Parallel audit on disaster rehabilitation and reconstruction phase

Report ID: 86

The objective of the parallel audit is to test out the draft ISSAI 5520. Therefore, it is expected to provide a list of feedback to enhance the draft ISSAI 5520 on Audit of Disaster-related Aid: Guidance for Supreme Audit Institutions.

Based on their experiences during the parallel audit program, the participating SAIs found that the following matters might need to be considered so as to help improve ISSAI 5520:

a. Risk evaluation associated with disaster management and disaster-related aid management. Post-disaster management, as described in ISSAI 5520, may need to include planning and housing recovery activities.

b. An audit process should be divided into three main activities, namely, planning, execution, and reporting. Furthermore, the details and expected output of each activity should be explained.

c. An audit design matrix is a very useful audit tool and serves as a platform for the conducting of audit work in the field. It can be applied to both performance and compliance audits.

d. Audit case studies should be updated to include more disaster-related audits.

Parallel international audit on disaster Risk Reduction

Report ID: 87

The current accountability framework covers the accountability of the government, bureaucracy and politicians to the public and parliament. In this framework, participation of parliament and particularly citizens in this process remains limited. On the other hand, private sector, citizens, and even international community are directly interested in disaster risk reduction’s (DRR) concerns. It is obvious that the existing accountability framework in this field does not cover all parties. In the global matters such as DRR and climate change,we believe that the accountability has to be expanded beyond the basic structure in order to respond to the needs of the national and international communities. In this paper, with the goal of overcoming the limitations attached to current accountability framework for DRR.

On Administration of Corporate Income Tax

Report ID: 95

The objective of the audit is to gain assurance that institution subordinated to the Minister for Finance – the State Revenue Service provides administration of Enterprise Income Tax relief in accordance with the regulatory enactments in force: a) to verify if control over justified application of Enterprise Income Tax relief is provided and organized; b) to verify if tax amounts forgone the State budget as a result of application of tax relief specified by legal enactments, are accounted and reported. Also to verify if the Ministry of Finance provides development and implementation of tax policy regarding Enterprise Income Tax relief and if tax relief efficiency and benefit to the public is assessed.

A number of discrepancies were disclosed in the activity of the Ministry of Finance, providing development and implementation of tax policy, and in the activity of the State Revenue Service, providing administration of Enterprise Income Tax relief.

On Administration of Reduced Rates of Value Added Tax

Report ID: 96

The objective of the audit is to gain assurance that the State Revenue Service provides administration of reduced VAT rates: a) to verify if control over justified application of reduced VAT rates is provided and organized; b) to verify if revenue from reduced VAT rates is accounted and if forgone tax revenue, resulting from application of reduced rate, which could possibly be received if full VAT rate had been applied, is calculated.

To clarify if the Ministry of Finance provides development and implementation of tax policy regarding reduced VAT rates and if reduced tax rate’s efficiency and benefit to the public is assessed.

A number of discrepancies were disclosed in the activity of the Ministry of Finance, providing development and implementation and of tax policy, and in the activity of the State Revenue Service, providing administration of reduced VAT rate.

Discrepancies were detected in the internal control system of the State Revenue Service, providing administration of reduced VAT rates and VAT 12% compensations paid to agricultural produce manufacturers.

The compliance of the planning monitoring and effectiveness of ERDF co-financed environmental programs to EC regulations and policy planning documents

Report ID: 98

The goal of the audit was to carry out a focused review on “Performance (output/effectiveness) of the Structural Funds programmes in the areas of employment and/or environment”.

With respect to the planning of measures and the selection of projects in 2000 – 2006, the review identified examples of good practice but also several shortcomings in the arrangements in place within Member States in responding effectively to meeting the primary goals of the Structural Funds. For 2007-2013 the situation was much more encouraging as the review concluded that Member States had responded positively to the lessons learned from the previous period, and had acted upon recommendations for improvements made by the SAI.