EUROSAI TFMA KICK OFF MEETING

Transcription

1 EUROSAI TFMA KICK OFF MEETING April 2017 Vilnius, Lithuania MINUTES Introduction to the Kick-off Meeting 11 April, 2017, DAY 1 Chair of the EUROSAI TFMA, Auditor General of the National Audit Office of Lithuania Dr Arūnas Dulkys opened the Kick-off Meeting. Head of the Secretariat Ms Aurelija Brukštutė took the floor from the Auditor General and introduced representatives of all the TFMA member SAIs, presented the TFMA Secretariat members with their responsibilities. Ms Toma Bartašė responsible for the content issues of the group activities and Ms Otilija Pranevičiūtė for the organisational matters. The team of the Secretariat together is responsible for coordinating the work of Task Force to achieve the strategic goals that were set. In order to have unique identity and be recognised among other existing EUROSAI structures, the logo of the TFMA was presented. Finally, main general goals and the programme of the meeting were presented. Introduction to the Work of EUROSAI TFMA The member of the TFMA Secretariat Ms Toma Bartašė presented the webpage of the EUROSAI TFMA to the meeting participants. The webpage can be found at Representatives of TFMA member SAIs are asked to send relevant information on audits conducted in their SAIs and a photo of some city/municipality of TFMA member country in order to be displayed at the webpage. The first document to be presented to all the meeting participants Distinguishing Features of Municipality Audit and Expected Added Value from Task Force on Municipality Audit was received as the first task from the EUROSAI Governing Board to the newly established EUROSAI TFMA. The final version of the document was prepared according to suggestions and/or comments received from the TFMA members. The following key words: Complexity, Specificity, Openness, Accountability and use of data will lead the TFMA in its work and will make it bring the added value for auditors as well as for the whole local government system. Due to receiving no further questions and/or comments, the document was approved. After agreeing on the document on Distinguishing Features of Municipality Audit and Expected Added Value from Task Force on Municipality Audit, the attention was concentrated on presentation of the Working Programme for a three-year period. Each of the 3 Strategic Goals were presented separately.

2 Strategic Goal I: Exchanging the best practice and experience to reach audit results that have a substantial impact on improving public financial management Ms Aurelija Brukštutė presented the main aims of Strategic Goal I. Expectations from the activities under this Goal were expressed We expect that activities planned under this goal will make us not only exchange the best practice and experience in our institutions in planning and conducting audits in municipalities, but also to get to know what practice and experience exist in local level of different countries in particular fields. We expect that exchanging insights, different analysis and studies will make us reach more beneficial audit results that will have a significant impact on assuring sustainable development, on improving activities of municipalities, management of their finances and services they provide. We are sure that audit results can be more effective if we construct our conclusions based on analysed experience of other countries, best practice as well as lessons learnt by other countries in particular fields. Definitely, we will not be able to cover all the possible topics, that is why, it is important to distinguish: the activities, such as seminars, analyses, inquiries, landscapes etc., should involve every representative of the TFMA and should be agreed to be relevant for all of us or at least for the majority; at the same time, we expect the TFMA to be agile and spontaneous as well as resourceful depending on the need of any member SAI. Any initiative is welcome from every representative. Even if it is not included into the Working Programme. Furthermore, the Working Programme can always be revised. Some specific topics can be relevant not for all but only for some member SAIs. Different expert meetings, analysis, other formats can be involved also when two, three, four or more countries keen on some topic or it is relevant for them at the particular time. It was also emphasized that in order to reach this goal, everybody is supposed to be active and creative and to show initiative. Moreover, it is important to look for different communication tools, not only face to face meetings as nowadays we can use such tools as video conference, Skype, forum in the webpage of the TFMA, s etc. successfully. After introduction of the Goal I, Ms Toma Bartašė led discussions on every activity under the Goal I. Activities from the Working Programme for a three-year period were presented to all the Kickoff Meeting participants. Activity 1.1. To organize annual meetings of the member SAIs of the TFMA once a year. The annual meetings can be organized together with discussions of the TFMA members on relevant topics or the EUROSAI seminar, depending on the need and the SAI, which will be the host of the meeting. It is planned to have TFMA member meetings at least once a year and preliminary they are planned to be organized in autumns. Activity 1.2. To organize seminars on relevant topics. This activity is not planned to be obligatory and depends on the need, topics to be discussed and initiatives of the TFMA members.

3 These seminars can be attended not only by the TFMA members but also by all the members of EUROSAI in case they are interested in municipality audit topics. Moreover, during these seminars some of the TFMA affairs can also be addressed. The 1 st Seminar on Municipality Audit and the 1 st TFMA annual meeting will be held in Latvia. Mr Oskars Erdmanis, a representative of the Supreme Audit Office of Latvia, presented the 1 st EUROSAI TFMA Seminar on Municipality Audit that will take place 5-6 October in Riga, Latvia. The 2 following topics will be addressed: the Added value from Supreme Audit Institution audits, conducted in local municipalities; the usefulness and efficiency criteria of the utilisation of local municipality budgets. The role of local municipality development planning documents in the evaluation of the efficiency of local municipality activities. It is also decided that the annual meeting of the TFMA members will also be organised in order to discuss the progress of implementation of the TFMA Working Programme activities. Activity 1.3. To organize expert meetings. Expert meetings can be organized according to the needs and the initiatives of the TFMA members. In case the TFMA members have emerging relevant topics to be discussed, they can organize expert meeting at any time. It can encompass alternative forms in addition to meetings, such as video conferences, Skype calls etc. Members can organize these meetings independently, but also with the help of the TFMA Secretariat. Activity 1.4. To manage the EUROSAI TFMA website. The webpage of the TFMA was introduced in the beginning of the Kick-off Meeting. It will be administrated by the TFMA Secretariat permanently. Activity 1.5. To publish the EUROSAI TFMA newsletter annually. The TFMA newsletter will be prepared and published once a year. Information about the TFMA activities, good practice and results of municipality audits in different countries will be included into the newsletter. Activity 1.6. To facilitate communication between EUROSAI TFMA and EURORAI. This activity will be coordinated by the TFMA Secretariat that has already contacted representatives of EURORAI. EURORAI expressed their wish to participate in the analysis of the existing systems of municipality audit. Also, they expressed a desire to participate in the TFMA seminars and other activities as observers. It is planned that the TFMA communication with EURORAI representatives will be discussed at the 1 st TFMA annual meeting in Latvia. Activity 1.7. To gather, systemize and present/publish information about the good practice of other EUROSAI member SAIs methods and tools used for auditing municipalities. The representative of the Austrian Court of Audit, Mr Richard Mühlmann, expressed the wish to take responsibility to identify the scope of data use in EUROSAI member states, to find the best practice

4 models and create basic information for future peer learning from the SAIs having the best practice in the field of audit methodology and data analysis. Mr Richard Mühlmann shortly presented the idea of the survey on the use of municipalities household microdata as basic information for different types of audits together with the schedule of the implementation of the activity. Activity 1.8. To create a possibility for EUROSAI member SAIs to learn about existing tools that have proven to be successful for auditing municipalities via sharing experience and good practice among the EUROSAI TFMA s members and also communicating the information gathered via different platforms (forum, seminars, meetings, newsletters etc.). This activity will be implemented by the TFMA Secretariat through the webpage, seminars, meetings and newsletters. The initiative of every representative was emphasized. The Secretariat will publish and spread information, but the content of that information will be the product of the work of all TFMA members. Consequently, the TFMA members were encouraged to share information not only about auditing tools and methods but also about municipalities in general: interesting analysis, surveys, guidance etc. Activity 1.9. To initiate/coordinate and conduct cooperative activities (other than cooperative audits) in order to review or assess the situation on particular topics related to municipal activities (e.g. analysis reports, surveys, landscapes etc.). Representatives of SAIs of the former Yugoslav Republic of Macedonia and Slovakia initiated particular activities: Representative of the SAI of the former Yugoslav Republic of Macedonia Mrs Blerta Ganiu presented the idea to gather and systemize information about municipalities own revenues in each country via conducting survey. This activity is planned to be implemented in Representative of the SAI of Slovakia, Mrs Martina Gallasová presented the suggestion to develop database about the main municipal data/expenses and to update it annually. This activity is planned to begin at the end of There were discussions on the possibility to combine this activity with the activity 1.7. that the representative of the Austrian Court of Audit is responsible for. Finally, it was decided to have two separate activities with their own schedules. Furthermore, other possible topics for future cooperative activities (surveys, landscapes etc.) were presented: Funding of Municipalities from the State Budget; The Debt of Municipalities: Managing Debts and Liabilities of Municipalities; Governmental Measures Taken by Stage in order to Control Debts of Municipalities. Regional Development; Citizens` Participation in Management of Public Administration. After discussions, it was agreed to make decisions on these topics in the future according to the need. After presenting all the activities planned, none of the participants had comments, consequently, it was agreed on all of the activities of the Strategic Goal I. Strategic Goal II: Making the external municipal auditing system more efficient Ms Aurelija Brukštutė introduced the Strategic Goal II. It was emphasized that TFMA seeks to make the external audit system of municipalities more effective, to avoid duplications, to use each other s

5 work as well as to exchange the data and audit results. In order to reach this goal, the TFMA will focus on two main aspects: the analysis of the existing external audit systems in different countries and on surveys on methodologies used in different TFMA SAIs. Ms Toma Bartašė led discussions on the activities planned under the Goal II. Activities related to the analysis of the existing external audit systems: to gather and systemize information about the models of external audit systems of municipalities in each country via conducting different surveys, questionnaires etc.; to carry out an analysis of existing external audit systems by comparing, grouping different models, identifying strengths, weaknesses as well as opportunities to improve them; to present/publish summaries on research made via different platforms. The representatives of three SAIs expressed their wish to take the responsibility for implementation of these activities: Lithuania, Estonia and Greece. The representative of the SAI of Lithuania, Ms Olga Vitkauskienė, made a presentation on the results of the Survey on External Audit Systems in Municipalities that was conducted by the NAO of Lithuania. The representative of the National Audit Office of Estonia, Ms Ines Vali, presented the Overview of Problems in Auditing Local Governments by Private Auditors in Estonia. Representative of the SAI of Italy, Dr Giovanni Coppola, shortly presented the existing municipal audit system in Italy. Discussions on activities continued on the second day of the Kick-off Meeting. Activities related to methodologies used in TFMA audit institutions: to conduct surveys on questions about methodologies used in different EUROSAI member SAIs; to identify areas where the recommendations and/or guidelines could be useful. The representatives of three SAIs joined the group which will be responsible for the implementation of these activities: Romania, Latvia and Croatia. Ms Roxana Seitan, representing the SAI of Romania, presented the actions and the schedule planned in order to conduct the survey on methodologies used in different TFMA SAIs. C O - b u i l di n g Cooperation for Operation! After the break, the Co-building session was organized and led by an external expert. Participants of the TFMA Kick-off Meeting were involved in different activities, brainstorm sessions on thinking about the current and future work of the TFMA, on the ways how to achieve the goals in the timely manner as well as on the particular communication rules. Participants created the work principles of the TFMA: Showing Initiative and Taking Responsibility; Respect for Team Work; Enthusiasm and Seek for Innovation.

6 The document revealing the TFMA Working Principles was prepared. 12 April, 2017, DAY 2 Strategic Goal II: Making the external municipal auditing system more efficient (continuation) The representative of the National Audit Office of Lithuania, Ms Olga Vitkauskienė, presented the plan of activities together with the schedule of the implementation of these activities. The first step is gathering information about external audit systems of municipalities in each country. The expected outcome in 2017 is the Overview of external municipal audit models in TFMA countries. The first action is to send the Draft Content for the Overview to all TFMA members for comments. All countries were asked to actively participate in the implementation of the mentioned activity in order to have a full and fair view. The implementation of the activity will be further discussed during the 1 st EUROSAI TFMA meeting in Riga. As it was mentioned before, is planned that EURORAI will also join these activities. After presenting all the activities planned, none of the participants had comments, consequently, it was agreed on all of the activities of the Strategic Goal II. Strategic Goal III: Encouraging cooperative audits Ms Aurelija Brukštutė introduced the Strategic Goal III. Due to the fact that activities and functions of municipalities in different countries are similar, relevant areas for conducting cooperative audits (joint, coordinated and parallel audits) in municipality field can be planned. Planning cooperative audits is not an easy process. It was emphasized that when planning such kind of audit, the topic has to be selected carefully. The cost and benefit of such audit has to be taken into account. A cooperative audit should bring benefit - bigger and wider compared with an audit conducted by only one institution. The representative of the National Audit Office of Lithuania, Ms Olga Vitkauskienė, shared the best practice and experience of the NAO of Lithuania in cooperating with municipality auditors. This experience has proved that joint efforts lead to better results. Consequently, cooperative audits can bring benefit for all countries. Activities under Strategic goal III: to identify which audit areas (and particular topics) are the most relevant for conducting cooperative audits; to find out which countries are interested in conducting cooperative audits on particular topics and which countries are interested in leading cooperative audits; to initiate/coordinate, conduct cooperative audits and communicate the results via different platforms.

7 The TFMA members sent suggestions on possible future cooperative audits. During the Kick-off Meeting, 6 most relevant suggested cooperative audit topics were selected for discussions in groups: Audit of revenue management in municipalities in terms of financial audit and compliance audit (including effectiveness in the administration of own revenues at local level); Public private partnership at local level; Rural and regional development; Effectiveness of the use of EU funds; Use of subsidies given to local government entities for the implementation of assigned tasks; IT areas (e.g. cybersecurity, software licenses in local governments, reliability of data gathered in information systems). The work in groups was led by the representative of the NAO of Lithuania, Mr Julius Lukošius. 6 groups received a topic and had to discuss advantages and disadvantages of particular topic for cooperative audit. After the group work, strengths and weaknesses of each topic were identified, with the expected benefits that such audits could bring. It was agreed on the Strategic Goal III and the possible topics for cooperative audits. Members of the TFMA agreed to discuss the possibility of conducting cooperative audits and the topics of interest in their SAIs and to give the feedback regarding this issue during the TFMA meeting in Latvia. RESULTS OF THE KICK-OFF MEETING: Working Programme for a three-year period approved; Document on Distinguishing Features of Municipality Audit and Expected Added Value from Task Force on Municipality Audit was approved. This document will be submitted to the EUROSAI Governing Board during the X th EUROSAI Congress; Other necessary documents will be submitted to the EUROSAI Governing Board and Congress that will be held in May, 2017 (i.e. the summarised version of the Working Programme for a three year-period; the TFMA Activity Report; the Draft Resolution for the EUROSAI Congress). Possible future cooperative audit topics were identified. It was agreed to discuss the possibility of conducting cooperative audits and the topics of interest in the TFMA member SAIs and to give the feedback regarding this issue during the TFMA meeting in Latvia. It was agreed on the document on the TFMA Work Principles. Participants agreed that the TFMA work principles (showing initiative and taking responsibility, respect for team work, enthusiasm and seek for Innovation) will become the leading principles of cooperation in the TFMA activities and approved them by writing a sentence in their mother language Municipality audit is my inspiration! in this document.