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BNAO ROLE FOR EFFECTIVE MANAGEMENT OF PUBLIC FINANCES. Tzvetan Tzvetkov , CIA, CGAP, CRMA - President of the Bulgarian National Audit Office. Bulgarian National Audit Office :. ISSAI 12:
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BNAO ROLE FOR EFFECTIVE MANAGEMENT OF PUBLIC FINANCES TzvetanTzvetkov, CIA, CGAP, CRMA - President of the Bulgarian National Audit Office
Bulgarian National Audit Office: • ISSAI 12: • Public sector auditing, as championed by the SAIs, is an important factor in making a difference to the lives of citizens. The SAI is an essential component in a democratic system where accountability, good governance and integrity are indispensable parts • of a stable democracy. A supreme audit institution which exercises control over the execution of the budget and other public funds and activities.
Activities for exerting indirect influence: Participation in discussion fora,conferences and round tables, conducting joint studies with NGOs; Presenting statements on draft legislation; Participation in working groups onelaboration of policies, positions, etc; Cooperation and coordination agreements with other control bodies; Cooperation agreements with non-governmental professional organisations; Publication of audit results: Publication of audit reports on the BNAO website; Press conferences on significant audits; Publications in the press, interviews for the media, participation in TV programmes.
The new paradigm of SAI role for good governance: • Strengthening the accountability, transparency and integrity of government and public sector entities; • Demonstrating ongoing relevance to citizens, Parliament and other stakeholders and appropriate responding to the changing environments and emerging risks; • Being a model organisation through leading by example. The value and benefits of SAIs is in making a difference to the lives of citizens by:
Audits to ensure accountability for the stewardship over public funds:SAIs should strive to meet the expectations of the stakeholders –parliament, citizens, government, NGOs, etc. SAIs should conduct the whole palette of audits – financial audits, performance audits and compliance audits; Do those charged with governance apply the principles of sound management of public funds? Including audits on issues and themes with social significance in SAI’s audit programme; Participation in parallel and coordinated audits in the framework of INTOSAI and EUROSAI; Thematic audits with horizontal coverage for identifying system problems and proposing solutions; Response to risks of financial violations, fraud and corruption.
Communication should contribute to stakeholders’ awareness of the need for transparency and accountability in the public sector: Dialogue with stakeholders:
Reporting on audit results: SAIs should use actively their powers to report on their work: Make audit reports available to the public in a timely manner; Facilitate access through appropriate communication tools; Report objectively in a simple and clear manner; Discuss audit reports in parliament and its commissions with the aim of improving public sector management.
SAIs - initiators of change: SAIs should be a credible source of independent and objective evaluations and initiators of change: To contribute to the debate on improving governance, internal control and risk management in the public sector; Touse their knowledge and studies to advocate public sector reform– e.g. in the management of public finances; Periodically assess whether stakeholders believe that they are effective and contribute to improvements in the public sector; To encourage sharing of knowledge and good practice among budgetary organisations.
SAIs – model organisations: SAI organisation management should be basedon the matrix ”objectives-risks-controls”; Focus on ethics – adherence to ethical principles and norms, sanctioning unethical behaviour; Results-oriented budget, which is a tool for achieving the objectives of the organisation; Implementation of internationally accepted auditing standards and internal control frameworks; Effective mechanisms for identifying and preventing conflicts of interest; External assessment of the quality of SAI’s work; Open dialogue and communication with stakeholders.