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Compliance audits prevention and protection from coronavirus pandemics SAI North Macedonia, SIGMA event 17 February 2021

Presentation by the State Audit Institution of North Macedonia, on the Compliance audits on topics concerning the prevention and protection from the pandemics caused by the coronavirus COVID-19, at the SIGMA webinar on the audit of COVID-related expenditures, held on 17 February 2021.

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Compliance audits prevention and protection from coronavirus pandemics SAI North Macedonia, SIGMA event 17 February 2021

  1. 1. COMPLIANCE AUDITS ON TOPICS CONCERNING THE PREVENTION OF AND PROTECTION FROM THE PANDEMICS CAUSED BY THE CORONAVIRUS COVID-19 “ SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021 STATE AUDIT OFFICE Republic of North Macedonia Audit Team: Ms.Dobrinka Veskovska, Assistant to the Auditor General Ms.Mirjana Simakoska, Senior Auditor Mr. Sasho Mateski, Senior Auditor Ms. Daniela Todorovska, Auditor Mr. Isamedin Murati, Auditor Ms. Julija Takovska, Auditor SIGMA Webinar Audit of COVID-19 related expenditures
  2. 2. Given the global pandemic caused by the coronavirus (COVID-19) and the level of risk we are all facing, the State Audit Office, by amending its Annual Work Programme for 2020 decided to carry out two compliance audits on topics concerning the prevention of and protection from the pandemic caused by COVID-19. INSTITUTIONAL RESPONSIBILITY IN THE TIME OF COVID-19 The selection of the compliance audits is aimed at providing brief and fast reports allowing all relevant institutions and the general public to obtain information on the resources engaged and the manner of taking actions for prevention of and protection from COVID-19.
  3. 3. Compliance audits on topics concerning the prevention of and protection from COVID-19: 1. Awarding public contracts by public sector institutions aimed at providing prevention of and protection from the pandemic caused by COVID-19. 2. Obtaining non-financial aid, its distribution and use by the public sector institutions aimed at providing prevention of and protection from the pandemic caused by COVID-19. SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021 SELECTION OF THE AUDIT TOPIC
  4. 4. » The State Audit Office decided to carry out a compliance audit on this topic because, from the onset of the pandemic, a large share of the contracting authorities in the public sector decided to conduct negotiated procedures without publication of a contract notice for purchases of supplies and services. » The negotiated procedure without publication of a contract notice is not transparent and the contracting authorities are not obliged to ensure competition between economic operators which poses a risk that the achieved prices would not reflect the real market value of the supplies and services that are the subject-matter of procurement. » . SELECTION OF THE AUDIT TOPIC SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021 PURPOSE OF THE AUDIT To allow all relevant institutions and the general public to obtain information on the resources engaged and the manner of conducting the public procurement procedures by the public sector institutions for prevention of and protection from COVID-19. 1. AWARDING PUBLIC CONTRACTS BY PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF AND PROTECTION FROM THE PANDEMIC CAUSED BY COVID-19
  5. 5. The audit covered public sector institutions and contracting authorities purchasing supplies and services, specifically: o Government of the Republic of North Macedonia; o Competent ministries; o Independent scientific institutions; o Public health institutions; o Local self-government units; o State-owned public enterprises; o State-owned joint-stock companies. SELECTION OF AUDITEES SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021 1. AWARDING PUBLIC CONTRACTS BY PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF AND PROTECTION FROM THE PANDEMIC CAUSED BY COVID-19
  6. 6. AUDIT APPROACH SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021 The source of data about the amount of public contracts awarded for prevention and protection from COVID-19 is the Electronic System for Public Procurement (ESPP). Data about this type of contracts and the contracting authorities that awarded them is downloaded from the web page www.koronavirus.gov.mk 1. AWARDING PUBLIC CONTRACTS BY PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF AND PROTECTION FROM THE PANDEMIC CAUSED BY COVID-19
  7. 7. AUDIT SCOPE SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021  Public contracts awarded in the period from 01.03.2020 to 01.10.2020 in the amount of MKD 416,630 thousand (EUR 6,752 thousand).  Covered 19 public sector institutions.  Subject to the audit were public contracts awarded in the amount of MKD 335,445 thousand (EUR 5,346 thousand), which was 80.5% of the total public contracts awarded in the period subject to audit. 1. AWARDING PUBLIC CONTRACTS BY PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF AND PROTECTION FROM THE PANDEMIC CAUSED BY COVID-19
  8. 8.  In performing the audit, we applied a direct testing approach, i.e. detailed tests were carried out at the auditees concerning the public procurement procedures conducted for prevention of and protection from COVID-19.  The audit was carried out by electronic means, i.e. the necessary documents were delivered to the audit team in an electronic format.  Some of the documents were delivered at the premises of the State Audit Office by post.  90% of the communication for the needs of the audit was conducted by electronic means. SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021 AUDIT SCOPE
  9. 9. The selection of the topic for this compliance audit was made: » considering the global pandemic caused by COVID-19 and the level of risk we are facing, a large number of domestic and foreign entities are involved in providing support by donation of goods to the health system in RNM, and » based on the great interest of the public about the readiness of the health system to cope with the pandemic with the existing available resources, and about the obtaining and use of donations for prevention of and protection from the virus. SELECTION OF THE AUDIT TOPIC SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021 PURPOSE OF THE AUDIT To get added value of the effects from the efforts made for legal and earmarked use of the awarded non-financial aid related to the prevention of and protection from COVID-19. 2. OBTAINING NON-FINANCIAL AID, ITS DISTRIBUTION AND USE BY THE PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF AND PROTECTION FROM THE PANDEMIC CAUSED BY COVID-19
  10. 10. The audit covered a larger number of public sector institutions involved in the receipt of donations and their distribution: o Ministry of Health; o Secretariat for European Affairs; o Protection and Rescue Directorate; o Public Health Institutions. SELECTION OF AUDITEES SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021 2. OBTAINING NON-FINANCIAL AID, ITS DISTRIBUTION AND USE BY THE PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF AND PROTECTION FROM THE PANDEMIC CAUSED BY COVID-19
  11. 11. 2. OBTAINING NON-FINANCIAL AID, ITS DISTRIBUTION AND USE BY THE PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF AND PROTECTION FROM THE PANDEMIC CAUSED BY COVID-19 AUDIT APPROACH SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021 One of the sources for the non-financial aid/donation received by legal entities is the data presented on the web page: https://finansiskatransparentnost.korona virus.gov.mk/#/donation-financial-details Data from the web page is presented up to 28.05.2020.
  12. 12. AUDIT APPROACH SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021  In the audit, we opted for a direct testing approach of the donations received, their distribution and manner of use.  One of the more important auditing tools was the drawing up and sending out of questionnaires to 24 entities-donation recipients and daily electronic communication with the entities.  The audit was carried out by electronic means, i.e. the necessary documents were delivered to the audit team in an electronic format.  Some of the meetings and communication with the responsible persons were organised by using the Zoom application. 2. OBTAINING NON-FINANCIAL AID, ITS DISTRIBUTION AND USE BY THE PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF AND PROTECTION FROM THE PANDEMIC CAUSED BY COVID-19
  13. 13. AUDIT SCOPE SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021  According to the data from the web page, the total value of non-financial aid/donation received from legal entities in the country was MKD 63,716 thousand up to and including 28.05.2020.  The audit covered non-financial aid/donation by legal entities in the country received through the Protection and Rescue Directorate (MKD 12,622 and EUR 610,079 thousand) and foreign non-financial aid received through the Secretariat for European Affairs for a share of the value of the foreign non-financial aid received in the country in the total amount of EUR 1,718 and USD 2,048 thousand.  Depending on the materiality and significance of the non-financial aid/donations, the audit covered 24 public sector institutions; all 15 initially established COVID centres and 9 public health institutions as beneficiaries of non-financial aid/donations. 2. OBTAINING NON-FINANCIAL AID, ITS DISTRIBUTION AND USE BY THE PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF AND PROTECTION FROM THE PANDEMIC CAUSED BY COVID-19
  14. 14. LIMITING FACTORS IN CARRYING OUT THE AUDIT  Auditees are facing:  An increased workload with the same number and structure of employees, who in light of the pandemic are carrying out some of the work tasks from home or in shifts;  Some of the employees are free from work in accordance with the measures and recommendations by the Government of the Republic of North Macedonia;  Some of the employees are in isolation because they are infected with the virus or have been in contact with an infected person.  Some of the entities were directly involved in dealing with the pandemic caused by COVID-19.  Audit impact:  Limited access to the premises of the auditee.  Limited access to the responsible persons at the auditees.  Limited access to the employees at the auditees.  Difficult obtaining and delivery of the necessary documents.  Prolongation of the activities to be taken by the auditees for the needs of the audit SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021
  15. 15. о SAO’s Annual Work Programme for 2021 covers three performance audits concerning the measures and policies for copying with the pandemic on the following topics:  Measures and policies taken to support employment and professions affected by the health and economic crisis caused by the COVID-19 pandemic;  Efficiency of the measures and policies taken to curb the effects of the pandemic on the tourism sector;  Economic measures by the Government of RNM to deal with the crisis caused by COVID-19. SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021 LESSONS LEARNED FOR FUTURE AUDITS SELECTION OF TOPICS FOR AUDIT
  16. 16. SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021

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