SelfGovernment Slovak SAO Audit by Juraj Kolarovic The
Self-Government & Slovak SAO Audit by Juraj Kolarovic The Supreme Audit Office of the Slovak Republic Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II. Territorial Self-Government & Slovak SAO Audit III ackground b v o -g lf e s l a ri o it I. Terr tion • General informa • Financing it II. Slovak SAO aud tion • General informa • Examples III. Conclusion Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I I. Background – General Information System of Public Administration in Slovakia II III Public administration Levels State administration National Central state administration Local self-government Higher territorial units Regional District Public-law corporation Local state administration Municipalities Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II I. Background – General Information Regional & Local Administration in Slovakia Administrative map of Slovakia Regional Administration 8 Higher Territorial Units Since 1 st January 2002 Local Administration 2 890 Municipalities Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II I. Background – General Information The Size Structure of Municipalities in Slovakia Total population: 5. 421. 349 Inhabitants number Municipalities number Share (%) Up to 199 379 13, 14 200 - 499 794 27, 46 500 - 999 775 26, 81 1 000 – 1 999 555 19, 20 2 000 – 4 999 259 8, 96 5 000 – 9 999 56 1, 94 10 000 – 19 999 32 1, 11 20 000 – 49 999 29 1, 00 50 000 – 99 9 0, 31 100 000 and more 2 0, 07 Total 2 890 100, 00 Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II I. III Original competences own functions & responsibilities Background – Financing Territorial Self-government Municipalities & higher territorial units Transferred competences secure autonomous tasks delegates functions & responsibilities combination of central tax-sharing, own tax and fee collection, service and administration charges, property and business profits, investment, financial operations, transfers, grants and loans Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II Territorial Self-Government & Slovak SAO Audit III t only o n s m r fo r e p t n e Self-governm ut also b , s e c n te e p m o c legal given the leg icient ff e , e v ti c e ff e r fo y the responsibilit lic funds b u p f o e s u l a ic m and econo dit II. Slovak SAO au tion • General informa • Examples III. Conclusion Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II II. Slovak SAO Audit – General Information Supreme Audit Office Responsibility Slovakia amended Constitution (2006) Supreme Audit Office of the Slovak Republic is able to supervise all financial and property operations of local and regional self-government, including their organizations and enterprises. Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II II. Slovak SAO Audit – General Information SAO Activity in the Area of Self-Government Supreme Audit Office performs compliance audit Evaluation in financial audit opinion on the draft state budget performance audit opinion on the daft state final account Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II. Slovak SAO Audit – Audit Examples Degree of Self-Sufficiency 1 Indicator II III Degree of Self-Sufficiency 1 To which extent is the municipality able to finance own competences? Do. SS 1 = OI / TI Do. SS 1 = Degree of Self-Sufficiency OI = own income TI = total income 1 ≥ Do. SS 1 % share of own income on own resources Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II II. Slovak SAO Audit – Audit Examples Degree of Self-Sufficiency 1 Indicator– Additional Indicator Additional indicator of Degree of Self-Sufficiency 1 indicator: Tax power TP = OI / R How big is the tax yield of the municipality? (for example from property tax) TP = tax power OI = own income R = residents Expresses total tax income per one resident of municipality Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II. Slovak SAO Audit – Audit Examples Degree of Self-Sufficiency 2 Indicator II III Degree of Self-Sufficiency 2 Do. SS 2 = ( OI + T ) / TI To which extent is the municipality able to finance own and transferred competences? Do. SS 2 = degree of Self-Sufficiency OI = own income T = transfers TI = total income 1 ≥ Do. SS 2 % share of own income and transfers on own resources Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II II. Slovak SAO Audit – Audit Examples Degree of Self-Sufficiency 2 – Additional Indicator Additional indicator of Degree of Self-Sufficiency 2 indicator: Financial power FP = ( OI + T ) / R How stable is the share of repetitive income on 1 resident of municipality? FP = financial power OI = own income Expresses degree of dependency on other (external) budgets T = transfers R = residents Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II. Slovak SAO Audit – Audit Examples Degree of Self-Financing Indicator II III Degree of Self-Financing Do. SF = VP / BV How big is the ability of municipality to cover its current expenditure and development activities? Do. SF = degree of Self-Financing OI = own income CE = current expenditure 1 ≤ Do. SF Expresses the share of resources available for development activities Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II II. Slovak SAO Audit – Audit Examples Degree of Self-Financing Indicator – Additional Indicators Additional indicators of Degree of Self-Financing indicator: How big is the ability of municipality to ensure resources for reproduction of property? Reproductive capacity RC = CI / P RC = reproductive capacity Reproductive power RP = CE / P CI = capital income P = property * How big is the reproduction level of property? RP = reproductive power CE = capital expenditure P = property * * Property pertaining to market purposes and the provision of public services, including the partial toll Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II II. Slovak SAO Audit – Audit Examples Debt Capacity Indicator Debt capacity DC = CB – (CE + L) How are the possibilities for municipality to finance its development activities? DK = debt capacity CB = credit base CE = current expenditure L = liability In credit base there are transfers from budgets of other public administration entities, EU, abroad or because of other reason according to special regulation excluded from total income Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II II. Slovak SAO Audit – Audit examples Debt Capacity Indicator – Additional Indicator Additional indicator to debt capacity indicator: Debt service DS = RPI / CB What are the municipality expenses connected to the debt service? repayments of DS = debt service RPI = principal and interest CB = credit base Repayments of principal and interest can not be counted towards early one-time repayment of debt. Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II Territorial Self-Government & Slovak SAO Audit III s not only rm o rf e p t n e m rn e v Self-go also t u b , s e c n te e p m o legal given c the leg e, efficient v ti c e ff e f o y it il ib s the respon c funds li b u p f o e s u l a ic and econom ents for m u tr s in f o r e b m u ds a n SAO needs use these to w o h g in d n ta rs e audit and und h its roles it w e c n a n o s n o c instruments in and missions III. Conclusion Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II III. Conclusion III In assessment of municipalities’ development capacity it is important to accept not only the size, but also the status of municipalities in administrative and settlement system of the country Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
I II III. Conclusion III Juraj Kolarovic, 9 th INTOSAI Working Group on Key National Indicators, April 26 – 29 2016, Yerevan, Armenia
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