The State Audit Office of Latvia has sent a letter to the Saeima in which it drew attention to the recommendations provided and not yet implemented in the audits or other findings that could have a positive impact on the state budget next year.
“While dividing the “wallet” of the state, it is concluded annually that there is not enough money for all purposes. By implementing the recommendations provided by the State Audit Office of Latvia in certain sectors, a reduction in costs or increase in revenue and benefits could be achieved at the level of the State, local and regional governments, or specific groups of society. These benefits range from a few tens of thousands to several million euros. We have collected and sent information to the Saeima regarding the recommendations provided by the State Audit Office of Latvia, but not yet implemented, which could have a positive impact on the state budget. The State Audit Office of Latvia expects this information to be useful to the Members of the Parliament when working on the Budget Law 2025,” indicated Auditor General Edgars Korčagins.
It is important for the State Audit Office of Latvia that the recommendations provided are not perceived only as a list of actions to be conducted with deadlines, while the process of monitoring their implementation is only formal correspondence between the State Audit Office of Latvia and an audited entity. The aim of each action included in the recommendations is to encourage or deliver specific changes and improvements, thereby contributing to the better lives of citizens. The implementation of the recommendations is expected to have a positive and demonstrable impact.
For example, an audit of the relevance of adult education to the labour market needs concluded that the governance model for adult education was not set up in an efficient way and there were no impartial obstacles so that only one institution, the State Employment Agency or the State Education Development Agency, could not carry out adult learning. If only one institution provided training for adults, the auditors estimate that administration and service costs would be at least 3.6 million euros lower. This funding could provide at least three thousand people with training leading to professional qualifications.
Here is another example, where the State Audit Office of Latvia also sees a simple possibility to save state budget resources, that is, to refuse granting bonuses to a Member of the Cabinet by replacing an absent Member of the Cabinet of Ministers. The Law on Remuneration of Officials and Employees of State and Municipal Institutions stipulates that a Member of the Cabinet shall receive a supplement in the amount of 30% of the salary determined for him or her if, in addition to his or her direct duties of office, he or she replaces an absent Member of the Cabinet, as well as replaces a Member of the Cabinet who has ceased to perform his or her duties before another person has been approved as the relevant Member of the Cabinet. The supplements calculated in 2023 amount to 61,568 euros, and together with the employer’s social contributions, they total to 76,092 euros.
The results of all completed audits are published in “Completed Audits” section of the website of the State Audit Office of Latvia. In its turn, at the Recommendation Platform, one can look at recommendations from audits where there is still at least one unimplemented recommendation left.
About the State Audit Office of Latvia
The State Audit Office of the Republic of Latvia is an independent, collegial supreme audit institution. The purpose of its activity is to find out whether the actions with the financial means and property of a public entity are legal, correct, useful and in line with public interests, as well as to provide recommendations for the elimination of discovered irregularities. The State Audit Office conducts audits in accordance with International Standards of Supreme Audit Institutions of the International Organization of Supreme Audit Institutions INTOSAI (ISSAI), whose recognition in Latvia is determined by the Auditor General. Upon discovering deficiencies, the State Audit Office of Latvia provides recommendations for their elimination, but it informs law enforcement authorities about potential infringements of the law.
Additional information
Ms Gunta Krevica
Head of PR and Internal Communication Division
Ph. 23282332 | E-mail: Gunta.Krevica@lrvk.gov.lv