The Integrity Project

1. The Integrity Project State Audit Office of HungaryPéter KLOTZ dr., professional associate23-25November 2011, Budapest Seminar for SAIs Against Fraud and Corruption Strengthening Integrity Based Administrative Culture

2. Why Integrity Project? • New role of the SAO of Hungary • European financial support • Corruption situation • Prevention – based approach in the fight against corruption (integrity)

3. 1. The new role of the SAO of Hungary • Former: follow-up type audits • Dangers: not effective • Can’t prevent irregularities • SAO in larger sense • Not only controlling but advising, guiding • Higher responsibility against citizens • Sound management of public funds • SAO’s Stategy (2010-2015) • Integrity as a core value

4. 2. European financial support • European Social Fund (Operative Program for State Reconstruction – New Széchenyi Plan) • Project Budget – 1.05 million EUR • Assistance of the State Audit Office of Hungary (rooms, technical assistance and maintaining of the results – 5 years)

5. 3. Corruption situation in Hungary • EC – Survey (2009) – 95% of the Hungarians agreed that corruption is a major problem in Hungary • No organization dealing only with corruption issues • Prosecution – Prosecution Service & Police • Legal background – Ministry of Justice and Public Administration • Training – National Institute of Public Administration • Coordination – Government Commissioner (lack of capacity)

6. The top of the iceberg

7. 4. Prevention – based approach in the fight against corruption I. • New approach in Hungary • Former: repression, punishment-focused approach • Forrunner experiences: social crime prevention • Difficulties in the criminal procedure: • collecting evidences is difficult • mutual confidence of the participants • Focusing on the organisation • no general anti-corruption policy • no general legal obligations or requirements

8. 4. Prevention – based approach in the fight against corruption II. • Public administration • dissemination of a new organisational culture • „best practices” • Status of the SAO of Hungary • independence • professionalism • respect • Anomia and norms

9. The Integrity Project – general informations The goals of the project: • To change administrative culture and officials’ attitude • To innovate • To measure budgetary organs (bench marking) • To „open public sphere” (transparency, accountability) • To develop audit methodologies  • To train the civil servants • To help governmental bodies

10. Project features • Project owner: State Audit Office of Hungary (SAO) • Start of implementation: 01. 12. 2009. • End of Project: 30. 04. 2012. (+5 years) • Project budget: 1,05 million euro • Ratio of EU subsidies: 100% • EU funding: NDP2007-2013(European Social Fund)

11. Project content • Country-wide survey for public organizations exploring the state’s corruption protection system (integrity risk register)   • Conclusions about each participant’s level of risk are visualized in digital „risk maps” accessible for all via Internet • Scientific research, analysis, publications, recommendations • Create new methodologies for integrity risk management • Professional trainings, conferences: • public servants (leaders and auditors) • foreign professionals (Eastern-Europe, Western Balkans);

12. Project’s milestones • Preparation (project organization, preliminary communication)  • Project administration • Ensuring Transparency • Development of a multi-purpose electronic data collecting and processing application platform framework  • Data collection • Data processing and analysis • Organization of programs for target groups, interested third parties and the public • Development of methodology • Publication • Professional and executive education • Drafting proposals for state intervention • Horizontal measures (upon the EU requirements) • Follow-up period (5 years after 2012) • Closing of the Project

13. Expected effects • Changes in officials’ and leaders’ personal attitude • Transparency on the up grade • Widening knowledge: • Nature of corruption • Integrity • Organizational risks • Methodologies (risk-management, integrity audit) • Smart solutions (e-form, e-learning, GIS) • Increased joint responsibility, change of culture

14. Elaboration of training methodology • What is integrity? • Linguistic problems: „integritás” or „integrált” or „integráns” or „integráló”? • How to translate theory (integrity) into the praxis? • Role of norms and values in the public administration • Hierarchy or egality • Commitment and busy high-level public servants • Aversion to the trainings • „playing ball”

15. Trainings for public servants • Main goals • disseminate integrity aproach/changes in the organisational culture • sensibilisation • networking • In facts • 6 weeks, • ~230 participants

16. E-learning development I. • Main goals • Disseminate knowledge about corruption, integrity and organization development • Increase commitment of public servants • Reach the „critical mass” • Using ILIAS open source software • Using available infrastructures of the National Institute of Public Administration

17. E-learning development II.

18. Results till now • Elaborated corruption risk methodology • Corruption Risk Map available via Internet • Geoinformatics System • Integrity appears in the education materials of public servants • Training methodology & materials • Project proposals for public administration organizations • Trained public servants and trainer candidates • Professional contacts with NGOs and Government

19. Tasks to do… • Cooperation agreement with the National Institute of Public Administration (December 2011) • Publications of the scientific researches (January 2012) • New Integity Surwey (January-February 2012) • E-learning curriculum (February 2012) • Proposal for the legislator (February 2012)

20. To summarize…

21. Thank you for your attention!