How To Audit Public Procurement Effectively

Transcription

1 Advanced Seminar for Auditors in the Public Sector How to Audit Public Procurement Effectively 22 nd 23 rd October 2015, Berlin With Experts from: United Nations World Food Programme (WFP) European Court of Auditors, Financial Audit European Central Bank, Internal Audit National Audit Office, Performance Audit Division, Sweden General Inspection of Social Affairs (IGAS), France Ministry of Defence, Internal Audit Department, Denmark Brochure 1

2 ADVANCED SEMINAR How to Audit Public Procurement Effectively Auditors face a unique range of challenges in procurement audits In times of austerity, audits of public procurements have gained in importance. However, practitioners from public administrations often find auditing public procurement processes to be one of the most challenging and complex fields to audit. Misspent public money in low quality services and goods can endanger both the financial and operational integrity of an organisation. Therefore, rigorous audits of procurement and contract management play a key role nowadays in assuring efficiency in public administration. Internal and external auditors have to be well prepared to identify weaknesses and assess the risks in procurements to ensure that money is well spent in public administration. Keep yourself up-to-date and learn from renowned public procurement audit experts To cope with the challenges arising from complex public procurement environments it is essential for auditors to keep themselves informed about auditing tools such as saving methodologies, forensic examination of processes or procurement data analysis. It is necessary to exchange experience and practical knowledge about typical pitfalls and potential misunderstandings in the control of procurements that occurs especially for complex public procurements of particular goods and services, including IT procurement. Learn at this Advanced Seminar how to audit in complicated fields such as public procurement of IT, telecom services, investment banking, health and social affairs, transport and defence. Receive first-hand insights from internal and external audit experts and benefit from their experiences to ensure value for money is secured in the procurement process in your institution. Who is this seminar for? Internal and external auditors Controllers Compliance and evaluation officers Financial, quality and performance managers Project and contract managers Compliance and financial control officers EU Structural Funds (ERDF, ESF) managers Contract services for IPA, ENI, DCI and EDF funded projects Framework contracts officers Audit experts As well as for all contracting authorities and other professionals from: Public administrations on European, national and regional level European and international organisations Development Banks and Agencies Supreme Audit Institutions (SAIs) National and regional institutions managing external and development cooperation and humanitarian aid projects and programmes Public and NGO sector handling projects funded by UN and EU cooperation programmes Public, Private and NGO sector auditing public sector programmes and projects Consultants advising beneficiaries of public contracts Private audit companies serving national, UN and EU beneficiary projects Public procurement is a very risky process. The different topics in the seminar were in good balance with regard to the theoretical and practical approach of the auditing of public procurement. 2

3 What will you learn at this seminar? Which procedural rules are necessary to ensure sound management of public procurement How to discover unfair competition How to structure the audit of public procurement What are the best costing practices in public procurement? How to assess the risks in every stage of the procurement process How to accept and control risks How to conduct a review of controls to ensure value for money in the procurement process What are the different methods to audit public procurement? Which questions do you have to raise when conducting an audit of public procurement How to use the right investigation methods to support evidence How to review a procurement fraud How to handle industry standards in public procurement What is important when auditing public procurement of IT / telecom services and investment banking? How can IT infrastructures facilitate public procurement audits? Your benefits Benefit from best practice reports of high quality European and international Audit Divisions Increase the effectiveness and efficiency of your methodology and services Ensure value for money and avoid reimbursements Learn from the best investigation methods and ensure that your procurement follows legal standards Be prepared Learn how to prevent and detect the risk of fraud and corruption Discuss your challenges with our experts and receive practical hints on how to proceed in practice Network and exchange experiences with our experts and other professionals working in the field of procurement audit How to establish an effective follow-up programme in public procurement How to make sure that auditor s recommendations are followed Very well prepared. Aurimas Miškinis, Deputy Head, National Audit Office, Lithuania Very productive. Aida Hasanova, Project Officer, German Agency for International Cooperation (GIZ), Baku, Azerbaijan 3

4 PROGRAMME DAY 1 How to Audit Public Procurement Effectively Registration and Hand-out of Seminar Documents Opening Remarks from the European Academy for Taxes, Economics & Law Welcome Note, Round of Introductions and Opening Discussion Participants expectations Current biggest risks, threads and challenges in procurement audits Discussion on participants challenges: - What are your most important questions in regard to procurement audits? - What is specific about your organisation s audits? - What are your biggest constraints when auditing procurements? David Johnson, Inspector General, Office of Inspector General, United Nations World Food Programme (WFP) Auditing Costing Practices in Public Procurement Assessment of the control environment as a prerequisite for the identification, evaluation, and mitigation of costing risks Systematic review of the process for estimation of contract volume: the importance of the cost matrix and the budget breakdown Evaluation of the practices targeting verification of contractors economy and efficiency of operations Practical approach towards the examination of the cost performance of the procurement system: key performance indicators (KPIs) David Johnson, Inspector General, Office of Inspector General, United Nations World Food Programme (WFP) Coffee Break and Networking Opportunity Auditing Procurement in an UN Agency and Third Party Risk Characteristics of Procurement in the UN System Auditing Procurement in the UNs Third Party Risk management and Procurement Framework Contracts Challenges David Johnson, Inspector General, Office of Inspector General, United Nations World Food Programme (WFP) DAVID JOHNSON Inspector General, Office of Inspector General, United Nations World Food Programme (WFP) David Johnson has been an Auditor and Accountant for more than 20 years including international experience in oversight, risk management, counterfraud, financial management, corporate governance and control systems. As the Inspector General of one of the largest UN organisations, his office is responsible for internal audit, assurance and investigations. Before joining the World Food Programme as Inspector General, he acted as Deputy Director and Head of Internal Audit and Counter-Fraud Department at the UK Department for International Development (DFID). In this role he has been providing leadership of audit and counter-fraud service (fraud prevention and fraud intelligence) as well as delivering risk management advice and audit opinion focused in developing and fragile countries. Previous to this, the Inspector General has worked in the private, non-governmental sector as well as in the European Commission Audit of Public Procurement by the European Court of Auditors (ECA): Audit and Context The role of ECA as opposed to the Commission and Authorities in the Member States Focus of ECA in relation to public procurement ECA auditing public procurement Niels-Erik Brokopp, Head of Unit Audit, Employment and Social Affairs - Financial Audit, European Court of Auditors (ECA) Lunch Break and Networking Opportunity Examples and Results: The European Court of Auditors Experience Procurement cases Typical public procurement errors found by ECA Overall results Outlook for the programming period Niels-Erik Brokopp, Head of Unit Audit, Employment and Social Affairs - Financial Audit, European Court of Auditors (ECA) With Concrete Examples 4

5 Auditing Compliance with Procurement Process The Example of the European Central Bank (ECB) The concept of risk in the procurement process Centralisation or decentralisation in the procurement process Mapping the end to end process Reviewing the effectiveness of controls Duncan Cripps, Principal Auditor, Audit Missions Division, European Central Bank (ECB) Coffee Break and Networking Opportunity Workshop Auditing Compliance in the Procurement Process Having looked at the various tools available for mapping in the previous sessions, the participants shall break out into groups to each try and map the procurement process in the participants organisations. Regulatory compliance Administrative Compliance and best practice Procurement risks Mapping the process The participants will work in small groups and look at the internal / external interfaces and attempt to identify key controls throughout the process. NIELS-ERIK BROKOPP Head of Unit Audit, Employment and Social Affairs - Financial Audit, European Court of Auditors (ECA) Since 2008, Niels-Erik Brokopp is Head of Unit Audit Supervision and Support for Financial & Compliance Audit at the European Court of Auditors (ECA), responsible for quality assurance for the Directory of Assessment Standards (DAS) and methodology for compliance audits and involved in the INTOSAI standard setting process (ISSAI 100 to 400). He previously worked as Team Leader for quality assurance and Auditor and before as Performance and Compliance Auditor within Regional Development and Cohesion Fund and Administrative and other expenditure of the European Court of Auditors in Luxembourg. DUNCAN CRIPPS Principal Auditor, Audit Missions Division, European Central Bank (ECB) Duncan Cripps has been working as Principal Auditor at the European Central bank since His key duty is the provision of oversight of the successful delivery of the new USD 1.6bn landmark headquarters office building in Frankfurt am Main for the European Central Bank. Duncan Cripps has provided oversight from the permit stage through to the construction and testing and commissioning stages. Duncan Cripps was previously Head of EMEA Account Project Management for an international management company specialising in real estate. He delivered capital construction projects (offices) and fit-out works for international Forbes 500 clients without significant time or budget variance. Duncan Cripps, Principal Auditor, Audit Missions Division, European Central Bank (ECB) End of Day one 5

6 PROGRAMME DAY 2 How to Audit Public Procurement Effectively Welcome Note from the Chair Carsten Kyhnauv, Director, Internal Audit Department, Ministry of Defence, Denmark How to Structure a Public Procurement Audit? Importance of organisational understanding of audit of public procurement Create value Procurement with a strategic, tactical and operational point of view for the organisation and for the internal auditors How to structure the internal audit of public procurement The need for involving the organisation in the internal audit How deep and wide will or can the internal audit do auditing of public procurement? Identifying the risk of fraud in the procedures for public spending Key points in reporting the result of the internal audits work with public procurement Use of key ratios in connection with public procurement Carsten Kyhnauv, Director, Internal Audit Department, Ministry of Defence, Denmark CARSTEN KYHNAUV Director, Internal Audit Department, Ministry of Defence, Denmark Since 2006, Carsten Kyhnauv is Director of Internal Audit in the Ministry of Defence in Denmark where he is now responsible for the internal auditing of the Danish Defence and Danish Home Guard. In this role he has gained vast experience in auditing huge and complicated public procurements for example investments in navy ship borne helicopters, warships, and armoured personnel carriers. He is a member of the group executive management team in the Ministry of Defence, and also confidential adviser on financial management to the top management team within the Danish Defence and Danish Home Guard. Moreover, Carsten Kyhnauv has far-reaching academic experience from his part time work as assistant professor at the Copenhagen Business School (since 1985 now) and at the University of Southern Jutland (since 1995 now), Institute of Accounting & Auditing. He also has expertise in the finance sector: He started his career as Banker and has been Senior Vice President as a Merchant Banker in a large Danish Bank. Following this position he was appointed as CFO in the City of Copenhagen at the Department for Children and Youth Administration Coffee Break and Networking Opportunity Using Investigation Methods to Support Evidence The balance between the internal auditor as an auditor and a criminal / police investigator Forensic auditing - risk understanding - risk acceptance - risk control How does the internal auditor work against producing and securing evidence Homework and on the site? Steps in the work of an internal auditor to document evidence NOT produce evidence How does an internal auditor prepare the presentation of the evidence to the company and/or the person? How does the internal auditor work together with the police / court? How do the internal auditor and the company / department secure that processes in the future can avoid or reduce the possibilities of fraud Carsten Kyhnauv, Director, Internal Audit Department, Ministry of Defence, Denmark Lunch Break and Networking Opportunity Very interesting seminar: a lot of new information and connections. 6

7 Accepting or Challenging Industry Standards? The Role of the Auditor in Guiding Governments with Complex Services and Products The case of investment banking services in the sale of state owned companies The case of framework agreements The case of railway infrastructure maintenance Dimitrios Ioannidis, Audit Coordinator, Performance Audit Department, Swedish National Audit Office Use of IT in Public Procurement Audits Use of IT in the planning and implementation of audit - Planning : Procurement data analysis, determination of questionable procedure or purchase families, sample selection - Audit implementation: Compliance audit of tender and operational audit of procurement execution Results of audits (initial and follow-up) Findings with regard to - The procurement information system - Auditing methods Pascal Penaud, Inspector General, General Inspection of Social Affairs (IGAS) an Inter-Ministerial Audit and Evaluation Office for Social and Health, Employment and Labour Policies, France End of Seminar and Handout of Certificates With Concrete Examples DIMITRIOS IOANNIDIS Audit Coordinator, Performance Audit Department, Swedish National Audit Office Since 2006, Dimitrios Ioannidis is Audit Coordinator at the Swedish National Audit Office. He has audited procurement processes linked to the sale of state owned companies as well as the purchase of IT and telecom services in the government sector. In 2005, he was Secretary in a State Committee, dealing with the review of the Swedish National Premium Pension system. In this position, he has also worked with procurement. Between 2001 and 2006, he was Economist at the Financial Stability Department of the Central Bank of Sweden, and participated in the procurement of a new system for the settlement of large payments. Between 1990 and 2001, he was researcher and lecturer at the Stockholm School of Economics. His research focused on the importance of buyer / seller relationship for industrial and corporate development. The views expressed in his presentation are solely those of the speaker himself and do not represent the official position of the Swedish National Audit Office. PASCAL PENAUD Inspector General, General Inspection of Social Affairs (IGAS) an Interministerial Audit and Evaluation Office for Social and Health, Employment and Labour Policies, France Since 2003, Pascal Penaud is Inspector General at the General Inspection for Social (IGAS) which is an inter-ministerial audit and evaluation office for social, health, employment and labour policies that assists public players in making informed decisions. His experience in auditing public procurement is manifold. As Inspector General, he was responsible for auditing public procurement in various major French hospitals as well as social ministries. Moreover, Pascal Penaud also has experience in auditing public procurement as part of general audits in the hospital sector. During his membership in an inter-departmental investigation mission of the public authorities, he was furthermore responsible for compliance audits of procurement operations. The seminar was excellent, interesting presentations and lecturers; a lot of practical and useful information was shared with us. 7

8 ORGANISATIONAL MATTERS How to Audit Public Procurement Effectively Date of Event 22 nd 23 rd October 2015 Booking Number S-1098 Event Language The event language is English. Event Price 1.389,- Euro The above price covers the following: Admission to the seminar Hand-out documents Seminar certificate, if seminar fully attended Soft drinks and coffee/tea on both event days Lunch on both event days Upon request you can receive a digital version of the seminar documents after the event for 60,- Euro excl. German VAT (19%) in addition to the seminar. All prices excl. German VAT (19%) BOOKING booking@euroacad.eu Phone: +49 (0) Fax: +49 (0) For online booking please visit our website: Contact European Academy for Taxes, Economics & Law at Potsdamer Platz, Entrance Leipziger Platz Berlin, Germany Phone: +49 (0) Fax: +49 (0) info@euroacad.eu Internet: Your contact persons for the programme: Regina Lüning, M. Sc. econ. Head of Marketing and Sales Phone: +49 (0) Fax: +49 (0) regina.luening@euroacad.eu Magdalena Hehn Conference Manager Phone: +49 (0) Fax: +49 (0) magdalena.hehn@euroacad.eu (Programme is subject to alterations) Event Location InterCity Hotel Berlin Hauptbahnhof Katharina-Paulus-Straße Berlin Phone: +49 (0) berlin-hauptbahnhof@intercityhotel.de Internet: Please contact the hotel directly and refer to the European Academy for Taxes, Economics & Law if you wish to benefit from a limited number of available rooms. Of course you can always look for an alternative hotel accommodation. 8

9 BOOKING Phone: +49 (0) Fax: +49 (0) For online booking please visit our website: European Academy for Taxes, Economics & Law at Potsdamer Platz Entrance: Leipziger Platz Berlin / Germany BOOKING BOOKING NUMBER: S-1098 (PR) 22 nd 23 rd OCTOBER 2015, BERLIN Herewith we register the following persons for the Advanced Seminar for Auditors in the Public Sector: How to Audit Public Procurement Effectively. Delegate 1 Ms. Mr. First name Last name Your organisation Department Unit Job position Street Postcode / City Country Phone Fax I hereby order the digital version of the seminar documents (fee required) in addition to the seminar. Delegate 2 Ms. Mr. First name Last name Your organisation Department Unit Job position Street Postcode / City Country Delegate 3 Ms. Mr. First name Last name Your organisation Department Unit Job position Street Postcode / City Country Phone Fax Phone Fax I hereby order the digital version of the seminar documents (fee required) in addition to the seminar. I hereby order the digital version of the seminar documents (fee required) in addition to the seminar. Invoice Organisation First name Your Organisation Department Unit Job Position Ms. Mr. Last name Street Postcode / City Country Phone Fax With my signature I confirm my registration and accept the General Terms and Conditions as legally binding. I herewith agree to receive further information from the European Academy for Taxes, Economics & Law In case of registration of more than one delegate do you prefer: single invoice? collective invoice? NOTE Only Valid with Signature and Stamp. Place, Date Authorised Signature and Stamp European Academy for Taxes, Economics & Law Brauner Klingenberg GmbH Leipziger Platz Berlin Phone +49 (0) Fax +49 (0)

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