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NIK Annual Report 2008

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NIK Annual Report 2008 ’08 Annual r R Supreme Audit Office 1 2 Annual’08 R Supreme Audit Office 3 4 The mission of the NIK The vision of the NIK is to be is to ensure economic efficiency a commonly respected supreme insti- and effectiveness in public serv- tution of state audit, whose reports are ice for the benefit of the Repub- an awaited and sought after source of lic of Poland. information for state authorities and the general public. The NIK’s organisation and functioning are set out in the Constitution of the Republic of Poland and the NIK Act of 23 December 1994. The NIK is subordinate to the Sejm (lower chamber of the Polish Parliament) and acts in accordance with the principle of collegiate responsibility. The NIK is headed by its President, who is appointed by the Sejm for a six-year term of office. The NIK performs audits related to, primarily, the execution of the state budget as well as public finance spending and management of public property by state and local governmental bodies and economic entities. Every year, the NIK submits three key documents to the Sejm: its analysis of the state budget and monetary policy guidelines execution, its opinion on the vote of discharge for the Council of Ministers and an annual report on its activity. 1 ’08 NIK Annual Report Dear Colleagues, I am extremely pleased to present are the most significant recipients appointed Chair of the Governing you with a summary report of the of the NIK’s audit findings. Board of this organisation for the NIK for the year 2008. next three years. The NIK’s long-term planning Every year, at the end of June, the covers three-year periods during Although chronologically it refers to NIK submits a detailed report on which audit procedures are con- the current year, I would like to men- its operations to the Polish Sejm, ducted based on the main priori- tion another event of great impor- traditionally, together with an audit ties defined by the College of the tance for our institution: in February, report on the execution of the state NIK. In the years 2006-2008, these we celebrated the 90th anniversary of budget for the previous year. priorities were: Citizen-friendly the NIK’s establishment. The NIK is almost of the same age as the inde- In the course of a year, the NIK state, Cost-efficient governance pendent Poland reborn in November presents the Sejm with many re- and Sound governance. Further in 1918, which makes it one of the old- ports, on most conducted audits. the text you will find a list of all est public institutions in our country. Pursuant to the Act on the NIK, its audit topics explored by the NIK in the past year in every mentioned President is authorised to present Finally, let me encourage all of priority area. such a document to the general you to become acquainted with public only after submitting it to The year 2008 was special for the this report, and to visit our website the Sejm. In 2008, the NIK submit- NIK on an international scale: on at www.nik.gov.pl, as well as the ted 172 such reports to the Sejm. 2 to 5 June, our institution hosted website of the Polish presidency in Undoubtedly, except for the audited the 7th EUROSAI Congress dur- EUROSAI at www.eurosai2008.pl. units, the Sejm and general public ing which I had the honour to be Jacek Jezierski President of the NIK 2 Some audit-related statistics n 165 planned audit topics n 2,624 audited units n 218 ad hoc audit topics n 2,973 post-audit statements n 172 pronouncements on audit findings presented to the Sejm n PLN 16,767 million of financial irregularities found n PLN 553.6 million of financial impact (ca. 2 PLN for every 1 PLN spent) n 966 meetings of the Sejm committees and subcommittees attended by NIK representatives n 43 de lege ferenda motions n 9 audits conducted parallelly with other SAIs 3 ’08 NIK The NIK College Annual Report The Constitution of the Republic of Poland and the NIK Act state that the NIK acts in line with the principle of collegiality. These principles are reflected in the appointment of the NIK College, vested with wide mandate. The Members of the NIK College, who perform their function independently, are appointed by the Marshal of the Sejm for a three-year term of office upon the NIK President’s request. The College consists of: the President of the NIK acting as Chairman, the Vice-Presidents, the General Director and 14 members: 7 representatives of legal and economic sciences, and 7 directors of the NIK’s organisational units or advisers of the NIK’s President. The NIK College is responsible for: approving the analysis of state budget and monetary policy guide- lines execution, approving the report on NIK’s activity, formulating an opinion on the vote of discharge for the government, work plan and draft budget of the NIK. Moreover, the College assesses audit programmes and pronouncements on the results of particularly important audits as well as considers post-audit claims. Jacek Jezierski, President of the NIK with his four deputies, NIK Vice-Presidents: Jacek Kościelniak, Józef Górny, Stanisław Jarosz and Marek Zająkała 4 Audit mandate of the NIK The Polish Constitution states that the NIK is the state supreme audit institution. This means that the NIK is a fun- ctionally autonomous body, playing the leading role in the performance of audits in Poland, and its findings, assess- ments and conclusions are subject to verification only by the NIK itself. Even the Sejm, to which the NIK is subordinate, is not entitled to introduce any changes in this respect. The Act on the NIK defines its structure and operating principles, regulates audit procedures and determines the rights and obligations of the NIK’s employees. Most frequently the NIK carries out audits on its own initiati- ve. Pursuant to the Act, the NIK undertakes audits also upon the order of the Sejm or its bodies as well as upon the request of the President of the Republic and the Prime Minister. Bodies subject to audit by the NIK and applied criteria Bodies Government administration authorities, the Audit Legality, sound subject to National Bank of Poland, state legal entities criteria management, efficacy audit by the and other state organisational units and integrity NIK Local government authorities, local govern- ment legal entities and other local government Legality, sound organisational units management and integrity Other organisations and businesses Legality and sound (entrepreneurs) 1/ management 1/ To the extent these bodies take advantage of state or municipal assets or funds and settle their financial liabilities against the state In some bodies the NIK may audit only budget execu- tion and finance and asset management. This restric- tion refers to: the Chancellery of the President of the Republic, the Chancellery of the Sejm, the Chancellery of the Senate, the Constitutional Tribunal, the Com- missioner for Civil Rights Protection, the National Bro- adcasting Council, the Inspector General for Personal Data Protection, the Institute of National Remembrance – the Commission for the Prosecution of Crimes aga- inst the Polish Nation, the National Electoral Office, the Supreme Court, the Supreme Administrative Court and the National Labour Inspectorate. 5 30 organisational units, departments and branches, exist within the NIK. These inclu- de units: performing audits (departments and regional branches), supporting audit procedures and fulfilling organisational and ’08 handling tasks. NIK Organisational structure Annual Report Organisational units performing audits Organisational units supporting audit procedures Department Regional Branch Regional Branch Department Department of Public Administration in Białystok in Olsztyn of Legal Affairs of Audit Strategy Department Regional Branch Regional Branch of Budget & Finance in Bydgoszcz in Opole Department of Economy, Regional Branch Regional Branch Public Assets & Privatisation in Gdańsk in Poznań Department of Communica- tion & Transport Networks Regional Branch Regional Branch in Katowice in Rzeszów Department of Science, Education & National Heritage Regional Branch Regional Branch Organisational units fulfilling in Kielce in Szczecin organisational and handling tasks Department of National Defence & Internal Security Regional Branch Regional Branch in Kraków in Warszawa Corporate Department Services of Human Department of Labour, Social Department Resources Affairs & Health Regional Branch Regional Branch in Lublin in Wrocław Accounts Department Department of Environment, Department of Facilities Agriculture & Town and Regional Branch Regional Branch and Logistics Country Planning in Łódź in Zielona Góra 6 Audit planning The NIK realises its mission on tegic) planning is realised using and the Prime Minister, as well as the basis of the adopted strategy the results of the analysis of the other concerned public administra- and periodic (annual) work plans state’s social and economic situa- tion bodies. Audits are planned in submitted to the Sejm. Every an- tion. It defines the main audit pri- such a way that their results en- nual work plan contains the au- orities for three years. Within these able identification of causes and dit of state budget and monetary priorities, specific audit areas are mechanisms of possible irregulari- policy guidelines execution in the selected for a given year based on ties in the state’s functioning. past year, which the NIK is obliged the risk analysis. The risk analysis If necessary, the NIK may also per- to undertake pursuant to the law. takes into account several dif- form ad hoc audits. The remaining audits are planned ferent points of view expressed in accordance with the main audit by: the NIK, experts, citizens and The NIK’s experts have developed priorities adopted by the NIK Col- main report recipients (the Sejm, a custom-made software support- lege.
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