ALSAI and the Ministry of Finances signed a Cooperation Agreement

A Cooperation Agreement was signed between the Supreme State Audit of Albania (ALSAI) and the Ministry of Finances on May 8th, 2012, in accordance with national legislation and external audit international standards of INTOSAI organization.

The Ministry of Finances and the ALSAI have key prerogatives as far as good governance of public finances is concerned. The Ministry of Finances manages those finances, while the ALSAI audits whether the managing of the Ministry is carried out in accordance with the principles of economy, effectiveness and efficiency on the use of public resources. Common interest to both institution is the good administration of taxpayers money.

minfinThe agreement is based on the art. 26 of the Internal Audit Law, which requires that all general bodies involved in the internal audit procedure should cooperate with the ALSAI  and exchange any valuable information. It is also based on the art. 70 of the Law on the Budget Management System, as well as on the INTOSAI Standard No. 9150 “Coordination and Cooperation between SAIs and Internal Auditors in the Public Sector”.

The Minister of Finances, Mr. Ridvan Bode, stressed out that this agreement will decrease future costs of audit procedures and increase their efficiency. The ALSAI Chairman, Mr. Bujar Leskaj, highlighted the importance of international standard requirements on internal and external audit procedures. He also pointed out that the constitutional independence of the ALSAI is not put into jeopardy with this Cooperation Agreement, on the contrary, it is preserved and strengthened, due to the joint actions against acts of financial fraud and corruption.

This Cooperation Agreement, amongst other things, provides for the mutual communication of audit plans and strategies, the documentation of operational processes and systems of audited entities, the development and performance of coordinated audit procedures and mutual investigation of suspected cases of financial fraud or corruption.

The Cooperation Agreement has been signed after those already signed with the HIDAA, the Competition Authority and the six NGOs whose role is very important in the war against corruption.