Transcript Konferencija o javnoj internoj finansijskoj kontroli (PIFC

Radmila Trkulja, Head of the CHU of Republika Srpska
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Legal basis of the obligation to establish PIFC
II Factors that influence the establishment and
development of PIFC
III Current situation in PIFC
- CHU
- Internal Audit
- FMC
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Stabilization and Accession Agreement (SAA) – later the Chapter
32. of the Negotiations- Financial Control
Updated Action Plan 1of the Public Administration Reform
Strategy
Strategy for Establishment and Development of the PIFC in the
public sector of Republika Srpska
The Law on the Internal Audit in the Public Sector of Republika
Srpska
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1. PIFC Concept of the EC – DG Budget
- Impact of the PIFC
- Elements of the PIFC Concept
2. Environment in Republika Srpska
3. Environment in the institution in question
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Impact of the PIFC
Concept for the renewal of the system of internal controls in
compliance with the internationally accepted standards
Overall system at the level of the entire public administration
Implies the increased accountability of the management and the
transparency in public funds spending
Provides evaluation of the efficiency and effectiveness of the
transactions, besides the present model of finacial management
based on the examining of the compliance with the regulations
at the realization of the significant transactions
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1. PIFC Concept
- Elements of PIFC
a) Central Harmonization Unit (CHU)
- Drafting and updating of the PIFC Strategy
- Drafting of the primary and the secondary legislation for the FMC
and the Internal Audit in compliance with the internationally accepted
standards
- Preparation of the Training Program for the FMC staff and the
internal auditors and ensuring the implementation of the Training
Program
-Supervision and the annual reporting on the established systems of
the FMC and the Internal Audit
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1. PIFC Concept
- Elements of PIFC
b) Financial management and control (FMC) based on the INTOSAI
framework of the internal controls which includes:
- Control Environment
- Risk Assessment
- Control Activities
- Information and communication
- Monitoring and evaluation
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1. PIFC Concept
- Elements of PIFC
c) Internal audit function – function of assurance
- Evaluation of the adequacy and efectivness of the system of internal
controls
- Evaluation of the risk management system
-Evaluation of the adequacy and efectivness of the management and
governance of the institution
-Advisory role to the management
-Covers all activites of the organization
-Work based on the assesed risk
-Folow up on the recommendation that were given
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2. Environment in Republika Srpska
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Existing organisation of the public sector of Republika Srpska
The financial crisis and the posibility of employment of the new civil
servants
Competency of the CHU staff and the adequate staffing
Possibility to employ the staff in the function of the internal auditors with the
requested knowledge and skills
Coordination of development of the Internal Audit parallely with the FMC
(adequate and efficient internal controls, inspection, selfassesment, etc.)
Level of implementation of other processes of the public administration
reform, such as manageent of the public finances and development of the
central policies of the RS Government
EU Technical Assitance
Work of the Coordination Board (CO) of CHUs
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3. Environment in the institution in question
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Defined goals of the institutions
Perplexity and complexity of the processes and regulations
Teritorial organization of the institution
Process of the risk management in the organization
Budget of the organization and the number of the staff
Republic Administrations, Republic Administrative Organizations,
lower budgetary / beneficiary units and other forms of the
organisation in the institutions
Dedication of the management to the principles of the sound
financial managment and control
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1. CHU
 CHU establishment in compliance with the Law on Internal Audit in the public
sector of Republika Srpska
 Draftinf og internal regulations for the organization and management of the CHU
2. Internal audit
 Law on Internal Audit in the public sector of Republika Srpska
 Rule Book on additional critera for the establishment of the IA Units
 Rule Book on additional critera for employment of the internal auditors
 Code of Ethics of Internal Auditors
 Charter of Internal Auditors
 Manual for the Work of Internal Auditors
 Trainigs of the internal auditors by the experts contracted by the PKF Project with
the coordination of the CHU
3. FMC
 Law on FMC
 Trainings of the FMC staff by the experts contracted by the PKF Project with the
coordination of CHU
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1. Organisational and functional independence of the Internal Audit
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Independent organizational unit within the institution, with free access
to the staff and information of the institution, reporting in compliance
with the responsibility for the determined errors and irregularties
Independence from the activity that is being audited
Planning of the audit based on the risk assesment
Functional independence realized throught the freedom in identification
of the scope of its work, planning, conducting and communication of the
work results
Independent responsibility for the quality of the work
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2.
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Managerial Responsibility
Establishment and development of the function of the Internal Audit with
the budget sufficient for the professional realization of the tasks of the
Internal Audit
Provide appropriate trainings of the internal auditors with the aim to
attain and maintain the competences and skills (each audit activity
demands a different combination of knowledge and skills)
Responsibility for the management process of the institution
Responsibility to manage the risk
Responsibility for the system of internal controls
Inform the IA on all plans, changes of the risk profiles and on the
internal controls
Changes of the policies and procedures
Obligation of the implementation of the recommendations of the
Internal Audit
Manage the irregularties and doubts on fraud
Documentation of the above listed processes
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3. Ties with the external audit
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The audit of the financial reports along side with good knowledge of internal
controls
Are complementary
Up to date communication during the planning of the audit in order to avoid
duplication of activities
Exchange of information on scope, audit approach and findings of the audit
Exchange of reports of the internal audit and the letter to the management of the
external audit
Independence of work and the responsibility for thier own activities
Must not use the internal auditors to follow up the implementation of their
recommendations
Support the independence of work of internal auditors from the management and
from the engagement by the external audit on realization of their activities
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Thank you for your attention!
Email: [email protected]
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