1. International Symposium on the changing role of Parliament in the budget process: Experiences from PUIC Countries and EU Member States Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: Some General Considerations and Experiences from the Netherlands and the EU Jan Pieter Lingen, European Court of Auditors / Sigma Afyonkarahisar, 23-25 September 2010 Session Two: Budgeting and Budgetary Oversight in the PUIC Countries and EU Member States: Parliaments and Supreme Audit Institutions / Courts of Accounts

2. This presentation: Parliament and the budget Supreme Audit Institutions (SAIs) Relations between SAIs and parliaments: how parliaments can benefit Challenges With examples from: The Netherlands (NL) EU Paper gives more details about NL and EU Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

3. x AccountsDischarge x ImplementationControl Parliamentary role in the budget cycle PreparationApproval

4. Parliament and the budget Power of Parliament – related responsibilities draft budget submitted – responsibility to scrutinise before approval implementation of the approved budget – responsibility to control accounts submitted – responsibility to check and give discharge if warranted How to live up to these responsibilities? Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

5. Supreme Audit Institutions (SAIs) Two main models Office: audit Court: audit and judgements External audit: financial audit compliance audit performance audit (ex ante audit; ex ante financial control) Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

6. Relations between SAIs and parliaments legal position SAIs (independent from government and parliament, part of the executive, parliamentary body) reporting and handling reports work programme SAI audit requests other types of communication Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

7. Relations between SAIs and parliaments: reports annual reports: budget implementation, accounts activity reports: sometimes part of Annual report special reports: performance audits opinions: often draft laws FMC Parliamentary procedures and committee system Public Accounts Committee, Budget Committee, Budgetary Control Committee, subcommittee Frequency of reports capacity, selectivity, resources Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

8. Relations between SAIs and parliaments Work programme SAI publication, discussion Audit requests formal: procedure informal independence issue Other types of communication meetings staff exchange Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

9. The Netherlands The setting Dutch Parliament: two Chambers, only Second Chamber (150 members) elected directly Finance committee is responsible for overall fiscal policy and prepares general budget debates Budgetary control committee’s roles are to deal with framework laws on budget and budgetary management, with reports from the SAI, and general discharge and to support and advise branch committees (through its staff) Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

10. The Netherlands The Netherlands Court of Audit (NCA): not a Court, but an Office college of three members, appointed after proposal from parliament audit remit includes central government, state owned enterprises, EU-subsidies financial, compliance and performance audit approximately 60 audit reports per year Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

11. The Netherlands Relation between parliament and NCA: budgetary control committee is linking pin all reports are dealt with by budgetary control committee regular discussion on work programme and issues of common interest requests for audits through committee secondment of staff NCA to budgetary control committee Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

12. The Netherlands: an example of cooperation From policy budget to policy accountability initiative budgetary control committee: annual report in the political arena speeding up discharge procedure making discharge more substantive focus on performance: 1999 Action Plan starting point performance based budgeting Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

13. The Netherlands: an example of cooperation From policy budget to policy accountability partnership BCC, NCA, MoF joint working group, informal boost to performance budgeting and identification of performance indicators NCA reports on substance and reliability performance information parliamentary attention for discharge raised Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

14. The EU The setting European Parliament, 736 members directly elected EU budget, ±120 billion euro per year European Commission responsible for preparing and implementing budget European Parliament together with Council approves budget European Parliament is discharge authority Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

15. The EU Parliament: budgetary control committee prepares discharge deals with reports from SAI fight against fraud Budget committee responsible for budget debate Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

16. The EU The European Court of Auditors (ECA)– the EU SAI not a Court, Office model with a college of 27 Annual report (AR) contains statement (audit opinion) on reliability of the accounts and regularity of revenue and expenditure another ± 20 performance audit reports Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

17. The EU Relation between parliament and ECA AR is extensively discussed in control committee and is major basis for granting discharge or not special reports are also discussed extensively proposals for audits or opinions are accommodated by ECA agreement on procedure for submitting and publishing reports Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

18. The EU: an example of cooperation Public administration reform: White paper (2000) service culture, result oriented overhaul of financial management and internal control systems strong support from parliament reports and opinions from ECA important tools input from ECA in debates organized by parliament Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

19. Challenges (1) -secure independence SAI -proper infrastructure for SAI reports: committee system, procedures, support -proper arrangements for timely dealing with SAI reports: presentation by SAI, questionnaires, meetings with SAI representatives present -proper arrangements for the discharge procedure Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU

20. Challenges (2) -proper arrangements for suggesting audit topics -proper arrangements for asking (legal) advice -proper arrangements for follow-up and recommendations adopted by plenary -balance between politics and control function: strive for unanimity -proper arrangements with SAI on publicity -look for opportunities to get assistance from SAI: FMC reform, reform budget system, accounting system Cooperation between Parliament and Supreme Audit Institution in Exercising Oversight of the Budget: NL and EU