation with the Interna-              INTOSAI framework will thus include a                  SAIs but are
tional Federation of Accountants (IFAC).                full set of financial auditing guidelines              issued by
They are based on IFAC’s International                  covering all ISAs (ISSAI 1000-2999).                   INTOSAI to
                                                        Additional Guidelines are being devel-
Standards of Auditing (ISA) and the ISSAI
                                                        oped to provide guidance in areas that are
number refers to the numbers used by                                                                           guidance to
IFAC. For example ISSAI 1300 Planning                   specific to financial auditing of SAIs and
an Audit of Financial Statements will con-              therefore not covered by ISAs. The new                 administrative
sist of ISA 300 and a Practice Note devel-              performance audit subcommittee estab-                  authorities.
oped by PSC’s Financial Audit Guidelines                lished in 2005, will provide new guidance              INTOSAI          71
                                                        on performance audit methodology. This
Subcommittee. The Practice Note contains
                                                        will supplement the existing guidelines on
guidance relevant to financial audits in the                                                                   include
public sector in addition to that provided in           performance auditing (ISSAI 3000) from
the ISA. Level 4 will also include specific             2004. The compliance audit subcommit-                  guidelines
guidelines on audit of international institu-           tee will provide a general guideline out-              on internal
tions, environmental audit, privatisation,              lining the basic definitions of compliance             control
IT-audit and audit of public debt.                      auditing (ISSAI 4000), a guideline on
                                                        compliance auditing in connection with                 standards
    On you will also find                 auditing of financial statements drawing               developed
the INTOSAI GOVs. These are a separate                  on the ISA’s (ISSAI 4100) as well as                   by PSC’s
class of documents because they do not                  guidelines on compliance auditing organ-
concern the conduct of SAIs but are issued
                                                        ised in other ways, e.g. as a separate task
by INTOSAI to provide guidance to ad-                   or in connection with performance audit-
                                                                                                               e on internal
ministrative authorities. INTOSAI GOVs                  ing (ISSAI 4200).                                      control and
include guidelines on internal control stan-                                                                   the existing
dards developed by PSC’s subcommittee on                    The success of INTOSAI’s new frame-
                                                        work will not only depend on the quality
internal control and the existing INTOSAI
accounting standards framework.                         of the standards of guidelines but also on             accounting
                                                        the extent to which it is used by public sec-          standards
                                                        tor auditors around the world. The new                 framework.
Developing the ISSAIs and INTOSAI                       website is already up and running. Please
GOVs further                                            check it out for yourself and help us by
                                                        passing on the message to your colleagues
   The XIX INCOSAI also endorsed the                    and contacts: The is yours –
new mandate for the Professional Stan-                  use it! 1.

       Following the XIX INCOSAI, all official INTOSAI documents on the role and functioning of SAIs are
called ISSAIs - International Standards of Supreme Audit Institutions. Official INTOSAI documents offer-
ing guidance to public authorities on the proper administration of public funds are called INTOSAI GOV - IN-
TOSAI Guidance for Good Governance.

                                                 EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14               REPORTS AND STUDIES                                                           EUR           SAI

            INTOSAI WGEA Chair moved to National
               Audit Office of Estonia – a member
                          of EUROSAI
         The shift of the Chair and Secretariat of the INTOSAI Working Group of Environmen-
         tal Auditing (WGEA) from Canada to Estonia took place at the XIX INCOSAI in 2007
         and the implementation of the new WGEA work plan for the period of 2008-2010 has
         just been started under the leadership of the National Audit Office of Estonia.

             The shift of the Chair and Secretariat of      rying out the audit on climate change in
         the INTOSAI Working Group of Environ-              the European region. Each proposed ac-
         mental Auditing (WGEA) from Canada                 tion requires a SAI to act as an overall pro-   The SAI of
         to Estonia took place at the XIX INCOSAI           ject leader. Project leaders are responsible
         in 2007 and the implementation of the              for many aspects of a given project, in-        Poland will
         new WGEA work plan for the period of               cluding preparing individual work plans         be in charge
         2008-2010 has just been started under the          and progress reports, organising meetings       of carrying
         leadership of the National Audit Office of         and consultations, authoring drafts, and        out the audit
         Estonia. For the new working period, the           communicating with the Steering Com-
         INTOSAI WGEA has established five                  mittee and all WGEA members.
                                                                                                            on climate
   72    strategic goals and associated actions in-             In the process of developing a long-        change in the
         cluding the elaboration of different guide-        term vision for the WGEA, the work plan         European
         lines, arrangement of trainings, etc. In to-       includes activities on the elaboration of a     region. Each
         tal 11 project plans have been prepared by         formal cooperation strategy with external       proposed
         different Supreme Audit Institutions               organisations who share the same interests.
         (SAIs). The WGEA Steering Committee is             The development of the strategy is lead by
         going to oversee and approve all project           the SAI of Estonia in cooperation with the      requires a
         plans at its 7th meeting on 6-9 May 2008 in        SAIs of Poland and Canada. In order to          SAI to act as
         Tallinn, Estonia. Considering the central          provide for an on-going communication           an overall
         theme of the working period – climate              and outreach through the strategy the pro-      project
         change – several interesting and useful ac-        ject implementation foresees cooperation
         tions have been planned to be implement-           with Regional Working Groups of Environ-
         ed and several EUROSAI members are                 mental Auditing (RWGEAs). Strengthen-
         project leaders. For example, guidance             ing of the cooperation between the WGEA
         material on auditing government’s efforts          and RWGEAs is an important goal in the
         related to sustainable energy will be lead         new working period. Mr Mihkel Oviir as
         by the SAI of Czech Republic, guidance             the Chair for the new WGEA working pe-
         materials on natural resources and the re-         riod (being also re-appointed as the Audi-
         lated impact on the environment by sectors         tor General of Estonia for the next 5 years)
         will be lead as follows: forests (SAI of In-       has taken the challenge to create closer
         donesia), minerals and mining (SAI of              contacts both with external organisations
         Tanzania), fisheries (SAI of South-Africa).        and regional working groups. Already in
         An important global activity in the work-          October 2007 the delegation of Estonian
         ing plan is to design and carry out a multi-       SAI headed by Auditor General Mihkel
         regional coordinated audit on climate              Oviir visited the SAI of China. One of the
         change (lead by the SAI of Canada). The            items discussed was further cooperation
         latter is closely related also to the prepara-     between the regional coordinator and the
         tion of guidance materials for auditing cli-       Chair of the WGEA. In April 2008 the
         mate change (lead by the SAI of Norway).           WGEA Secretariat attended the fifth meet-
         The SAI of Poland will be in charge of car-        ing of the RWGEA of the SPASAI: the

EUR                SAI                              REPORTS AND STUDIES                                             No. 14

WGEA project plans were introduced and            formation on environmental audits will be       After the 7th
the perspectives of mutual cooperation            updated according to the data gathered in       Steering
were discussed.                                   the course of the Annual Data Collection on
                                                  Environmental Audits which was launched         Committee
     The SAI of Estonia has initiated design-
ing of a new WGEA visual identity which           in the middle of March this year. Informa-      meeting the
is now ready. Also a web page containing          tion on new environmental audits in year        next important
the “Frequently Asked Questions” that ap-         2007 should be found on the web page by         WGEA event
                                                  the end of September 2008.
pear in the document Evolution and Trends                                                         is the twelfth
in Environmental Auditing will be created.            After the 7th Steering Committee meet-      meeting of the
In addition there is a plan to develop a new      ing the next important WGEA event is the
web page for the topic of biodiversity (sim-      twelfth meeting of the WGEA that will be
                                                                                                  WGEA that
ilar to the current Focus on Water and Focus      held in Doha, Qatar from 25 to 29 January       will be held in
on Waste pages). On the new web page in-          2009.                                           Doha, Qatar
                                                                                                  from 25 to 29
                                                                                                  January 2009.

   Cooperative audits as a practical form
     of exchanging audit experience.
Frameworks of cooperation among Supreme
             Audit Institutions                                                                                     73

                          DR. PÁL BECKER
                           OF HUNGARY
The XIII INCOSAI held in Berlin in 1989 stated that contacts and exchange of expe-
rience among the Supreme Audit Institutions (SAIs) of European countries need rein-
forcement, in order to facilitate the convergence of various systems, procedures and
methods of public sector auditing, and to increase the efficiency of their own activity
and that of joint work.

    The XIII INCOSAI held in Berlin in            and contributes to the professional devel-
1989 stated that contacts and exchange of         opment of partner institutions by transfer-
experience among the Supreme Audit In-            ring its experiences. The bilateral and mul-
stitutions (SAIs) of European countries           tilateral agreements of the SAO are aiming
need reinforcement, in order to facilitate        at the exchange of professional experiences
the convergence of various systems, proce-        and development of national audit method-
dures and methods of public sector audit-         ologies through holding continuous profes-
ing, and to increase the efficiency of their      sional consultations and conducting vari-
own activity and that of joint work.              ous audits.
    In order to promote effective auditing            Both of the two major audit types - reg-
and to raise its standard of auditing, the        ularity audits and performance audits - can
State Audit Office of Hungary (SAO)               be applied to audits performed on the basis
maintains bilateral and multilateral interna-     of international agreements. In terms of co-
tional relations. The SAO uses the experi-        operation, three audit types can be distin-
ences gained through such cooperation to          guished according to INTOSAI definitions:
raise the professional standard of its audits,    parallel, joint and coordinated audits.

                                            EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14               REPORTS AND STUDIES                                                            EUR             SAI

             In case of concurrent or parallel au-          nated audits are deemed particularly useful
         dits, two or more SAIs carry out an audit,         when legal problems arise due to differ-
         on the basis of similar audit programmes,          ences in audit mandates of the SAIs,              The opinions
         more or less at the same time. Each SAI            which may influence publishing the audit
         employs a separate audit team to complete          findings and conclusions.                         of
         the audit, and reports the audit findings ex-                                                        participating
                                                                In general, a major requirement of co-
         clusively to the respective authorities, nor-      operative audits is for the participating         SAIs may also
         mally to the legislative body. An advantage        SAIs to be able to share the information          differ on
         of parallel audits is that international legal
         difficulties do not arise in the course of ex-
                                                            and knowledge obtained. This may cer-             formulating
                                                            tainly be the case even if the SAIs do not        the final
         ecution, as each SAI is to observe the re-         take part in joint, coordinated or parallel
         spective national legal regulations only.          audits. Nevertheless, experiences confirm
         However, the impact of these audits is mi-         that a more intensive and effective ex-           Disadvantages
         nor compared to that of a joint or coordinat-      change of information and knowledge               may be
         ed audit. In addition, experiences confirm
         that parallel audits are time-consuming. It
                                                            among participating SAIs takes place in           reduced if the
                                                            the course of joint audits. It is valid for co-   participants of
         is very difficult to plan ahead and coordi-        operation in general that much depends on
         nate the priorities of two SAIs in terms of        the personal attitudes of participants, i.e.      the joint audit
         auditing, scheduling and other activities. At      on their willingness to work together. The        are properly
         the same time, concurrent audits may re-
         veal information that would not become
                                                            cooperating SAIs must consider political          and efficiently
                                                            and economic factors as well. It is particu-      functioning
         available, if the two SAIs perform their au-       larly economic-financial forces that may
         dits completely independently from each            object to certain aspects, for example en-
                                                                                                              SAIs of
         other.                                             forcing environmental considerations. In          countries that
             In case of a joint audit, the work is          addition, SAIs should consider cultural,          are also
         performed by an audit team consisting of           historical, religious and language differ-        geographically
         members representing SAIs of two or                ences.                                            close.
         more countries. A single joint report is               In line with the INTOSAI principles,
         produced on the joint audit, to be pub-            the SAO intends to intensify the exchange
         lished in each participating country. An           of information among partner SAIs. We
         advantage of joint audits is, for example,         have acquired useful methodological
         that it is easier to coordinate and lead,          knowledge during previous cooperative
         compared to parallel audits, which bring           audits, which we have also subsequently           The
         about savings in human capacity. Another           incorporated in our audit system. Second-
         advantage is that although it is more diffi-                                                         cooperating
                                                            ly, we wish to evaluate compliance with
         cult to plan and conduct joint interviews,         bilateral and multilateral international
                                                                                                              SAIs must
         they yield much more information. A joint          agreements. Thirdly, we examine cross-            consider
         report also makes a more considerable im-          border environmental impacts with respect         political and
         pact. Experiences suggest that the success         to the utilisation of resources of domestic
         of joint audits mostly depends on good
                                                            and EU support. Finally, an important goal        factors as
         preparatory work performed by the partic-          is to analyse the efficiency of projects im-
         ipating SAIs. A disadvantage can be that           plemented under international manage-             well. It is
         political sensitivity may vary in the partic-      ment and coordinated financing.                   particularly
         ipating countries, and legal difficulties                                                            economic-
         may also arise. The opinions of participat-
         ing SAIs may also differ on formulating                                                              financial
                                                            The process of audits performed                   forces that
         the final report. Disadvantages may be re-
                                                            in international cooperation
         duced if the participants of the joint audit                                                         may object to
         are properly and efficiently functioning                                                             certain
         SAIs of countries that are also geographi-             After an opportunity for international
         cally close.                                       cooperation emerges, in line with the             aspects, for
                                                            strategies of the SAI, the INTOSAI and the        example
             Practice has given rise to coordinated         EUROSAI an initiative is started at the SAI       enforcing
         audits, which entail the performance of a          Head level among national audit offices
         joint audit and the elaboration of separate        concerning the subject of audits. The SAIs
         reports, or the performance of parallel au-        involved in the cooperation need to pass          considerations.
         dits and in addition to the national reports       decisions as early as in the preparation
         the elaboration of a joint report. Coordi-         phase. So, first of all they need to define

EUR                   SAI                                  REPORTS AND STUDIES                                                    No. 14

   – the implementation of which invest-                  attended by the participating SAI Heads,
ment project or international agreement                   and this is where an agreement is reached
they will audit;                                          on the utilisation and distribution of the re-         In addition,
   – where and how they will obtain in-                   port. The finalised report is signed by the
                                                          SAI Heads during a solemn ceremony, and                the type,
formation on the project / agreement;
                                                          then it is forwarded to the national assem-            scope and
   – a way of measuring or evaluating                     blies of the countries concerned, the Euro-            nature of the
how efficient or economical the project or                pean Court of Auditors, the SAIs of EU
compliance with the agreement is;
                                                                                                                 audit need to
                                                          Member States, representatives of the me-
                                                          dia, and public access is provided through
                                                                                                                 be defined. In
    – whether the audit represents any risk
for the SAI;                                              the Internet.                                          the event of
                                                              After the audit is completed, experi-
   – whether another national audit office
can be involved in the audit, and to what                 ences gained from conducting the audit                 between two
extent.                                                   must be evaluated. The evaluation covers               or more
    In addition, the type, scope and nature
                                                          an analysis of the benefits and disadvan-              SAIs, the
                                                          tages of the applied audit method, as well             participants
of the audit need to be defined. In the event
                                                          as the key lessons learned during audit
of cooperation between two or more SAIs,
                                                          planning and execution. It is also recom-              agree on the
the participants agree on the framework of                                                                       framework of
                                                          mended to evaluate the key experiences
cooperation. They pass decisions on issues
such as the nature of audit, the standards
                                                          gained by the participating parties during             cooperation.
                                                          the cooperation itself. The audit result is
applicable to reporting, scheduling, and
                                                          utilised in the course of follow-up audits
the distribution of human or other (finan-
                                                          or auditing further international agree-
cial) resources. Cases such as differing
views concerning the scope of audit, rec-
ommendations and conclusions are also
                                                          The SAO experiences concerning
    Following the conclusion of the coop-                 parallel audits
eration agreement, the actual work begins,                                                                                        75
starting with agreeing on audit pro-                          The State Audit Office of Hungary has
grammes and criteria at strategic and oper-               been conducting parallel audits in the
ational levels. While conducting the audit,               framework of international cooperation
the participants stay in continuous contact               since the turn of the millennium.
by phone or e-mail, and in the course of                                                                         The State
working meetings they also inform one an-                     In 2001, in cooperation with the                   Audit Office
other of the audit results and the shortcom-              Slovene Court of Audit the SAO audited
                                                          the construction of the Zalalövo-Ba-  ˜                of Hungary
ings revealed.
                                                          jánsenye-Hodos-Murska Sobota railway
                                                                           ˇ                                     has been
    Upon conducting the audit, the parties                line. The cross-border railway connection              conducting
agree on technical issues concerning the                  was designed and constructed in an inter-
joint report, addressing the report struc-                                                                       parallel
                                                          governmental project involving coopera-
ture, as well as the tasks of translation and             tion of the two countries. Each SAI per-
                                                                                                                 audits in the
printing. It is also important to define how              formed an audit of the section located in              framework of
SAIs share reporting tasks. On compiling                  their respective territory, focusing on the            international
a joint report, operational professional dis-
cussion is needed; in addition, the transla-
                                                          soundness of the planning of the invest-               cooperation
                                                          ment projects, of public procurement ten-              since the
tion must be proofread1, the report layout                ders and of project financing. In addition,
must be designed,2 and quality assurance                  both SAIs examined environmental con-
                                                                                                                 turn of the
duties must also be performed.                            siderations of constructing the railway                millennium.
   Joint reports (in three or more lan-                   line, as well as other impacts of the pro-
guages) are approved at a working meeting                 ject. The joint report presented the activi-

       A joint report on audits performed with the participation of the SAO includes (a minimum of) three lan-
guage versions: Hungarian, being the SAO’s language, the language of the partner SAI(s), and English, being a
lingua franca and the language used most frequently in international cooperation.
       An example: The layout of the joint report on the Swiss-Hungarian parallel audit differs from the SAO’s
traditionally used colours. The colour of the Swiss Federal Audit Office’s logo virtually shaded into the sand
colour of the report cover; consequently, the colour of the cover had to be lightened.

                                                  EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14               REPORTS AND STUDIES                                                          EUR           SAI

         ties of the two countries in the railway           practice of the two audit offices on differ-
         construction, it compared the audit results        ent time spans. The Swiss practice is based
         – particularly data on the construction ex-        on the assumption that the risks related to    In 2004-
         penditures related to establishing a railway       opportunities and dangers are highest in the
         connection between the two countries –,            initial phase of planning and construction     2005, when
         and pointed out which country was finan-           processes. These risks diminish as the im-     auditing the
         cially more efficient on constructing the          plementation of the investment project pro-    flood control
         railway line. Furthermore, the report as-          gresses. Audits performed by the Swiss         preparedness
         sessed the effectiveness of the investments        SAI are a’ priori (ex-ante) audits aimed at
         in the light of the planned objectives.            a recently closed element of the planning
                                                                                                           in the Upper
                                                            or construction process, and may be repeat-    Tisza region,
             In 2002, we audited an investment pro-
         ject concerning a common bridge over the           ed in the course of project implementation.    the SAO
         Danube, linking Esztergom and Sturovo.             As opposed to this, the SAO performs a’        cooperated
         Within the framework of mutual agree-              posteriori (ex-post) audits, comprehensive-    with the
                                                            ly examining the effectiveness, economy
         ment the State Audit Office of Hungary
                                                            and efficiency of the project considering      Accounting
         and the Supreme Audit Office of the Re-                                                           Chamber of
         public of Slovakia conducted concurrent            the whole life cycle after the investment
         audits of the investment project in their re-      project has been completed. The seminar        Ukraine.
         spective territories. The audit was based          concluding the parallel audit came to the
         on a mutually agreed and approved audit            conclusion that the audit has contributed to
         programme. The audit teams of the two              the further development of the professional
         SAIs held consultations and shared experi-         standard of both SAIs; the joint work moti-
         ences on a regular basis. Considering that         vated and facilitated the understanding of
         the investment project was implemented             both country-specific and the divergent
         partially from EU funds, the two SAI               methods and procedures used for financial
         Heads sent the report to the European              audits in the two countries. On these
         Court of Auditors and the competent EU             grounds, the two organisations recognised
         bodies with a joint accompanying letter, as        useful insights that would assist subsequent
   76    well as submitted it to the National As-           audit activities. Both audit offices reached
         sembly of the Republic of Hungary and              the conclusion that such parallel audits
         the National Council of the Republic of            have considerable benefits and yield real
         Slovakia.                                          insights, as well as provide impetus to ex-
                                                            amine the background of good practices.
             In 2003, in cooperation with the Aus-          Based on the audit experiences, the SAO
         trian Court of Audit the State Audit Office        decided to supplement its audit methods
         of Hungary audited the nature conserva-            with the ex-ante audit approach in case of
         tion in Region Lake Ferto   ˇ/Neusiedl. The        mayor investment projects.
         geographical location of the lake and inter-
         national obligations impose shared duties
         on the two countries, which justified a co-        The SAO’s practice in conducting
         operative audit to be carried out by the two       coordinated audits
         SAIs. The SAIs applied basically the same
         audit methodology to carry out their au-               In 2004-2005, when auditing the flood
         dits. They held consultations concerning           control preparedness in the Upper Tisza
         the audit topics and methods on a continu-         region, the SAO cooperated with the Ac-
         ous basis, and then submitted their nation-        counting Chamber of Ukraine. For both
         al reports to the legislative bodies of their      parties, the programme of the parallel au-
         respective countries, while in their joint re-     dit represented a part of the audit tasks in
         port they summarised cross-border prob-            the annual audit plans of the respective
         lems and measures.                                 SAI, and the parties defined the common
             The Swiss-Hungarian parallel audit             considerations of the audit based on the
         performed in 2004 – concerning invest-             monitoring of the compliance with the
         ment in the Lötschberg Base Tunnel and             provisions specified in an intergovernmen-
         the Szekszard Danube Bridge - differed             tal agreement on water management issues
         from the parallel audits conducted previ-          related to transboundary waters. The SAO
         ously, given that the two SAIs used differ-        audited the preparation for the prevention
         ent methodologies. The main purpose of             of natural disasters in the framework of a
         the parallel audit was to compare the audit        performance audit, while the Accounting

EUR               SAI                             REPORTS AND STUDIES                                                 No. 14

Chamber of Ukraine audited the state pro-       tion. Geographically, the audited area cov-       In 2004, the
gramme covering the complex flood con-          ered the common border region of the              Heads of the
trol preparedness of the catchment area of      three countries, while in terms of time, the
the river Tisza and in the Sub-Carpathian       period between 2000 and 2005, highlight-          SAIs of
region. The joint report presents a summa-      ing tendencies and recent events. The au-         Hungary,
ry of the findings of the Hungarian and the     dits put special emphasis on cross-border         Slovenia and
Ukrainian parties, also covering joint con-     cooperation among the competent organi-           Austria agreed
clusions related to the fields of trans-        sations in the three countries in the field of
boundary water cooperation.                     environmental protection. All the three
                                                                                                  on conducting
                                                SAIs performed the audit within their re-         coordinated
    In 2004, the Heads of the SAIs of Hun-                                                        audits on
                                                spective scopes of authorities, incorporat-
gary, Slovenia and Austria agreed on con-
ducting coordinated audits on handling the
                                                ed in their national audit work plan – in         handling the
                                                addition to the in-depth harmonisation of         – often similar –
– often similar – problems of the environ-
                                                the audit criteria. The trilateral audit repre-
ment and nature protection for the area sit-
                                                sented another step forward in terms of co-       problems
uated at the common border area of the                                                            of the
                                                operation among the SAIs of the three
three countries. Each SAI had had experi-
ences of successful cooperation in bilater-
                                                countries, and in terms of exchanging pro-        environment
                                                fessional information.                            and nature
al audits. This close trilateral cooperation
was inspired by the EUROSAI Working                 Based on the experiences gained               protection for
Group on Environmental Auditing. It is a        through joint audits performed so far it can      the area
shared conviction of the involved SAIs          be clearly established that they were ex-         situated at the
that the audit findings and experiences         tremely useful for the participating SAIs.
contributed to the development of profes-       Harmonisation of audit methodologies and
sional cooperation in the field of environ-     culture represents a small step towards a         border area
mental auditing. The audit on environmen-       goal that is currently still distant, namely,     of the three
tal issues performed by the SAIs covered        a uniform European practice of public au-         countries.
matters of water, soil and nature conserva-     diting.

                                          EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14                REPORTS AND STUDIES                                                                    EUR             SAI

                   Corruption risk mapping in Hungary:
                    Summary of Twinning light project
                      of Netherlands Court of Audit
                    and State Audit Office of Hungary1
                                          THE STATE AUDIT OFFICE OF HUNGARY
         The State Audit Office of Hungary (SAO) has emphasized the need for increasing the
         fight against corruption and improving the transparency and accountability of the pu-
         blic sector on several occasions, on various national and international forums. Alt-
         hough the fight against corruption is not explicitly defined among the mandate of the
         SAO, by means of its audits, it may significantly contribute to the provision of decision-
         makers with valid information in this respect.

         Introduction                                            knowledge and experience in this field
                                                                 with the SAO. The specific objectives of
             The State Audit Office of Hungary                   the project were to develop an assessment
         (SAO) has emphasized the need for in-                   and mapping methodology for corruption
                                                                                                                       This article
         creasing the fight against corruption and               risks in the public sector of Hungary. The            provides an
   78    improving the transparency and account-                 result of the project will also help to make          overview
         ability of the public sector on several occa-           recommendations to the Hungarian Gov-                 of the most
         sions, on various national and internation-             ernment concerning the anti-corruption                important
         al forums. Although the fight against                   measures to be taken.
         corruption is not explicitly defined among
                                                                                                                       results of this
                                                                     This article provides an overview of              project and
         the mandate of the SAO, by means of its                 the most important results of this project
         audits, it may significantly contribute to              and describes the developed methodology               describes the
         the provision of decision-makers with                   and summarises the recommendations for                developed
         valid information in this respect. The SAO              the anticorruption strategies of the Hun-             methodology
         facilitates the decision-making activity of             garian government, resulting from the pro-
         the Parliament and parliamentary commit-                                                                      and
         tees by its audits and findings; it publishes                                                                 summarises
         its reports and sends the same to the gov-                                                                    the
         ernment agencies concerned as well. The                 Level of corruption                                   recommenda-
         SAO of Hungary plays an active role in an-
         ti-corruption efforts and encourages the                   In the Transparency International (TI)
                                                                                                                       tions for the
         further development of the anti-corruption              Corruption Perceptions Index (CPI) Hun-               anticorruption
         policy of the Hungarian Government.                     gary’s ranking and scores have remained               strategies of
            Against this background the SAO has                  almost unchanged in the last six years (see           the
         taken steps to initiate an EU funded Twin-              Table 1).                                             Hungarian
         ning Light project focusing on the devel-                   Hungary is perceived as less corrupt              government,
         opment of a corruption risk mapping                     than other Central and East European tran-
         methodology to further promote the anti-
                                                                                                                       resulting from
                                                                 sition countries covered by the surveys,
         corruption efforts in Hungary. The Nether-              except Estonia, Slovenia and the Czech                the project.
         lands Court of Audit (NCA) has agreed to                Republic. According to the Business Envi-
         be partner in this project and to share its             ronment and Enterprise Performance Sur-

               By the Netherlands Court of Audit (Hans Benner, Ina de Haan, Juul Vos- Schellekens, Diny van Est) and
         the State Audit Office of Hungary (Gusztáv Báger, Gyula Pulay, Andrea Korbuly).

EUR                     SAI                                    REPORTS AND STUDIES                                                    No. 14

Table 1: TI Corruption Perceptions Index (CPI) Hungary
                                                                                     Number of countries
                   Score*           Confidence Range               Ranking                                            Although
                                                                                        on the list
    2001              5,3                  4.0-6.2                     31                        91                   according to
    2002              4.9                  4.0-5.6                     33                       102
    2003              4.8                  4.0-5.6                     40                       133
    2004              4.8                  4.6-5.0                     42                       146                   ranks among
    2005              5.0                  4.7-5.2                     40                       159                   the less
    2006              5.2                  5.0-5.4                     41                       163                   corrupt of
    2007              5.3                  4.9-5.5                     39                       180                   the post-
* On a scale from one to ten, a country completely free from corruption could get 10 points
vey (BEEPS) conducted by the World                           Corruption and integrity                                 indicate that
Bank, 10 per cent of firms say that unoffi-                                                                           corruption
cial payments are frequent (half of the fig-                     Several definitions and approaches of                continues to
ure of 2002), and 25 per cent of firms indi-                 corruption exist. Corruption may for ex-
cated corruption as a problem when doing                     ample be defined in a narrow sense, as in
business (20 per cent in 2002).2                             the context of the penal law (bribery).                  a serious
    Although according to independent as-                    However many policy makers and design-                   problem.
sessments Hungary ranks among the less                       ers of anti-corruption strategies have dis-
corrupt of the post-communist countries,                     covered that such a narrow definition is
surveys indicate that corruption continues                   not the best possible basis for prevention
to represent a serious problem.                              of corruption. If you look at the problem
                                                             from this perspective, corruption as phe-                                79
    The Hungarian Government initiated                       nomenon is closely related to other types
anti-corruption programmes several times                     of undesirable events and behaviour. To
mainly as a consequence of international                     prevent these undesirable events, it is im-
pressure. From 2007 a new strategic ap-                      portant to have policies in place promoting
proach has been prevailing. The Anti-Cor-                    good behaviour. In this way the scope has
ruption Coordination Board (ACCB) was                        changed from fighting corruption to pro-
established which performs its activity                      moting good behaviour or ‘integrity’. This
now on the basis of publicity and profes-                    focus provides a better perspective for a
sional partnership. The main task of the                     more preventative approach in which the
ACCB is to prepare an Anti-corruption                        promotion and protection of integrity in
Strategy and short-term Anti-corruption                      the public sector is the core issue.
action plan. The ACCB involves not only
the government but also non-governmental
public organisations and representatives of                  Life cycle of anti-corruption policies
the civil society in this work.
    The ACCB has prepared the draft An-                          In the approach of government the shift
ti-Corruption Strategy which is to be built                  of focus from narrowly defined corruption
on the following overall objectives:                         to a broader concept of integrity is usually
                                                             a development process with some typical
    • winding-up of reasons of corruption
                                                             stages. In the past 20 to 30 years for exam-
(prevention of development of corruption
                                                             ple the Dutch government went through
                                                             this process, but it is also recognisable in
   • treatment of the corruption phenom-                     other countries.
ena (consequent law enforcement).
                                                                 The stages in the life cycle of anti-cor-
   This Twinning project fits in the first                   ruption policies may be summarised as
overall objective of the draft strategy.                     follows.

        Corruption risks in Hungary National Integrity System Country Study Transparency International 2007. p. 23.

                                                      EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14               REPORTS AND STUDIES                                                           EUR            SAI

             1. Ignoring / denying the problem: In          practice may be described as a well-bal-
         this stage the government is not devoting          anced approach including preventative and
         attention to the problem of corruption and         repressive elements.                            Although the
         has no policies to promote integrity. When
         incidents occur, they are handled silently
                                                               Although the stages are described in         stages are
                                                            consecutive order, this does not mean that      described in
         avoiding (media) attention as much as pos-
                                                            governments always follow this pattern.
                                                            Due to institutional developments, govern-
             2. Awareness / ‘wake-up call’: At a cer-       ments may fall back into earlier stages of      order, this
         tain moment in time external pressure, an          anti-corruption policies. It may therefore      does not
         incident or scandal may suddenly raise             be a long road to travel and it requires        mean that
         public awareness of the problem. This may          careful steering to arrive at the ultimate
         be regarded as a wake-up call for govern-
         ment that the existence of (widespread)                                                            always follow
         corruption is evident and the problem can                                                          this pattern.
         no longer be denied or ignored.
                                                            The concept of integrity                        Due to
             3. Hard-line or compliance approach:                                                           institutional
         The initial response, once the government              The term integrity is derived from the      developments,
         has become aware of the problem, is a typ-         Latin in-tangere, meaning untouched. In         governments
         ical hard-line approach. The focus is clear-       other words, it refers to something or
         ly on (criminal) law and regulations and                                                           may fall back
                                                            someone that is untainted, intact and un-
         repression of corruption. The general be-          tarnished. It also refers to virtue, incor-
                                                                                                            into earlier
         lief in this stage is that investigating, pros-    ruptibility and the state of being unim-        stages of anti-
         ecuting and severely punishing corrupt             paired. Integrity is a hallmark that is used    corruption
         people is the best approach to tackle the
                                                            to assess a person or organisation’s perfor-    policies. It
                                                            mance.                                          may therefore
             4. Recognition of limitations of repres-           Civil servants act with integrity if they   be a long
         sion only: In this stage the government            observe the values and standards of good
   80    gradually recognises that the repressive                                                           road to
                                                            administration. Integrity embraces not on-
         approach has its limitations. Despite the          ly the requirements of incorruptibility
                                                                                                            travel and it
         prosecution of a number of cases, it’s dif-        mentioned above but also such values as         requires
         ficult to find and tackle all incidents, be-       honesty, sincerity, sociability, neutrality,    careful
         cause they are not always clearly visible.
         Although the prosecution of some cases
                                                            consideration, reliability, customer-focus,     steering to
                                                            respect, objectivity and decency. A civil       arrive at the
         may be successful, it does not prevent or          servant must take care to exercise his re-
         deter others from committing the same of-          sponsibilities and use the powers, infor-       ultimate
         fence. The focus on repression also has its        mation and resources at his disposal for        destination.
         limitations, since it does not stress the re-      the benefit of the public. The same is true
         sponsibility of management for preventing          of an organisation, but an organisation
         corruption. Mistakenly the ‘ownership’             must also do all it can to ensure that its
         seems to rest at the public prosecution and        personnel cannot succumb to temptation.
         the judiciary only.                                Organisations must not make unreason-
             5. Focus on prevention / integrity ap-         able or impossible (conflicting) demands
         proach: Once it is recognised that preven-         on staff, regularly and clearly remind
         tion of integrity breaches is necessary, the       them of the importance of integrity, en-
         government commences with implement-               sure that managers set a good example,
         ing integrity policies and controls. Usually       and create an open and transparent culture
         starting with the so called ‘hard controls’        in which criticism is accepted, mistakes
         (for example assigning responsibilities, in-       can be made and difficult questions can
         ternal controls, security and checks). In a        be discussed. In brief, the organisation
         later stage government organisations focus         must implement an effective integrity
         on the ‘soft controls’ (for example defin-         policy.
         ing values, promoting an ethical culture
                                                               Integrity is therefore a product of good
         and management attitude).
                                                            administration and good employment
             6. Balanced approach: prevention /             practices. Integrity risks might seriously
         repression: Ultimately the ideal situation         undermine confidence in the organisation
         of best practice may be attained. This best        and thus in its image and continuity.

EUR                SAI                              REPORTS AND STUDIES                                               No. 14

Integrity risks, vulnerabilities                  system. Depending on the ‘maturity level’
and controls                                      of the integrity control system, the organi-
                                                  sation is more or less resilient to the vul-     Vulnerabilities
    All public organisations are vulnerable       nerabilities it is facing.
                                                                                                   are defined
and are to some extent exposed to integri-
ty risks. Organisations must be aware of                                                           on
their vulnerabilities and risks, so that they     The outline of the assessment method             a higher
can take targeted measures. It is both illu-      developed during the project                     level of
sory and undesirable to think that all risks                                                       abstraction,
can be averted or closed out. That would              The assessment methodology consists
need so many rules and procedures that the        of five separate steps that may be taken by      indicating
organisation would no longer be able to           an organisation by means of a self assess-       areas where
function. Risk analysis can help decide           ment or may be integrated in an audit ap-        risks are more
what measures will help to reduce the risks       proach.                                          likely to
for an organisation to an acceptable level.           (a) Analysis of object and its processes     occur. It’s
    Risks may be described as the likeli-             The first step is to define and analyse      useful to
hood or probability of a certain undesirable      the organisation or entity under assess-         focus on
incident occurring multiplied by its impact       ment and its (primary and secondary)
or the damage it would cause (Risk = Prob-        processes. Setting clear boundaries is es-
ability x Impact). Damage in the public           sential for the focus of the assessment and      because it
sector can be defined in terms of financial       the value of its results.                        provides a
loss, the impairment of services provided             (b) Assessment of vulnerabilities            good insight
to clients or members of the public, the                                                           into potential
waste of tax revenue, public loss of respect          In this step, an estimate is made of the
for or confidence in the government, polit-       vulnerability, i.e. the potential exposure to    problems and
ical and administrative implications or a         integrity violations, of the entity described    the ways to
deterioration in the working atmosphere.          in step (a). This step consists of three sub-    address them,
The common denominator is that misuse of          steps:
                                                                                                   without            81
power damages the image of the public                 1. relating the processes of the entity to
sector and undermines the public trust in
                                                                                                   having to
                                                  an overview of processes in the public sec-
and legitimacy of government.                     tor that are known to be vulnerable to           define all
                                                  breaches of integrity;                           possible risks
    Vulnerabilities are defined on a higher
level of abstraction, indicating areas where          2. considering the presence or absence       in detail.
risks are more likely to occur. It’s useful to    of vulnerability increasing circumstances;
focus on vulnerabilities, because it pro-             3. producing an overview and overall
vides a good insight into potential prob-         assessment of the perceived vulnerability
lems and the ways to address them, with-          of the entity.
out having to define all possible risks in
detail.                                              To support these three steps a scoring
                                                  technique has been developed to provide
    Organisations may cope with their vul-        guidance for determining the level of vul-
nerability in different ways. They may try        nerability.
to eliminate or reduce vulnerabilities by
                                                     (c) Assessment of the resilience or the
avoiding vulnerable activities. In practice
                                                  maturity of the integrity control system
however this will rarely be possible. Pub-
lic organisations have certain obligations            In this step the maturity of the integri-
by law and cannot avoid engaging into             ty measures that together form the organi-
sensitive activities. Inherent vulnerabilities    sation’s integrity control system is as-
are usually related to the task of a public       sessed. The system is divided into 14
organisation and vulnerability increasing         clusters, with the clusters being subdivid-
circumstances are often unavoidable.              ed into three blocks. This step consists of
                                                  the following four sub-steps:
   Usually a more viable way to cope
with vulnerability is to design and imple-            1. brief introduction to the integrity
ment compensating (integrity) controls.           control system, made up of measures,
Since vulnerabilities are diverse in their        clusters and blocks;
nature, it is important to design a well bal-         2. brief introduction to the maturity
anced set of controls or integrity control        levels;

                                            EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14              REPORTS AND STUDIES                                                            EUR             SAI

              3. assessment of the maturity level of       Integrity risk mapping
         all the measures by awarding them points;
                                                               The assessment methodology as ex-
             4. summarisation of the scores to pro-
                                                           plained above focuses on an organisation
         duce an average per cluster and block; this                                                         assessment
                                                           or entity. Every organisation in the public
         shows which clusters and blocks are rela-
         tively robust or weak.
                                                           sector has its own specific characteristics       methodology
                                                           and therefore a unique profile. However,          as explained
            (d) Gap analysis, assessment report            clusters of similar public sector organisa-
         and recommendations
                                                                                                             above focuses
                                                           tions may be identified, for example mu-
                                                           nicipalities or hospitals. The organisations      on an
             This final step is to establish the bal-
         ance between the vulnerabilities (b) and          belonging to these clusters have similar          organisation
         the resilience or maturity level of the in-       tasks and activities and their vulnerability      or entity.
         tegrity control system (c). The analysis          profile will therefore be similar as well.        Every
         should clearly show the remaining vulner-         Taking this into account, the assessment
                                                           results of individual organisations can be
         abilities after the confrontation of the vul-
         nerabilities and specific integrity risks         combined and integrated to produce a sys-         in the public
         with the relevant control measures in the         tematic overview on the level of the entire       sector has its
         integrity control system.                         public sector or clusters thereof. Such an        own specific
                                                           overview is referred to as risk map; in this      characteristics
             (e) Recommendations for strengthen-           case an integrity risk map.
         ing controls                                                                                        and therefore
                                                               A risk map helps to recognise weak            a unique
             The gap analysis provides input for the       points, formulate possible improvements and
         assessment report. The central question is        prioritise efforts. Also it gives an opportuni-   profile.
         which measures are the most appropriate to        ty to evaluate improvements over the years.
         address the most important vulnerabilities.
         The results of this exercise are recommen-           An integrity risk map for the Hungari-
         dations to strengthen resilience against in-      an public sector can help to:
         tegrity risks.                                      • identify vulnerable sectors within the
   82       The following diagram presents a               Hungarian government;
         schematic overview of the assessment                  • recognise strengths and weaknesses
         methodology.                                      in the integrity system in the Hungarian
                                                           public sector;
                                                               • formulate improvements and estab-
                                                           lish an adequate integrity control system
                         (a) Object definition
                                                           for Hungarian governmental organisations;
                            – organisation
                              – processes                     • prioritise investigative efforts (re-
                                                              • monitor and evaluate improvements
                                                           over the years.
                            (b) Assessment
                            vulnerabilities                    Ideally the most comprehensive risk
                                                           map for the public sector of a country is
                                                           assembled on the basis of the assessment
                                                           results of all organisations constituting the
                       (c) Assessment maturity             public sector. These assessment results
                            Control System                 should not only include the vulnerabilities,
                                                           but also specific risks, maturity level of
                                                           measures and remaining risks. If the risk
                                                           map is based on these rich data, it pro-
                           (d) Gap analysis                duces a detailed insight in the specific vul-
                                                           nerability of (parts of) the public sector, as
                                                           well as the resilience against it.

                        (e) Recommendations
                          for strengthening                Requirement and conditions
                                                               In order to successfully introduce the
                                                           risk map approach, the project yielded an

EUR                SAI                             REPORTS AND STUDIES                                             No. 14

implementation plan, stipulating the fol-        Anti-corruption policies
lowing conditions:
    Action plan: The risk map should be              The simultaneous development of the          For the
part of the final ACCB action plan.              Anti-corruption Strategy of the govern-
                                                 ment and the related action plan provides
                                                                                                  success of
    Training: The integrity approach re-         an excellent opportunity for the direct uti-     the project it
quires training. Not only for auditors, but      lization of the project results. It allowed us   is important
also for moderators within organisations         to make suggestions for the elaboration of       that SAO’s
conducting the self assessments.                 the anti-corruption governmental strategy        external
    Infrastructure: A platform should be         and the action plan, based on our experi-
established that is assigned the task of co-     ence gained in connection with the pro-          stakeholders
ordinating the training, the information         gramme. We have the following five com-          with regard
collection and analysis and support for self     prehensive suggestions to promote the            to anti
assessment, with an appropriate budget.          development of the strategy:                     corruption
    Attractivity: The contribution to the            1. The establishment of fair and ethical     tasks are
risk map should be made attractive for or-       conduct in public offices and the develop-       involved.
ganisations. Rather than making it com-          ment of the necessary organisational cul-
                                                 ture should be emphasized in the anti-cor-
                                                                                                  This has
pulsory, e.g. by law or by incorporating it
in the SAO audit planning, this may be           ruption strategy.                                been a
reached by ‘rewards’, e.g. awarding a                2. The individual budgetary institu-
quality certificate for organisations who        tions should play a key role in the im-          theme in all
perform self assessments.                        provement of the integrity of employees          phases of the
    During the implementation it is impor-       and the prevention and screening of cor-         project. Also
tant to keep an open eye for the following       ruption.                                         for the
strategic requirements.                              3. Prevention is the most effective way      sustainability
    • Try, if possible, to involve organisa-     of fighting corruption, therefore the sys-       of the project
tions rather than to force them. This way it     tematic assessment of corruption risks and
is easier to establish problem ownership         prevention based on such assessment
                                                                                                  results          83

within the organisations themselves.             should be given high priority.                   stakeholder
    • Where possible, look for the oppor-            4. A corruption risk map should be pre-
tunity to integrate self assessment into au-     pared with the application of the method-        is crucial.
dit strategies. The SAO can e.g. stimulate       ology developed in the course of the pro-
the colleagues from the audit or control         ject, which should specify the place, type
departments within the ministries to use         and nature of areas with a high level of
self assessment methodology.                     corruption risks in the Hungarian public
   • Use risk mapping not as an instru-
ment to control, but rather as a way to raise        5. Anti-corruption fight shall not be re-
awareness of integrity problems that or-         stricted to public institutions, but the ap-
ganisations themselves can improve on.           proaches and methods should be applied,
                                                 with necessary adaptation, to businesses as
    • In reporting, focus on interesting
                                                 well, particularly if they are directly relat-
topics resulting from the (horizontal) com-
                                                 ed to the public sector.
parison of organisations.
                                                     The central recommendation for the
    For the success of the project it is im-
                                                 Hungarian government is to consider de-
portant that SAO’s external stakeholders
                                                 veloping an integrity policy for the public
with regard to anti corruption tasks are in-
                                                 sector, as well as creating the legal basis to
volved. This has been a recurring theme in
                                                 support it. The integrity policy and the
all phases of the project. Also for the sus-
                                                 government’s anti-corruption efforts
tainability of the project results stakehold-
                                                 should be designed and implemented as a
er involvement is crucial. It is not only a
                                                 continuous activity and not as a project.
matter of transferring ownership of the
                                                 This implies creating a (new) organisation-
method to SAO staff, but also of commit-
                                                 al structure to ensure this.
ment to the integrity risk mapping ap-
proach by key players and other stakehold-           The integrity policy should be based on
ers (e.g. ministries, local governments,         a (comprehensive) integrity risk analysis.
NGOs).                                           This twinning light project, focussing on

                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
No. 14              REPORTS AND STUDIES                                                          EUR           SAI

         preparing a corruption risk map for the          bring together the available measures in a
         Hungarian public sector, may be consid-          consistent framework and to promote stan-
         ered a starting point to implement this.         dardisation, co-ordination and transparen-
             Acknowledging that in various parts of       cy about these measures and efforts. Exist-
         the Hungarian public sector anticorruption       ing integrity legislation should be enforced
         measures are taken, it is recommended to         consistently.

                 Russia and Norway in groundbreaking
                           audit cooperation
                                   THE NATIONAL AUDIT OFFICE OF NORWAY
         The Barents Sea, one of the most productive fishing grounds in the world, covers a
         part of the Arctic Ocean extending from the Norwegian Sea in the West to the Rus-
         sian Novaya Zemlya in the east. Fisheries in these waters are extensive, but the ma-
         nagement of the resources represents a challenge since fish stocks migrate across
         national borders. Sound exploitation thus requires international cooperation. Norway
         and Russia have jointly managed fish stocks since the 1970s. Over-fishing of cod is
         one of the biggest challenges the two countries face in this regard. Over-fishing thre-
   84    atens the sustainability of the stock and may lead to extinction on the long term.

             The Barents Sea, one of the most pro-        how the fish resources in this area are
         ductive fishing grounds in the world, cov-       managed and of the problems connected to
         ers a part of the Arctic Ocean extending         this.                                           The parallel
         from the Norwegian Sea in the West to the            The parallel audit was based on com-
         Russian Novaya Zemlya in the east. Fish-
                                                                                                          audit was
                                                          mon audit questions and criteria, but was
         eries in these waters are extensive, but the     conducted independently in each country
                                                                                                          based on
         management of the resources represents a         by the national SAI. Two different nation-      common
         challenge since fish stocks migrate across       al reports were produced, as well as a com-     audit
         national borders. Sound exploitation thus        mon memorandum in which both SAIs               questions
         requires international cooperation. Nor-         agreed upon the main findings of the audit.
         way and Russia have jointly managed fish                                                         and criteria,
                                                          In addition, the national reports were
         stocks since the 1970s. Over-fishing of          translated and included as an attachment to
                                                                                                          but was
         cod is one of the biggest challenges the         each country’s report to parliament.            conducted
         two countries face in this regard. Over-                                                         independently
         fishing threatens the sustainability of the           The main findings of the audit draw at-
         stock and may lead to extinction on the          tention to important dimensions of the          in each
         long term.                                       management of the fish resources. The au-       country by
                                                          dit shows that there are considerable quan-     the national
             On this background the Audit Cham-           tities of unregistered catches of cod in the
         ber of the Russian Federation and the Of-        Barents Sea. It also shows that there is
         fice of the Auditor General of Norway in         great uncertainty attached to the estimates
         2006-2007 conducted a parallel perfor-           of these catches. This uncertainty repre-
         mance audit of the management and con-           sents a challenge in itself because flaws in
         trol of fish resources in the Barents Sea        the data on catches reduce the quality of
         and the Norwegian Sea. An important goal         stock estimates, on which the recommend-
         for the audit was to contribute to a com-        ed fish quotas are based. The SAIs thus
         mon Russian-Norwegian understanding of           stated that it is necessary to develop a com-

EUR                SAI                             REPORTS AND STUDIES                                           No. 14

mon method of estimating the quantities of       over the next three years. The objective is     This is the
illegal, unreported and unregulated fishing.     to assess whether the audit has contributed     first time
Furthermore, the audit revealed that there       to a more effective and efficient manage-
are considerable differences between the         ment of the common marine resources and         that the
Norwegian and Russian fisheries laws and         whether it has contributed to solving the       Norwegian
regulations and fisheries control apparatus-     problems related to illegal fishing and         and Russian
es. The SAIs also pointed to the unsatisfac-     transshipment. The continued cooperation        SAIs have
tory fact that marine scientists from both       was defined in an ambitious and binding
countries had had problems carrying out          operative plan signed in January 2008.
                                                                                                 carried out
planned research cruises.                                                                        a parallel
                                                     As a result of the cooperation the two
    This is the first time that the Norwegian    SAIs have reached a common understand-
                                                                                                 audit of this
and Russian SAIs have carried out a paral-       ing of the challenges the two countries         kind and
lel audit of this kind and scope. The coop-      face regarding the management of the fish       scope. The
eration proved to be so successful that the      resources. It has also created a solid base     cooperation
SAIs have agreed to follow up the audit          for future cooperation on other audits.         proved to be
                                                                                                 so successful
                                                                                                 that the SAIs
                                                                                                 have agreed
                                                                                                 to follow up
                                                                                                 the audit
                                                                                                 over the next
                                                                                                 three years.


                                           EUROPEAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS
                           Addresses of EUROSAI members
EUROSAI SECRETARIAT                                                Chamber of Control                                               State Audit Institution
E-mail:                                             Ketevan Tsamebuli Ave. 96                                        Novaka Miloseva bb                                             Tbilisi, 0144                                                    81000 Podgorica
                                                                   Georgia                                                          Montenegro
State Supreme Audit
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Tirana                                                             Fax: 99532788184
                                                                   E-mail:                                           Fax.:0038220407417
Tel: 003554232491/429                                                                                                               Email:
Fax: 003554232491                                                  Bundesrechnungshof                                     
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Andorra la Vella                                                   E-mail:                                   Tel: 31703424344
Principality of Andorra                                  
                                                                                                                                    Fax: 31703424130
Tel: 376 80 60 20                                                  Supreme Court of Audit of Greece                                 E-mail:
Fax: 376 80 60 25                                                  4, Vournazou & Tsoha str.                              
E-mail:                                        101 68 Athens                                    Greece                                                           Riksrevisjonen
                                                                   Tel: 302106494836                                                Pilestredet, 42
Chamber of Control of the Republic of Armenia                                                                                       N-0032 Oslo
Marshal Bagramyan Ave, 19                                          Fax: 302106466604
375095 Yerevan                                                     E-mail:                                         Norway
Armenia                                                                                               Tel: 4722 241000
Tel: 374 2 52 33 32                                                State Audit Office                                               Fax : 4722 241001
Fax: 374 2 58 85 42                                                Apaczai Csere Janos Utca 10                                      E-mail:
E-mail:                                        1052 Budapest                                                                                 Hungary
                                                                                                                                    Najwyzsza Izba Kontroli
Rechnungshof                                                       Tel: 003614849100                                                57 Filtrowa Str.
Dampfschiffstr. 2                                                  Fax : 003614849200                                               00-950 Varszawa 1
A-1031 Wien                                                        E-mail:
Austria                                                                                                    Poland
Tel: 43171171-8456                                                                                                                  Tel: 4822 8 254481
Fax : 4317129425                                                   Rikisendurskodun                                                 Fax: 4822 8 250792
E-mail:                                      Skulagata 57                                                     E-mail:                                 150 Reykjavik
                                                                   Tel: 3545614121                                                  Tribunal de Contas
Accounts Chamber of the Republic of Azerbaijan                     Fax : 3545624546                                                 Av. Barbosa du Bocage, 61
Government House                                                   E-mail:
370016 Baku                                                                                    1094 Lisboa Codex
Azerbaijan                                                                                Portugal
Tel: 0099412936920                                                                                                                  Tel: 351217972863
Fax: 0099412932025                                                 Office of the Comptroller and Auditor General                    Fax: 351217970984
E-mail:                                          Dublin Castle                                                    E-mail:                                              Dublin 2                                               
The Committee of State Control of the Republic of Belarus          Tel: 3531 6793122                                                Curtea de Conturi a României
3, K. Marx St.                                                     Fax: 3531 6793288                                                22-24, Lev Tolstoi St. Sct. 1
Minsk 220050                                                       E-mail:
Belarus                                                                                                                             011948, Bucharest
Tel: 003750172272422
Fax: 003750172891484                                               State Comptroller’s office                                       Tel: 4012301377
                                                                   Beit hadfus 12                                                   Fax: 4012301364
Cour des Comptes                                                   P.O. Box 1081                                                    E-mail:
2, Rue de la Régence                                               Jerusalem 91010                                        
1000 Bruxelles                                                     Israel
Belgium                                                            Tel: 972 2666 51 06/1                                            Accounts Chamber of The Russian Federation
Tel: 3225518111                                                    Fax: 972 2666 51 50                                              Zubovskaya Street 2
Fax: 3225518622                                                    E-mail:                                     121901 Moscow
E-mail:                                                                       Russian Federation
                                                                   Corte dei Conti                                                  Tel: 74959140190/0601
The Audit Office of the Institutions of Bosnia and Herzegovina -   Via Baiamonti 25                                                 Fax: 74952908707/007095
Ured za reviziju institucija Bosne i Hercegovine                   00195 Roma                                                       E-mail:
Hamdije Cemerlica 2/XIII                                           Italy                                                  
71000 Sarajevo
Bosnia and Herzegovina                                             Tel: 390638768704
                                                                   Fax: 390638768011                                                Supreme Audit Office of The Slovak Republic
Tel.: + 387 33 703 573                                             E-mail:   Priemyselna 2
Fax: + 387 33 703 565                                                                             SK 824 73 Bratislava
E-mail:;                                                                                   Slovak Republic                                         Accounts Committee for the Control over Execution of the
                                                                   Republican Budget                                                Tel: 421 2 55423069
National Audit Office                                              8, House of Ministries                                           Fax: 00421255568363
37, Exarch Joseph Str.                                             35 St.                                                           E-mail:
1000 Sofia                                                         010000, Astana                                         
Bulgaria                                                           Kazastan
Tel: 35929803690                                                   Tel: 7 (3172) 74 16 02 and 7 (3172) 74 15 89                     Court of Audit of The Republic of Slovenia
Fax: 35929810740                                                   Fax: 7 (3172) 74 22 63                                           Slovenska cesta 50                                        E-mail: esep_k@Kazai.Kz                                          SI -1000 Ljubljana                                                                                                       Slovenia
                                                                   The State Audit Office
State Audit Office                                                 Republic of Latvia                                               Tel: 003864785810/00/88
Tkalciceva 19                                                      13 k-5 Skanstes Street                                           Fax: 003864785892/91
Hr-10000 Zagreb                                                    Riga, LV 1013                                                    E-mail:
Croatia                                                            Latvia                                                         
Tel: 385 1 4813 302                                                Tel: 371 7017500                                       
Fax: 385 1 4813 304                                                Fax: 371 7017673
E-mail:                                              E-mail:                                         Tribunal de Cuentas                                                                              Fuencarral 81
Audit Office of The Republic                                                                                                        28004 Madrid
12, Vyzantiou Str.                                                 Landtag des Fürstentums                                          Spain
1406 Nicosia                                                       Kirchstrasse 10
                                                                   FL-9490 Vaduz                                                    Tel: 0034914460466
Cyprus                                                             Liechtenstein                                                    Fax: 0034915933894
Tel: 3572401300                                                    Tel: 4175 2366571                                                E-mail:
Fax: 3572668153                                                    Fax : 4175 2366580                                             
E-mail:                                           E-mail:                        
                                                                   National Audit Office                                            Riksrevisionen
Supreme Audit Office                                                                                                                Nybrogatan 55
Jankovcova 1518/2                                                  of The Republic of Lithuania
170 04 Prague 7 Hotesovice                                         Pamenkalnio 27                                                   S-11490 Stockholm
Czech Republic                                                     LT-01113 Vilnius                                                 Sweden
Tel: 420 2 33045350                                                                                                                 Tel: 4686904000
Fax : 420 2 33045336                                               Tel: 37052621646                                                 Fax: 4686904123
E-mail:                                                 Fax: 37052625092                                                 E-mail:                                                  E-mail:                               
                                                                                                                                    Contrôle Fédéral des Finances
Landgreven 4                                                                                                                        de La Confédération Suisse
Postbox 9009                                                       Cour des Comptes
1022 Copenhagen                                                    2, Av. Monterey                                                  Monbijoustrasse 45
Denmark                                                            L-2163 Luxembourg                                                CH 3003 Bern
                                                                   Luxembourg                                                       Switzerland
Tel: 4533928400
Fax : 4533110415                                                   Tel: 352474456-1                                                 Tel: 41313231111
E-mail:                                               Fax : 352474456-242                                              Fax: 41313231100                                     E-mail:                                    E-mail:                                                                                                      
                                                                   European Court of Auditors                             
The State Audit Office of Estonia                                  12, Rue Alcide de Gasperi
Narva Mnt. 11A                                                     L-1615 Luxembourg                                                Turkish Court of Accounts
15013 Tallinn                                                      Luxembourg
Estonia                                                                                                                             Sayistay Baskanligi
                                                                   Tel: 35243981                                                    Inonu Bulvari 45
Tel: 372 6 400700-400721                                           Fax : 352439846430                                               Balgat
Fax : 372 6616012                                                  E-mail:                                     06530 Ankara
E-mail:                                                                                                   Turkey
                                                                                                                                    Tel: 90 312 2953030/720
State Audit Office                                                 National Audit Office                                            Fax: 90 312 3106545
Antinkatu 1                                                        Notre Dame Revelin
00101 Helsinki                                                     Floriana CMR 02                                                  E-mail:
Finland                                                            Malta                                                          
Tel: 35894321                                                      Tel: 356 22 40 13
Fax : 35894325820                                                  Fax: 356 22 07 08                                                The Accounting Chamber of Ukraine
E-mail:                                            E-mail:                                 7M. Kotzyubynskogo Str.                                                                                         01601, Kiev-30
                                                                                                     GSP 252601
State Audit Office
M.Tito-12/3 Macedonia Palace                                       Court of Audit                                                   Ukraine
Skopje, 1000                                                       B-RD Stefan cel Mare, 105                                        Tel: 380 44 224 26 64
Former Yugoslav Republic of Macedonia                              2073 OR. Chisinau                                                Fax: 00380442240568
Tel: 38923211262/520                                               Moldavia                                                         E-mail:
Fax: 38923126311 ext.106                                           Tel: 0037322210186                                     
E-mail:                                             Fax: 0037322233020                                              E-mail:                                          National Audit Office
                                                                                                        157-197 Buckingham Palace Road
Cour des Comptes                                                                                                                    Victoria
13, Rue Cambon                                                     Commission Supérieure des Comptes de la Principauté              London SW1W 9SP
75100 Paris Rp                                                     Ministère d’Etat                                                 United Kingdom
France                                                             Place de La Visitation
Tel: 33142989500                                                   Mc 98015 Mónaco                                                  Tel: 442077987777
Fax : 33142989602                                                  Monaco                                                           Fax :442072336163
E-mail:                                        Tel: 37793158237/44                                              E-mail:                                             Fax: 377 93154081                                      
            EUR                                   SAI
          Organización de las Entidades Fiscalizadoras Superiores de Europa
                European Organisation of Supreme Audit Institutions
Organisation des Institutions Supérieures de Contrôle des Finances Publiques d’Europe
         Europäische Organisation der Obersten Rechnungskontrollbehörden
     Европейская организация высших органов финансового контроля