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Alsai Performance Report 2017

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Alsai Performance Report 2017 ALSAI ALSAI PERFORMANCE REPORT 2017 SAI’S PERFORMANCE MEASUREMENT FRAMEWORK Organiza�onal Systems of the SAI SAI’s Values and and Professional Staffing Capacity products Ins�tu�onal B benefits of Capacity of the Ethics and Internal Governance SAIs SAI Coverage with financial compliance and C Quality of Audit and Repor�ng performance audits, coverage with legal SAI A control contribu�on to: Financial audit standards. Process and Quality Management Strengthening Indipendence Financial Audit Outcomes accountability and Performance Audit Standards. Process and Quality Management Legal Transparency Framework Performance audit results andI integrity Compliance audit standards. Process and Quality Management Being in the Legal control standards. Process and Financial Quality Management Results of the compliance right place audit D E Being a Results of legal control Financial, Asset and Human model Services Recources and organiza�on Management Trainings Mbështetëse F Communica�on and Management of Stakeholders Leadership and Culture of the SAI Country Context, Governance and Public Financial Management Environment ISBN: 978-9928-159-56-4 ALSAI PERFORMANCE REPORT 2017 Shtypur në Shtypshkronjën Kontrolli i Lartë i Shetit MORAVA Bulevardi “Dëshmorët e Kombit”, nr.3 Tiranë Tel/Fax 04/228485, Tel.04/251267 ISBN 978-9928-159-73-1 Web-site: www.klsh.org.al, E-mail [email protected] Kontrolli i Lartë i Shtetit Rruga “Abdi Toptani”, Nr. 1 Tirana, 2018 Tiranë Tel/Fax 04/228485, Tel.04/251267 Web-site: www.klsh.org.al; e-mail: [email protected] Series: ALSAI`s publications - 08/2018/92 REPUBLIC OF ALBANIA ALBANIAN SUPREME AUDIT INSTITUTION (ALSAI) ALSAI PERFORMANCE REPORT 2017 PERFORMANCE MEASUREMENT BASED AT THE PERFORMANCE MEASUREMENT INDICATOR FRAME (PMF) OF SUPREME AUDIT INSTITUTIONS (adopted at INTOSAI INCOSAI XXII Congress in Abu Dhabi, December 2016) Tirana, 2018 Title: ALSAI PERFORMANCE REPORT 2017 Publication prepared by: Irena ISLAMI Armanda BEGAJ Design by: Armanda BEGAJ Translated by: Xhuljeta ÇELAJ, Redina KARAPICI, Erieta KËLLIÇI, Enejda SERAJ, Miranda BËRDO, Kris ANASTASI dhe Xhein XHINDOLI Edited by: Fatos ÇOÇOLI Series: ALSAI`s publications 08/2018/92 ©Copyright ALSAI ISBN: 978-9928-159-73-1 Printed by “MORAVA” Tirana, 2018 ------------------------------------------------------------------------------------------------------------------------------- ALSAI TABLE OF CONTENT Page MESSAGE OF THE CHAIRMAN OF ALSAI 7 I MISSION, VISION AND OBJECTIVES OF ALSAI 11 II PUBLIC GOVERNANCE IN THE AUDIT FOCUS OF 2017 15 II.1 Key audit activity facts and statistics 15 II.2 Impact and dynamics of audits according to the main areas 25 II.2.1 Public finance management 26 II.2.2 Public Procurement 39 II.2.3 Administration of public property 61 II.3 Performance Audits Reports 84 II.3.1 In the field of education and sports 93 II.3.2 In the field of tourism 95 II.3.3 In the field of environment 95 II.3.4 In the field of fiscal administration 97 II.3.5 In the field of human resources management 99 II.3.6 In the field of public finance management 99 II.4 Information Systems Audits Reporting 102 III COMMUNICATION AND COOPERATION WITH STAKEHOLDERS 111 III.1 Communication and Transparency 111 III.1.1 Communication with the media 112 III.1.2 The presence of ALSAI auditors in the written media 113 III.1.3 Handling Citizens' Letters 114 III.1.4 Handling of the right to information 114 III.1.5 Open month for citizens 116 ALSAI 2018 3 Table of content ----------------------------------------------------------------------------------------------------------------- III.1.6 ALSAI's publications during 2017 117 III.1.7 The V-th Scientific Conference of ALSAI 124 III.2 ALSAI and Parliament, the challenges for effective communication 124 III.3 ALSAI Relationship with NGOs, organizations of field professionals, 127 counterpart institutions, international organizations, etc. III.3.1 Cooperation with partner SAIs and other international 129 institutions III.3.2 Visits of counterpart SAIs in Tirana 136 III.3.3 Activities organized by ALSAI in cooperation with 138 counterpart SAIs and other institutions III.3.4 ECA Internships and Fellowship of GAO 139 III.3.5 IPA 2013 Twinning Project implementation in 2017 140 IV INSTITUTIONAL MANAGEMENT AND STRATEGIC DEVELOPMENT 143 IV.1 Performance Measurement based on the SAIs Performance 143 Measurement Indicators Framework IV.1.1 Performance Analysis on Indicators 144 IV.1.2 Summary of ALSAI's performance indicators for 2017 147 IV.2 Institutional Management Progress 172 IV.2.1 SWOT analysis of ALSAI 172 IV.2.2 On the management of the system of ethics and 176 integrity in ALSAI IV.2.3 Development and management of human resources 181 IV.2.4 Professional training 186 IV.2.5 Organizational Structure Complements 188 IV.2.6 Information Technology (IT) resources development 188 IV.2.7 Internal control and financial reporting 190 IV.3 Reviews by EU, SIGMA and INTOSAI community 193 IV.3.1 Fulfilling the EU Progress Report recommendations 193 4 Publications ------------------------------------------------------------------------------------------------------------------------------- ALSAI IV.3.2 Implement SIGMA recommendations and ALSAI action 194 plan IV.3.3 Reviews from the INTOSAI community 198 IV.4 Monitoring the implementation of ALSAI strategies 204 IV.4.1 Strategy monitoring results 2013 - 2017 205 IV.4.2 Strategy of international audit standards (the ISSAIs) 209 implementation IV.4.3 Strategy for risk management 210 IV.5 The ALSAI Development Strategy for 2018-2022, as a continuation 211 of the process of institutional modernization IV.5.1 OBJECTIVE 1: Increasing the future auditing impact at 6 212 Es IV.5.2 OBJECTIVE 2. Optimization of professional capacities, auditing capacities, labor procedures, logistics and other 215 supporting functions IV.5.3 OBJECTIVE 3. Strengthening communication and 217 cooperation ALSAI 2018 5 Table of content ----------------------------------------------------------------------------------------------------------------- 6 Publications ------------------------------------------------------------------------------------------------------------------------------- ALSAI MESSAGE OF THE CHAIRMAN OF ALSAI The Albanian State Supreme Audit fulfills its constitutional and legal mission by serving the citizen and the Parliament in promoting accountability, responsibility and transparency in the public administration and the Government which is responsible for the management of public funds and assets. The efficiency of supervising the accountability of the public funds’ management and public property requires not only the fulfillment of the constitutional responsibilities of the SAI, but also the commitment of the Legislative body and mainly the executive in this regard. Our positive and negative experiences have highlighted that the real effect of the audit activity is closely related to the degree of recommendations’ implementation and measures addressed to public and budgetary institutions. The average rate of implementation of these recommendations, although largely accepted, indicates the growing need for public institutions to evaluate, design and implement measures to address the identified problematic issues during the SAI audits. A greater commitment of the executive and legislative branch in implementing our recommendations would promote the good governance of public institutions, and through increased interaction, the continuous improvement of audit activity will be promoted, bringing value and creating a positive impact on the life and dignity of citizens. It is precisely because of this fact that the ALSAI has built its institutional operation in several dimensions through which the audit missions are intended to be improved methodologically and technically according to international auditing standards and best practices of INTOSAI and EUROSAI. Developing the professional capacities of auditors by diversifying training themes and resources, or actively interacting in pilot and parallel audits under the motto "United in ambition and determination" with counterpart SAIs, is considered a strategic factor for enhancing institutional performance for 2017. Improving and strengthening the cooperation with the Albanian Parliament in order to jointly serve as the main actors of transparency and accountability, in order to ALSAI 2018 7 Message of the ALSAI chairman--------------------------------------------------------------------------------------------- inform citizens about how public funds are spent, has been one of the dimensions of the ALSAI activity. The objective of increasing transparency and accountability through the consolidation and diversification of communication instruments with the citizen, civil society and other national and international partners is carried out in a structured manner, in compliance with the SAI's Communication Strategy. In accordance with the motto of the XXI Congress of INCOSAI: "National Audit in the Service of National Governance", ALSAI has aimed to build real partnerships with Government and other institutions through an active and cooperative role in increasing efficiency in the administration of public finances. The ALSAI's activity and contribution, as the responsible institution of external public audit, has been evaluated by international partners, such as the SIGMA-the OECD Program of the European Union and the World Bank, as a determinant factor in increasing accountability in the use of public money. For 2017 ALSAI has continued to contribute as an
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