From 14th until 19th October
the 7th workshop of the Public Expenditure Management Peer-Assisted
Learning (PEM PAL) was held. Representatives of 17
countries in Europe and Central Asia: Albania,
Bosnia and Herzegovina, Croatia, France,
Montenegro, Portugal, Romania,
Serbia, Slovenia, Turkey,
Georgia, Kyrgyz Republic
as well as CEF and SIGMA participated in it.
Community of Practice (PEM PAL) was initiated
in 2005 to enhance domestic capacity in the field of public expenditure and financial
management and unites countries of Central Asia and Eastern
Europe. PEM PAL is supported by the World Bank, the Organization of
Economic Cooperation and Development, the Ministry of International Development
of the United Kingdom (DEID), the Treasury of USA and other international
organizations. PEM PAL Secretariat is located in the Center
of Excellence in Finance (CEF) in Slovenia.
workshops were conducted in Slovenia
(2006, 2009), Moldova
(2007), Turkey (2008), Armenia (2009) and Ukraine (2010). The purpose of these
workshops is to bring together leading governmental officials in internal audit
from European and Central Asian countries to share their experiences.
Director of the Department of Organizational Operations of the MainCRO Serhiy Chornutskiy and Head of the Public Internal Financial
Control Harmonization Department – Head of the Central
Harmonization Unit (hereinafter – the CHU) of Ukraine Maksim Tymokhin represented Ukraine at this
At the official opening of the seminar
participants were welcomed by Tomislav Mičetić – Chief Audit
Executive, Senko Maver – representative
of the World Bank and Joop Vrolijk
– the representative of SIGMA.
Participants of the first workshop,
held on 14th-15th October, discussed the features of
content and process of implementation and use of manuals (guidelines) on
Croatia presented the third version of the internal audit manual, development of
which was begun in 2004. Aforementioned document includes detailed description
of all internal audit processes beginning with legal ensuring of an activity of
internal auditors, planning of the process, objectives of an activity,
procedures, quality assurance, sharing of responsibilities, reporting, cooperation
with the CHU and so on.
The manual on internal audit presented
by Moldovian colleagues has a similar structure.
After discussion of the presentations
and comments of all contributors of the workshop participants agreed the need of
establishment of a unique internal audit manual for the public sector which could
be applied or adapted in each country depending on the specifics of legislation.
Representatives of SIGMA emphasized that the manual should not be very voluminous as in Albania (more
than 600 pages). It should have no more than 100 pages. But the standards and
procedures registered there should be laconic, clear and understandable.
During the second workshop (18th
– 19th October) the main attention of participants was paid to the training
of internal auditors.
For example, in Croatia training
process of internal auditors consists of five modules, including internal audit
in the system of internal control, financial audit and the workshop – simulation,
etc. Duration of training is five weeks. It is interesting that while coming up
to the training course no strict
condition concerning knowledge or specific experience in internal audit exists.
Employees of the CHU are as trainers in the training process. After completion of course every
of applicants passes an exam of 100 questions. For
successful pass of the exam they need to answer correctly on 60 of them. In
addition, future internal auditor should conduct 2 audits under the supervision
of two employees of the CHU and only then he/she
receives a certificate valid only in the public sector of the central level.
In Albania at the first stage a model of training of internal auditors was created. It is
counted on 70 hours of training time and consists of four modules: legislation,
accounting, corporate management and reporting, internal audit. Today the CHU of
Albania is discussing a new strategy on training of internal auditors. It should
be noted that the CHU of Albania has a separate budget for training of internal
Also, experts from Kosovo presented their
model of training of internal auditors, which is similar to Albanian.
After discussion, representatives of SIGMA
made their comments and gave opinions concerning they have heard. They criticized
that presented models have liabilities concerning knowledge of all financial
laws, detailed knowledge of basic account regulations and theoretical
information without practical component, short term of training etc.
Therefore, representatives of SIGMA
focused an attention of participants of the workshop on the best practices of training,
namely: the concentration of training on practice, ability to work with
regulatory base, gaining of skills on writing of reports. They also emphasized that
the profession of internal auditor requires international certification.
1. Measures that Ukraine takes
to build a system of public internal financial control respond to the best European
2. Ukrainian experience has many
similarities with the experience of other countries, including the following:
- wider range
of objects which for the public internal financial control. They are not only
the central executive authorities (ministries and budget institutions
subordinated to them), but regional and local authorities;
- at first approval
of the secondary legislation and methodologies which should be tested in
practice (including during pilot projects), and laws afterwards;
- the CHU plays the leading role in reforming of public
1. To take into account gained experience
in the course of the further implementation of measures on reformation of
public internal financial control.
2. To approve
Manuals on internal control and internal audit.
3. To test Manuals on internal control
and internal audit during pilot projects at the central and regional level.
4. To develop training programs on
internal audit and internal control.