Main page
 
Press Release
18/04/2019   The National Audit Office has published its Annual Report for 2018

The National Audit Office in implementing the functions of supreme audit institution, EU investment Audit Authority and Fiscal Institution, has published its annual activity report for 2018. The Annual Report presents the main activities performed and key performance results achieved last year.

In 2018, the institution focussed its activity on five main priorities: budgetary governance, education, public administration, management of public land and development of information society. Public auditors have performed 12 performance audits, 9 financial (compliance) audits, European Union (EU) investment audit, also carried out six assessments by the Fiscal Institution.

Audits performed by supreme audit institution revealed that Lithuanian law-making does not operate efficiently, business supervision system needs regular risk assessment, whereas legal regulation of the public procurement system does not always create conditions for effective functioning of public procurement. The audit findings show the pre-school education is not accessible to all in the country, and the most pressing challenges the health sector has been facing are the inconsistent funding and organisation of the health system.

“Public audits reveal the reasons and provide proposals for addressing systemic public sector challenges, however, major change is impossible unless sufficient attention is paid to the implementation of recommendations. Since the last year, we have been associating performance efficiency with the number of changes implemented in a timely manner, and the number of recommendations implemented to the agreed deadline. Last year, one fourth of recommendations were implemented on time,” - says Auditor General Arūnas Dulkys.

Last year, EU Investment Audit Authority issued an opinion that EU investment management and control system in 2016–2017 the reporting period was operational, however, it needs some improvement. In the expenditure declared to the European Commission residual error rate did not exceed applicable 2 percent materiality threshold.

In 2018, Fiscal Institution presented not only mandatory reports but also assessments of the errors in the main tax plans and Stability Programme 2018, the heat map of the Lithuanian economy and scoreboard of fiscal risks.

One of the main signals is budget

Last year, supreme audit institution presented to the Seimas opinions on the 2017 national set of financial statements, sets of financial statements of the state budget and six funds (Compulsory Health Insurance, State Social insurance, and other resource funds), and their execution. Alongside with these six opinions, assessment of maturity of the national budget governance was presented for the first time. Assessment results revealed that we are still yet to overcome classic, rule-based management: our difficulties range from policy-making and the determination of operational priorities, to performance reporting and the use of such information for the purposes of formulating the budgets of subsequent periods. The budget theme as one of the main signals that were addressed at the international public sector sustainability conference “Signals 2018” organised by the National Audit Office.

Savings

The National Audit Office pursues the aim to achieve the optimum size of the staff, therefore the structure of the institution has been re-organised to reduce the number of managers and units. Since 2015, the largest permitted number of posts at the National Audit Office was reduced by 15 per cent. This year, proposal by the Auditor General was accepted to reduce the largest permitted number of civil servants and employees working according to the work contracts and receiving the salary from the state budget and state monetary funds by additional 5 per cent.

“We try to serve as a model for the public sector. When creating attractive environment for people whose work carries a lot of responsibility, we in the first-place aim for the optimum number of employees, by devoting greater attention and larger funds to the development of their professional qualification and organisational culture. Public sector institutions should compete not with the number of staff but with their competences. I hope that with the amendment of the Law on National Audit Office the draft of which is being currently considered in the Seimas, the institution will become a centre of competence in the future,” – says Arūnas Dulkys.

During the last year the National Audit Office reduced the amount for the maintenance of its real estate by 6 percent, transport expenditure by 43 per cent. Since 2015 this expenditure decreased accordingly by 18 and 69 per cent. The floor area of administrative facilities decreased by 8 per cent compared to 2017. Currently the floor area per employee is 9 square meters. Last year the institution used about 518 thousand euro less than the planned budget.

On 16 January this year the supreme audit institution celebrated centenary of its establishment therefore this annual report is complemented by archive documents and photos from the institution’s history.

Responsible for the information Communication Division
Last updated on 18 June 2019

National Audit Office of Lithuania

Pamėnkalnio St 27, LT-01113 Vilnius, Phone: + 370 5 266 6793, + 370 5 266 6752, Email: nao@vkontrole.lt.