PIC EU-28 Conference Paris, 25 – 27 November 2015 PIC An EU Approach Brazil’s Public Internal Control Victor Godoy Veiga Audit Director of the Social Area The Office of The Comptroller General - CGU

PIC An EU approach PIC – EU 28 Conference 2015 Brazil in Numbers 2 26 states + Federal District5.570 municipalitiesTerritory: km inhabitants (2014) ExecutiveLegislative Judiciary FederalStateMunicipal

PIC An EU approach PIC – EU 28 Conference 2015 The Political and Administrative Systems 3 Federal Government has a bicameral Congress and federal courts of law. States have autonomous administrations and they have a governor, an unicameral legislative body and courts of Law for common justice States and the federal district are grouped into 5 regions for statistical purposes: Northern, Northeast, Central- West, Southeast and Southern. Municipalities also have autonomous administrations and they have a mayor and an legislative body, but no separate Court of Law.

PIC An EU approach PIC – EU 28 Conference The Legislative Supreme Audit Institutions Federal National Congress Federal Court of Accounts State Unicameral Legislative Chamber 27 State Courts of Accounts Municipality Unicameral Legislative Chamber 6 Municipal Court of Accounts

PIC An EU approach PIC – EU 28 Conference 2015 The Federal Supreme Audit Institution – Court of Accounts (TCU) 5 Preliminary opinion on the president’s year- end accounts Administrative Judgment Year-end accounts of high level public managers Administrative processes to recover misused public funds Assurance Auditing, inspections, and guidance related to governance, risks and internal control

PIC An EU approach PIC – EU 28 Conference Control Institutions – Executive Branch Federal The Office of the Comptroller General (CGU) 4 federal ministries’ decentralized internal audit units Special Institutions’ internal audit units Advisors for the Internal Control State State Internal Auditing Agencies Municipality 26 Municipal Internal Auditing Agencies CCCI – Federal Co-ordination Commission CONACI – Association (3 levels)

PIC An EU approach PIC – EU 28 Conference 2015 The Office of the Comptroller General Functions 7 Integrated Framework Federal Internal Control Secretariat - SFC CGU’s legal mandates  Public Auditing  Financial Inspection  Improvement of public management  Increase of transparency  Disciplinary actions  Ombudsman  Prevention of corruption Transparency Secretariat Disciplinary Board General Ombudsman

PIC An EU approach PIC – EU 28 Conference 2015 CGU Organizational Chart 8 CGU Federal Internal Control Secretariat Transparency and Corruption Prevention Secretariat Disciplinary Board General Ombudsman Executive Secretariat Regional Offices

PIC An EU approach PIC – EU 28 Conference 2015 SFC 9 SFC is responsible for internal audit of Brazil’s federal public administration in the Executive Branch and provides policies and guidance on internal control and internal auditing. Assurance Government Programs Management in Public Organizations Federal Funds Consulting Guidance related do governance, risks and internal control Policy Center (CHU) Decentralized internal auditing units and ministries

PIC An EU approach PIC – EU 28 Conference 2015 The Internal Control System - Overview 10 Managerial Responsibility -Risks -Design and implementation of internal controls Auditing -Assessment of internal controls -Accomplishment of Public Administration’s objectives -Evaluation of use of public resources SFC: Oversight and normative guidance to the Internal Control System

PIC An EU approach PIC – EU 28 Conference 2015 Recent improvements Integrated framework (internal auditing, ombudsman, administrative sanctions, transparency) Financial Inspections - Interaction with the Federal Police, the Federal Prosecutors Office, etc. Anti-corruption legislation (leniency agreements, administrative penalties, recover of misused public money) Law of Access on Information Guidance on integrity for public and private companies 11

PIC An EU approach PIC – EU 28 Conference 2015 Challenges Alignment with international standards Fostering of Risk Management, Control and Governance processes within the management Auditing approach to state-owned and mixed capital enterprises (Petrobras, Public Banks, etc) 12

PIC An EU approach PIC – EU 28 Conference 2015 Merci beaucoup Victor Godoy Veiga Audit Director of the Social Area - CGU The Office of the Comptroller General 13