The Bundesrechnungshof
www.bundesrechnungshof.de
Information at a glance
The Bundesrechnungshof examines federal financial management. Audit missions cover annual federal revenues and expenditures amounting to more than €600 billion. It also reviews social security institutions and the management of government shareholdings in private-sector companies.
The Bundesrechnungshof informs the two Houses of Parliament and the Federal Government about its key findings in its annual report. We report on our audit findings by means of observations in management letters that are addressed to the audited bodies. In addition to auditing, providing advice to government bodies – especially the lower House of Parliament – is a major function of the Bundesrechnungshof.
As an independent body of external auditing it is subject only to the law. No other government institution may instruct it to perform an audit. On the other hand, the Bundesrechnungshof does not evaluate policy decisions made in compliance with applicable legislation.
The Bundesrechnungshof is a supreme federal authority. In the Federal Government structure, the German SAI ranks equal with the Office of the Federal President, the Federal Chancellery and the federal ministries.
The Bundesrechnungshof has some 1,250 staff. The SAI’s headquarters are located in Bonn.
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Address:
Bundesrechnungshof Adenauerallee 81 53113 Bonn Telephone: +49 228 307-0 Facsimile: +49 228 307-2990
Email: [email protected] Internet: www.bundesrechnungshof.de
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CONTENTS
Preface 5
External Auditing Historical background: 300 years of external government auditing 7 Legal status: An institution in a class of its own 11 Mission statement: Values and objectives of government auditing 12 Functions: Auditing and advisory functions 13 Audit procedures: Independent, objective and target-oriented 21 Organisation: How is the Bundesrechnungshof organised? 26 Responsibilities: The responsibilities of the individual divisions 29 Decisions: Who makes what decisions? 35 Staff: Bundesrechnungshof staff 37 Technology: Auditing in the digital age 41 Public relations 43 Petitions: Input from citizens 45 National cooperation: Bundesrechnungshof and the regional audit institutions (RAIs) 47 European cooperation: European Union, European Court of Auditors and EUROSAI 49 International cooperation: INTOSAI, audit mandates and bilateral cooperation 52 The President of the Bundesrechnungshof in his/her capacity as Federal Performance Commissioner 56
Annex Mission statement 63 Organisation chart of the Bundesrechnungshof 66 Presidents of the Bundesrechnungshof 68
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PREFACE
Dear Readers,
Many of you may have heard of the Bundesrechnungshof from the media. Media often focus on seas of criticism or worse, faced by public sector management. However, this distorted picture of our audit findings does not provide a balanced view of our activities. If you look at the Bundesrechnungshof, there is much more than meets the eye.
In accordance with our constitutional mandate, we review federal financial management and report thereon. This means: We look at the entire range of government activities at the federal government level and analyse whether government operations comply with statutory requirements and whether it is efficient and effective. It is our concern whether and how tax money provides best value for money. Furthermore, our audit work helps enhance the transparency of government actions. This again helps to strengthen the confidence citizens place in the government.
In the course of time, the Bundesrechnungshof has become well known by the citizens. However, there remain questions about what our precise functions are, how we work and what impact our work has.
This booklet outlines how the Bundesrechnungshof examines public expenditure and revenue at the federal government level. It shows that auditing represents only a portion of the manifold tasks to be performed by the external audit bodies.
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The Bundesrechnungshof provides advice, on the basis of its audit experience, to Parliament and the Federal Government about major government spending programmes, structural governance matters and proposed legislation. Apart from auditing, the advisory function is an important tool for providing assurance that federal public funds are used efficiently and effectively. This is because modern government auditing is designed to prevent shortcomings or irregularities. Since the Bundesrechnungshof has no powers of enforcement, we need to rely on the persuasive power of our arguments in order to have our recommendations accepted by Parliament and the Government. The fact that Parliament usually endorses our proposals in more than 90 per cent of the cases brought to its attention is ample proof of the soundness of our recommendations.
A sole glance at the figures shows that external audit is worthwhile: The Bundesrechnungshof costs the taxpayer about €150 million, i.e. only about 0.05 per cent of total federal expenditure. In turn, the Bundesrechnungshof’s advice and recommendations result in savings and additional revenue of between €1 billion and €2 billion annually.
However, the figures alone do not tell the full story. Let us suppose that the Bundesrechnungshof did not exist. A major deterrent effect on the federal departments would be lost, i.e. tireless efforts to scrutinise their own actions in accordance with the criteria of efficiency and compliance.
I hope that this booklet will raise your interest in the external audit function at federal government level and help enhance the understanding of the work done by the Bundesrechnungshof.
Kay Scheller President of the Bundesrechnungshof
Bonn, May 2017
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EXTERNAL AUDITING
HISTORICAL BACKGROUND
300 years of external government auditing
In 1714, Prussian King Frederick William I established the first external audit institution
In 1714, the Prussian King Frederick William I founded a “General Chamber of Accounts”, which was renamed the “Superior Chamber of Accounts” in 1744. The Chamber was to function as an independent, collegiate, external audit body, autonomous within the Prussian administration. The Chamber’s task was to audit the state accounts, report on its findings and submit expert opinions on administrative reforms. It originally had its headquarters in Berlin and moved to Potsdam in 1818.
Building of the former Audit Court of the German Reich, today’s branch office of the 7 Bundesrechnungshof in Potsdam
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In 1868, the Prussian Superior Chamber of Accounts was additionally entrusted with auditing the accounts of the North German Federation. In 1871, when it was renamed “Audit Court of the German Reich”, it was also commissioned to audit the accounts of the German Reich. Thus the President of the Reich Court of Audit was ex officio President of the Prussian Superior Chamber of Accounts. The Superior Chamber of Accounts continued to exist as a Prussian audit institution until 1945. However, the Audit Court of the German Reich located at Potsdam ensured the audit of the budget of the entire German Reich between 1871 and 1945.
Establishment of the Bundesrechnungshof on the basis of the Basic Law in 1950
After the end of World War II, the Hamburg Branch Office of the former Reich Court of Audit resumed its activities and continued its work under the name of “Audit Court for Special Tasks”. In 1948, the “Audit Court of the Combined Economic Area” was established in Frankfurt. This was the immediate predecessor of the Bundesrechnungshof. It was assigned the responsibilities and powers of the Audit Court for Special Tasks. After the Basic Law had come into force, it temporarily carried out the responsibilities of the audit office for the Federation. Based on Article 114 of the Basic Law, the Bundesrechnungshof was established in Frankfurt on the Main in 1950. The fact that for the first time ever an independent audit institution was enshrined in the Constitution, underlines the importance attached to external auditing and its continuity also in the Federal Republic of Germany.
As part of the Berlin/Bonn Act, the Bundesrechnungshof’s headquarters were relocated from Frankfurt to Bonn. Since 1 July 2000, the Bundesrechnungshof has been located in the building of the former postal ministry in the Adenauerallee. The Bundesrechnungshof has several branch offices including one in Potsdam which has occupied the building of the former Reich Court of Audit since 1 December 1998.
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Office building of the Bundesrechnungshof in Frankfurt on the Main
Official ceremony “300 years of external government auditing”
November 2014: The Bundesrechnungshof commemorated the establishment of the Prussian General Chamber of Accounts by King Frederick William I in 1714 in a ceremony held at the former Plenary Hall of the German Parliament in Bonn in the presence of the Federal President, representatives from government and administration, the regional audit institutions and numerous European audit institutions. The then Federal President, Joachim Gauck, recognised the Bundesrechnungshof as “a pillar of our state” which is crucial for the balance of powers in the Federal Republic of Germany. “We commemorate an instrument of modern governance, a crucial instrument to ensure transparency and control of the public sector, a key element of our democracy.”
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2017 structural reform
In the course of a structural reform, the Bundesrechnungshof was reorganised. Related fields of activity were merged and better cover major policy areas and challenges of the federal administration that is undergoing constant change.
Office building of the Bundesrechnungshof at its headquarters in Bonn
Between 1998 and 2016, the Bundesrechnungshof had up to nine subordinate field offices which were successor institutions of the former pre-audit offices. On 1 January 2017, the field offices together with their staff were incorporated into the Bundesrechnungshof’s remit. This resulted in a genuine one-level government audit function.
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LEGAL STATUS
An institution of its own kind
The status of external auditing
The German audit institutions provide audit coverage of the overall financial management of federal and regional governments including their off-budget and trading funds. The Bundesrechnungshof is responsible for auditing federal budget funds. The Bundesrechnungshof is an institution of its own kind that is neither part of the legislative, judicial nor executive branches of government. It has an independent status. This is a special feature distinguishing external audit bodies from internal audit bodies. Internal audit bodies are integrated into the institutions they are in charge of auditing.
The Bundesrechnungshof – an independent external audit body
The Bundesrechnungshof is a supreme federal authority. As an independent body of external auditing it is subject only to the law. 11
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In the Federal Government structure, it ranks equal with the Office of the Federal President, the Federal Chancellery and the federal ministries. The status of the Bundesrechnungshof, its Members and its key functions are set forth in the Constitution (Article 114 para 2 of the Basic Law). The Bundesrechnungshof’s structure, the appointment of its Members and the decision-making procedure are detailed in the Bundesrechnungshof Act which is complemented by Standing Orders.
Auditing functions, audit subjects, audit criteria and audit procedures are set forth in the Federal Budget Code (Art. 88 et seq.), in the Budgetary Principles Act (Art. 53 et seq.) and in other legislation, such as the German Railways Reform Act and the Federal Radio and Television Act. Apart from that, the Bundesrechnungshof’s Audit Rules provide for uniform audit criteria and audit procedures governing mission performance by the Bundesrechnungshof and its field offices. Pertinent external audit legislation, regulations and rules are available at www.bundesrechnungshof.de.
MISSION STATEMENT
Values and objectives of government auditing
The mission statement of the Bundesrechnungshof describes the fundamental principles underlying its work and its organisational culture. The statement reflects the objectives and values of the Bundesrechnungshof: Independence, neutrality, objectiveness and credibility. They safeguard and govern its constitutional mandate and are a prerequisite for an effective audit impact. Thus, audit work enhances transparency and sustainability of government action and builds trust of the citizens in the government. You can find the long form text of the mission statement on page 61.
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FUNCTIONS
Auditing and advisory functions
The general public perceives our institution as a body that audits federal departments and agencies and points out cases where money has been wasted or legal requirements have not been complied with. Auditing revenues and expenditures and reporting its findings to Parliament and public is one of our major tasks. In addition to it, we increasingly act as an advisor to federal administration, Federal Government and the two Houses of Parliament.
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By providing advice, the Bundesrechnungshof contributes to efficient federal government operations right from the start, to identifying flawed decisions at an early stage and to eliminating the structural shortcomings beyond the individual case.
The Bundesrechnungshof’s audit mandate includes
The financial management of the Federation and its trust funds (e.g. Federal Railway Assets Fund, Inherited Debt Fund);
Public corporations established under federal law (e.g. the Federal Employment Agency) and the federal companies having this legal form;
Social security institutions established under federal or state laws, receiving grants from the Federal Government or where the Federation has entered into guarantee commitments (e.g. institutions of the German Federal Pension Insurance, Social Insurance for Agriculture, Forestry and Horticulture as well as statutory health insurance funds).
We also audit the management of the Federal Government’s shareholdings in private-law enterprises, e.g. Deutsche Post AG, the Railway Company Deutsche Bahn AG or the German Finance Agency and the transport infrastructure finance company. These financial audits rely on commercial principles as an audit criterion.
We may also carry out examinations of bodies or other third parties outside the federal administration where these receive or manage federal funds (e.g. the constituent states, local authorities, or grantees). We inform the audited bodies, i.e. often the federal government departments, about our audit findings in management letters and reports. We usually carry out more than 1,200 audit missions each year. The audited bodies may comment on the shortcomings found and outline their views on how to address the problems stated.
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Plenary hall of the German Parliament15
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In order to increase the effectiveness of its recommendations, the Bundesrechnungshof regularly enquires at the conclusion of an audit. For this purpose, it asks the audited body to what extent the agreed recommendations have been implemented and demands relevant records where necessary. The information gained during the implementation status query can prompt a report to the German Parliament or result in a follow-up audit.
Reporting
In addition to submitting its audit findings and conclusions to the audited bodies, the Bundesrechnungshof summarises its findings and conclusions in its annual report as far as they can be of importance for granting discharge to the Federal Government (Art. 97 Federal Budget Code). The report is submitted to the two Houses of Parliament and to the Federal Government. Typically, the cases dealt with are of key financial interest or of overarching significance. All annual reports are available at our website (www.bundesrechnungshof.de).
The annual report serves as a preparation for granting discharge to the Federal Government by Parliament. The annual report also highlights saving potentials or options for increasing revenue and where Federal Government can be more effective. The Bundesrechnungshof’s audit recommendations are discussed by the Public Accounts Committee, a sub-committee of the German Parliament’s Budget Committee. Nearly all recommendations are supported by the Committee. The annual report does not only address matters relating to the year for which approval is sought. Most of them deal with topical issues that are still open for remedial action. One example is the Bundesrechnungshof’s presentation of information about trends in federal finance.
Since 2016, the report used has a new format shifting focus on new areas of interest. The annual report is composed of two volumes: Volume I (autumn report) and volume II (spring report).
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The volume I report places focus on audit findings and conclusions to be deliberated in Parliament. The prerequisite is that the federal administration has not accepted the audit recommendations (“controversial issues”). The Bundesrechnungshof presents such cases to Parliament. The recommendations are meant to help enhance government operations, earn additional revenue and avoid unnecessary administrative expenditure. The Lower House of Parliament deliberates and resolves on the recommendations.
The volume II report (spring report), which the Bundesrechnungshof presents each April following the autumn report, highlights additional topical audit findings and conclusions on federal financial management only available after the publication of the autumn report.
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In this manner, these findings can still be taken into account for the decision of granting discharge. Furthermore, the spring report includes audit findings and advisory items where the audited bodies promised to implement our recommendations or have already launched remedial action. The spring report also includes our activity report. The activity report gives an overview of the legal status, the organisational setup and the budget of the Bundesrechnungshof. Moreover, we present our advisory function in more detail and report on our national and international work.
In addition to annual reporting, we may at any time report to the Lower House of Parliament and the Federal Government of matters of particular significance (cf. Art. 99 Federal Budget Code). Case examples include the report on tax relief for household-related services and services of craftspeople pursuant to Art. 35a, Income Tax Act, the report on the reduced VAT rate, proposals for future tax relief arrangements and the special report on “Public contract awarding of construction works and corruption prevention”. The reports on matters of particular significance are also published on the internet (www.bundesrechnungshof.de).
Advice
The Bundesrechnungshof is also authorised to advise the two Houses of Parliament, the Federal Government and individual federal government departments on the basis of its audit findings (Art. 88 para 2 Federal Budget Code). The purpose of this is, in particular, to avoid or mitigate financial losses to the Federal Government, to enhance government performance and to address structural shortcomings.
The Bundesrechnungshof may give advice before final decision-making. Such advice is designed to help prevent shortcomings in federal administration. This may prompt legislators to revise or amend the law.
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The Lower House of Parliament and, above all, its Budget Committee rely on our expertise and advice especially in connection with major legislative projects and government programmes that pose a high risk to value for money. This role has gained in importance and illustrates the priority given by Parliament to our advisory work. In recent years, we advised Parliament for example on the:
Partial flotation of the German railway company Deutsche Bahn AG; Introduction of the toll collection system for lorries; Parent and child treatment under statutory health insurance; Development of the Eurohawk unmanned aircraft system; Implementation of the basic security scheme for jobseekers; Cost and performance accounting systems in federal departments and agencies; Design of implementation structures in the field of bilateral development cooperation; Scope and methodology of efficiency appraisals; Methodology and reliability of tax revenue forecasts; Enforceability of complex tax provisions; Efficiency appraisals with respect to the use of information technology in federal departments and agencies; Issue relating to the stabilisation of financial markets; Railway and urban development project Stuttgart 21; Steps taken to implement energy transition; Loss of audit access by the European Banking Union; Modernisation of the taxation procedure; Consolidation of IT systems within the Federal Government; 2030 Federal Transport Infrastructure Plan; Introduction of a toll collection system for passenger cars (infrastructure charge); National flood protection programme; Forecast of structural maintenance requirements in the construction of federal long-distance roads; Reliance on external consultants in the federal administration.
In certain circumstances we may publish reports submitted to Parliament pursuant to Art. 88 para 2 Federal Budget Code on the internet once Parliament has held a concluding debate and if third parties do not have protectable data privacy interests.
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Audit impact throughout the budget cycle
We provide a special form of advice during the budget preparation stage. It participates in the budget negotiations between the Federal Ministry of Finance and the line departments and provides oral and written testimony to Parliament in the course of preparatory talks with the rapporteurs of the Budget Committee and during that Committee’s later deliberations.
In this role, we provide advice on the basis of lessons learnt from audit work. Rapporteurs are experts who are parliamentarians dealing with the budget estimates of each individual government department. Their results serve as a basis for further deliberations in budget preparation.
The Bundesrechnungshof also advises during budget implementation. Advice targets especially all federal entities responsible for the implementation of the budget but also entities outside the federal government (e.g. regional bodies, urban districts and municipalities) if they manage federal budget funds. In the implementation phase of the budget, audit emphasis is placed on financial management. This includes e.g. audits of tendering procedures of the Federal Armed Forces or the payment of subsidies. Audit findings may lead to adjustments at a stage early enough to become effective during the ongoing financial year. As a result, in many cases inefficient expenditures proposed are cancelled.
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AUDIT PROCEDURES
Independent, objective and target-oriented
The Bundesrechnungshof carries out its audit assignments on a timely basis
We audit receipts, expenditures and commitment authorisations, federal assets and federal debts. In addition, our mandate covers all government programmes that have financial implications even if expenditures have not yet been incurred (such as the contract awarding procedure for a management consultant as part of a privatisation project). Real-time audit work can only step in once a partial or full administrative decision has been made by the body to be audited.
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Particularly large-scale programmes comprise a multitude of individual decisions, any of which may be examined separately. This approach allows us to detect and address shortcomings at an early stage.
Scope and depth of audit work
The Bundesrechnungshof is free to determine the timing and nature of audit work. It may conduct field work. It has the right of full access to any pertinent information, records and vouchers it requires for audit work. The audited bodies are required to answer our questions.
We select audit matters when drawing up annual audit programmes. We set audit priorities and can arrange for sample audits. A major purpose of audit programming is to provide a reliable overview of federal financial management and to avoid any audit gaps to the extent possible. We are free to select audit matters. When selecting a matter, our auditors rely on any information available during audit work but also on petitions from citizens or on issues reported by the media. In addition, audit selection is based on a systematic analysis of audit matters. This includes exploring if audit focus is placed on government programmes of major financial impact or high risk. New developments in particular fields (e.g. spread of digital technology in administrative procedures) are included. Audit requests across party lines submitted by Parliament or parliamentary committees are met to the extent possible.
Regular information and audit access
The Bundesrechnungshof is authorised to demand from all bodies under audit any information or documents that it may consider necessary for audit purposes. It shall be notified whenever the executive branch introduces any regulation, provision or rule having financial implications. This is to ensure that we are kept informed of public sector activities which may warrant immediate attention and may provide an informed opinion. Furthermore, where accounting and auditing issues are involved, the authorities must first consult or seek the Bundesrechnungshof’s approval.
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Regularity, compliance and performance auditing
The Bundesrechnungshof carries out both
compliance audits; and performance audits.
In our compliance audit we examine whether the laws, the budget and pertinent regulations, provisions and rules have been observed. We also include European and international law if applicable.
Performance audits studying the criteria of economy, efficiency and effectiveness are carried out to ensure that good value for money is obtained. It also takes results of task analysis into account. Effectiveness auditing is also of major significance to determine whether the desired objective has actually been achieved and whether adequate programme evaluation has been carried out. This applies particularly to large-scale government programmes or government projects.
Management letters leading to a constructive dialogue with departmental policymakers
The Bundesrechnungshof sets out the audit findings in management letters that are sent to the audited bodies (e.g. federal government departments). These are required to submit their comments on the audit findings and conclusions within a time frame set by the Bundesrechnungshof. After receiving the comments, we acknowledge them and the audit findings are included in the final management letter. As a rule, the report provides the federal administration with recommendations for their actions. Should the Federal Government not accept our recommendations, we may include the audit findings in the procedure for compiling the annual report.
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Budget Committee of the German Parliament
However, the Federal Government often acts our advice and suggestions already in the course of the audit procedure. We appreciate such action but in most cases, it is unspectacular to the wider public.
Where this is deemed necessary for particular reasons, we may communicate our audit findings to other government bodies and the Budget Committee. In addition, key audit findings of a basic nature or having major financial implications are brought to the attention of the Federal Ministry of Finance. Final audit results may also be disclosed to third parties.
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No audit of policy decisions
The Bundesrechnungshof must not judge the merits of policy decisions in accordance with applicable law, but may examine and report on the rationale for and the effects of decisions made. While auditors are not authorised, for example, to second-guess the political expedience of specific subsidies, they may check and report on compliance with applicable laws, regulations and rules and on achievement of the desired impact. However, auditors may not make assessments as to whether any subsidies should be paid or not. We may study and report on whether applicable procedures have been complied with in a case under review and whether the subsidies granted have actually achieved the desired impact. As a result, the federal administration may reconsider its decision.
No powers of enforcement
The Bundesrechnungshof does not have any powers of enforcement. It convinces by the professionality and credibility of its arguments and cannot force the federal administration to take action. However, the federal administration often implements our recommendations. Apart from that the parliamentary Budget Committee and the Public Accounts Committee help ensure that the problems stated in our annual report are effectively addressed. In recent years, these committees endorsed almost all suggestions and recommendations, following deliberations in which the responsible Bundesrechnungshof Members provided testimony.
Government departments, generally represented by the Federal Minister or the Permanent Secretary of State or other senior staff, are held accountable by the Public Accounts Committee for any mismanagement.
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ORGANISATIONAL SETUP
What is the Bundesrechnungshof’s organisational setup?
Currently the Bundesrechnungshof is composed of nine audit divisions and 50 audit units. Another audit division focuses on its international audit work. Internal administrative functions are incumbent on the support division. See our organisation chart on page 64/65.
External audit work is assigned to the various audit divisions and units on the basis of an annual schedule of responsibilities. Each audit division is composed of several audit units. Audit work is allocated to the audit units responsible. Audit units are headed by an audit director.
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The audit units are staffed with auditors and other support staff.
The tasks of an audit unit can refer to a particular organisational unit (e.g. a particular federal government department), to a specific subject (e.g. staff costs) or to governance matters. In addition to that, it is possible to establish a temporary project audit unit for areas of topical importance (e.g. on matters such as refugees and asylum seekers or transport infrastructure projects).
Furthermore, audit groups composed of auditors from various audit units may be formed to deal with special audit missions. Composed of specialists from different audit units, they tackle new audit priorities at short notice. In addition, project teams may be formed for audit missions. This is useful if they come under the audit remit of one panel but at the same time touch on the remits of other audit units. This permits an agile and fast response to changing audit challenges and new priorities within the federal administration.
The schedule of responsibilities ensures full audit coverage
The responsibilities of audit divisions and audit units are set forth in the schedule of responsibilities that determines the allocation of functions within the Bundesrechnungshof.
The schedule is drawn up – in accordance with statutory procedure – by the President in agreement with the standing committee of the Governing Board. For more information on this topic see page 36.
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One major purpose of this procedure is to ensure full audit coverage and avoid any audit gaps to the extent possible. This is why each individual audit unit is assigned a clear remit. They are responsible for the audit of:
Organisational units or legal entities, i.e. government departments or bodies incorporated under federal public law, e.g. the Federal Employment Services Agency; Specified revenues or expenditures across various departments (personnel, public works covering one or more government departments, taxes); Specified funds (ERP Trust Fund).
Furthermore, there are also units in charge of horizontal audit work. These units examine cross-cutting issues beyond organisational units or specific budget items. This applies e.g. to information and communication technology of federal government.
Finally, there are some audit units that deal with legal or management issues such as compiling, drafting and publishing the annual report.
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RESPONSIBILITIES
The responsibilities of the individual divisions
The Presidential Division carries out central management functions for the Bundesrechnungshof as an internal service provider. The Presidential Division also manages the budget of the Bundesrechnungshof. Furthermore, the division is in charge of personnel management, operational organisation and communications technologies. The Division also supports the audit divisions and audit units by providing clerical support and audit staff support through specialized units.
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The President of the Bundesrechnungshof is a Member of the United Nations Board of Auditors. The UN Board of Auditors, International Relations Division supports him in his capacity as Member of the Board and in his international cooperation functions. The unit is also responsible for gaining and accompanying other audit mandates as an external auditor of international and supranational organisations, for working closely with the European and International supreme audit organisations and bilaterally with supreme audit organisations throughout the world.
Division I is in charge of audit guidance, budgetary law and the audit of the annual federal statements. It is also in charge of the strategy and corporate governance of the Bundesrechnungshof. It coordinates and participates in reporting to the two Houses of Parliament and the Federal Government. It is responsible for liaison with Parliament’s Budget Committee and Public Accounts Committee, its sub-committee. Furthermore, the division supports the President of the Bundesrechnungshof in working closely with the regional audit institutions. In addition to issues pertaining to public debt and the stabilisation of financial markets, the division audits the administrative units of the constitutional bodies (Office of the Federal President, the two Houses of Parliament and Federal Constitutional Court) and addresses matters of principle regarding Federal Government’s public relations, the integrity of public services and legislation.
Furthermore, a central specialist unit supports the audit units in connection with issues falling within the remit of the Federal Performance Commissioner, an ex officio capacity of the President of the Bundesrechnungshof. The Division also assists the audit units and the Federal Performance Commissioner in developing and issuing good practice guides. For more information see pages 56–60.
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The audit work of Division II focuses on the government departments for Construction, Environment, Nature Conservation and Nuclear Safety, Foreign Affairs and Economic Cooperation and Development. Furthermore, the division audits federal real estate, Federal Government’s real estate management, the organisations succeeding the former Treuhand trust fund, general services administration and expenditure on goods and services.
Division III audits the Federal Ministry for Economic Affairs and Energy, the Federal Ministry for Education and Research and the Federal Ministry of Food and Agriculture which manage a large portion of federal grants. Furthermore, the Division looks into federal shareholdings in businesses such as the German posts, telecommunications and railway companies and airports. The Division's remit also covers the audit of the German Federal Bank, the federal promotional banks (Reconstruction Loan Corporation and the pension fund for farmers), the Federal Financial Supervisory Authority and other funds such as the ERP Trust Fund and the Federal Railway Assets Fund.
Division IV audits the defence budget. It looks into the civil and military branches of the Federal Armed Forces (Federal Ministry of Defence, defence administration, agencies responsible for military procurement, Army, Navy, Air Force, Joint Support Service, medical service, cyber and information domain). Audit focus is placed on organisational management, human resources, infrastructure and the development, procurement, use and disposal of defence assets including such of Federal Armed Forces IT services.
Audit work of Division V covers the federal transport budget and transport infrastructure. Thus, it looks into federal railways, federal waterways, federal trunk roads, aeronautics and aerospace. The division also covers future mobility matters such as automated and connected driving, alternative drives and fuels. The audit of federal expenditures for the digital infrastructure also falls within its remit, such as broadband deployment. The audit scope encompasses the Federal Ministry of Transport and Digital Infrastructure and its subordinate bodies.
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Audit coverage includes federal shareholdings in private sector enterprises that are active in this transportation field. The Division’s remit also includes matters of principle relating to contract awarding law, efficiency, public-private partnerships and their sustainability. The reorganisation of federal trunk road management is accompanied by an audit project.
Division VI audits the budgets of the Federal Ministry of Labour and Social Affairs, the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth and the Federal Institute for Employment. The major issues to be addressed in these fields include the basic security benefits for jobseekers, employment promotion and participation in working life, social support grants such as the basic security benefits for senior citizens
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and pensions for beneficiaries with reduced earning capacity, and social compensation benefits. The Division also focuses on audit work carried out on a government-wide basis to cover human resources and staff expenditure.
The audit focus of Division VII lies on home affairs and internal security. The Division scrutinises the financial management of the Federal Ministry of the Interior as well as the Federal Ministry's portfolio and services (e.g. protection of the constitution). In addition, it audits the Federal Chancellery and its services. Another audit focus is on communications technologies and digital data processing. The division also examines Federal Government’s IT and network policy as well as network consolidation projects. Information and communications technologies are audited on a government-wide basis. Issues related to organisational management are also subject to horizontal audits. In order to be able to set a temporary audit focus, Division VII established a project audit unit. As from 2017, this unit will carry out horizontal audits on measures taken by Federal Government regarding refugees and asylum seekers. This includes an exchange of information between the project group on “refugees and asylum seekers” and the regional audit institutions.
Division VIII is in charge of the audit of the budget of the Federal Ministry of Finance, issues relating to the European Union, customs duties and tax revenue of some €600 billion annually (half of which is federal tax revenue). The major portion of federal revenues thus falls into its remit. Such revenues encompass Federal Government’s share in common taxes of Federal Government and Federal States (income tax, corporate income tax and turnover tax) and all federal taxes (e.g. energy tax, motor vehicle tax and insurance tax). The fact that 90 per cent of federal expenditure is funded from tax revenue clearly shows the importance of auditing federal revenues.
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Division IX audits the Federal Ministry of Health and its subordinate agencies as well as social security institutions. It is mainly concerned with the statutory health insurance system, pension scheme and accident insurance including rehabilitation. In addition, the Division is responsible for auditing restitution payments made by Federal Government pursuant to various legal provisions.
For a detailed overview of the Bundesrechnungshof’s allocation of tasks, see organisation chart on pages 64/65.
2017 structural reorganisation
As of 1 January 2017, the Bundesrechnungshof was reorganised: The “BRH 2017” reform dissolved the previously autonomous regional offices and incorporated them into the Bundesrechnungshof. The number of audit divisions and audit units remained unchanged. Thus, one hierarchy level was abolished. At the same time, the organisational structures of the Bundesrechnungshof were overhauled. The divisions are more aligned with essential policy areas than before. As a response to new and complex areas of activity of the federal administration, project audit units can now be established speedily. Overlaps were reduced by merging associated fields of activity. Basic responsibilities for overarching issues were also adapted to current developments.
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DECISION-MAKING
Who makes what decisions?
Decision-making by panels
Decisions relating to audit work are generally made by panels of Bundesrechnungshof Members. As a rule, a panel is made up of two, i.e. the senior audit director and the audit director. Panels of three Members including either the President or the Vice-President may also be formed. 35
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If a panel cannot agree on a particular point, it is incumbent on either the respective divisional board or the Governing Board of the Bundesrechnungshof to decide. Certain types of decisions, e.g. on what items should be included in the annual report or in special reports pursuant to Art. 99 Federal Budget Code, are reserved to the Governing Board.
The Governing Board is the supreme decision-making body
The Governing Board is the Bundesrechnungshof’s supreme decision- making body. It is composed of up to 16 Members: President, Vice- President, all nine senior audit directors, three audit directors and two rapporteurs. The Governing Board may set up committees. The most important committee is the standing committee. The standing committee participates in decision-making on the allocation of audit assignments within the Bundesrechnungshof. These functions are set forth in the Bundesrechnungshof Act.
Presidential Division and external representation
The President is the head of the Presidential Division. As a support division, the Presidential Division is structured hierarchically in difference to the audit units that are governed by the collegiate system. Thus, the President decides on how to perform the support for the overall remit of the Bundesrechnungshof. At the same time, the President represents our institution externally – at national and international level – assisted by the Members (Art. 6, para. 2.1 Bundesrechnungshof Act).
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STAFF
Bundesrechnungshof staff
Our staff is made up of Members (President, Vice-President, Senior Audit Directors and Audit Directors), audit managers, auditors and support staff. The Bundesrechnungshof has a total of 1,200 posts.
The Members are civil servants but independent both personally and in respect of the performance of their duties. The regulations on independence and disciplinary measures within the supreme federal judiciary are applied to the Members of the Bundesrechnungshof.
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A wide range of professional qualifications
Audit work covers a wide range of functions, going far beyond mere routine business and leaving much room for initiative. Auditors must assess all the activities of each audited body and cover their whole range of functions: from the management’s planning decision to mission performance in the individual offices, while not forgetting the overall context. Such work does not only require analytical thinking and a creative mind, but also a sufficient degree of flexibility to adjust to changing audit environments and familiarise oneself with new audit issues. Based on an ideally broad track record, specific knowledge for audit projects is continuously updated. People interested in audit work should already have gained experience in the public or private-sector management. New entrants need to be aware of the fact that external auditing is a highly demanding job differing largely from other operational tasks of authorities off the track.
Either the President or the Vice-President and at least one third of the Members must be qualified to hold judicial office, i.e. they need to have passed the second state examination in law and served as a lawyer.
Members and auditors are university and polytechnic graduates, or have a higher technical college education. In addition to auditors with a law background, the Bundesrechnungshof employs business and economics graduates and graduate engineers specialised in various fields, e.g. building construction, civil or mechanical engineering, telecommunications, electrical engineering or information technology. Furthermore, social scientists, statisticians, financial mathematicians, technicians, physicists and psychologists work for the Bundesrechnungshof. Higher technical college graduates are recruited from various special branches of the public service, ranging from tax or customs administration and social security to environmental administration.
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Staff of the Presidential Division
The staff of the Presidential Division ensure a smooth running of management procedures, attend to the personal needs of staff and help enhance working conditions for audit staff. The division is composed of several service units. The work requires a high degree of job proficiency and skills often gained in other public sector bodies in the fields of personnel management, budgeting and organisational procedures, information technology or public sector management. The Bundesrechnungshof is committed to using advanced steering tools and controlling to optimise management practices and procedures.
Audit staff
To a large extent, auditors enjoy independence in the performance of their work, in particular where their audit mission requires audit teams to do field work. The proper handling of audit problems requires flexibility and intuition and a good professional and general background. Candidates who have passed their examinations with distinction and whose service appraisals are good or excellent have a good chance of being employed by the Bundesrechnungshof.
Audit Directors and Senior Audit Directors
Both Senior Audit Directors and Audit Directors are responsible for mission performance of the audit units. Under the panel structure of the Bundesrechnungshof they make the pertinent decisions regarding audit design, the conduct of an audit exercise and reporting on the audit findings. They may also involve the President or the Vice- President in decision-making.
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The audit units are headed by Audit Directors. These participate in field work and inform the other Members of matters of general or major significance.
President and Vice-President
Upon the proposal of the Federal Government, both the President and the Vice-President of the Bundesrechnungshof are elected by the two Houses of Parliament and appointed by the President of the Federal Republic of Germany for terms of twelve years. The President’s mandates are not renewable and tenure of office must not extend beyond the statutory retirement age for civil servants of the Federation.
The President is the head of the Bundesrechnungshof as a supreme federal authority. In this capacity, he/she is the superior of all staff and represents the Bundesrechnungshof externally. He/she bears the overall responsibility for mission performance ensuring the consistency of the principles underlying its decisions. He/she arranges for due priority- setting. He/she chairs the Governing Board and may chair the divisional boards under his/her jurisdiction as agreed between him/her and the Vice-President. In the latter capacity the President may join decision- making of the panels concerned. The other Members of the Bundesrechnungshof are appointed upon his/her proposal. He/she nominates them after consultation with the standing committee of the Governing Board. Apart from that, the President also serves as Federal Performance Commissioner. For details on this function, please refer to pages 56-57.
The Vice-President deputises for the President. He/she joins decision- making in those panels and divisional boards for which he/she is answerable under the general schedule of responsibilities. In addition, the Vice-President may take the chair of a divisional board and also chairs the Governing Board’s standing committee.
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TECHNOLOGY
Auditing in the digital age
IT technologies and systems are used both for purposes of general office communication and in audit work. In addition to an IT audit planning and managing system, our audit staff relies on various workflow procedures and advanced communications technology. They can use mobile technology and also access their data when they are in the field. An electronic file is developed step by step at the Bundesrechnungshof. The auditors also need to master the technology used in the bodies under audit. Today it goes without saying that auditors are familiar with enterprise resource planning (ERP) systems (e.g. MACH, SAP and others).
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They are capable of filtering and analysing information managed in these systems. Unlike in times of exclusive paper files supported work, today they analyse an increased number of digital information (e.g. digital file, database information) in their audit work. Auditors often already digitise paper-based information during their fieldwork in order to be able to store them ready for use by means of protected data carriers.
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PUBLIC RELATIONS
Public relations of the Bundesrechnungshof
Audit findings that the Bundesrechnungshof has presented to the Federal Parliament as part of the discharge procedure are published as a parliamentary paper and by the Bundesrechnungshof as its annual report. The President of the Bundesrechnungshof presents them to the public at a press conference. The annual report sets forth the audit findings that may be relevant for granting discharge to the government. Apart from the two Houses of Parliament the Federal Government also receives the annual report. The report is presented to the three bodies at the same time and is published as a parliamentary paper on the website of the Bundesrechnungshof after its communication to the recipients mentioned above.
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The Bundesrechnungshof informs the responsible departments about its audit findings in final management letters.
Apart from annual reporting, the Bundesrechnungshof may at any time report to the two Houses of Parliament and to the Federal Government on matters of major importance. These special purpose reports are also disclosed to the public (www.bundesrechnungshof.de).
The Bundesrechnungshof may publish advisory reports submitted to Parliament pursuant to Art. 88 para. 2 Federal Budget Code once Parliament has had a concluding debate on them and if third parties do not have data privacy interests worth being protected.
The Bundesrechnungshof may issue and publish its final audit findings where this is compatible with the protection of private and public data privacy interests. In this way, administrative action becomes transparent for Parliament, citizens and the press.
The Bundesrechnungshof does not disclose preliminary audit findings from ongoing audit work to protect the secrecy of procedure. Furthermore, it does not make any substantive statements on the matter under audit. At the request of the media, the Bundesrechnungshof may, however, inform the media on the status of the relevant audit mission. For more information on external auditing, the tasks of the Bundesrechnungshof, its status and organisational setup, please refer to our website www.bundesrechnungshof.de. The website sorts the audit findings according to subject, to publication method and to audited entity. There is also a database available for a targeted search. We will be pleased to welcome visitor groups to provide you directly with information on our tasks and results.
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PETITIONS
Input from citizens
Each year the Bundesrechnungshof receives a large number of letters, emails and telephone calls from taxpayers, private sector businesses or other bodies that inform us of shortcomings in public sector management from their point of view. When they request us to look into the matter concerned they often also request to be informed of any audit findings generated in their field of interest.
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The petitions are passed on to the relevant audit units that look into the audit evidence supplied which is often very useful and they include the findings generated into their audit work to the extent possible. In many cases petitions may lead to audit findings that are featured in the Bundesrechnungshof’s annual report.
All petitioners can rest assured that their audit requests are duly considered and taken up to the extent possible. On the other hand the Bundesrechnungshof does not have the duty to look into every audit request as this would be incompatible with its independence. Furthermore, its resources are limited and it has to set audit priorities.
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NATIONAL COOPERATION
The Bundesrechnungshof and the regional audit institutions
The Bundesrechnungshof and the audit institutions of the sixteen constituent states of the Federal Republic are autonomous and independent bodies of external auditing. This fact precludes any subordination to one another. Nevertheless, the fiscal systems of the Federation and of the states are largely intertwined so that close cooperation is needed. Applicable budgetary law is widely identical at federal and state level. A number of programmes are funded jointly by the Federal Government and the states, e.g. the promotion of non- university research, improvement of coastal defences or welfare benefits
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such as tenants’ relief. In addition to this, a multitude of tasks has been delegated to the states by the Federal Government, e.g. road works or tax administration. State revenue authorities manage turnover tax, income tax and corporation tax on behalf of the Federal Government. These high-yielding tax revenues are shared inflows to the credit of both the Federation and the states. Where the Bundesrechnungshof and any regional audit institution share auditing responsibilities, they may perform joint audits, or they may agree to delegate audit functions.
The Presidents of the Bundesrechnungshof and of the regional audit institutions meet at a conference twice a year to discuss issues of common interest and – where useful and necessary – to develop common positions of all German audit institutions. Preparatory talks are held in working groups set up by the audit institutions to deal with budgetary law or matters of general policy and guidance, taxation, public works, organisation and information technology, economics and government shareholdings.
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EUROPEAN COOPERATION
European Union, European Court of Auditors and EUROSAI
Continued European integration is reflected by closer cooperation efforts in the field of external auditing. We therefore work closely with other European Supreme Audit Institutions (SAIs) at different levels: within the Contact Committee, with the European Court of Auditors, within the scope of EUROSAI and bilaterally within the scope of projects to strengthen other SAIs (e.g. by means of EU twinning projects).
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Contact Committee
Already since the 1960’s, the SAIs of the EU member states have cooperated in a spirit of mutual trust while maintaining their independence. An institutional framework for cooperation is provided by the annual conference of the heads of all Supreme Audit Institutions within the European Union and the European Court of Auditors (ECA) – the Contact Committee. The Committee provides a forum for sharing opinions and experience about fundamental and current issues of external auditing in the European Union.
In addition to addressing specific questions on joint or parallel audit missions, the Contact Committee also establishes working groups on issues of key importance. The Bundesrechnungshof is actively involved in the activities of these working groups through its relevant audit units. We have chaired the working group on structural funds for more than ten years. One of the objectives of our participation in the working group on value-added tax is to help control value-added tax fraud in cross-border transactions. In addition, the Bundesrechnungshof is a member of the working group on Public Procurement / Public Procurement Updating Group, the task forces on Public Sector Accounting Standards for European Member States (EPSAS) and on the Banking Union.
Cooperation with the European Court of Auditors
The European Court of Auditors (ECA), which has its headquarters in Luxembourg, has the status of an EU institution. The ECA examines the accounts of all receipts and expenditures of the European Union and the institutions established by it. In doing so, the ECA assists the European Parliament and the Council in exercising their powers of political control over EU budget implementation.
According to the European treaties, the ECA and the national audit bodies cooperate in a spirit of trust while maintaining their independence. The intertwining of EU law and national law and of EU and national management of EU funds creates a high potential for cooperative action. The ECA notifies the Bundesrechnungshof well in
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Liaison with EUROSAI
The European Organisation of Supreme Audit Institution (EUROSAI)1 is one of INTOSAI’s2 seven regional working groups. One of its key objectives is to promote professional and technical understanding and cooperation among member institutions of EUROSAI by sharing knowledge and experience on external audit. EUROSAI’s 50 members throughout the European continent – from Iceland to Israel and from Portugal to Kazakhstan – have diverse historical and government backgrounds (including the European Union member states, Central and Eastern European countries and the Community of Independent States) and are organised in various public sector audit systems. This large diversity contributes significantly to a fruitful exchange and thus to further developing the external audit function in Europe.
1 European Organisation of Supreme Audit Institutions, further information is available at: www.eurosai.org. 2 International Organization of Supreme Audit Institutions, further information is available at: www.intosai.org.
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INTERNATIONAL COOPERATION
INTOSAI, audit mandates and bilateral cooperation
As a result of increasing globalisation, new challenges have emerged for the external audit function. The Bundesrechnungshof is also involved in non-European international cooperation in a number of ways: as member of INTOSAI, by performing audit mandates at international organisations and on a bilateral basis.
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Cooperation with INTOSAI
The Bundesrechnungshof is a member of INTOSAI. Members of this organisation are the SAIs of the member states of the United Nations (currently 192 full members and 5 associated members). Strengthening independence and professionalism of the external audit function are key priorities of INTOSAI. It also promotes the international exchange of ideas and experience in the field of external auditing.
Since the adoption of the United Nations Sustainable Development Goals, INTOSAI has also strengthened the role of audit institutions in implementing these goals.
INTOSAI supports supreme audit institutions by means of International Standards of Supreme Audit Institutions (ISSAIs). This framework of professional standards comprises the prerequisites for the proper functioning and professional conduct of SAIs. Although these standards are not binding for INTOSAI members, they reflect the general consensus achieved about best practice. They are applied e.g. when performing audit missions at international and supranational organisations. The Bundesrechnungshof is a member in a number of INTOSAI committees and has been involved in preparing and refining several ISSAIs.
Audit mandates at international and supranational organisations
International organisations are financed from the national budgets of their member states. Germany is a member of more than 200 international organisations and almost always counts among the major contributors.
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Our findings suggest that the annual total volume of German contributions for international organisations amounts to approx. €5 billion. INTOSAI’s international standards recommend an independent external audit of international organisations by the SAIs of the member states. For many years, the Bundesrechnungshof has held mandates as external auditor of international organisations. In 2017, the President of the Bundesrechnungshof serves, inter alia, as External Auditor of the European Organisation for the Exploitation of Meteorological Satellites (EUMETSAT), the United Nations Industrial Development Organisation (UNIDO) and the World Trade Organisation (WTO).
The President of the Bundesrechnungshof has been appointed member of the United Nations Board of Auditors for a term of six years as of 1 July 2016. The Board of Auditors audits and certifies the financial statements of more than 20 United Nations organisations and peacekeeping missions. The Board also reports on management issues within the United Nations. As of 2017, in addition to the Bundesrechnungshof, the Board of Auditors currently comprises the SAIs of Tanzania and India (chair). Our audit portfolio includes but is not limited to five peacekeeping missions and the Office of the United Nations High Commissioner for Refugees (UNHCR), the United Nations Office on Drugs and Crime (UNODC) and the United Nations University (UNU).
Bilateral cooperation
The Bundesrechnungshof bilaterally provides professional expertise in the field of development cooperation of the Federal Government. In cooperation with the German Society for International Cooperation (GIZ), we provide consultation and training as long- term or short-term experts to support SAIs to build up and develop capacities.
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Furthermore, the Bundesrechnungshof has conducted peer reviews3 at the request of other SAIs in recent years, e.g. the SAIs of Switzerland, Austria and the European Court of Auditors. Moreover, we offer study visits and internships at the Bundesrechnungshof for staff of SAIs.
We work closely with a number of SAIs, sharing ideas and experience by means of e.g. parallel audits, joint seminars and workshops, discussion contacts both at top management and working level as well as staff exchanges.
Further information
Further information on the Bundesrechnungshof and the results of activities is available at our homepage: www.bundesrechnungshof.de
3 A peer review is a modern quality assurance tool. It is a review conducted by independent and external experts of the same area of expertise. The International Standards of Supreme Audit Institutions encourage audit institutions to conduct international peer reviews. They enable supreme audit institutions to obtain a voluntary evaluation of their mission performance of tasks based on international standards.
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FEDERAL PERFORMANCE COMMISSIONER
The President of the Bundesrechnungshof in his/her ex officio capacity as Federal Performance Commissioner
Since 1952, the Bundesrechnungshof’s President has also served as Federal Performance Commissioner. Under the Federal Government’s working guidelines as revised on 8 June 2016, the Commissioner puts forward proposals, recommendations, reports and opinions in order to enhance the efficiency of the federal administration including its off- budget funds. The Commissioner may also advise Parliament at its request.
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Since 2013, the Federal Performance Commissioner has published “Good Practice Guides Developed by the External Audit Function” on the web pages. These are based on fundamental findings developed by the Bundesrechnungshof on various aspects of government operations (e.g. in the fields of human resources management, government grants or procurement). The purpose is to make a clear overview of these findings available to public managers and thereby to contribute to avoiding “typical errors” in the future. The Good Practice Guides are structured along issue areas. New Guides will be added on a case-by-case basis.
During the past years, the Commissioner also issued quite a number of opinions on public sector performance and structural or operational organisation matters. Some of these refer to individual authorities or to non-federal bodies administering federal funds, whilst others dealt with government-wide or cross-sectional issues.
In 1987, the Federal Commissioner began publishing studies of general interest to make expertise available to a broader public. They are published by W. Kohlhammer, Stuttgart. So far, the following titles have been published in German:
Volume 1:Personal- und Organisationsaufgaben in der öffentlichen Verwaltung am Beispiel oberster Bundesbehörden Staffing and organisational requirements at supreme federal authorities 2nd edition, 1988; ISBN 3-17-010448-9 (exhausted)
Volume 2:Erfolgskontrolle finanzwirksamer Maßnahmen in der öffentlichen Verwaltung
Effectiveness audit of administrative programmes having financial impact
2nd revised edition, 1998; ISBN 3-17-015630-6
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Volume 3: Datenverarbeitung in der Bundesverwaltung Information technology at federal government departments; Potential risks and shortcomings 2nd edition, 1993; ISBN 3-17-011879-X
Volume 4: Typische Mängel bei der Ermittlung des Personalbedarfs in der Bundesverwaltung Typical shortcomings in the assessment of staffing needs at federal government departments 2nd edition, 1993; ISBN 3-17-012647-4
Volume 5: Datenverarbeitung in der Bundesverwaltung II Information technology at federal government departments: Audit guidance issued by the Bundesrechnungshof and the State Courts of Audit 1993; ISBN 3-17-012820-5
Volume 6:Beamte oder Arbeitnehmer Civil servants or salaried employees? Comparative study on the financial impact of employment as civil servants or salaried employees in the Federal Public Service 1996; ISBN 3-17-014821-4
Volume 7: Hochbau des Bundes – Wirtschaftlichkeit bei Baumaßnahmen Efficiency and effectiveness of Federal Public Works; Recommendations for designing and implementing federal public works programmes in an economic, efficient and effective manner 2nd edition, 2003; ISBN 3-17-017994-2
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Volume 8:Organisation des gesundheitlichen Verbraucherschutzes Structural and procedural organisation of food safety and inspection 2001; ISBN 3-17-017198-4
Volume 9: Finanzbeziehungen zwischen Bund und Ländern Joint funding programmes in the federal government system 2002; ISBN 3-17-017993-4
Volume 10: Prüfung der Vergabe und Bewirtschaftung von Zuwendungen Audit of grant allocation and management; Typical errors and shortcomings 2nd revised edition, 2016; ISBN 978-3-17-031487-0
Volume 11: Bundesfernstraßen – Planen, Bauen und Betreiben Planning, construction and operation of federal long- distance roads 2004; ISBN 3-17-018757-0
Volume 12: Zuwendungen des Bundes für Hochbaumaßnahmen Federal grants towards construction projects; Recommendations for the efficient use of federal grants 2005; ISBN 3-17-019339-2
Volume 13: Probleme beim Vollzug der Steuergesetze Problems with the execution of tax laws in Germany 2006; ISBN 3-17-019670-42006-4
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Volume 14: Einsatz externer Berater in der Bundesverwaltung Reliance on external consultants by federal government departments 2006; ISBN 3-17-019783-1
Volume 15: Maßnahmen zur Verbesserung der Rechtsetzung und der Pflege des Normenbestandes Steps taken to enhance regulation and improve legislation in place 2010; ISBN 978-3-17-021853-6
Volume 16: Organisation des gesundheitlichen Verbraucherschutzes System for health and consumer protection 2012; ISBN 978-3-17-022395-0
Volume 17: Chancen zur Sicherung des Umsatzsteueraufkommens Options for securing VAT revenues 2013; ISBN 978-3-17-023678-3
Volume 18: Anforderungen an Wirtschaftlichkeitsuntersuchungen finanzwirksamer Maßnahmen nach § 7 Bundeshaushaltsordnung Requirements for efficiency appraisals of programmes having a major financial impact 2013; ISBN 978-3-17-023679-0
Volume 19: Verfahren der internen und externen Personalauswahl in der Bundesverwaltung In-house and external staff selection by federal government departments 2014; ISBN: 978-3-17-025978-2
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Volume 20: Organisationsformen und Finanzierungsvarianten für die Bundesfernstraßen Organisational forms and financing options for federal trunk roads 2017; ISBN 978-3-17-033206-5
Special editions
Finanzbeziehungen zwischen Bund und Ländern BWV-Bericht vom Januar 2015 Joint funding programmes in the federal government system Commissioner’s Report dated January 2015
Kostenmanagement im Bundesfernstraßenbau BWV-Gutachten vom 14. April 2014 Cost management in the construction of federal long-distance roads Commissioner’s Opinion dated 14 April 2014
Chancen zur Entlastung und Modernisierung des Bundeshaushalts BWV-Bericht vom 23. November 2009 Options for reducing federal budget expenditure and modernising the budget Commissioner’s Report dated 23 November 2009
Öffentlich Private Partnerschaften (ÖPP) im Bundesfernstraßenbau BWV-Gutachten von Januar 2009 Public-Private Partnerships (PPP) in the construction of federal long-distance roads Commissioner’s Opinion dated January 2009
Die Postreform – Eine Rückschau BWV-Bericht von Dezember 2008 Seen in retrospect: Restructuring of the postal and telecommunications services in Germany Commissioner’s Report dated December 2008 61
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Opinion of Second German Commission on Federal Reform Modernisierung der Verwaltungsbeziehungen von Bund und Ländern BWV-Gutachten von Oktober 2007, ISBN 3-020326-6 Modernising relations between the Federal Government and Germany’s constituent states Commissioner’s Opinion dated October 2007 ISBN 3-020326-6
Eckpunkte für den wirtschaftlichen Einsatz externer Berater Zusammenfassung vom 29. Januar 2007 aus Band 14 der BWV-Schriftenreihe Key points for the efficient use of external consultants Summary dated 29 January 2007 of volume 14 of the series of publications of the Federal Performance Commission
Neuordnung der Verwaltung im Bundesfernstraßenbau BWV-Gutachten vom 11. Oktober 2004 Administrative restructuring in the field of construction of federal long-distance roads Commissioner’s Opinion dated 11 October 2004
Wirtschaftlichkeit der Vergabe an Billigstbieter im Bereich des Bundesfernstraßenbaus und der Bundeshochbauten BWV-Gutachten vom 18. Juni 2003 Cost effectiveness of awarding roadworks contracts to tenderers submitting very cheap bids Commissioner’s Opinion dated 18 June 2003
Book commemorating the 50th anniversary of the establishment of the Federal Performance Commissioner Function 2002, ISBN 3-17-017686-2
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ANNEX
MISSION STATEMENT
The mission statement sets out the fundamental principles underlying the German SAI’s work and reflects our organisational culture. The statement conveys the objectives and values which determine external auditing: Independence, neutrality, objectivity and credibility. They guarantee and govern our constitutional mandate and are a prerequisite for audit impact. Thus, the external audit function increases transparency and sustainability of government actions and builds the trust of citizens in the government.
Mission statement
Preface
The mission statement sets out the values that govern the conduct of all our staff. This statement encompasses the fundamental principles underlying the German SAI’s work. The skills and performance of each staff member helps us make our work a success. We combine our efforts to accomplish our goals. Employee relations are based upon mutual understanding, respect and openness. We consider our independence and audit mandate as inviolable.
Our mission
As an independent institution of government audit the German SAI is subject exclusively to the law. In our audits of federal financial management we make reasonable use of our independent status and audit mandate.
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We are objective and impartial in all that we do. Through our audit and advisory work, we support German Parliament, Federal Government and federal administration. We are aware of our responsibility vis-à-vis Parliament and the public. Our audit and advisory work is to contribute to obtaining best value for the taxpayers’ money and to make our actions transparent. This will strengthen the confidence citizens place in the government. The quality of our audit products has a decisive impact on how our audit work is recognised by our stakeholders.
Our external relations
It is our task to further enhance the high reputation of external audit. We recognise the work done by the audited bodies. We rely on the strength of our audit findings. We consider our recommendations as constructive feedback. We follow up on our recommendations seeking to ensure the sustainability of our audit work. We share information and lessons learnt with national and international partners. We take seriously the expectation of the public and the media that we keep them fully informed about our work and audit findings. We are committed to the requirement of transparency. However, we take regard to the protection of privacy rights and public interests. We use clear and concise language to present our audit conclusions and recommendations.
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Our approach
We have a common mission. All of us contribute to performing our mission. We respond flexibly to new challenges posed by the federal administration. Our work focuses on identifying potentials for improvement, weaknesses and mismanagement to make proposals for addressing the shortcomings found. We conduct our audit work free from bias. We welcome ideas and suggestions for improvement. We keep reflecting on the merits of our methodology and adapt it accordingly.
Working together
We treat each other in an appreciating, fair and balanced manner. We act with integrity in everything we do. We welcome appropriate constructive feedback. We communicate with each other openly and honestly. Leaders have a specific responsibility: We lead our staff in a participatory, supportive and results-oriented manner. We recognise good performance and commitment to improve. We give due regard to the needs and interests of various groups of staff and do not treat any of them unfairly. We consider capacity building and professional development of our staff as an investment in the future.
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ORGANISATION CHART OF THE BUNDESRECHNUNGSHOF
Mailing address Bonn Potsdam Branch Offices Postfach 12 06 03 Postfach 60 02 65 Berlin President 53048 Bonn 14402 Potsdam Frankfurt Internal Audit Hamburg Delivery address Adenauerallee 81 Dortustraße 30–34 Hanover Kay Scheller 53113 Bonn 14467 Potsdam Koblenz Munich Stuttgart Direct telephone 0228 307 721- Privacy and Data Vice-President Protection or switchboard 0228 307 721-0 Fax 0228 307 721-2990 Commissioner Website www.bundesrechnungshof.de as of Christian Email [email protected] January 2017 Ahrendt
UNBoard of Auditors, international Division III Division I Division II Support Division relations Division IV
National economy; Director of External Audit Corporate services; Public works; environment; Secretary General research; food safety; Defence constitutional bodies real estate; foreign affairs federal shareholdings; banking institutions New York
International relations services Audit unit I 1 Audit unit IV 1 Audit unit II 1 Audit unit III 1 Pr/Org-ID International relations; Reporting; corporate Civilian branches; budget language services; Environment; nature Economic economy and Management and general services; Public Accounts issues; defence UN BoA back office; conservation; building and nuclear energy security; services Committee international audit mandates safety guarantees Bonn
UN Board of Auditors Team 1: Audit unit I 2 Audit unit II 2 Audit unit IV 2 Audit unit III 2 Pr/P Deputy Audit Director Financial rules and regulations; Foreign affairs; international Navy; Federal Office of federal finance; organisational Education and research Human resources services organisations and institutions Equipment; Information New York management of the German Technology and In-Service SAI; Federal Performance Support of the Federal Commissioner support unit Armed Forces UN Board of Auditors Team 2: Audit unit I 3 Audit unit IV 3 Senior Audit Manager Pr/R-H Audit unit II 3 Legislative bodies; Federal Audit unit III 3 Cyber and information Press Office; political Legal and budgetary services; Potsdam Economic cooperation and domain; information foundations; Budget Food safety and agriculture controlling and health care development technology and Committee liaison benefits communications of the Federal Armed Forces; joint support UN Board of Auditors service Team 3:
Senior Audit Manager
Bonn Audit unit I 4 Audit unit III 4 Pr/IT Audit unit IV 4 Audit unit II 4
Federal debt; financial Government Information technology and Army; health service; market stabilisation; Public building construction shareholdings; communications services defence vehicles; UN Board of Auditors accounting standards foundations; companies logistics Team 4: succeeding the traditional Post Office Senior Audit Manager
Potsdam Audit unit I 5
Office of Federal President; Audit unit III 5 Audit unit IV 5 Pr/Presse judiciary and consumer Audit unit II 5
protection; Federal UN Board of Auditors Banking institutions; Air Force; aircraft; NATO; Public information services Team 5: Constitutional Court; Public building construction off-budget funds pricing law integrity; administrative Senior Audit Manager procedures and fees; legislation Bonn
Audit unit II 6
UN Board of Auditors Audit unit I 6 Federal buildings; Audit unit III 6 Team 6: organisations succeeding
Treuhandanstalt; management Senior Audit Manager Annual audit of the federal Deutsche Bahn AG; financial statements of federal real estate; Federal Railway Assets departmental governance; Fund Bonn general administrative expenditure
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Chairperson of Staff Council
Spokesman for Disabled People President’s Office Commissioner for Gender Equality
Corruption Prevention Officer
Youth and Apprentices Officer
Spokesperson
Division VI Division VII Division VIII Division IX Division V
Employment; social security; Home affairs; IT; Federal Ministry of Public health; pensions; Transport; infrastructure expenditure on staff organisational management Finance; taxes; rehabilitation; long-term care customs and EU insurance
Audit unit VI 1 Audit unit V 1 Audit unit VII 1 Audit unit IX 1 Audit unit VIII 1 Federal Employment Transport and digital Agency Federal Chancellery; cultural Statutory health insurance Federal Ministry of infrastructure (organisation/staff/budg affairs; internal security; (benefits law); long-term care Finance; EU matters et); employment and intelligence services insurance; public health social security
Audit unit VI 2
Audit unit VII 2 Audit unit VIII 2 Audit unit IX 2 Audit unit V 2 Family, senior citizens,
women and youth; social Home Indirect taxes Statutory Railway infrastructure support grants; social affairs pension benefits compensation
Audit unit VI 3 Audit unit IX 3 Audit unit VII 3 Audit unit VIII 3 Audit unit V 3 Rehabilitation; IT consolidation; cyber network Direct taxes Road works I Jobseekers’ pay for a social support security and digital broadcasting living grants
Audit unit IX 4 Audit unit VI 4 Audit unit VII 4 Audit unit VIII 4 Audit unit V 4 Social security accounting; Employment promotion; Information Procedural tax law; horizontal statutory health insurance wage compensation Road works II technology and audit matters; Income Tax (financial management) benefits and active communications Act; child benefits participation in jobs services; IT security
Audit unit IX 5 Audit unit V 5 Audit unit VI 5 Audit unit VIII 5 Audit unit VII 5 Farmers’ social security Infrastructure projects; Staffing expenditure; Tax and customs scheme; industrial injuries performance studies; public civil service law; pay (Government) administration; illegal insurance; Federal contract awarding and pensions; health organisational employment detection Insurance Office regulations care benefits management service
Audit unit VI 6 Audit unit VII 6 Pay and employment law; travel expenses; human Refugees and asylum resources of government seekers departments
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PRESIDENTS OF THE BUNDESRECHNUNGSHOF
1950 to 1956 Josef Mayer 1957 Prof. Dr. Heinz Maria Oeftering 1957 to 1963 Dr. Guido Hertel 1964 to 1971 Volkmar Hopf 1971 to 1978 Dr. Hans Schäfer 1978 to 1985 Karl Wittrock 1985 to 1993 Dr. Heinz Günter Zavelberg 1993 to 2001 Dr. Hedda von Wedel 2002 to 2014 Prof. Dr. Dieter Engels since 2014 Kay Scheller
Vice-Presidents of the Bundesrechnungshof
1950 to 1955 Dr. Erwin Meyer 1957 to 1959 Alfred Rausch 1961 to 1969 Dr. Georg Bretschneider 1969 to 1983 Josef Selbach 1983 to 1985 Dr. Heinz Günter Zavelberg 1985 to 1996 Ernst Heuer 1996 to 2002 Prof. Dr. Dieter Engels 2002 to 2011 Norbert Hauser since 2013 Christian Ahrendt
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Source of pictures: page 11 Network, Networking Concept (fotolia) © Olivier Le Moal page 13 Geschäftspapiere (fotolia) © Thomas Francois page 15 Plenarsaal, © Deutscher Bundestag, Lichtblick, Achim Melde page 17 Schiffsverkehr im Hamburger Hafen (fotolia) © thomaslerchphoto Gleisbett (fotolia) © rdnzl Autobahnkreuz (fotolia) © Thomas Leiss Fallschirmjäger Sprungdienst (fotolia) © Photoshooter page 21 Kugel © senoldo page 24 Haushaltsausschuss, © Deutscher Bundestag, Achim Melde/ Meldepress page 26 Organisation (fotolia) © Thomas page 29 Reichstag (fotolia) © Kathrin39 exception (fotolia) © Franz Pfluegl Autobahn Lastkraftwagen Spedition Verkehr (fotolia) © hykoe Bundeswehr Soldaten (fotolia) © Thaut Images page 32 Steuern Schriftzug (fotolia) © Marco2811 Human hand drawing social network scheme on the whiteboard (fotolia) © rangizzz Rentner auf der Parkbank (fotolia) © SyB Bundesagentur für Arbeit (fotolia) © CrazyCloud page 35 Entscheidung (fotolia) © fotomek page 37 3e net (fotolia) © vege page 41 LAN Datenleitung (fotolia) © Thomas Jansa page 45 Rushhour (fotolia) © imageteam page 49 deutsch_europa_flagge (fotolia) © jarma page 52 (fotolia) © jarma page 56 Meeting (fotolia) © stockpix4u
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Issued by: Bundesrechnungshof Public Information Service Adenauerallee 81, 53113 Bonn Telephone: +49 228 307-1030 Facsimile: +49 228 307-2990 Email: [email protected] Internet: www.bundesrechnungshof.de
Edited by: Martin Winter (spokesperson and director public information services) Jens Hamer Dieter Naumann
Produced by: W. Kohlhammer GmbH, Stuttgart Published in July 2017