Audit and Accountability in Local Government in Sweden
Anna Eklöf Lotta Ricklander Swedish Association of Local Authorities and Regions Sweden in short facts
Population: 10 million inhabitants Form of government: Constitutional monarchy, parliamentary democracy. Parliament: The Riksdag, with 349 members in one chamber. Capital: Stockholm. The largest city in Sweden. Population 942 000 The three democratic levels The task of the municipalities
Social services Childcare and preschools Elderly care Care for the physically and intellectually disabled Primary and secondary education Planning and building issues Health and environmental protection Refuse collection and waste management Emergency services and emergency preparedness Water and sewerage The task of the regions
Healthcare Regional development Infrastructure and public transport Cultural institutions Revenues of the municipalities and regions
Other revenue 5% Other revenue 5% Rents and leases 4% Fees and charges 3% Sale of services and Targeted government grants contracts 1% 3% Fees and charges 7% Grant for pharmaceutial benefits 10%
General government Government grants 14% grants 5%
Tax renvenue 69% Tax revenue 74% The Swedish Association of Local Authorities and Regions (SALAR)
SALAR represents all 290 municipalities and all 20 regions. Negociates with national government SALAR decides upon the Code of audit in Local government Municipal audit in Sweden – the role of the SAI
Locally owned audit (like in Norway, Denmark, UK, the Netherlands) The SAI Riksrevisionen audits only the national authorities, not the municipal/regional The SAI Riksrevisionen can sometimes scrutinize in the municipalities, for example in the audit of government grants and how they are used – but only to shed light over results – not to place any acccountability in the municipalities Accountability in municipalities/regions
Elections every 4th year Municipal Council Citizens
Executive board Auditors
Elected by
Committees Accountable to Only politically elected members of the executive board and other Municipal companies committees are accountable to the council Municipal audit
● The purpose is stated in the Local Government Act. (new from 2018)
● Audit is a democratic instrument; a part of the local self-government.
● The Council elects at least 5 politically elected auditors that report to the Council each year (an independent audit committee).
● Professional auditors assist the elected auditors.
● All scrutiny is made according to the Code of Audit in Local government The rule of conduct - independence
. The elected Auditors …choose independently what to audit …choose independently methods and audit experts …make independent judgments.
. The Auditors do not act party-political. The Audit task
● The auditors audit all activities that executive board and committees, as well as municipal companies, perform every year.
● Audit is based on a risk assessment
● Audit includes financial, performance and compliance perspectives. The task is to judge if: 1. operations have been performed consistently with their purpose stated by the Council, national laws, and in a financially satisfactory manner. 2. the internal control has been adequate. 3. the accounts are correct. The Result of the audit
Audit papers on each project - always full transparency for citizens Judgement of accountability in the audit report at the end of the year The auditors can give remarks or discharge from liability
The Council makes the final decision upon discharge from liability or not. Added value The auditors in each municipality: Give recommendations in each audit report Sometimes (rarely) arrange training in internal control and anti-corruption for the Executive board and the committees The code of conduct prevents them from engaging in further governance issues SALAR, as a normative actor: Spreads facts about municipal audit and the Code of Local government audit Works with regional networks around different subjects like risk assessment, internal control, reporting etc Organizes several projects around best practice models - regarding to auditing (this year, audit of co-owned municipal companies and risk assessment) Thank you!