Generally on audit

Generally on audit

Scope of audit competence of the Office

1. The Office shall audit the management of:

budgetary funds approved under the law by the National Council of the Slovak Republic or by the Government of the Slovak Republic,

property, property rights, funds, obligations and claims of state, public law institutions, the National Property Fund of the Slovak Republic, municipalities, upper-tier territorial units, legal entities with capital participation of the State, legal entities with capital participation of public law institutions, legal entities with capital participation of the National Property Fund of the Slovak Republic, legal entities with capital participation of municipalities, legal entities with capital participation of upper-tier territorial units, legal entities established by municipalities or legal entities established by upper-tier territorial units,

property, property rights, funds and claims provided to the Slovak Republic, legal entities or natural persons under development programmes or for other similar reasons from abroad,

property, property rights, funds, claims and obligations, for which the Slovak Republic has assumed guarantee,

property, property rights, funds, claims and obligations of legal entities carrying out activities in the public interest.

2. The Office shall also audit within the scope of its competence:

the methods of levying and recovering taxes, custom duties, payments of contributions, charges and fines forming revenues of the state budget, budgets of municipalities and upper-tier territorial units,

the enforcement and exercise of rights and adherence to obligations arising from financial and economic relationships, resulting from the management referred to in the paragraph 1, the party to which is the entity specified in the Article 3.

3. Within the extent specified in the Article 1, the auditing competence of the Supreme Audit Office shall apply to:

the Government, ministries and other central bodies of the state administration of the Slovak Republic (central bodies of the state administration) and their subordinated bodies,

state bodies, as well as legal entities, if the function of their founder or institutor is pursued by central body of the state administration or other state body,

municipalities and upper-tier territorial units, legal entities established by municipalities, legal entities established by upper-tier territorial units, legal entities with capital participation of municipalities and legal entities with capital participation of upper-tier territorial units,

special-purpose state funds, public law institutions established by law, legal entities with capital participation of public law institutions, legal entities with the capital participation of the State,

the National Property Fund of the Slovak Republic, legal entities holding the status of a natural monopoly with capital participation of the National Property Fund of the Slovak Republic exceeding 34%, or other legal entities with capital participation of the National Property Fund of the Slovak Republic of at least 50%,

natural persons and legal entities.

Other tasks and competence

The Office shall elaborate its opinion on the proposal for the state budget of the Slovak Republic, in which it also evaluates the proposal for the budget of the state administration, and its opinion on the proposal for the final state account of the Slovak Republic. The Office shall submit its opinion on the proposal for the state budget of the Slovak Republic to the National Council of the Slovak Republic within the time period given by special regulation. The Office shall submit its opinion on the proposal of the final state account of the Slovak Republic to the National Council of the Slovak Republic within 30 days following the Government’s decision.

The Office shall perform the tasks of a body issuing declarations on winding-up of assistance granted under Structural Funds and the tasks of the body issuing declarations on the winding-up of assistance granted under the Cohesion Fund; it shall be responsible for the content of such declarations and shall submit them to the competent authorities.

Based on a resolution of the National Council of the Slovak Republic, the Office shall carry out an audit within the scope of its competence for the purposes of the National Council of the Slovak Republic.

No later than the end of March of the following year, the Office shall submit to the National Council of the Slovak Republic a summary report on the results of audit activity for the previous calendar year. The report on the results of audit activity shall be submitted whenever requested by the National Council of the Slovak Republic.  

SAO SR audits in general

In the Supreme Audit Office of the Slovak Republic (SAO SR) environment, the use of term Audit takes in Slovak language different format. In its Slovak original, it is „kontrola“ (control), but to approximate to the EU conditions, customs, and to ease the overall communication in EU environment, the term Audit was taken into the institute name, its functions, activities and documents if being translated into English.

SAO SR abides by the Law on Supreme Audit Office of the Slovak Republic 39/1993 Coll. of Laws as amended, international standards ISSAI, as well as the European Implementing Guidelines for the INTOSAI Auditing Standards.

The SAO SR conducts audit activities based on yearly plan for the given year. The yearly plan for the given year is based on the tri-annual plan, where strategic goals and audit objectives are set for that period. Besides that, SAO SR is obliged to perform an audit if asked by the National Council of the Slovak Republic (Parliament).

The base for making the activities plan is information and knowledge gained in the past audits, incitements from the State Administration and territorial self-government organs and citizens. The SAO SR President approves the audit plan.

There are three types of audit performed by the SAO SR: compliance, performance and financial audit; audit of information systems and forensic audit being a specific audit type.

An audit is composed of preliminary preparation, audit itself and implementation of audit results.

The goal of the preliminary audit preparation is to gather and analyse fundamental information about the auditee to prepare background papers. The fundamental information is usually secured from publicly accessible information sources, experience and knowledge from previous audits performed by SAO SR and other sources. 
 

An audit is composed of following stages:

  • Audit preparation;
  • Audit performance at the auditee´s;
  • Examination of justification of objections raised by auditee

The audit preparation begins with announcement made to the auditee´s statutory organ or its deputy (this authority has to be produced in writing), and ends in preparing the audit programme and audit method applicable to the given audit.  The audit execution involves the audit itself, and is finished by writing-up a protocol/report about the audit results, or a note on audit results (if no shortcomings were detected). A supplementary protocol/report is written if any changes to it are needed.

The audit execution is finished by discussing the protocol/report results, or by handing over a note about the audit results.

The last stage of audit is implementation of the audit results. The aim of this stage is to work out a report on audit results, announcement about the detected shortcomings, sending the materials to the relevant organs and informing the public in accordance to the Law on SAO SR.
 

Detected shortcomings    

If any shortcoming is detected, SAO SR is obliged to announce it to the organ that acts in the State´s name in connection to the auditee performance – to the superior State Administration organ or organ of the relevant territorial self-government acting in its name in connection to the auditee performance.

The SAO SR can table before the auditee recommendations to eliminate reported shortcomings that were detected in course of applying its mandate.

If physical persons would inhibit the audit proceedings by not abiding the Law on SAO SR, SAO SR can impose a penalty up to 3 319 EUR. While taking decision on applying such penalty, SAO SR acts as central organ of State Administration. Is such process, generally applicable standards/laws on administrative proceedings would apply.           
 

What is/is not within the SAO mandate

Supreme Audit Office of the Slovak Republic:

audits the management of the funds and property of the

  • State;
  • Regional administration units;
  • European Communities and any other foreign funds provided for financing projects on the basis of international treaties

applies its audit competence to the

  • Government of the SR;
  • Ministries;
  • Other State authorities and other State administration authorities;
  • Municipalities;
  • Higher territorial units;
  • Special-purpose State funds;
  • Public law institutions established by law;
  • Legal institutions established by them or with their capital participation;
  • National Property Fund of the SR (NPF SR);
  • Legal entities holding the status of a natural monopoly with the capital participation of NPF SR exceeding 34%, other legal entities with the capital participation of NPF SR of at least 50%;
  • Legal entities carrying out activities in the public interest;
  • Natural persons and legal entities managing the public funds

perform audit based on

  • Resolution of the National Council of the SR;
  • Audit plan of the SAO SR

The audit plan for one and three years is based on

  • Own knowledge, experience and risk analysis;
  • Generalized suggestions from the natural persons and legal entities;
  • Suggestions from the State institutions;
  • International treaties with the other supreme audit institutions;
  • Information published in media

Informs about audit results

  • National Council of the SR;
  • Government of the SR, municipal and upper-tier territorial unit authority;
  • general public

National Council of the Slovak Republic

  • sole entity that, after adopting a resolution in matter, can ask SAO SR to perform an audit;
  • discusses SAO SR annual audit report at its plenary session;
  • discusses SAO SR opinion on the state budget proposal;
  • discusses SAO SR opinion on the final state account

Supreme Audit Office has no competence to:

  • Handle the complaints in general, also consumer related;
  • Change the decisions of Courts or administration authorities;
  • Investigate the suspicion of the crime being committed;
  • Deal with the civic-legal or trade-legal disputes;
  • Deal with the employment related legal disputes;
  • Deal with the personal estate problems including apartments and related services;
  • Control or audit management private firms property management;
  • Control or audit the assessment of the pensions or other welfares;
  • Review the Act on Free Access to Information violation by other public administration authorities

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