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Annual Report 2014 MISSION Annual Report 2014 MISSION The Court of Audit informs the public about important audit findings concerning the operations of state bodies and other users of public funds in a timely and objective manner. It provides recommendations to state bodies and other users of public funds for the improvement of their operations. Annual Report 2014 Number: 002-2/2015/6 Ljubljana, September 2015 4 COURT OF AUDIT OF THE REPUBLIC OF SLOVENIA | Annual Report 2014 CONTENTS KEY RESULTS 6 FOREWORD 7 POWERS 9 OBJECTIVES 10 ATTAINMENT OF OBJECTIVES 11 STRATEGIC OBJECTIVE 1 ..................................................................................................................................... 11 TO CONTRIBUTE TO THE IMPROVEMENT OF OPERATIONS OF THE USERS OF PUBLIC FUNDS AND IMPROVE THE QUALITY OF WORK OF THE COURT OF AUDIT ..................................................................... 11 Audits ................................................................................................................................................................... 12 Types of audits ....................................................................................................................................................... 12 Timeliness and quality of audit reports .............................................................................................................. 13 Effects ................................................................................................................................................................... 14 Savings ................................................................................................................................................................... 14 Corrective measures .............................................................................................................................................. 15 More important requests for corrective measures and their implementation ............................................. 26 Recommendations issued ..................................................................................................................................... 34 Other measures ...................................................................................................................................................... 34 Proposals to amend regulations .......................................................................................................................... 34 Criminal offences and misdemeanours .............................................................................................................. 37 STRATEGIC OBJECTIVE 2 ..................................................................................................................................... 37 TO DETECT CHANGES IN A TIMELY MANNER , IDENTIFY THE EMERGING RISKS AND RESPOND THERETO IN GOOD TIME .................................................................................................................................... 37 Timely and relevant reporting ............................................................................................................................. 38 Pre-audit enquiry ................................................................................................................................................... 38 Received initiatives for auditing .......................................................................................................................... 38 STRATEGIC OBJECTIVE 3 ..................................................................................................................................... 41 TO PROVIDE ADVICE TO THE USERS OF PUBLIC FUNDS ................................................................................ 41 To further increase the advisory role of the Court of Audit .......................................................................... 41 Responding to questions ...................................................................................................................................... 42 Education of budget users and other public ..................................................................................................... 42 Trainings for the budget users ............................................................................................................................. 43 STRATEGIC OBJECTIVE 4 ..................................................................................................................................... 45 TO IMPROVE OUTCOMES BY STRENGTHENING COMMUNICATION AND COOPERATION WITH OTHERS 45 Annual Report 2014| COURT OF AUDIT OF THE REPUBLIC OF SLOVENIA 5 Cooperation with the National Assembly of the Republic of Slovenia and the National Council of the Republic of Slovenia ............................................................................................................................................. 45 INTERNATIONAL COOPERATION ....................................................................................................................... 48 Cooperation within the Contact Committee .................................................................................................... 48 Bilateral cooperation ............................................................................................................................................ 48 Cooperation within the V4+2 Group ............................................................................................................... 49 Cooperation within EUROSAI .......................................................................................................................... 49 Cooperation within the INTOSAI and other multilateral organisations and consultations .................... 50 COOPERATION WITH THE MEDIA AND PUBLIC ............................................................................................... 50 Questions posed by journalists and requests for additional explanations ................................................... 51 Press conferences ................................................................................................................................................. 51 Statistical review of published articles in the media ........................................................................................ 52 Publications on the website of the Court of Audit ......................................................................................... 52 STRATEGIC OBJECTIVE 5 ..................................................................................................................................... 52 TO PROVIDE A STIMULATING WORKING ENVIRONMENT ............................................................................. 52 Internal communication ...................................................................................................................................... 53 Education and expert training of employees ................................................................................................... 53 AUDIT FINDINGS 54 OPINIONS EXPRESSED IN AUDIT REPORTS ...................................................................................................... 54 MOST COMMON ERRORS AND IRREGULARITIES ............................................................................................. 56 PRESENTATION OF WORK BY AUDIT DEPARTMENTS AND IMPLEMENTED AUDITS 60 THE FIELD OF THE STATE BUDGET AND DIRECT STATE BUDGET USERS ................................................. 60 AUDITS FROM THE FIELD OF LOCAL COMMUNITIES ...................................................................................... 67 AUDITS OF NON -COMMERCIAL PUBLIC SERVICES AND ASSOCIATIONS ...................................................... 72 AUDITS OF PUBLIC UTILITIES , PRIVATISATION AND ENVIRONMENTAL PROTECTION ........................... 81 PERFORMANCE AUDITS ........................................................................................................................................ 87 SOURCES USED FOR ACHIEVING THE OBJECTIVES 90 FINANCIAL RESOURCES ....................................................................................................................................... 90 BALANCE SHEET .................................................................................................................................................... 95 EMPLOYMENT ........................................................................................................................................................ 97 ATTACHMENT 1: AUDIT AND POST -AUDIT REPORTS ISSUED IN 2014 ......................................................101 ATTACHMENT 2: FINANCIAL STATEMENTS FOR THE YEAR 2014 ..............................................................111 6 COURT OF AUDIT OF THE REPUBLIC OF SLOVENIA | Annual Report 2014 KEY RESULTS 60 AUDIT REPORTS ISSUED (including one summary report) 24 POST-AUDIT REPORTS ISSUED 590 MEASURES IMPLEMENTED DURING AUDIT AND POST-AUDIT PROCEDURES 190 CORRECTIVE MEASURES ASSESSED 142 CORRECTIVE MEASURES ADEQUATELY IMPLEMENTED 180 RECOMMENDATIONS ADVANCED PROVIDED TO USERS OF PUBLIC FUNDS 22 REPORTS DISCUSSED BY THE NATIONAL ASSEMBLY 516 INITIATIVES RECEIVED 175 WRITTEN RESPONSES TO THE QUESTIONS OF USERS OF PUBLIC FUNDS 5,857 MEDIA PUBLICATIONS RELATED TO THE COURT OF AUDIT Annual Report 2014| COURT OF AUDIT OF THE REPUBLIC OF SLOVENIA
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