Publicity and Transparency in Local Government: Role of NAMRB
This article discusses the importance of publicity and transparency in local government with a focus on the role of the National Association of Municipalities in the Republic of Bulgaria. It covers concepts, compliance aspects, and specifics of municipalities as audit subjects.
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Publicity and Transparency in Local Government the Role of NAMRB Guinka Tchavdarova Executive Director of the National Association of Municipalities in the Republic of Bulgara 19 November 2015 , Sofia Hotel Balkan
Conceptual Conceptual ( (non non) )Compliances Compliances Instead of an introduction independence, objectivity and good faith professionalism, integrity and impartiality consistency and predictability publicity and transparency trust, cooperation and constructiveness legality objectivity official principles confidentiality The Public Financial Inspection Agency comprehensiveness National Audit Office Municipal Budgets Act (repealed) Act on the Public Finances To the interest of the local community accountability and responsibility legality expediency adequacy effectiveness economizing efficiency efficiency publicity effectiveness transparency sustainability legality legality good financial management transparency independence and objectivity competence and professionalism Integrity and confidentiality Systems for financial management and control Internal audit
Specifics of the Municipalities as Audit Subject Specifics of the Municipalities as Audit Subject 265 municipalities basic (and only) level of self-government with independent budget Citizens Main driving force of local government Participate in the management of the municipality both through the bodies of local self-government elected by them and through referendum and general meeting of the population Have legal rights to participate in public discussions of the municipal budget, to be informed and to control Municipal council collective elective body responsible for development policies adopts the municipal budget, carries out control and adopts the report on the fulfilment of the budget principal of municipal property determines the amount of local taxes and fees and prices of services Mayor of municipality - individual elective body of executive power organizes the development of the draft budget and its public discussion fulfills the municipal budget first level budgetary spending unit responsible for implementation the internal financial management and control public procurement assignor
Audit and Audit and Control in Municipalities Control in Municipalities necessary or unwanted part of our lives Internal Internal audit unit Obligatory in all municipalities after 2006 Decreased scope in 2010 only 46% of the municipalities (mostly with budgets exceeding 10 million leva) ! Formally transferred experts with controller s mentality from the old central structures Financial control preventive and ex post Systems for financial management and control transition from formal rules and procedures to sound working mechanisms Developed administrative capacity for ex post preventive control Improved coordination in the municipalities A working system for monitoring the process of managing the public funds External National Audit Office useful recommendations and conclusions PFIA barrier against illegal actions PPA, MA of OP, AEUF financial corrections the hardest problem for the beneficiaries
Results from Audits of Municipalities Results from Audits of Municipalities Certification of annual financial statements of 247 municipalities Audit opinion for certification unqualified (unmodified opinion) 19 % Audit opinion for certification unqualified with remarks (unmodified opinion) 57% Audit opinion for certification unqualified (qualified opinion) 22% Refusal of certification 2 % The most frequent weaknesses identified by compliance audits in the following areas - systems for financial management and control(SFMC), budget, assigning public procurement and property management Ineffective functioning of SFMC and ex-ante control Weak risk management Weak control over the trade companies and municipal revenue units Untimely update of internal regulations Wrong planned fee income without prepared analyses
Good Practices on Publicity and Transparency in the Management Widespread (in 80 to 100% from the municipalities) Active participation of the citizens in the meetings of the Municipal council Public discussions of the budget, report, debt, etc. Publishing on the municipality internet site, in local media and social networks Civil initiatives, fora and meetings of the population Public registries municipal property, public procurement, conflict of interests Good municipal practices: Strategies for transparency and effectiveness 30-40% from the municipalities Internal rules for transparency and publicity, Code of ethics 50 - 70% Public and advisory committees 60 - 80% Evaluation of consumer satisfaction above 50% Budget focused on results above 20% Youth parliaments above 14% Ombudsman above 13 %
The Role of the National Association of Municipalities The Role of the National Association of Municipalities For 20 years the National association of Municipalities is: The voice of the municipalities in Bulgaria representative and defender of the interests of local authorities Centre for services and municipal support : Annual negotiations with the Ministry of Finance Improvement of budget and fiscal legislation Consolidate public support on the decentralization reform Creating a local legal framework Developing an expert and technical capacity Dissemination of good practices and innovative solutions
Contribution of the Contribution of the NAMRB NAMRB Measures and Measures and Impact Impact Annual fora Budget trainings (January) and National meeting of the financiers (June) The consultative elaboration of municipal budget which includes the most frequent omissions identified in audit reports by the control authorities and undertaking concrete practical measures Working with the elective authorities for improving the transparency, publicity and effectiveness of the local government information, consultative materials, recommendations, financial benchmark Working with the lapses and weaknesses of the municipalities Trainings for financial experts (2013-2014) In the country for financial experts 740 municipal employees National meetings and fora over 1 000 participants in the European Institute of Public Administration Cost-benefit analysis 205 participants Public procurement 135 participants Administrative management- 170 participants Participation of audit and control authorities in municipal fora 3-4 fora per year
Identified Problems for Identified Problems for future Solutions future Solutions Consolidation of positions of the control authorities related to: Accountability and control, planning, spending and reporting issues Applying the Public Procurement Act EU funds management Reducing the workload of control teams by developing adequate software and electronic environment for exchange of public accessible information Evaluation of the draft-regulation s impact, in order to safe public funds
Instead of conclusion It is important to: be open for criticism and control accept the audit as tool for improving our activity require responsibility and react against corruption Thus: we can provide more effective management of the public funds and better life of our citizens
Thank you for your attention! http://www.namrb.org
