EU Audit

1
EU Audit

• Assignment to the National Financial Management
  Authority (ESV) in June 2006 to plan and organise
  the Audit Authority at ESV
• The audit assignment commenced in January 2007
  and covers the entire new program period
• The audit assignment does not cover prior or
  current program periods
• The audit assignment covers
• Final audit
• Systems audit
• Substance audit

2
EU Audit

• Audit of EU funds for program period III 2007 -
  2013
• ESV will be audit authority for
• European Regional Development Fund
• European Social Fund
• European Fisheries Fund
• European Refugee Fund
• External Borders Fund
• European Return Fund
• European Fund for the Integration of
  Third-country Nationals
• Plus attested organs for
• European Agricultural Guarantee Fund
• European Agricultural Fund for Rural Development

3
Fundamental structural ideas

• Integrated audit for Sweden of EU funds
• Integrated method and model work
• Integrated localisation of the audit
• Integrated audit teams
• Not authority/agency hotels for decentralised
  audit and controlling functions

4
Budget request 2008 - 2010

• All auditing performed by ESV
• All auditing performed in Stockholm
• Estimate of total resources for period II and III
• Budget for all years
• Special problems during transition period
• Operational transition
• Stationing location
• Substance auditor has operational
  transfer/overlap
• Systems audit 2008
• Substance auditor 2009
• After double period savings assignment

5
EU audit

• Total cost of audit for current period estimated
  to be approximately SEK 53 million per year
• A total of 39 manpower years (50 total)
• Operations today at about 17 locations in the
  country
• Relocation of systems auditors during 2008
• Operational transition of substance auditors in
  2009

6
EU Audit

• Key indicators for period III
• Funds 10
• Programs 21
• Offices 15
• Authorities 9
• Departments 6

7
Organisation
Director General
All ESV councils
Deputy Director-General
Operations Department
Function for training co-ordination
Financial Department
Function for international issues
IT systems
Special Projects
Operational management
Performance and Financial Management
Accounting Principles and internal auditing
Central Government accounting
Analysis and forecasts
Co-ordination of Hermes
EU Audit
Function for government procurement
co-ordination
Function for co-ordination of internal auditing
8
EU Audit

• Organisation of Audit Authority at ESV
• Work group with representatives for National
  Labour Market Board, County Administrative Board
  (CAB) Gävle and National Financial Management
  Authority (ESV)
• Resolution in April on organisation of EU Audit
  at ESV
• Department at ESV Department for EU Audit
• Integrated methodology and development work
• Five integrated audit teams (Assignments, Systems
  and Substance Auditors)
• Head of Department/Chief auditor hired starts at
  end of Sept.
• Agreement with National Labour Market Board, CAB
  Gävle on personnel and resources for period II
  and III

9
EU Audit

• Contacts during transition phase
• Swedish National Audit Office
• County Admin. Board (CAB) western Götaland
• National Labour Market Board
• CAB Jämtland
• CAB Gävle
• EU Fraud Council at EKM
• A number of countries in Europe via export of
  services
• The ESF Council
• Swedish Business Development Agency

10
EU Audit (current issues)

• Information about budget request for the 2008
  2010 period. (will be provided 2007-03-01) and
  supplementary budget request 2007-08-02
• Amendment of instructions for ESV, Agricultural
  funds, etc.
• Clarification of roles for ESV, Dept. and the
  Commission.
• Implement Compliance assignments (Management
  report for all funds).
• Prepare basis for audit strategy for period III
• Decision on start for the EU funds

11
EU Audit

• Road trip to EU fund authorities
• ESF Council
• Swedish Business Development Agency
• National Board of Fisheries
• Swedish Board of Agriculture
• Amended body of regulations
• Framework for internal control of EU funds (2005)
• Internal audit ordinance (2006)
• Ordinance on internal control (2007)
• Authority ordinance (2007)
• Certificate regarding EU funds

12
EU Audit (current issues)

• Possible decision by the Government
• Motion from, County Admin. Board (CAB) Norrbotten
  and CAB JämtlandOperational transitionDate 1
  January 2008
• Motion from CAB Gävle The competence exists in
  Gävle Locate the audit authority in Gävle

13
ESVs instruction

• 1 The National Financial Management Authority
  (ESV) is the central government agency for
  financial management of government operations.
• Just like the Swedish Agency for Public
  Management and the Swedish Administrative
  Development Agency, ESV shall assist the
  Government with the data needed by the Government
  to ensure effective and appropriate public
  administration.
• ESV shall develop and manage bodies of
  regulations and methods for appropriate financial
  management at all levels of Government. The
  authority will also analyse and provide
  information about central government finances.
  Ordinance (2005861).

14
ESVs vision

• To make Sweden richer
• To develop financial management in government to
  ensure that taxpayers funds are used efficiently
• To make financial management in government a
  model for other sectors and other countries

15
Three strategic goals
16
Good decision basis for economic policy

• The central Government Annual Report
• Official statistics
• Government budget outcome
• Real-economic financial accounting
• Forecasts
• Monthly follow-up
• Monthly report to the National Accounts
• Data for central government financial savings
• International reporting
• Hermes

17
Excellent prerequisites for the Government and
the Parliament (Riksdag) for distinct management
of government agencies

• Administration, development and adaptation of
  regulations
• Referrals
• Consultation on fees
• Projects for management by objective and results
• Audit of EUs structural funds
• Hermes

18
Good availability for authorities of good methods
and effective support in their management of
operations

• Key indicators
• Shared services/Joint administration
• Internal auditing
• Financial Management Rating
• Productivity issues
• E-invoice
• Procurement co-ordination
• Administrative support systems

19
Working methods

• Regulations
• Advisory services
• Investigation and analysis
• Training
• Inspirational texts
• Assignments
• Good example
• Seminars
• Networking