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Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Co-ordination and Harmonization of the Public Internal Financial Control Central Harmonisation Unit Miran Gostiša Ljubljana, 27th January 2009 1 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Public Internal Financial Control General About PIFC 2 Republic of Slovenia Ministry of Finance Area: 20,273 km2 Population: 2,008,516 (30.6.2006) Budget spending centres: 2.730 Internal auditors: ca. 80 Internal audit services: ca. 60 Budget Supervision Office of the Republic of Slovenia 3 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia 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 4 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia 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 2002 Secondary 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 2003 Guidelines on Internal Controls 2004 Guidelines on Irregularity Reporting (EU Funds) 2004 5 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia 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) 6 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Budget Supervision Office of the RS Director (1) Councel (2) (1) Secretariat (1) EAGGF Audit (7) (8) Cohesion and Structural Funds Audit (16) (11) Administrative services (3) Budget Inspection (6) Public Internal Financial Control (5) (6) AF C OS (1) 7 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Risk management Budget Supervision Office of the RS PIFC Sector Guidelines on Internal Controls Ministries Internal Audit Draft Regulations Municipalities Audit Trails Internal Controls Help, Training Institutions Objectives Risk Registers Risks 8 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Risk management Budget Supervision Office of the RS PIFC Sector Annual Declaration on Internal Controls, Weaknesses and Improvements (an obligatory compoment of the Business Report) Ministries Municipalities Institutions 9 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Internal Audit Budget Supervision Office of the RS PIFC Sector Guidelines Compliance Assessment on State Internal Auditing (IIA Int. Standards) Help, Trainin g Certificate State internal Auditor IAS Ministries IAS Municipalities IAS Institutions 10 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Internal Audit Budget Supervision Office of the RS PIFC Sector Copy of Annual IAS Report IAS Ministries BSO IAS Questionnaire IAS Municipalities Red Line Report IAS Institutions 11 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Internal Audit Organisation In-House IAS (obligation for the ministries) BSC IAS Consortium IAS (recommended for smaller BSCs) BSC IAS BSC BSC BSC Buy-In of IA Services BSC Chartered Auditors 12 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Annual Report on PIFC Government Court of Audit Copy Minister of Finance Annual Report on PIFC Budget Supervision Office of the RS Annual Declaration on Internal Controls BSO IAS Questionnaire BSO PIFC Sector Activity Report 13 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia EU Funds Budget Supervision Office of the RS PIFC&Independent Control of EU Funds Audit Strategies, Plans EU Funds Audit Reports, Follow Ups Guidelines on State Internal Auditing Regulations Proposals IAS IAS IAS 14 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Irregularities Guidelines for Reporting on Irregularities MF, NF EC CFCU, IA, IB, MA BSO 15 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Harmonisation and Co-ordination FM/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 16 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Public Internal Financial Control Internal Audit in Budget Spending Centres 17 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Organisation of Internal Audit Centralised CIAS BSC BSC BSC BSC 18 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Organisation of Internal Audit Decentralised CHU BSC IAS BSC IAS BSC IAS BSC IAS 19 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Organisation of Internal Audit Mixed CHU BSC IAS BSC BSC BSC BSC IA BSC JIAS BSC 20 Republic of Slovenia Ministry of Finance IIA Slovenia Budget Supervision Office of the Republic of Slovenia Internal Audit Ministry of Finance Audit Act The Slovenian Institute of Auditors Public Finance Act Ministry of Finance Budget Supervision Office of the RS Obligation for BSCs Obligation for Assurance and Banking Sector IIA Code of Ethics Internal Audit Standards Certified Internal Auditor Private&Public Companies Guidelines on Sate IIA Internal Auditing State Internal Auditor Budget Spending Centres identified in Regulation 21 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Public Internal Financial Control State Internal Auditor Verified State Internal Auditor 22 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia State Internal Auditor 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. 23 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Acquisition of the title State 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 24 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia 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 25 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia 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 26 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia 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) 27 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia 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 28 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Certificates Issued State Internal Auditor Verified State Internal Auditor Working in Budget Spending Centres 300 13 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. 29 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia Internal Audit External Quality Assessment 30 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia 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 31 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia 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 32 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia 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 33 Republic of Slovenia Ministry of Finance Budget Supervision Office of the Republic of Slovenia 34