PEMPAL–Prague 21/03/2016 Management Support – FPS Budget & Management Control 1 IMPLEMENTING PIC Belgian approach IMPLEMENTING PIC Belgian approach

Table of Contents  Actors in the field of PIC on the Belgian federal government level  Why PIC?  PIC in practice on the Belgian federal government level  Levers for PIC implementation  Recent developments & remaining challenges PEMPAL–Prague 21/03/2016 Management Support – FPS Budget & Management Control 2

Actors in the field of PIC on the Belgian federal government level (1)  Actors of PIC  Management (Committee of Directors)  Support and coordination functions (CHU – MoBudget)  Internal audit services  60 autitors in total, spread over the different audit services  Some quite good staffed eg Ministry of Defense other only one auditor  Objective after the centralization: 80 auditors PEMPAL–Prague 21/03/2016 Management Support – FPS Budget & Management Control 3

 Actors of PFMC  Inspection of Finance (decentralised – MoBudget)  about 50 (20 on the federal budget)  Financial controllers (decentralised – MoBudget )  about 30 (one in each Ministry and department)  Court of Accounts (Supreme audit institution - external auditor) PEMPAL–Prague 21/03/2016 Management Support – FPS Budget & Management Control 4 Actors in the field of PIC on the Belgian federal government level (2)

Why PIC?  Reforms management control (introduction New Public Management Reforms Copernic )  Principles of good governance  P1: Good public governance in the public interest is the context, the purpose and the driver of PIC  New delegation and responsibility structures  Legal obligations (Royal Decrees 2002 & 2007)  Reference INTOSAI and IIA  ‘P3: PIC is based on COSO and INTOSAI’  Changes in the control environment  Complexity of the control environment (legal, IT,…)  Public assertiviness PEMPAL–Prague 21/03/2016 Management Support – FPS Budget & Management Control 5

 Practical guide, tools and training on PIC implementation  Annual Report on PIC  Management contracts  Integrating monitoring instruments (follow up & rapporting)  Internal audit (centralized – april 2016 )  ‘P6: PIC requires a functionally independent internal audit function’ PEMPAL–Prague 21/03/2016 Management Support – FPS Budget & Management Control 6 PIC in practice on the Belgian federal government level

Levers for PIC implementation  Support from the political level (EU obligations)  Support from management  added value because of increased accountability and reporting requirements  ‘P4: The accountability triangle is a cornerstone of PIC’  Solid CHU function  ‘P7: PIC is harmonised at an appropriate level’  Budgets under pressure  compliance performance  ‘P2: PIC is focused on performance’  Certification of the accounts by the Supreme audit institution (2020) PEMPAL–Prague 21/03/2016 Management Support – FPS Budget & Management Control 7

Recent developments & remaining challenges  Enhancing accountability structures  Creation of common audit service  Integrating existing audit services  Driver for centralization: efficiency and effectiveness  3rd line of Defense (IIA 3 lines of defense model ©)  ‘P5: PIC is organised according to three lines of defence’  PIC requires continuous improvement  ‘P8: PIC adopts a continuous improvement perspective’  Review and harmonise existing structures  Budget performance PEMPAL–Prague 21/03/2016 Management Support – FPS Budget & Management Control 8

PEMPAL–Prague 21/03/2016 Management Support – FPS Budget & Management Control 9 Thank you for your attention SEEUWS Katleen