Recent Developments, National Audit Office of Finland Administrative Advisor Sami Vuorinen 4 Sep 2008, Druskininkai, Lithuania

2 Cooperation with the Audit Committee of the Parliament The Audit Committee of the Finnish Parliament was founded 1 July One of the most important tasks of the Committee is to give opinions on the audit information given to the parliament by the NAO. A constructive cooperation has grown rapidly between the Audit Committee and the NAO. The key measure of cooperation is regular transfer of information. The Audit Committee is expecting from the NAO real time reporting of the most essential audit information. The work of the NAOF is now more clearly linked to the Parliament’s financial power and control. Also the value of the NAO’s work in social discussion and decision-making has been strengthened.

3 Special Report on Auditing the State’s Financial Statement NAO gives the parliament two special reports annually a report on auditing the state’s financial statement and a report on NAO activities The report on auditing the state’s financial statement concerning the year 2007 was first time given already on May (26 May 2008). Also the content of the report was significantly developed. The main conclusion was that the parliament does not receive enough information on effectiveness of the grants in state budget. The first advanced report was received favourably and it led on to several declarations introduced by the parliament.

4 Some Internal Ambitions Auditing the Finnish Fiscal Policy Auditing the Guidance System of State Aim to guarantee and increase the effectiveness of the audit information Redraw the definitions of policies of personnel and IT Developing the internal leadership and management system Knowledge management

5 Development of Performance Audit New Performance Audit Manual The manual consists the auditing process (definition of task, focusing of audits, preliminary study, producing audit evidence, reporting, follow- up). The quality assurance has been built in the performance audit process. Development of Risk Analysis Model of Performance Audit The aim is to develop the follow up of administrative branches to be more integrated part of risk analysis tool and audit planning. New Audit Group of Performance Audit The aim is to downsize the audit groups and reduce the number of auditors in subordination of one audit director.

6 Development of Financial Audit Guidelines and methods of Financial Audit There is a need for new audit guidelines and methods due to expanded electronic administration and decentralising. For example paperless accounting and recently founded administrative service centrals have caused some new demands for the Financial Audit. Certifying the cost calculation system Financial Audit is ahead of new audit product - Certifying the cost calculation system. Information on the whole budget economy Financial Audit produces the audit information on the whole budgetary economy. The information is presented in several separate audit reports. The aim is to exploit the information more effectively, for example by reporting the relevant information directly to the parliament.

7 Recent Performance Audit Reports 168/2008 The state's cash management Details: Principal Performance Auditor Mr. Marko Männikkö, 161/2008 The development and use of identification services in public administration Details: Principal Performance Auditor Mr. Tomi Voutilainen, 158/2008 The implementation of regional Information Society projects Details: Principal Performance Auditor Mr. Tomi Voutilainen,

8 The Performance Audit Reports since the last BNP-meeting 168/2008 The state's cash management 167/2008 Guaranteed access to treatment 166/2008 Parallel audit of the SAIs of the EU on the Performance of the Structural Funds programmes in the area of employment 164/2008 The National Emergency Supply Agency 163/2008 Abuses in state administration 162/2008 Metsähallitus - as a state enterprise and as a manager of nature conservation under the Ministry of the Environment 161/2008 The development and use of identification services in public administration 160/2008 Projects conducted with health promotion funds 159/2008 Maintaining rail infrastructure 158/2008 The implementation of regional Information Society projects 157/2007 R&D evaluation activities 156/2007 The functioning of consumer administration 155/2007 Developing fisheries 154/2007 The state as a promoter of exploration and mining 153/2007 The effects of an experiment exempting employers from social security contributions 152/2007 The implementation of the Regional Centre Programme in /2007 The procurement of expert financial services 150/2007 The state of performance management - On the basis of audit observations made by the National Audit Office in /2007 Performance reporting to Parliament in the Ministry for Foreign Affairs' administrative sector 148/2007 Performance reporting to Parliament in the Ministry of Transport and Communications' administrative sector 147/2007 Project funding as a steering instrument