PARLIAMENTS ROLE IN PUBLIC FINANCE OVERSIGHT CASE OF SLOVENIA

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PARLIAMENTS ROLE IN PUBLIC FINANCE OVERSIGHT
CASE OF SLOVENIA

• Milan Martin Cvikl
• Member of Parliament,
• National Assembly of Slovenia
• (former State Secretary Public Finance
• former Minister for EU Affairs)
• PEM PAL, Istanbul, February 27, 2008

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CONTENT

• PARLIAMENTS ROLE IN BUDGET CYLE
• TYPE OF CONTROL
• INTERNAL CONTROL EXTERNAL CONTROL IN SLOVENIA
• ROLE OF PARLIAMENT COMMISSION FOR PUBLIC
  FINANCE CONTROL (PAC)
• MAIN TASKS OF THE COMMISSION EXPERIENCES OF 13
  YEARS IN SLOVENIA
• DISCUSSION OF AUDIT REPORTS IN COMMISSION OLD
  NEW PRACTICES
• CONCLUSION SOME PROPOSALS

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Parliaments Oversight is about strengthening
Budget Cycle ...
TRUST IS GOOD, CONTROL IS EVEN BETTER
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TYPE OF CONTROL BY TIME AND LOCATION

• EX-ANTE EX- POST CONTROL
• INTERNAL EXTERNAL CONTROL

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INTERNAL CONTROL

• Internal control joint accounting (MFERAC
  system)
• Internal audit (Joint Services, Accreditation
  Decentralized)
• Budget Supervision Office reporting to Govt
  Parliament biannually

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EXTERNAL CONTROL in SLOVENIA AS EU Member

• Court of Audit of the Republic of Slovenia (SAI)
  since 1995
• National Assembly of the Republic of Slovenia
  started 1995, stronger since 2004
• European Court of Auditors since 2004
• European Commission since 2006

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NATIONAL ASSEMBLY OF THE REPUBLIC OF SLOVENIA

• Parliamentary questions motions
• Interpellations of ministers
• Impeachment of Govt, PM
• Budget discussion adoption
• Commission for Public Finance Control (Slovene
  PAC)

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ROLE OF SLOVENE PAC - PUBLIC FINANCE CONTROL
COMMISSION

• controls the implementation of the state budget
  and the financial plans of the Pension and Health
  Fund and public RTV
• monitors the implementation of the budgets of
  local communities which receive financial
  resources to balance their accounts,
• controls the implementation of financial plans
  and the accuracy of the financial statements of
  public funds, public enterprises, and public
  institutes founded by the Republic of Slovenia
• reports to the National Assembly on the control
  performed and proposes necessary measures

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MAIN TASKS OF THE COMMISSION

• discussion of the annual financial statement of
  the state budget (report on implementation of
  programs by budget users)
• discussion of the reports of the Court of Audit
  (up to 100, 50 annually discussed)
• discussion of the report of budget inspection (
  biannually and as needed)
• discussion of the reports of the supervisory
  bodies of public funds and companies
• the Commission is working body responsible for
  discussing laws relating to public financial
  control, and the working body concerned when laws
  related public finance (local financ., borrowing,
  parafunds etc.)

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DISCUSSION OF AUDIT REPORTS

• Setting the agenda Regular vs. Value for Money
  Reports (Value for Money, Results. Oriented
  Budgeting)
• Persons invited to meeting Ministers vs.
  Technocrats - Witnesses
• Discussion in OLD APPROACH among members and
  against SAI
• Discussion in NEW APPROACH directed toward
  audited institutions (witnesses) Policy making
  vs. Best implementation
• Decisions, recommendations OLD vs. NEW

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WHO SITS WHERE NEW PAC APPROACH
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The IDEAL PAC (Public Accounts Committee
Westminster) process
CURRENT SITUATION IN SLOVENIA
Prepare PAC brief
Chairmans pre-briefing
Debriefing note
Produce a commentary on the Treasury Minute
Draft PAC Report
Attend PAC to agree Report
Team preparation for PAC
Attend PAC
Debriefing meeting
Guidance
Reports that count And AC 05/05
AC 16/02 AC 14/03
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CONCLUSION (1 of 2)

• Establish and have strong, independent, supreme
  audit institution
• Establish a parliamentary control body
  opposition to work with minister of finance
• Utilize all internal external control bodies

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CONCLUSION ( 2 of 2)

• Parliament SHOULD be an ally of MoF and of
  Auditors in improved PEM and in ensuring control
• Utilize independence power of supreme audit
  institution (SAI)
• Forget POLITICS, IT IS about PERFORMANCE of the
  Government as an Industry of Services

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PARLIAMENTS ROLE IN PUBLIC FINANCE OVERSIGHT
CASE OF SLOVENIATHANK YOU FOR YOUR ATTENTION
!!!milan.cvikl_at_dz-rs.si