Parallel international audit on disaster Risk Reduction
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.
Cost Effectiveness and Compliance with Legal Enactments of the European Union Structural Funds Administration System under the parallel audit "On Costs of Controls
Report ID: 102
Summary
Although the Ministry of Finance has, in accordance with the regulatory enactment, ensured establishment of EU Funds administration system, yet implementation of EU Funds administration is not ensured in the most effective way, as the audit has disclosed deficiencies in the following areas:
1. EU Funds administration system;
2. Planning and implementation of EU Funds technical assistance, including utilisation of
financial resources of EU Funds technical assistance project at the Ministry of Finance;
3. Deficiencies in regulatory enactments.
Activity of the Ministry of Agriculture and Institutions Subordinated There to in Relation to Supervision of the Handling of Food and Administration of Food Products Export to the Russian Federation
Report ID: 103
The audit is conducted in accordance with international auditing standards recognised in the Republic of Latvia. The audit was planned and performed to obtain reasonable assurance on compliance with the requirements of regulatory enactments of activity of the following institutions and efficient utilisation of the State budget funds:
1. Organisational structure and activity of the Ministry of Agriculture, developing and implementing the State and the European Union aid policy in the field of agriculture and fishery;
2. Activity of Rural Support Service, administering export compensations;
3. Activity of Latvian State Institute of Agrarian Economics related to market and export promotion;
4. Activity of Food and Veterinary Service:
4.1. Administering food products export to the Russian Federation;
4.2. In the area of State supervision and control on the handling of food.
5. The audit was conducted on the period from 1 January 2008 to 30 June 2009.
6. Examination, assessment and documents analysis was performed for obtaining audit evidence, as well as the interviews of management and responsible officials of the Ministry of Agriculture, Food and Veterinary Service, Rural Support Service and Latvian State Institute of Agrarian Economics were conducted.
7. The audit provided sufficient and according audit evidence for drawing up the audit report.