1. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 1 Miran Gostiša Ljubljana, 27th January 2009 Co-ordination and Harmonization of the Public Internal Financial Control Central Harmonisation Unit

2. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 2 Public Internal Financial Control General About PIFC

3. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 3 Area: 20,273 km2 Population: 2,008,516 (30.6.2006) Budget spending centres: 2.730 Internal auditors: ca. 80 Internal audit services: ca. 60

4. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 4 History  1993 Setting up of the Budgetary Inspection within the Ministry of Finance inspecting the State Budget  1999 Transformation of the Budgetary Inspection into the Budget Supervision Service assuming additional tasks of internal control coordination and harmonisation, introduction of internal auditing in Budget Spending Centres of the State Budget  2002 Introduction of PIFC

5. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 5 PIFC Legal Framework Based on the INTOSAI Guidelines for Internal Control Standards for the Public Sector, IIA International Professional Practices Framework and best practices learned from SIGMA Peer Review and Twinnings Policy Paper 2002 Primary legislation: Public Finance Act 2002 Secondary legislation: Regulations on Guidelines for the Harmonised Functioning of the Public Internal Financial Control 2002 Regulations on Issueing Certificates State Internal Auditor and Verified State Internal Auditor 2002 Guidelines: Guidelines on State Internal Auditing 2003 Guidelines on Internal Controls 2004 Guidelines on Irregularity Reporting (EU Funds) 2004

6. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 6 Control of Public Funds External control  Court of Audit controls the entire public sector including companies established under Companies Act and reports to the National Assembly - The Commission for Public Finance Control Internal Control  FM/C system incl. Internal Auditing in Budget Spending Centre  Budget Supervision Office:  CHU for the FM/C incl. IA  Budgetary Inspection for Central Budget Funds only  Audit Authority - Independent Control of EU funds (preaccession, transition, cohesion, structural, agrucultural)

7. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 7 Budget Supervision Office of the RS Director (1) Councel (2) Secretariat (1) Administrative services (3) EAGGF Audit (7) Cohesion and StructuralFunds Audit (11) Budget Inspection (6) Public Internal Financial Control (5) AFCOS (1) Director (1) Councel (1)(1) Secretariat (1) Administrative services (3) EAGGF Audit (8)(8) Cohesion and StructuralFunds Audit (16) Budget Inspection (6) Public Internal Financial Control (6)(6) AFCOS (1)

8. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 8 Risk management MinistriesMunicipalitiesInstitutions Budget Supervision Office of the RS PIFC Sector Help, Training Draft Regulations Guidelines on Internal Controls Internal Controls Internal Audit Risk Registers Objectives Risks Audit Trails

9. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 9 Risk management MinistriesMunicipalitiesInstitutions Budget Supervision Office of the RS PIFC Sector Annual Declaration on Internal Controls, Weaknesses and Improvements (an obligatory compoment of the Business Report)

10. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 10 Internal Audit IAS Ministries IAS Municipalities IAS Institutions Budget Supervision Office of the RS PIFC Sector Help, Trainin g Guidelines on State Internal Auditing (IIA Int. Standards) Compliance Assessment Certificate State internal Auditor

11. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 11 Internal Audit IAS Ministries IAS Municipalities IAS Institutions Budget Supervision Office of the RS PIFC Sector Copy of Annual IAS Report BSO IAS Questionnaire Red Line Report

12. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 12 Internal Audit Organisation  In-House IAS (obligation for the ministries)  Consortium IAS (recommended for smaller BSCs)  Buy-In of IA Services BSC IAS BSC IAS BSC Chartered Auditors

13. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 13 Annual Report on PIFC Budget Supervision Office of the RS BSO IAS Questionnaire Annual Declaration on Internal Controls BSO PIFC Sector Activity Report Annual Report on PIFC Minister of Finance Government Copy Court of Audit

14. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 14 EU Funds IAS Budget Supervision Office of the RS PIFC&Independent Control of EU Funds Guidelines on State Internal Auditing Regulations Proposals Audit Strategies, Plans Audit Strategies, Plans EU Funds Audit Reports, Follow Ups

15. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 15 Irregularities Guidelines for Reporting on Irregularities MF, NF CFCU, IA, IB, MA BSO EC

16. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 16 Harmonisation and Co-ordination FM/C & IA & AFCOS  Drafting Guidelines on IA and FM/C  Compliance Assessment with the guidelines & external quality assurance of IASs  Monitoring & Promotion of the implementation of the PIFC and preparation of Annual Report on PIFC for the Government  Annual Report on PIFC  Organisation of Training  Keeping the Register of SIA and VSIA  Position Papers on FM/C Issues  Help Desk  Protection of the EU financial interests

17. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 17 Public Internal Financial Control Internal Audit in Budget Spending Centres

18. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 18 Organisation of Internal Audit Centralised CIAS BSC

19. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 19 Organisation of Internal Audit Decentralised CHU BSC IAS

20. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 20 Organisation of Internal Audit Mixed CHU BSC IAS BSC JIAS BSC IA BSC

21. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 21 Internal Audit Audit ActPublic Finance Act Ministry of Finance The Slovenian Institute of Auditors Ministry of Finance Budget Supervision Office of the RS Code of Ethics Internal Audit Standards Guidelines on Sate Internal Auditing Certified Internal Auditor State Internal Auditor Private&Public Companies Budget Spending Centres identified in Regulation IIA Slovenia IIA Obligation for BSCs Obligation for Assurance and Banking Sector

22. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 22 Public Internal Financial Control State Internal Auditor Verified State Internal Auditor

23. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 23 State Internal Auditor Article 100a of The Public Finance Act  The internal auditor must acquire the title State Internal Auditor or Verified State Internal Auditor.  The certificate for the title State Internal Auditor or Verified State Internal Auditor can be acquired by a person that has a university degree, appropriate work experiences and has passed the examination for the acquisition of the title State Internal Auditor or Verified State Internal Auditor. Other conditions for the acquisition of the title State Internal Auditor or Verified State Internal Auditor determines the minister in charge of finance.  Certificates for the title State Internal Auditor or Verified State Internal Auditor issues the minister in charge of finance and have properties of public document.

24. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 24 Acquisition of the title State Internal Auditor  Regulations on Issuing Certificate State Internal Auditor or Verified State Internal Auditor  Training Programme for the Acquisition of the Certificate State Internal Auditor and Verified State Internal Auditor  The Budget Supervision office is in charge for the implementation of the Training programme

25. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 25 Issue of the Certificate State Internal Auditor Candidate: Official Application to the Budget Supervision Office of the RS University Degree Experience in finance or Auditing Training Programme for the acquisition of the Certificate Budget Supervision Office of the RS: Administrative Procedures Act Internal Procedures for the Application Examination Internal Commission for the Approval of the Application Certificate Sumbission to the Minister of Finance for Signature Minister of Finance signs the Certificate Budget Supervision Office of the RS: Delivers the Certificate to the Candidate Enters the Certificate in the Register

26. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 26 Implementation of the Training Programme Minister of Finance Issue of The Training Programme Appointment of the Programme Committee and of the Examination Commission Budget Supervision Office of the RS: Responsibility for the Training Programme Organisation of the Implementation of the Training Programme Public procedures Issue of Decree on the Selection of the Implementing Organization Implementation Mitigation Implementing Organization – Center of Excellence in Finance Implementation of the Training Programme Issue of the Confirmation of the succesfull termination of the Training Programme

27. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 27 Training Programme (CEF&CIPFA) State Internal Auditor  Public Finances Legal Framework (40 hrs)  Internal Auditing I (40 hrs)  Accounting and Financial Reporting in Public Sector (60 hrs)  Risk Management and Internal Controls (50 hrs)  Final Thesis Verified State Internal Auditor  Advanced Internal Auditing (40 hrs)  Auditing Management Performance (40 hrs)  Managing the Internal Audit Function (40 hrs)

28. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 28 Additional Training  Budget Supervision Office of the RS: Conferences, Workshops  The Slovenia Institute of Auditors: Semminaires, Conferences  The IIA Slovenia: Monthly Meetings, Conference  Centre of Excellence in Finance Semminaires, Conferences  Various professional semminaires, conferences and workshops

29. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 29 Certificates Issued  State Internal Auditor 300  Verified State Internal Auditor 13  Working in Budget Spending Centres 80 As many bearers of the certificate are not active in internal auditing and to assure the quality of the work of internal auditors a renewable Work Licence will be introduced.

30. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 30 Internal Audit External Quality Assessment

31. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 31 Budget Supervision Office  Legal framework Public Finance Act Regulations on Guidelines for Harmonized functionning of the PIFC  Internal Instructions – Procedures Manual Risk Analysis Compliance with Guidelines on State Internal Auditing Audit Programme Report and Recommendations Follow - up

32. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 32 Audit Rewiev  Announcement Letter with Questionnaire to be returned with enclosures within due date  Introductory meeting and work on the spot  Preparation of the draft report with weaknesses and recommendations and submission to the IAS  Reconciliation meeting if required  Final Report sumbission to the Head of the BSC  Follow - up

33. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 33 Thank you for your attention. For additional questions, please, refer to: Miran Gostiša Budget Supervision office of the RS PIFC Sector Miran.Gostisa@mf-rs.si http://www.unp.gov.si/slov/index.htm

34. Republic of Slovenia Ministry of Finance Ministry of Finance Budget Supervision Office of the Republic of Slovenia 34