Internal Audit reporting to CHU Evelin Pungas Head of Internal Control Coordination Unit Financial Control Department

IC Coordination Unit acts as Central Harmonisation Unit, who: issues methodological guidelines; organises training courses for internal auditors; consults internal auditors if needed; organises meetings for the heads of internal audit units of the ministries; manages database of internal auditors; manages extranet for internal auditors; issues quarterly bases internal audit newsletter; RECEIVES AND ANALYSES INTERNAL AUDIT ACTIVITY REPORTS.

Reporting system CAEs of the agencies subordinated to the ministry report to the ministry CAE of a Ministry shall prepare consolidated report and forward it to the MoF MoF gathers consolidated annual activity reports and analyses them

Reporting system … CAEs of the state agencies draw up an annual activity reports and send it directly to the MoF MoF gathers annual activity reports and analyses them

Reporting continuum Signed reports on paper Reporting through reporting system Digitally signed reports level reporting system level reporting system …

IA annual activity report includes description of the IA organisation, confirmation that internal auditors have been provided with necessary working conditions, conformation that IA have access to information necessary for their work and functional independence from other work of the authority, information about the internal audit personnel, review of implementation of the work plan and a summary of conducted audits.

As CHU we: analyse IA activity reports, make conclusions, but we don’t express any kind of opinion, use the conclusions made to support and develop internal audit in public sector, don’t prepare any specific report to the Minister of Finance or Government.

Annual Reports of State Entities For the fiscal years of 2004 – 2010 heads of internal audit of the state accounting entities expressed an opinion on the accuracy of the annual accounts and the legality of the transactions of the state accounting entity. Audit reports on the annual accounts were sent to the CHU.

Annual Reports of State Entities (2) CHU pointed out critical issues and made recommendations to the ministers and the Secretary of State. If on the basis of the annual report, deficiencies became evident in the activities of those authorities, the Government of the Republic decided on the taking of appropriate measures. The Government of the Republic decides on the approval of the annual reports of the ministries and Government Office.

Evaluation of the internal control system For the fiscal year of 2011, head of internal audit of the state accounting entity is responsible for assessing the implementation of the internal control system and its efficiency (ministry as the consolidating entity). Head of Internal Audit has to submit a report, expressing overall opinion on the IC system, to the minister before the approval of the annual report for the fiscal year.

Assessment of IC in management report The annual report of a state accounting entity consists of the annual accounts and the management report of the state accounting entity. The management report shall also contain an assessment by the head of the authority of the internal control system and an overview of the activities of the state accounting entity in organising internal audit activity. Accounting Law

Our challenges  full implementation of IIA standards;  external quality assessments (IIA standard 1312);  IA certification system implementation and operation;  overall opinion on internal control system.

Thank you!