1. Accountability in Finnish administration, introduction Visa Paajanen, 3.10.2011

2. 2 Organisations Parliament and Parliamentary Audit Committee National Audit Office The Government financial controller’s function Internal audit European Court of Auditors An Audit Authority Unit Program evaluations in EU-programs

3. Parliamentary Audit Committee There are 15 permanent special committees and the Grand Committee (for EU affairs) in Parliament Five of the committees are mentioned in the Constitution, one of them is the Audit Committee (founded 2007) Task: to oversee the legality and regularity of the management of central government finances and compliance with the budget Focuses on the general state and management of central government finances and issues that need to be brought to Parliament's attention Considers and reports for Parliament on eg. Report on the Final Central Government Accounts, the Annual Report of the NAOF, the Annual Report of the European Court of Auditors 11 MP’s, secretary of 7 civil servants

4. 4 National Audit Office of Finland The NAOF is an independent constitutional authority in affiliation with the Parliament audits state’s financial management in order to ensure legality and effectiveness of state’s financial management compliance with the budget promotes trust to the rule of law and democracy in public finances and the transparency of the use of state finances is led by the Auditor-General, who is elected by the Parliament for the term of 6 years

5. Mission and objectives of the NAOF The NAOF promotes good performance and high quality financial management supports Parliament in its exercise of legislative and budgetary power produces Parliament and Government (objective, timely, useful and reliable) information on the legality and effectiveness of the State's financial management and compliance with the budget

6. NAOF’s audit mandate Government, ministries Office of the President of the Rebupublic Government agencies State aids Off-budget funds Unicorporated state enterprises and state-owned companies State’s payment traffic Transfer of funds between Finland and EU

7. Audit types and reporting The NAOF carries out its audit task by performing – financial audit (appr. 90 reports) – performance audit (appr. 25 reports) – compliance audit (started 2010; planned 3-4 reports) – audit of fiscal policy (annually in special report to Parliament) Audit reports submitted to the plenary session of the Parliament: – Annual report – Special Reports Reports are public

8. NAOF’s Relationship with Parliament Parliament – prescribes the NAO’s tasks by law, – handles the NAO’s budget proposal and decides on the NAO’s budget within the state budget, – appoints the Auditor General (term 6 years) – debates the National Audit Office's annual report – debates if necessary, special audit reports The NAOF – supports Parliament by providing it useful and timely audit information

9. Relationship between the NAOF and the Audit Committee The key measure of cooperation is regular dissemination of information Audit Committee uses NAOF’s audit information and expert views in preparing own reports and statements – All the audit reports are sent to Audit Committee for information – In most cases the committee handles, the NAOF’s experts are heard in committee meetings Audit Committee handles NAOF’s reports to Parliament and prepares conclusions for plenary session

10. The Government financial controller’s function Governments supervisor of performance and finances Promotes the quality of the control and reporting system Ensures financial accountability Controller is responsible that the State annual accounts give true and fair report on finances and financial performance

11. Internal audit/ control Government agencies must have internal control Management of the agency is responsible for adequate internal control Task for internal control is to ensure: -legality of operations -the security of the funds -good performance of operations -the true and fair view of the finances and operations for management

12. Auditors view reported audit findings are mainly negative-ones recommendations to change activity => this week will give you biased image of performance management, it works, but there are possibilities to development