Public Internal Control (PIC) in Belgium PEMPAL Brussels 27/02/18 – 02/03/18

FPS OF POLICY AND SUPPORT - DG Budget & Policy Evaluation TABLE OF CONTENT Legal framework Different actors Accountability structures Implementing PIC and practical tools Role of Internal Audit in PIC Scope of the Internal Audit Activities Lessons learned FPS OF POLICY AND SUPPORT - DG Budget & Policy Evaluation

FPS OF POLICY AND SUPPORT - DG Budget & Policy Evaluation 1. LEGAL FRAMEWORK Three royal decrees on PIC 2007 Royal decree on Management Functions (2001) Law on federal budget and accounts (2003) Law on whistleblowing (2013) Royal decree on Centralised Federal Internal Audit Service (2016) FPS OF POLICY AND SUPPORT - DG Budget & Policy Evaluation

FPS OF POLICY AND SUPPORT - DG Budget & Policy Evaluation 2. DIFFERENT ACTORS Operational internal controls and management controls Management (Mandates) Staff Supporting and coordinating functions CHU and Ethics Bureau Financial and budget support Policy Evaluation (in progress) Evaluation by independent IA Centralised internal audit service Role of the Audit Committee FPS OF POLICY AND SUPPORT - DG Budget & Policy Evaluation

3. ACCOUNTABILITY STRUCTURES Accountability triangle (responsability – authority/empowerment - accountability) Management contract Annual report on PIC Policy Evaluation (in progress) Cycle of annual perfomance evaluations FPS OF POLICY AND SUPPORT - DG Budget & Policy Evaluation

4. IMPLEMENTING PIC & PRACTICAL TOOLS Providing advice and support Practical guidelines on developing and documenting PIC Self assessment tools Benchmarking and networking Training, seminars and workshops Integrating PIC Based on the management cycle (PDCA) All different aspects (compliance, operations, security,…) Involving all services, entities and staff FPS OF POLICY AND SUPPORT - DG Budget & Policy Evaluation

5. ROLE OF INTERNAL AUDIT IN PIC Independence and objectivity Position Formal authority Budget Reporting lines Professionalism Assurance and consultancy provider Pragmatic approach Taking into account the maturity level of IC Close collaboration with CHU FPS OF POLICY AND SUPPORT - DG Budget & Policy Evaluation

6. SCOPE OF THE INTERNAL AUDIT ACTIVITIES Governance, risk management and internal control All types of audits Risk based audit planning Management requests Single audit Role of the audit Committee FPS OF POLICY AND SUPPORT - DG Budget & Policy Evaluation

FPS OF POLICY AND SUPPORT - DG Budget & Policy Evaluation 7. LESSONS LEARNED Legal embedding incentive Tone at the top awareness Change in control environment sponsorship & involvement Integrating in management cycle and single audit efficiency and effectiveness From compliance to performance added value Solid PIC with 3 lines of defense clear roles & responsibilities FPS OF POLICY AND SUPPORT - DG Budget & Policy Evaluation

Change is hard because people overestimate the value of what they have and underestimate the value of what they may gain by giving that up… - J.Belasco & R. Stayer - Contactinformation: Katleen SEEUWS Katleen.seeuws@bosa.fgov.be