NEWS IN brief

International Journal of Government Auditing, Apr 2004

Antigua and Barbuda

Report on Government Accounts Submitted

In October 2002, the Director of Audit of Antigua and Barbuda submitted her report on government accounts for the years 1995-2000.

The Audit Department experienced many problems in auditing these accounts. However, with the assistance of Treasury Department consultants, the accounts are almost up to date.

The accounts for the years 1995-2000 were tabled before the House on October 22, 2002, and referred to the Public Accounts Committee. At press time, the Committee had not I taken final action to consider the accounts as required by law.

The Audit Department plans to complete the audit of the 2001 and 2002 government accounts within the current (2004) financial year.

For more information, contact: the Audit Department, fax: ++1 (268) 460-5960; e-mail: audit@candw.ag.

Federal Republic of Germany

Annual Report Issued

The Federal Court of Audit, Germany's SAI, recently presented its 2003 report to the legislative bodies and the federal government. The report's 82 items reflect a major portion of the SAI's audit and advisory work. Most of the observations address highly topical issues that are still open for remedial action, indicating excess expenditures and potential additional revenues of some euro3,000 billion.

The annual report consists of five chapters: comments about federal appropriations and capital accounts for fiscal year 2002, contributions on specific audit findings, observations on advisory work done by the SAI, and comments on instances in which the executive branch of government has already followed the audit recommendations.

On November 25, 2003, the Court's President, Dieter Engels, presented the annual report to the public at a special press conference in Berlin. He commented on some key features of the report, such as soaring public debt, inefficient public management, lack of oversight and visibility, and shortcomings in tax collection.

The report also highlights the findings generated by audit examinations into federal grants to research institutes, private sector bodies, and welfare organizations. Frequently, contracts awarded to private sector bodies lack sufficient monitoring and control. When the Court looked into the federal agencies' mission performance, auditors found that there were no adequate incentives to encourage staff to ensure that funds are used efficiently and effectively.

The complete report in German can be accessed on the Court's Web site. Once the abridged English version becomes available, it will also be placed in the Web site.

For additional information, contact: Federal Court of Audit, fax: ++49 (1888) 721-2610; e-mail: Poststelle@brh.bund.de; Web site: www.Bundesrechnungshof.de.

Hong Kong

New Director of Audit

Upon the nomination and recommendation of the Chief Executive of the Hong Kong Special Administrative Region, Mr. Benjamin Kwok-bun Tang was appointed Director of Audit by the State Council of the People's Republic of China on December 1, 2003.

Mr. Tang joined the civil service in October 1974. He has served in different bureaus and departments during his 29 years of government service and is familiar with the operations of different parts of the government. His more recent appointments include those of Government Printer from March 1998 through January 2000 and Commissioner of Insurance from January 2000 through November 2003.

For more information, contact: Audit Commission, Immigration Tower, 7, Gloucester Road, Wanchai, Hong Kong, China; e-mail: enquiry@aud.gov.hk; Web site: www.info.gov.hk/aud.

Hungary

Audit and Training Plan for 2004

Hungary's State Audit Office (SAO) performs its auditing activities in accordance with an annual audit plan with a medium-term outlook. The president of the SAO approves the audit plan and is also responsible for its implementation.

In 2003, the scope of the SAO's authorization was enhanced, thereby strengthening its role and authority. Under new legislation, the SAO's authority was increased so that it could audit the legality of the use of state property and government subsidies.

Over the past few years, audit obligations related to legal provisions have accounted for about 60 percent of the SAO's audit capacity. The remaining 40 percent is dedicated to selecting audit tasks and subjects related to timely and important social and economic issues, as well as audits involving the preparation of economic analyses and conclusions, thereby promoting transparency in the use of public funds and property.

Annually, the SAO is required to present an expert opinion on the state budget bill and audit the final accounts, the use of and accounting for subsidies provided to local governments from the central budget, and the operation and financial management of the state privatization company and the national news agency. In connection with Hungary's accession to the European Union, the SAO must also perform an accreditation audit of the institutional framework set up to implement the SAPARD (Special Assistance for Agriculture and Rural Development) program and to disburse support payments.