THE CODE OF ETHICS FOR THE STATE AUDITORS AND OTHER EMPLOYEES IN THE STATE AUDIT INSTITUTION

Transcription

1 Pursuant to the Article 38 of the Law on the State Audit Institution ( Official Gazette of Republic of Montenegro, no. 28/04, 27/06, 78/06, Official Gazette of Montenegro, no. 17/07, 73/10, 40/11, 31/14) and Article 8 of the Rules of Procedures of the State audit institution ( Official Gazette of Montenegro, No.03/15), the Senate of the State Audit Institution, at its meeting held on 15 th October 2015, passed THE CODE OF ETHICS FOR THE STATE AUDITORS AND OTHER EMPLOYEES IN THE STATE AUDIT INSTITUTION Chapter I: Concept and Purpose of the Code of Ethics The Code of Ethics for the state auditors and other employees in the State audit institution (hereinafter: Code) regulates ethical principles, generally accepted rules of conduct and professional standards that should be followed by the public officials, state auditors, state employees and civil servants in the State audit institution (hereinafter: state auditors and other employees). The external experts engaged in conducting activities under the competences of the State audit institution (hereinafter: Institution) should follow this Code. The state auditors and other employees are obliged to follow and apply the Law on State audit institution, other legal acts of the Institution, auditing standards of the International organization of supreme audit institutions (ISSAI), INTOSAI Code of Ethics and this Code. The state auditors and other employees are obliged to follow and develop ethical principles, generally accepted rules of conduct and professional standards defined by this Code: integrity, honesty, independence, objectivity, impartiality, political neutrality, prevention of conflict of interest, professional secrecy, competence and professional conduct. Chapter II: Ethical principles, generally accepted rules of conduct and professional standards 1. Integrity Integrity is the principle which obliges the state auditors and other employees to perform their duties in a reliable and honest manner and adhere to the standards of professional conduct towards the audited entity. The integrity principle should enhance efficiency, transparency, accountability and good governance in the Institution. The state auditors and other employees are obliged to adhere to high ethical standards and moral principles in such a manner that does not impair their own reputation and reputation of the Institution. The integrity principle implies that state auditors and other employees must not undertake any activities or acts which could have a negative impact on their integrity and dignity. The state auditors and other employees are obliged to adhere to the measures contained in the Integrity plan aiming to prevent and eliminate possibilities for occurrence and development of corruption in their work.

2 2. Honesty The state auditors and other employees are obliged to conduct honestly their work and are responsible for their acts and decisions. The honesty principle implies that the state auditors and other employees are obliged to: - establish a relationship with other persons or audited entity in spirit of mutual respect and cooperation, while following the principles of independence and impartiality; - conduct solely work in a public interest, while following professional and ethical standards; - use material and financial funds of the Institution in a responsible and reliable manner. 3. Independence, objectivity and impartiality The state auditors and other employees are obliged to adhere to the principles of independence, objectivity and impartiality. Independence, objectivity and impartiality of the state auditors and other employees must not be impaired by: - personal interests; - external pressures or influences; - prejudice; - former employment; - personal or financial links which could evoke conflict of interest and etc. For violation of independence by external pressure or impact, the state auditor is obliged to inform the immediate superior in order to perform impartially and objectively his professional duties. The state auditor must not abuse his position or authority for personal interests or gain. The state auditor must not be involved in any activity which does or may diminish his impartial opinion and decision. The state auditor must not abuse privileges of his work for personal gain. Impartiality of the state auditor must not be called into question and the state auditor is obliged to eliminate any possible or real conflict of interest. The state auditor is obliged to be independent and objective towards the audited entities and third parties in the auditing process. The state auditor is obliged to provide audit findings based exclusively on reliable evidence obtained and assembled in accordance with the SAI s auditing standards. The state auditor is obliged to prepare an audit report in a true and objective manner. The state auditor is obliged to perform his audit work without prejudice and discrimination. In performance of audit tasks, the state auditor must not discriminate citizens on the grounds of their race, skin color, nationality, social or ethnic origin, language, religion or convictions, political or other opinion, gender, gender identity, sexual orientation, health condition, disability, age, wealth status, marital or family status, group affiliation, or assumption about group affiliation, political party or other organization affiliation, as well as on the grounds of other personal features. Upon commencement of the given audit, the state auditor is obliged to sign the Statement on impartiality and independence and act in line with the Guidelines on audit quality control. The state auditor is obliged to submit the Statement on impartiality and independence to the Ethics Committee within three days.

3 The state auditor shall be excluded from audit work in compliance with the Article 10 of the Guidelines on audit quality control, if there is any suspicion which may impair his independence, objectivity or impartiality. The head of sector shall propose a new member of the audit team within 24 hours. 4. Political neutrality Political neutrality implies that state auditors and other employees are obliged to maintain their own independence from political impact in the auditing process. In performance of professional duties, the state auditor must not act and express his political affiliation. The state auditor is obliged to perform his professional duties in politically neutral and impartial manner in line with public interest. In case the state auditor is exposed to political influence, he is obliged to inform in writing his immediate superior. 5. Prevention of Conflict of Interest In performance of work, the state auditor must not allow that his private interest has impact on performing his professional duties impartially, objectively and independently. The state auditor must not use his official position for acquiring material or immaterial gain for himself, family, close relatives, friends or other legal or physical persons or for receiving any gifts of high value. The state auditor must not provide services to the audited entity which imply management features. In case the state auditor gives an opinion or provides other services which do not relate to given audit, he is obliged to avoid such services which might result in conflict of interest. When the state auditor suspects that he is in the situation in which there is a conflict of interests, he is obliged to inform the immediate superior in writing about all circumstances which might lead to risk of corruption. The immediate superior is obliged to undertake activities and make a decision on exemption of the state auditor from performing the tasks which might cause a conflict of interest. 6. Professional secrecy The state auditors and other employees must not abuse information and data obtained in the auditing process. The state auditors and other employees are obliged to use data and information in compliance with laws and other regulations, acts of the Institution and mandate. The state auditor is obliged to preserve confidential documents, data and information obtained in the auditing process in compliance with the Law on State audit institution. If the Institution engages an external expert in the auditing process, the contract on engagement of the external expert must include a provision about confidentiality which obliges the external expert to keep secrecy of information and findings gathered in the auditing process. The state auditor must not disclose the data and information obtained in the auditing process without permission or if there is no legal or professional right to disclose such information. The state auditor must not give publicly comments about audit results and findings, if the given audit is not finalized. The state auditor and other employees are obliged to protect and store secret data and data about the persons in compliance with the law, regardless of the manner of acquiring such data. The state auditors and other employees are obliged to keep secrecy of data after

4 termination of their work in the Institution for no longer than five years after the date of the termination of their work, if it is not differently regulated by a special law. 7. Competence and professional conduct The Institution hires the staff taking into account their competences, professionalism and experience for performing tasks within its mandate in order to evade possibility to engage unprofessional staff. The state auditors and other employees are obliged to acquire, maintain and improve their professional knowledge and skills with aim to performing professional duties in a competent manner. Improvement of theoretical and practical skills of the state auditors and other employees shall be carried out through internal and external training programs. The state auditors and other employees are obliged to transfer their acquired knowledge and skills unobtrusively and patiently to their associates. The Institution is obliged to organize trainings to new appointed state auditors and other employees. The state auditors and other employees must not undertake any activities for which they are not competent in order not to diminish reputation of their profession. The state auditor is obliged to perform audit with due professional care while following accepted standards of auditing, accounting, financial operation, established policies and best practice. The state auditor is obliged to possess good knowledge of the statutory, legal and institutional principles and standards governing the operations of the audited entity. Chapter III Ethics Committee The Senate shall be in charge of monitoring implementation of this Code. The Senate of the Institution shall appoint the Ethics Committee, which shall have a president and two members who are appointed among the employees for the period of two years. The Rules of procedures determines the manner of work, acting and decision making of the Ethics Committee. The Ethics Committee shall: give opinions on appeals against the conduct and work of the state auditors and other employees in the Institution; give opinions related to implementation of this Code; initiate amendments to the regulations in the area of employees ethics and promote ethical standards and rules of conduct in the Institution. The Ethics Committee shall cooperate with the Ethics Committee established by the Government of Montenegro for the area of judiciary and public administration. Chapter IV Violation of the Code of Ethics The Senate shall be in charge of interpretation of this Code. For violation of ethical principles and rules of conduct established by this Code, the state auditors and employees, audited entities, citizens and other legal entities may contact the Ethics Committee. Violation of official duties, procedures and bodies responsible for treatment in this process are regulated in the law and other regulations in compliance with the law. The state auditors and other employees who violate this Code hold disciplinary responsibility in accordance with the regulations which regulate disciplinary procedure.

5 Chapter V Final provisions The president and members of the Ethics Committee shall be appointed within 30 days from the date of publishing this Code. The Rules of procedures for the Ethics Committee shall be adopted within 30 days from the date of appointing the Ethics Committee. General accepted rules of conduct, which are not regulated by this Code, shall be prescribed by a special act of the Institution. As of the day of start of implementation of this Code, the Code of Ethics of Civil Servants and State Employees in the State audit institution (SAI No , from 4 th April 2006) shall cease to apply. This Code shall enter into force on the eight day of its publication at the notice board of the Institution. No: /9 Podgorica, 16 th October 2015 PRESIDENT OF SENATE PhD Milan Dabović