Reporting on internal control in the light of the results of the survey of the Subcommittee on Internal Control Standards Maria Sieklucka Senior Public Audit Expert Department of Environment May 2014

2 Strenght of accountability Changes in the public service environment Unparalleled challenges faced by the public sector Strong commitment to integrity, good governance, ethical values, transparency and the rule of law

3 Transparency and reporting – the way of achieving good governance and delivering effective accountability Internal control in public sector organisations needs to be relevant to specific characteristics of these organisations and to the changes faced by the public sector Slow shift of focus from purely financial aspects related to the area of management and planning Growing importance of using appropriate methods and tools to target effects, outcomes and to proceed with uncertainty

4 The basics of reporting on internal control in the light of INTOSAI GOVs INTOSAI GOV 9100 – Guidelines for Internal Control Standards for the Public Sector INTOSAI GOV 9110 – Guidance for Reporting on the Effectiveness of Internal Controls: SAI Experiences in Implementing and Evaluating Internal Controls

5 Survey – aim and scope The aim:  the extent to which internal control reporting by public sector entities exists, the forms and the underlying frames of reference  the SAIs’ involvement in reporting on internal control  updating INTOSAI GOV 9110 on internal control reporting The scope:  legal and organisational framework for reporting on internal control  the scope of internal control assessment and reporting on internal control by public sector entities  assessment of reports on internal control and auditing of internal control  an opinion on the revision of INTOSAI GOV 9110 Guidance for Reporting on the Effectiveness of Internal Controls: SAI Experiences in Implementing and Evaluating Internal Controls Answers from 64 INTOSAI members from all over the world

6 Conclusions broad and explicit distinctions in the scope and range of the legal obligation regarding reporting on internal control in the public sector common approach among public sector entities to assess their internal control systems on a regular and systematic basis involvment of internal auditors and visible commitment of the national SAI in the assessment of reports on internal control and auditing of internal control positive opinion on revision of INTOSAI GOV 9110

7 Weak points of reporting u c e s s c s narrow scope and range of obligation to report in most of the countries established reporting to the public only in a few countries low popularity of the self-assessment attitude focusing on compliance with legal acts and regulations rather than on the effectiveness of the implementation of objectives and tasks performance discussion character of the INTOSAI GOV 9110

8 Further improvement of reporting revision of INTOSAI GOV 9110 raising awareness about the importance and relevance of effective internal control in public sector increasing SAIs’ role in promotion of good practices in the assessment of reports on internal control and auditing of internal control underlining the necessity to fulfil accountability obligations S U C C E S S

9 Thank you