French public administration experience Yerevan, October 13th, Stéphan Roudil, CIA/CGAP, Rapporteur general of the Central harmonisation committee for internal audit Relationships Internal Audit – External Audit – Financial Inspection PEMPAL Internal Audit COP thematic group meeting on October 13-14, 2015, in Yerevan, Armenia

 Public reforms/Specificities within the French administration Relationships Internal Audit – External Audit – Financial Inspection – Feed back from France  Constitutional bylaw on budget Act (“LOLF”) – 2006 :  Public policy => Missions => Programmes => Actions (objectives)  Results-oriented budget with performance targets and indicators (each programme)  Certification of public accounts by the Court of Account  Centralised public accounting and budgeting function (MoF) :  All public entities : State administration, local communities, agencies  All funds : Expenditures and revenues  Segregation of duties between Authorising officers and Public accounters  Decentralised internal audit functions (ministry) External audit (EA) Financial inspection (FI) Internal audit (IA)

Executive level :  At Programme level  The programme manager and staff  The Directors of Financial Affairs and Human Resources Departments and staff  At ministerial level  The Secretaries-General of the Ministries and staff  The budgetary and accounting control service and staff  Inspection and control services  Internal auditors  At interministerial level  The Directorate for the Budget  The Directorate ‑ General for Public Finance  The central harmonisation Committee for Internal Audit  Financial inspection Legislative level :  The Parliament  The Court of Accounts  The key players within the French administration Relationships Internal Audit – External Audit – Financial Inspection – Feed back from France IA EA FI

 Different positions and status Relationships Internal Audit – External Audit – Financial Inspection – Feed back from France Financial inspectionInternal auditExternal audit Legal frameworkDecree on budgetary and public accounting management (n° November 2012) Decree on internal audit (n° , June 2011) Constitution (revision of July 2008) Constitutional Bylaw Governing Finance Acts- “LOLF” (article 58-5) ResponsibleMinistry of financePrime minister and ministers Cour des comptes (SAI) Reporting toMinister of financeGovernment (each minister) Citizen StatusHierarchicOrganisational independent Independent

 Different approaches Relationships Internal Audit – External Audit – Financial Inspection – Feed back from France Financial inspectionInternal auditExternal audit PositionInternal (2 nd line of defence) and “external” Internal (3r d line of defence) External FocusPublic entities Situation, Persons Public policies Systems, Processes Public accounts Transactions, Operations ObjectiveAnti fraudControlRegularity, compliance, accuracy Nature of workFinancial verificationAssurance and consulting activity Financial audits InputIrregularity Suspicion Potential and critical risk Risk of financial material misstatement OutputCorrection Sanction Assurance Recommendation Certification Reserve

 Complementary overall system Relationships Internal Audit – External Audit – Financial Inspection – Feed back from France Programmes (policies) Authorising officers Objectives Management and control Internal audit IIA IPPF approach Recommandation External auditFinancial inspection Opinion Applicable accounting rules and principles State administration and Social security Financial statements ISA & IFAC approach Sanction Verifications Public entities Hierarchy ObligationRegularity

French public administration experience Yerevan, October 13th, Stéphan Roudil, CIA/CGAP, Rapporteur general of the Central harmonisation committee for internal audit Relationships Internal Audit – External Audit – Financial Inspection PEMPAL Internal Audit COP thematic group meeting on October 13-14, 2015, in Yerevan, Armenia