Governance in Huddinge Political organization

Transcription

1 Governance in Huddinge Political organization Municipal Assembly (Elected by Municipal citizens every fourth years) Municipal Audit Committee Municipal Executive Board Board administration Culture, Leisure and Recreation Services Committee Electoral Committee Committee administration Pre-School, Compulsory school and Upper Secondary School Committees Committees administration Social welfare and Care of elderly Committees Committees administration Environment and Community Development Committees Committees administration 3 Social welfare subcommittees 1

2 Audit characteristics in brief Local audit is a democratic instrument, an important part of local selfgovernment. The audit shall contribute to protection and development of local democracy, efficiency and risk management. The audit is performed by politically elected auditors. The Municipal Assembly elects seven auditors every four year. The Chairman belongs to the opposition. Being an auditor is a position of trust. The auditors do not perform politics in their auditing and do not take orders from the leading politicians. Each auditor is an independent authority with the right to act and make separate statements. 2

3 Audit characteristics in brief All operations of the Executive Board or Committees as well as of companies owned by the local government has to be audited every year. The audit is to be carried out according to Code of Audit in Local Government. Only politically elected members of the executive board and other committees are accountable in regard to the audit. The political auditors by services from professional auditors who they contract themselves, often after a public purchasing process. 3

4 3 basic functions of the accountability system Decision making The Municipal Assembly. Execution and preparation The Municipal Executive Board and the Committees. Scrutinizing The Municipal Audit Committee. 4

5 Municipal Assembly the decision maker The Municipal Assembly (MA) is the highest political assembly in the municipality, making decisions in all matters and issues of greater importance such as long term and yearly plans, budgets, taxes etc. MA appoints the members to the Executive Board, the Committees and the auditors. MA give instructions to and supervise the work carried out by the Executive Board and the Committees. To examine and to test accountability is a crucial part of a representative democracy and these procedures increase the citizens confidence in the municipal democratic system. 5

6 Municipal Executive Board and Committees The Board and the Committees are executing and preparatory bodies, commissioning the tasks given by the Municipal Assembly. They shall comply with the instructions decided by the MA as well as the Swedish laws and regulations and make sure that the internal control is sufficient and that all activities are carried out in a satisfactory way. They prepare proposals and plans to be presented to the MA for decision. Additionally, the Executive Board is responsible for managing and coordinating all municipal activities and supervise the Committees and the companies owned by the municipality. 6

7 The Municipal Audit Committee The task is defined in the Local Government Act. The auditors scrutinize and audit all activities that executive board and other committees, as well as the companies (owned by the local government), perform every year. The task is to audit and judge if: - operations have been conducted consistently with their purpose stated by the Assembly, and in a financially satisfactory manner, - the internal control has been adequate, - the accounts are correct. - risks are dealt with in a proportional matter Effects and results of the audit are gradually presented in separate reports during the year, and finally resulting in an summarized annual audit report to the Council. 7

8 The Auditors relationship with the Assembly The Assembly appoints the auditors, who are nominated by the political parties. The 7 auditors consists of both representatives from the majority and the opposition. The Assembly is the auditors principal and communicate local auditing regulations. The Assembly approves the auditors budget. The Assembly is the receiver of the audit report and decide in the matter of discharge the Board and Committee members from liability. The report are made public available for citizens to take part of. 8

9 The Auditor in local government Being an auditor in a municipal or a county council is a position of trust. The aim is to examine the Executive Board and Committees in an independent, objective and adequate way. The competence of the politically elected auditors is their political and democratic anchorage. They have the mission to examine if the politics and democratic directions from the Councils is fulfilled by the executives and committees. The auditors responsibility is to conduct a well-founded audit which gives the Assembly enough and sufficient support for their decision in the matter of discharge from liability. 9

10 Judgement of accountability All members of the Executive Board and Committees are politically elected to the positions and are accountable for their actions to the Assembly and to the citizens. The auditors judge their accountability, that is whether or not they can be discharged from liability. This judgment is based on a mixed political/democratic, legal and economic accountability. The accountability is collective for the whole executive board and other committees as well as individual for each member. The civil servants are not accountable to the Assembly and of this reason not subject to examination by the auditors. Even if the action of civil servants is investigated to find out how the committees is performing their tasks. 10

11 The rule of conduct alt independence? The Auditors: - choose independently what to audit. - choose independently methods, ways and experts. - make independent analyses and judgments. The Auditors do not act party-political in their auditing role. They do not perform consultancy work in their auditing role. They decide how to spend the auditing budget. They safeguard their integrity, therefore disqualification and eligibility concerning anyone of the auditors is pointed out in the Auditors report They perform their task fulfilling the demands of both citizens and the Assembly in regard to objectivity, efficiency and competence. 11

12 The Task examine Municipality s all activities The scope of examination is multi dimensional. One dimension is the activities carried out by the Board and the Committees within each one s area of responsibility. Activities carried out by sub-committees and preparatory boards shall also be examined. Activities may be carried out by municipality s own staff, in cooperation with other municipalities or by contracted companies. Also the Municipality s overall administration and corporate governance shall be examined. As a consequence the auditors shall examine the Executive Board s supervision of all the activities. 12

13 Scope of the assignment If the operations have been conducted appropriately - complies with the goals, decisions and guidelines determined by the Assembly and relevant laws and regulations. - that the operations provides the correct services to the citizens. This include services delivered by own staff as well as from external providers. If the operations are satisfactory from an economical point of view - The services provided by the Municipality shall have a good quality and be produced with a satisfactory cost efficiency. If the accounts are correct - The accounting shall be performed in such a way that the financial reports can be a reliable base for the management, supervision and control of the activities carried out. 13

14 Scope of the assignment If the accounts are corrects ((continued) - That the semiannual and annual reports are made in accordance with the law of municipal accounting and best municipal practice. - That there are no errors concerning valuation, classification and critical information that may significantly influence the Municipality s profit & loss account and balance sheet. If the internal control is satisfactory - That the control performed by the Executive Board and the Committees is sufficient, e.g. management, supervision and control is clear, active and appropriate. - A satisfactory internal control must be well structured with clearly defined processes and routines, integrated in the organization and the daily work. 14

15 The obligation to denounce crimes If the auditors during examination discover or suspect crime (theft, fraud, scam, embezzlement, breach of trust or bribery) the auditors shall announce this to the Board or Committee in charge. The Board or Committee shall investigate this possible crime, take appropriate action or denounce the crime to the police. If the Board or Committee does not act swiftly, then the Auditors are obliged to report the suspected crime to the Municipal Assembly, which decides how this matter shall be handled. The auditors main course of action is monitoring if the Board or the Committee has an efficient and qualified internal control, which reduces the risks for criminal actions. 15

16 Assessment of the financial result The Auditors shall assess if the financial result fulfils the financial goals determined by the Assembly. The Auditors shall also assess if the operation is carried out in accordance with the operational goals decided by the Assembly. The Auditors written assessment shall be attached to the semi-annual and annual reports. The assessment of the semiannual report is a separate document sent directly to the Assembly. The assessment of the annual report in included in the Auditors report. 16

17 Auditors report The Auditors report: Provides information about the Auditors assignment and starting points. Summarizes the result of the auditing carried out the previous year. Gives a recommendation to the Assembly if the annual accounts of the previous year should be approved or disapproved. Gives an assessment if the previous year s financial result fulfils the goals for good financial management decided by the Assembly. May include remarks regarding serious deficiencies in the Board and Committees running and supervision of the operations. Shall include a declaration if the Auditors recommend the Assembly whether to discharge or to not discharge the Executive Board and the Committees from liability. Informs about possible restrictions, e.g. if the auditor s budget is insufficient for carrying out the auditing in accordance with best practice. 17

18 Auditors report Remarks may be directed towards: The Executive Board, Committees and panels. Members of the Executive Board, Committees and panels. Before issuing remarks against or recommend not to discharge liability for any Board, Committee or member, the Auditors shall previously have communicated the cause for the remarks and assessments to concerned parties. 18

19 Reason for testing accountability The Code of Audit in Local Governments specifies eight reasons for testing accountability: 1. Inadequate goal achievement, failure to observe the objectives and guidelines set by the Assembly or by regulations. 2. Deficient management, monitoring and control. 3. Damage to the public trust or other intangible injury. 4. Financial injury, e.g. assets may have been damaged or disappeared. 5. Unauthorized decision making without Board s or Committee s supportive decision. 6. Operations not conforming to law, criminal conduct. 7. Insufficient preparation of decisions, misguiding the Board or Committee to take wrong decision. 8. Deficient accounting. 19

20 Testing accountability The Auditors report is addressed directly to the Municipality s Assembly. The Assembly has to take a decision to discharge or not discharge from liability and this decision shall be justified by the Assembly unless it is clearly unnecessary. If the Auditors have issued a remark or recommended not to discharge liability, the Assembly shall ask the Auditor to present the reasons for this before the Assembly takes the decision. If the Auditors have issued a remark, the Assembly shall consider whether or the Assembly also shall issue a remark. The Assembly can issue its own remark even if the Auditors have not done that. In both cases the cause for the remark shall be justified and documented. 20

21 Testing accountability The Auditors shall take part in the Assembly s discussion of the Auditors report. The Assembly has a supreme right to take the decision regarding discharge of liability and the Assembly s decision may deviate from the Auditors recommendation. If the Assembly decides not to discharge the Executive Board or a Committee from liability, the assembly may also dismiss the members. 21

22 Example 1 preventive measures against irregularities Last year the Auditors investigated which prevented measures the Executive Board and two Committees have taken reduce the risk for irregularities and if these entities have a satisfactory management and control. These were the conclusions and recommendations: The municipality should develop routines to assure that all the Committees carry out and document risk assessments regarding bribery. Specific controls concerning bribery should be applied in all Committees. The Community Development Committee should regularly make checks of a number of randomly selected building permit applications. The communication to the employees about bribery should be developed further. Normally suspicions about bribery shall be reported to the manager. However, the Municipality should give the employees alternative reporting channels, e.g. to the security or HR managers. 22

23 Example 2 Quality declarations and handling of claims. In 2009 the Municipal Assembly ordered the Committees to develop quality declarations for the most important services to the citizens. In 2010 the municipality has launched new routines for the handling of claims from citizens. In 2011 the auditors made an assessment of how two Committees are handling and reporting claims from the citizens and measures taken for improving service quality. The Committees should introduce routines for monitoring and follow-up of the claims and declarations. The polls made today have to be developed further to give more relevant information. The Committees should clarify further the relationship between goals, quality declarations and available financial and other resources. The Committees should consider to provide a more detailed reporting back to the citizens regarding measures taken to eliminate the causes of different claims. 23

24 Example 3 Citizen s influence on the planning process Last year the Auditors analyzed and assessed how the citizen s points of view on are collected and taken into consideration in the Municipality s urban planning processes. The Planning and Building Act requires that the citizens are given the possibility to express their opinions in the planning process. In the regular plan procedure the law states that consultation shall take place at two occasions to give referral bodies, concerned parties and citizens possibilities to present their point of view and propose modifications of the plans. In addition the plan proposals shall be exhibited in the Municipality s administrative center and/or in public libraries to give all citizens a chance to see and comment the plans. When the final plan shall be discussed and decided by the Municipal Development Committee all the proposals from the citizens are compiled in a document and commented by planning engineers. The Auditors conclusion is that the Municipality s planning processes comply with all the requirements of the Planning and Building Act. 24