Complianece audit in NIK

Bożena Sułkowska

Vilnius, 28-29 October 2014

Agenda

• Current stage of the implementation of ISSAIs in NIK

• The role of Methodology Department in the implementation of ISSAIs

• Further actions undertaken in order to update our standards and guidelines

Case study

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The planned activities

for the implementation

In the nearest future NIK will:

• Update the standards in NIK

• Update the audit manual

• Introduce new requirements

for the training process

• Strengthen the methodological support

for auditors

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Activities of the methodology staff

related to Compliance Audit Guidelines

1. Implementation of a new quality assurance

system in the NIK

2. Updating the Code of Ethics (which applies

to all employees, not only auditors)

3. Strengthening methodological support team

4. Translation of untranslated ISSAIs into Polish

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The location and construction of wind farms Case study (1)

Wind farms in 2009 -2013 in Poland

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The location and construction of wind farms Case study (2)

• Type of audit: Compliance audit

• Audit objective: Evaluation of compliance with the limitations of the location and construction of wind farms

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Case study (3)

Methods for determining the specific objectives:

- Problem analysis

- Stakeholder analysis

- Goal analysis

- Participation of experts

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Preparation of audit:

problem anlysis – main question (case study 4)

The actual state

Identify of problems

Main question

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Specific Objectives (case study 4)

Assessment:

- of compliance with the rules for issuing a decision

on the construction of wind farms

- of compliance with the procedures for the planning

and location of wind farms

- of transparency concerning public participation

in decisions about the location and construction

of wind farms

In addition - the possibility of corruption in the audited area

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Risk analysis (case study 5)

Identified high risks:

- illegal changes in the financing documentation

made the by investors

- failure to comply with the rules and procedures

concerning the impact of wind farms

n the environment

- disregarding the opinion of the local community

Other risks connected with the audited issues

were assessed as medium 10

Audit methodology (1)

• List all the documents necessary for he audit,

• For each specific issue indicate the correct

facts (i.e. the relevant provisions),

• Indicate which experts should be involved,

• Conduct on-site inspections with

representatives of other professional services

(construction supervisor, environmental

inspectorate, sanitary inspectorate, labour

inspection and fire brigade

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Audit methodology (2)

• Compliance checklists

with systematized audit questions,

mainly used in direct research

• Sampling in a very small extent

and only in case of more investments

in the same municipality

• Panel of experts

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Audited entities

• The audit was conducted in 66 entities (10 provinces):

- 28 municipal offices,

- 19 county authorities,

- 19 county inspectorates of construction supervision.

• In addition, information was requested

and obtained from 24 non-audited entities.

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Quality assurance

• Apply supervision and review procedures as part of audit management.

• Establish requirements concerning the findings, verification, documentation and consultations.

• Indicate the documented evidence that confirms the described findings.

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Overall evaluation

NIK negatively evaluates the construction

process of onshore wind farms in Poland..

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Wind farms in Poland (case study)

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Audit recommendations

Key recommendations related

to the introduction of the necessary

and urgent changes in the law.

Without clear rules of law the construction

of wind farms should not be continued.

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Reporting

In order to ensure that the recommendations will be understood and implemented, the audit report should:

• Be clear, precise and written in plain language

• Be convincing and underline the importance of the recommendations

• Be fair and presented in an unbiased tone

• Describe only matters of significance

• Contain conclusions that are well argued and support particular, realistic recommendations

• Be interesting for readers

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Thank you

for your attention

.

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