Budget of - PowerPoint Presentation

Slide1

Budget of Municipalities -Planning and Execution the Role of the Supreme Audit Office of Poland (NIK)

Warsaw, October 2015

Iwona

Zyman

Director

of the NIK

Regional

Branch

in Opole

Piotr

Miklis

Director

of the NIK

Regional

Branch

in

KatowiceSlide2

Local

government

structure

Poland has a three-

level local government structure: The basic local government unit - commune/gminaSlide3

DIVISIONCurrently Poland is divided into:

247

8

communes

/gminas: 304 urban, 608 urban-rural and 1566 rural

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Local government units qualities legal personality ownership right

independence protected by the law not organized in a hierarchical

manner

the activity scopes of different local government levels are separated

4Slide5

local government tasks OWN fulfilment of the citizens’ needs

COMMISSIONED

government administration tasks

such as

:conducting the elections issuing vital records paying out permanent benefits

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local government revenuesLocal government units execute their tasks on the basis of the budget

planThe main

sources of

revenues

: own income (including local taxes and fees) general subsidies designated subsidies out of the state budget The share of local government units in the public revenues depends on their tasks

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AUDIT AND SUPERVISION

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AUDIT AND SUPERVISIONthe activity of local government units is supervised with regard to legality

Regional

A

ccounting

Offices audit the financial managementat least once in four years they carry out a complex audit of the financial management of local government units

8Slide9

w

hen

the local self-government reform was underway in Poland, there was a debate concerning the mandate of NIK’s audit, as well as the audit scope, in the area of municipal entities after long-lasting discussions it was finally agreed that NIK is to audit local self-government bodies

SAO AUDIT MANDATESlide10

The Supreme Audit Office

audit the activity of

:

local government units

communal legal personsother communal organisational units

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AUDIT OF LOCAL SELF-GOVERNMENT ENTITIES The Supreme Audit Officeas the chief state audit body is empowered to assess the activity of the whole administrative system and the management of any public fundsgovenrmental

entities – 4 criterialocal-government

entities

– 3

criteriaSlide12

The activity of the local government units is assessed by the Supreme Audit Office with regard to three criteria:

o

mitting

the fourth criterion of audit conducted in local self-government entities, namely efficacy, that is used as one of the four criteria of NIK’s audit in governmental entities, results from

the autonomous character of such entities Slide13

In practice it means that NIK audits e.g. how the public money is spend on a specific investment of a local self-government entity with regards to legality and sound management but the audit does not assess the investment’s efficacy i.e. if the investment fulfils the citizens’ needs and expectations

The NIK’s audit of local self-government entity cannot include the criteria of efficacy even if the entity implements tasks commissioned by the central governmental administration

EFFICACYSlide14

PERMORMANCE/COMPLIANCE AUDITPLANNEDAD HOCSAO AUDIT MANDATEFINANCIAL/BUDGETARY AUDITSlide15

Due to the fact that the Supreme Audit Office presents to the Sejm (lower chamber of the Polish Parliament):

the analysis of the State

B

udget

Execution and the Monetary Policy Guidelinesopinion on the approval for the Council of Ministers it is obliged to conduct annual audits of the state budget and the utilisation of financial resources designated to the execution of tasks commissioned by the local self-government entities

budgetARY audit OF LOCAL SELF-GOVERNMENT ENTITIES Slide16

In the first part of each year all of the NIK organisational units, including regional branches, conduct budget audits, also in local self

-government entities

R

egional

branches of the NIK conduct audits of all three local government levels budgetARY

audit OF LOCAL SELF-GOVERNMENT ENTITIES Slide17

During such audits NIK checks i.a. the performance of tasks financed or co-financed out of the state budget and the way in which the resources obtained by the local government units to execute them are being planned and spent

Furthermore, NIK verifies how the local governments plan, obtain and pass to the state budget the revenues being State Treasury revenues

budget

ARY

audit OF LOCAL SELF-GOVERNMENT ENTITIES Slide18

BUDGETARY AUDIT

IN LOCAL SELF-GOVERMENT

COVERS IN PARTICULAR

:

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Detailed scope of audits of budgets of local self-government entities conducted within the audit of the State Budget is established annuallyIt covers budgetary expenditure of local self-government entities important in a given year, or implementation of tasks important from the point of view of the state and its citizens financed or co-financed from the st

at

e

budget Budgetary AUDIT OF LOCAL SELF-GOVERNMENT ENTITIES National Local Roads Reconstruction

Programme 2012-2015Slide20

Apart from the audit of the Execution of the State Budget NIK also conducts planned or ad hoc audits

among local self-government entities connected with financial issuesSlide21

In the years 2011-2013 NIK audited more than 4000 local self-government entities and entities subordinate to them (e.g. municipality companies or community partnerships) or supervised by them (e.g. schools, hospitals)The audit covered almost all aspects of the activities of local self-government entities Slide22

NIK conducted, among others, the below listed audits concerning the local government units and their debt:

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Thank you

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