1. Intosai internal control standards committee François-Roger Cazala
The French Cour des comptes and governance issues : a work in progress.
Intosai internal control standards committee
Vilnius, May 2014
François-Roger Cazala

2. The Cour des comptes
Cour des comptes or Court of audit is the French SAI
Dates back to 1807 in its current shape, but has much more antique origins
Initially conceived as a judicial body
Has kept in its general organization, status and mandate some elements of this nature, at various degrees

3. The Cour des comptes
However most of the work is of a non-judicial nature and encompasses :
The financial (attestation) audit of the state accounts with the production of an audit opinion
Dto for the social security system
The audits of various state organizations, covering all components of the public sector (except local government).
The conduct of performance audits focusing on a specific aspect of a public policy (e.g. : Investment in high-speed trains, the funding of research)

4. Governance in the public sector
No standard, clear and shared definition of “governance”
A very broad issue or a more restrictive definition ?
Sound governance in the public sector : a priority area in the Court’s strategic planning

5. The Cour des comptes and governance issues
The case of state-owned companies
Abide to the provisions of the commercial code
Rules applicable to both private and public sector
Need for more transparency, risk awareness and management, fight against fraud and collusion, and in general for appropriate checks and balances.
Types of obligations regarding corporate governance that the Court will have to check :
lines of reporting and accountability between management and board,
roles and responsibility of the board members,
existence and functioning of auxiliary bodies such as audit committees, accounts committee, appointment committees, procurement or tender committees

6. The Cour des comptes and governance issues
Other public bodies (e.g. state agencies)
Not governed by the commercial code but by dedicated provisions, addressing governance issues at varying degrees
Enhancing of good governance practices and procedures taken into account by the Court in its audit approach and objectives.

7. The Cour des comptes and governance issues
Good governance : example of audit items
The compliance with the legal framework regarding governance, when required
The existence and bearing of internal governance procedures of the entity considered and the compliance therewith (this may differ depending on the nature of the audited entity)
The composition of the board, the role of the board’s members, in particular of those representing the state administration

8. The Cour des comptes and governance issues
Good governance : example of audit items (ctd)
The mandate of the board vs. mandate of the management
The frequency of the meetings
The quality of the minutes
The management’s accountability to the board : frequency of reporting, contents of reporting (transparency, quality)
The follow –up within the board on the management’s reports and the decisions made

9. The Cour des comptes and governance issues
Good governance : example of audit items (ctd)
The recruitment/appointment procedures for senior management (existence of and compliance with criteria, open and competitive process )
The existence, composition and status of supporting bodies such as audit, accounts, appointment, compensation, risk, procurement and tender committees etc. The conditions of reporting to the board.

10. The Cour des comptes and governance issues
Current limits of the Court’s approach to governance issues
Not a concern for central ministries with few exceptions
Lack of common understanding of the notion internally and externally
No common reference in terms of standards and very little guidance to base the work on governance upon.
The approach is therefore still piecemeal

11. MERCI BEAUCOUP !
LABAI AČIŪ !
DZIEKUJE BARDZO !
THANK YOU VERY MUCH !