audit and accountability in local government in sweden - skl · the accountability is collective...
TRANSCRIPT
Audit and accountability in local government in Sweden
The levels of Swedish public administration
The National level
County council
The State
The Regional level
The Municipal level Municipalities
Important and central is the constitution and the fact that the power to rule comes from the citizens.
The accountability system
Municipal Council
Executive board
Committees
Auditors
CitizensEvery 4 year
Elected/appointed by
Accountable to
Audit characteristics in brief
● Local audit is a democratic instrument, an important part of local self-government.
● The audit shall contribute to protection and development of local democracy, efficiency and safety.
● The audit is performed by politically elected auditors. The council elects at least 5 auditors every four year.
● Being an auditor is a position of trust.The auditors do not perform politics in their auditing.
● Each auditor is an independent authority with the right to act and make separate statements.
Continued…Audit characteristics in brief
● All operation in the executive board or other committees as well as in companies owned by the local government has to be audited every year.
● The audit is to be carried out according to “Code of Audit in Local Government”.
● Only politically elected members of the executive board and other committees are accountable in regard to the audit.
● The political auditors’ hire professional auditors who they contract themselves, often after a public purchasing process.
The Auditors relationship with the Council● The council appoints the auditors’, who are nominated by the
political parties.
● The Council is the auditors’ principal and communicate local auditing regulations.
● The Council decide on the auditors’ budget.
● The Council is the receiver of the audit report and decide in the matter of discharge from liability.
● The Council has to motivate their decisions.
The Auditor in local government“Being an auditor in a municipal or county council is a position of trust. The aim is to examine the executives and committees with independence, objectivity and integrity.”
“The competence of the politically elected auditors is their political and democratic anchorage. They have the mission to examine if the politics and democratic directions from the Councils is fulfilled by the executives and committees.”
“The auditors responsibility is to conduct a well-founded audit which gives the Council enough and sufficient support for their decision in the matter of discharge from liability.”
The Audit task● The task is stated in the Local Government Act.
● The auditors examine and audit all activities that executive board and other committees, as well as the companies (owned by the local government), perform every year.
● The task is to audit and judge if:…operations have been conducted consistently with their purpose
stated by the Council, and in a financially satisfactory manner.…the internal control has been adequate.…the accounts are correct.
● Effects and results of the audit are gradually presented in separate reports during the audit year, and finally resulting in an summarized annual audit report to the Council.
Judgement of accountability● Every member in the executive board and other committees is
politically elected to the position and are accountable for their actions to the Council and to the citizens.
● The auditors’ judge their accountability, that is whether or not they can be discharged from liability.
● This judgment is based on a mixed political/democratic, legal and economic accountability.
● The accountability is collective for the whole executive board and other committees as well as individual for each member.
Code of Audit in Local Government● The Local Government Act states that the audit is to be conducted
in accordance to a Code of Audit in Local Government.
● The Code is not regulated by law, prescribed or in any other way determined by any authority.
● The Code is the exemplary conduct and good principals, generally practiced in audit work.
● The Code fills in where the law ends, it interpret the mission and how it is to be conducted.
● It proceeds from the Local Governments operations and conditions.
Continued…Code of Audit in Local Government
● The Code states and documents the main principles for the audit; conditions for independence, finance, cooperation, communication, initiatives, transparence and demand on documentation of the audit, the professional support etc.
● The Code gives an commented interpretation of the audit task.
● The main part of the Code is a guideline/audit standard for the audit process and the audit report – also the process of discharge from liability.
● The Code is developed and shaped over time by the auditors’ themselves.
● The Swedish Association of Local Authorities and Regions interprets and documents the code each 3-4th year.
The rule of conduct/independenceThe Auditors…choose independently what to audit.…choose independently methods, ways and experts.…make independent analyses and judgment.
The Auditors do not act party-political in their auditing role.
They do not perform consultant work in their auditing role.
They decide over their own budget.
They safeguard their integrity, therefore disqualification andeligibility concerning anyone of the auditors’ is pointed out in the audit report
They perform their task fulfilling the demands of both citizens andthe Council in regard to objectivity, efficiency and competence.
The Audit process“The audit process consist of all activities the Auditors’ do during the audit year – from analyzing risk and planning over the audit and on to the judgment in the audit report and the Councils decision regarding discharge from liability.”
“Some parts of the audit process is ongoing during the year while others are more fixed in time. The different moments in the process overlap and effect each other and are not always clearly defined.”
From Code of Audit in Local Government
The grounds for testing accountability
● Inadequate goal achievement, failure to observe the objectives and guidelines set by the council or in regulations.
● Deficient management, follow-up and control.
● Damage to the public trust or other intangible injury.
● Financial injury.
● Unauthorized decision-making.
● Operations not conforming to law, criminal conduct.
● Insufficient preparation of decisions.
● Deficient accounting.
Discharge (from liability) and remark
Not to discharge liability is suggested by the auditors when obvious and major shortcomings are identified of an executive board and/or other committees operations.
It is also applicable when previously criticized shortcomings have not corrected and/or with several remarks for the executive board and/or other committees.
Remark is addressed by the Auditors’ for severe shortcomings even if they have minor consequences for the performance.
Remark also is addressed as a warning to the executive board and/or other committee. If the cause for the remark is not corrected it almost certainly will lead to a recommendation of not being discharged from liability the next year.
More information?
You are welcome to contact:
Karin Tengdelius phone + 46 8 452 76 [email protected]
Lotta Ricklander phone +46 452 74 [email protected]