republic of slovenia ministry of finance ministry of finance budget supervision office of the...

Republic of SloveniRepublic of Slovenia a Ministry of Ministry of FFinanceinance

Budget Supervision OfficeBudget Supervision Office of the Republic of Sloveniaof the Republic of Slovenia

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Miran GostišaLjubljana, 27th January 2009

Co-ordination and Harmonization of the Public Internal Financial Control

Central Harmonisation Unit

Republic of SloveniaRepublic of Slovenia Ministry of Ministry of FFinanceinance


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Public Internal Financial Control

General About PIFC



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Area: 20,273 km2Population: 2,008,516 (30.6.2006)Budget spending centres: 2.730Internal auditors: ca. 80Internal audit services: ca. 60



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History

1993 Setting up of the Budgetary Inspection within the Ministry of Finance inspecting the State Budget

1999 Transformation of the Budgetary Inspection into the Budget Supervision Service assuming additional tasks of internal control coordination and harmonisation, introduction of internal auditing in Budget Spending Centres of the State Budget

2002 Introduction of PIFC



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PIFC Legal Framework

Based on the INTOSAI Guidelines for Internal Control Standards for the Public Sector, IIA International Professional Practices Framework and best practices learned from SIGMA Peer Review and Twinnings

Policy Paper 2002

Primary legislation:

Public Finance Act 2002Secondary legislation:

Regulations on Guidelines for the Harmonised Functioning of the Public Internal Financial Control 2002

Regulations on Issueing Certificates State Internal Auditor and Verified State Internal Auditor 2002

Guidelines:Guidelines on State Internal Auditing 2003Guidelines on Internal Controls 2004Guidelines on Irregularity Reporting (EU Funds) 2004



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Control of Public Funds

External control Court of Audit controls the entire public sector including

companies established under Companies Act and reports to the National Assembly - The Commission for Public Finance Control

Internal Control FM/C system incl. Internal Auditing in Budget Spending Centre Budget Supervision Office:

CHU for the FM/C incl. IA Budgetary Inspection for Central Budget Funds only Audit Authority - Independent Control of EU funds

(preaccession, transition, cohesion, structural, agrucultural)



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Budget Supervision Office of the RS

Director(1)

Councel(2)

Secretariat(1)

Administrative services(3)

EAGGF Audit (7)

Cohesion and Structural Funds

Audit (11)

Budget Inspection

(6)


(5)

A F C O S(1)

Director(1)

Councel(1)

Secretariat(1)

Administrative services(3)

EAGGF Audit (8)

Cohesion and Structural Funds

Audit (16)

Budget Inspection

(6)


(6)

A F C O S(1)



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Risk management

Ministries Municipalities Institutions

Budget Supervision Office of the RSPIFC Sector

Help,TrainingDraft

Regulations

Draft Regulations

Guidelineson

InternalControls

Internal ControlsInternal Audit Risk RegistersObjectives RisksAudit Trails



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Risk management

Ministries Municipalities Institutions


Annual Declaration on Internal Controls,Weaknesses and Improvements

(an obligatory compoment of the Business Report)



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Internal Audit

IASMinistries

IASMunicipalities

IASInstitutions


Help,Trainin

g

Guidelineson

State Internal Auditing(IIA Int. Standards)

Compliance Assessment

CertificateState internal Auditor



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Internal Audit

IASMinistries

IASMunicipalities

IASInstitutions


Copy of Annual IAS Report

Copy of Annual IAS Report BSO IAS

Questionnaire

BSO IAS Questionnaire

Red Line Report

Red Line Report



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Internal Audit Organisation

In-House IAS (obligation for the ministries)

Consortium IAS (recommended for smaller BSCs)

Buy-In of IA Services

BSC

IAS

BSC BSC BSC

BSCIAS

BSCChartered Auditors



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Annual Report on PIFC

Budget Supervision Office of the RS



Annual Declaration on

Internal Controls

Annual Declaration on

Internal Controls

BSO PIFC Sector Activity Report

BSO PIFC Sector Activity Report

Annual Report on PIFCAnnual Report on PIFC

Minister of Finance

Government

CopyCourt of Audit



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EU Funds

IAS IAS IAS

Budget Supervision Office of the RSPIFC&Independent Control of EU Funds

Guidelines on State Internal Auditing

Regulations

Proposals

Audit Strategies,Plans

Audit Strategies,Plans

EU Funds Audit Reports, Follow Ups

EU Funds Audit Reports, Follow Ups



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Irregularities

Guidelines for Reporting on Irregularities

MF, NF

CFCU, IA, IB, MABSO

EC



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Harmonisation and Co-ordinationFM/C & IA & AFCOS

Drafting Guidelines on IA and FM/C Compliance Assessment with the guidelines & external

quality assurance of IASs Monitoring & Promotion of the implementation of the PIFC

and preparation of Annual Report on PIFC for the Government

Annual Report on PIFC Organisation of Training Keeping the Register of SIA and VSIA Position Papers on FM/C Issues Help Desk Protection of the EU financial interests



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Internal Audit in Budget Spending Centres



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Organisation of Internal AuditCentralised

CIAS

BSC BSC BSC

BSC



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Organisation of Internal AuditDecentralised

CHU

BSC BSC BSC

BSC

IAS IAS IAS

IAS



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Organisation of Internal AuditMixed

CHU

BSCIAS

BSCJIAS

BSC

BSC

BSC BSC IA

BSC



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Internal Audit

Audit Act Public Finance Act

Ministry of Finance

The Slovenian Institute of Auditors

Ministry of FinanceBudget Supervision

Office of the RS

Code of EthicsInternal Audit Standards

Guidelines on Sate Internal Auditing

Certified Internal Auditor

State Internal Auditor

Private&Public CompaniesBudget Spending Centres identified in Regulation

IIASlovenia

IIAIIA

Obligationfor

BSCs

Obligationfor

Assuranceand

BankingSector



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Verified State Internal Auditor



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Article 100a of The Public Finance Act The internal auditor must acquire the title State Internal Auditor or

Verified State Internal Auditor. The certificate for the title State Internal Auditor or Verified State

Internal Auditor can be acquired by a person that has a university degree, appropriate work experiences and has passed the examination for the acquisition of the title State Internal Auditor or Verified State Internal Auditor. Other conditions for the acquisition of the title State Internal Auditor or Verified State Internal Auditor determines the minister in charge of finance.

Certificates for the title State Internal Auditor or Verified State Internal Auditor issues the minister in charge of finance and have properties of public document.



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Acquisition of the titleState Internal Auditor

Regulations on Issuing Certificate State Internal Auditor or Verified State Internal Auditor

Training Programme for the Acquisition of the Certificate State Internal Auditor and Verified State Internal Auditor

The Budget Supervision office is in charge for the implementation of the Training programme



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Issue of the Certificate State Internal Auditor

Candidate:•Official Application to the Budget Supervision Office of the RS•University Degree•Experience in finance or Auditing•Training Programme for the acquisition of the Certificate

Budget Supervision Office of the RS:•Administrative Procedures Act•Internal Procedures for the Application Examination•Internal Commission for the Approval of the Application•Certificate Sumbission to the Minister of Finance for Signature

Minister of Finance signs the Certificate

Budget Supervision Office of the RS:•Delivers the Certificate to the Candidate•Enters the Certificate in the Register



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Implementation of the Training Programme

Minister of Finance•Issue of The Training Programme•Appointment of the Programme Committee and of the Examination Commission

Budget Supervision Office of the RS: •Responsibility for the Training Programme•Organisation of the Implementation of the Training Programme•Public procedures•Issue of Decree on the Selection of the Implementing Organization•Implementation Mitigation

Implementing Organization – Center of Excellence in Finance•Implementation of the Training Programme•Issue of the Confirmation of the succesfull termination of the Training Programme



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Training Programme(CEF&CIPFA)

State Internal Auditor Public Finances Legal Framework (40 hrs) Internal Auditing I (40 hrs) Accounting and Financial Reporting in Public Sector (60 hrs) Risk Management and Internal Controls (50 hrs) Final Thesis

Verified State Internal Auditor Advanced Internal Auditing (40 hrs) Auditing Management Performance (40 hrs) Managing the Internal Audit Function (40 hrs)



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Additional Training

Budget Supervision Office of the RS: Conferences, Workshops

The Slovenia Institute of Auditors: Semminaires, Conferences

The IIA Slovenia: Monthly Meetings, Conference

Centre of Excellence in Finance Semminaires, Conferences

Various professional semminaires, conferences and workshops



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Certificates Issued

State Internal Auditor 300 Verified State Internal Auditor 13 Working in Budget Spending Centres 80

As many bearers of the certificate are not active in internal auditing and to assure the quality of the work of internal auditors a renewable Work Licence will be introduced.



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Internal Audit

External Quality Assessment



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Budget Supervision Office

Legal framework Public Finance Act Regulations on Guidelines for Harmonized functionning

of the PIFC Internal Instructions – Procedures Manual

Risk Analysis Compliance with Guidelines on State Internal Auditing Audit Programme Report and Recommendations Follow - up



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Audit Rewiev

Announcement Letter with Questionnaire to be returned with enclosures within due date

Introductory meeting and work on the spot Preparation of the draft report with weaknesses

and recommendations and submission to the IAS Reconciliation meeting if required Final Report sumbission to the Head of the BSC Follow - up



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Thank you for your attention.

For additional questions, please, refer to:

Miran Gostiša

Budget Supervision office of the RS

PIFC Sector

[email protected]

http://www.unp.gov.si/slov/index.htm



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