Preparation for resolution of medium-sized and small banks in the EURO area - Results of a parallel audit of Supreme Audit Institutions on banking resolution

Report ID: 339

In 2012, the European Union (EU) decided to set up a European Banking Union for the euro area. The Banking Union is responsible to ensure that the EU rules for supervision and resolution are implemented effectively and consistently across the euro area and in other participating countries.

In December 2017, a group of national Supreme Audit Institutions (SAIs) united in the Task Force on European Banking Union published a report on national supervision on medium-sized and smaller banks – or “Less Significant Institutions” (LSIs4) – under the Single Supervisory Mechanism (SSM). This report is available at:

https://intosai-cooperativeaudits.org/catalog/report/report-of-the-task-force-on-european-banking-union-on-prudential-supervision-of-medium-sized-and-small-less-significant-institutions-in-the-european-union-after-the-introduction-of-the-single-supervisory-mechanism

In 2018, the Contact Committee of the heads of Supreme Audit Institutions (SAIs) in the EU mandated a group of SAIs united in the Task Force Banking Union to initiate a parallel audit on the functioning of the Single Resolution Mechanism (SRM) in the preparatory activities for the resolution of medium-sized and small banks – or Less Significant Institutions (LSIs) – under the remit of the National Resolution Authorities (NRAs)  in selected countries in the euro area.

The report is aimed to provide insight into the way the Single Resolution Mechanism (SRM) is set up and carried out for LSIs in different euro area countries, and what potential risks are involved. In addition, the second aim is to identify to what extent SAIs are actually able to exercise their audit mandates and obtain full access to documents required.

The scope of this parallel audit is restricted to resolution planning for medium-sized and small banks. Three research questions were devised for this audit:

1. Are NRAs adequately equipped and prepared to carry out the resolution task regarding medium-sized and small banks?

2. How is the preparation for resolution activities regarding medium-sized and small banks being carried out in practice by the NRAs?

3. Do SAIs face any barriers in auditing banking resolution and obtaining access to relevant documents?

4. How do Ministers of Finance comply with their responsibilities for the functioning of the resolution mechanism? Do they comply with them adequately in practice, including accountability to parliament?

Source:https://www.eca.europa.eu/sites/cc/Lists/CCDocuments/Task_Force_EBU_2020/Task_Force_EBU_2020_EN.pdf

Joint information on the results of transboundary movement of waste between Ukraine, the Republic of Slovakia and the Republic of Poland, 2004 - 2007, in the light of the Basel Convention

Report ID: 342

In  2007, the Supreme Audit Institutions (SAIs) of Poland, Ukraine and Slovakia carried out a cooperative audit on transboundary movement of waste between their countries. The audit was aimed to evaluate the degree of implementation by Ukraine, the Slovak Republic and the Republic of Poland of the provisions of the Basel Convention,  relevant regulation of the European Union and National Legislation in particular:

• Regularity of delivering the decisions permitting for transboundary movement of wastes and regularity and effectiveness of checks in this field.
• Regularity and effectiveness of control activities aiming at detection of incidents of illegal transboundary movements of waste.

The audit was a common initiative of the Supreme  Audit Institutions of  Poland, Slovakia and Ukreine within the framework of the activities of EUROSAI environmental working group. The audit  was launched on the basis of cooperative agreement among the three SAIs.

Source: http://old.ac-rada.gov.ua/img/files/auditukrsl.pdf

Bericht über die parallele Prüfung der Leistung der Strukturfondsprogramme der EU in den Bereichen Beschäftigung und Umwelt

Report ID: 343

2006 erteilte der Kontaktausschuss der Arbeitsgruppe "Strukturfonds" das Mandat, ihre Überprüfungen von Strukturfondsfragen fortzusetzen und insbesondere eine gezielte Überprüfung der "Leistung (Output/Effektivität) der Strukturfondsprogramme in den Bereichen Beschäftigung und/oder Umwelt″ durchzuführen. Die Arbeitsgruppe einigte sich auf einen Prüfungsplan, der einen Rahmen für die Durchführung der Überprüfung bot. Jede ORKB untersuchte die Arbeit ihrer jeweiligen nationalen Verwaltung bei der Planung, Begleitung und Bewertung von Projekten, Maßnahmen, Unterprogrammen oder Programmen (je nach Fall), die von den Strukturfonds kofinanziert werden.

Die ORKBn von Österreich, Finnland, Deutschland, Ungarn, Italien, Lettland, Malta, den Niederlanden, Polen, Portugal, der Slowakischen Republik, Slowenien, Spanien und dem Vereinigten Königreich nahmen an der Prüfung teil. Die ORKB von Bulgarien, der Tschechischen Republik und Litauen sowie der Europäische Rechnungshof waren Beobachter. Ziel war es, Verbesserungsmöglichkeiten bei den Strukturfondsprogrammen zu identifizieren, insbesondere bei der Planung und der administrativen Abwicklung.

Die Überprüfung bezog jede ORKB in eine Untersuchung der Strukturfonds (Ziele 1 und 2) in den Bereichen Beschäftigung und/oder Umwelt ein und kam zu folgenden Ergebnissen

- ob und wie die nationalen Behörden den nachhaltigen Erfolg der geförderten Maßnahmen kontrollierten;

- inwieweit die Fördermaßnahmen (Teilprogramme, Großprojekte und sonstige Projekte) einen wirksamen und nachhaltigen Beitrag zu den strategischen Zielen der Strukturfonds leisteten.

Der Prüfungsgegenstand war ein wichtiges Thema, das sowohl für die Strukturfondsprogramme 2000-2006 als auch 2007- 2013 von Bedeutung war. Die Prüfung bezog sich auf die beiden Schlüsselbereiche der strategischen Planung und der Bewertung von Fördermaßnahmen. Auf der Grundlage der Prüfung von Maßnahmen aus dem Zeitraum 2000-2006 wollte jede der ORKBn zu dem Schluss kommen, inwieweit die Mitgliedstaaten zur Verwirklichung der strategischen Ziele des jeweiligen OPs beigetragen haben. Da die Ziele der Strukturfonds von der Periode 2000-2006 in die Programmperiode 2007-2013 übergegangen sind, wurden die Erkenntnisse aus der Prüfung der Maßnahmen aus der Periode 2000- 2006 genutzt, um die Empfehlungen für die Verbesserung der neuen Periode 2007-2013 zu untermauern.

Der Bericht enthält die von den einzelnen ORKB ermittelten bewährten Praktiken, die für beide Programmzeiträume 2000-2006 und 2007-2013 relevant sind. Als allgemeine gute Praxis wurden viele der aus dem Programmzeitraum 2000-2006 gezogenen Lehren in die Verwaltungsvereinbarungen der Mitgliedstaaten für 2007-2013 aufgenommen.

Quelle: https://www.eca.europa.eu/sites/cc/Lists/CCDocuments/1959901/1959901_DE.PDF

Administration of Value Added Tax in the Czech Republic and the Federal Republic of Germany Follow-up Audit Report

Report ID: 345

VAT is an audit area which is very suitable for tax audit cooperation because it is the only tax harmonised within the EU. The Supreme Audit Office of the Czech Republic (hereinafter “Czech SAI”) and the Federal Court of Auditors – Bundesrechnungshof (hereinafter “German SAI”) conducted a first ever parallel audit in the field of VAT in 2006. The report was published in 2008 (The report si also published in the catalogue at https://intosai-cooperativeaudits.org/catalog/report/report-on-the-results-of-the-parallel-audit-of-the-administration-of-value-added-tax-in-the-czech-republic-and-in-the-federal-republic-of-germany).

The follow-up audit of the administration of VAT in the Czech Republic and in Germany was carried out on the basis of an agreement between the two SAIs. During previous parallel audits, suspicious cases of intra-Community transactions were detected. Some of them merited further review. On the basis of audit findings the two SAIs produced recommendations on VAT management.

The follow-up audit was conducted to evaluate the action taken in response to these recommendations and to review the suspicious cases selected. In addition, the two SAIs decided to examine the following matters in their parallel audit mission:

• review of selected cases of intra-Community transactions between taxpayers from the Czech Republic and Germany that were not resolved during the previous parallel audit,

• review of selected cases of intra-Community transactions between taxpayers from the Czech Republic and Germany that were classified as high-risk cases,

• audit of the tax administrations’ procedure in the field of international assistance for the recovery of VAT claims,

• VAT audits of large companies.

The cooperation of the two SAIs within the parallel audits of the administration of VAT achieved the objectives set by the German and Czech SAI. The two SAIs developed a deeper understanding of the applicable systems in the Czech Republic and Germany in the fields of:

• intra-Community transactions

• risk management of VAT, especially concerning the selection of risk prone transactions

, • recovery of VAT claims, and

• VAT audits of large tax entities.

Due to mutual cooperation, differences of strategies to detect VAT fraud cases and in the above mentioned areas of VAT administration in the Czech Republic and Germany were revealed. Audit findings were compared and on their basis best practices were identified. Furthermore, the SAIs hope that the results achieved may encourage stakeholders to enter into discussions about approaches and strategies within and among Member States as well as with the EU Commission.

Source: https://www.nku.cz/assets/publications-documents/other-publications/paralelni-kontroly-spravy-dph-cr-srn-2010.pdf

RESULTS OF THE PARALLEL AUDIT OF THE IMPLEMENTATION OF THE MEMORANDUM BETWEEN THE GOVERNMENTS OF THE RUSSIAN FEDERATION AND THE REPUBLIC OF SLOVENIA ON IMPORTANT PROJECTS FOR EXPANSION OF THE BILATERAL ECONOMIC COOPERATION

Report ID: 347

In Moscow, on 17 November 2010, the Republic of Slovenia and the Russian Federation signed a Declaration on Partnership for Modernisation. The Partnership Declaration is based on the Joint Statement of the European Union and the Russian Federation adopted at the European Union - Russian Federation Summit held on 31 May and 1 June 2010 in Rostow-on-Don.

At the signing of the Partnership Declaration, the Governments of the Russian Federation and the Republic of Slovenia also signed the Memorandum on important projects, in which they expressed their readiness to facilitate the stimulating and encouraging of mutual investments into the innovative technologies, creation and market promotion of modern competitive goods as well as confirmed their aspiration for the expansion of high value-added goods and high-technology products share in trade volume.

Upon the approval of the Programme of important projects, the Governments of the Russian Federation and the Republic of Slovenia placing the priority on the Programme implementation, agreed to conduct the further monitoring of its implementation on regular basis according to the effective legislation, which should contribute to the promotion of bilateral cooperation on the basis of equality, mutual benefit and reciprocity as well as to the realisation of individual projects within the framework of cooperation in the interest of modernisation

The grounds for the implementation of the parallel audit iwas the Agreement on parallel audit by the Accounts Chamber of the Russian Federation and the Court of Audit of the Republic of Slovenia signed by the two Supreme Audit Institutions  (SAIs) on 29 April 2013 in Moscow. The Agreement defines in detail the cooperation of the Supreme Audit Institutions in the implementation of the audit.

The purpose of the audit was to assess the status of economic cooperation between the Russian Federation and the Republic of Slovenia taking into consideration the fulfilling of the Programme for the implementation of the Memorandum on important projects for expansion of the bilateral economic cooperation.

Among others, the effectiveness of the achievement of the objectives of economic cooperation was assessed by both SAIs.

Source: http://www.rs-rs.si/fileadmin/user_upload/news/2053/Joint_Report_ENG_final.pdf