The Council of the State Audit Office of Latvia has approved audit topics for 11 new audits, which will be launched in 2025. At the same time, work will continue on 43 previously launched audits, including situation investigations. In the new audits, the State Audit Office of Latvia will focus on significant issues in ensuring the quality of life of children and human resources, regional development and the management of European Union funds.
“The new audit topics cover issues that are essential for the welfare of the public and the development of the country. For example, in the audit on the availability of housing in the regions, we will assess whether support programs are targeted and effective. In its turn, we will devote other audits to such current challenges as the operation of the personnel training system in the army and the availability of preschool education and healthcare for children. Our goal is to strengthen public administration so that public resources are used responsibly and efficiently by facilitating sustainable and balanced development of Latvia,” stressed Auditor General Edgars Korčagins.
When drafting any audit plan, attention will be paid to the comparability of the situations in Latvia and neighbouring countries, cooperation among institutions by preventing duplication of functions, opportunities for reducing red tape and administrative burden and simplifying internal processes, assessing economy, identifying potential savings.
Approved audit topics
Three performance audits are dedicated to issues related to the quality of life of children:
- “Does every child have the opportunity to receive a full-fledged preschool education?”
- “Is healthcare for children planned and organised effectively?”
- “How do we facilitate and implement the recovery of maintenance paid from the Maintenance Guarantee Fund of Latvia?”
Issues related to workforce provision will be assessed in the following three performance audits:
- “Are the measures implemented by the government for the inclusion of disabled people in the labour market sufficient and promote their inclusion in the labour market?”,
- “Is the work permit issuance system in Latvia operating effectively?”,
- “The operation of the personnel training system of the National Armed Forces”.
Three new performance audits will address the issues of regional development:
- Effectiveness of regional development policy implementation”,
- “Legality and efficiency of the actions of the Ogre Regional Government with financial resources and property”,
- “Availability of housing in the regions: are the existing measures effective and economical?”.
In its turn, the effectiveness of the European Union funds governance system in the current fund programming period will be assessed in performance audit “How purposeful and effective is the governance of the EU funds?” The aim is to provide recommendations for improving the governance system before the next EU fund programming period for 2028–2034.
Compliance audit “Assessment of the operational objectives of state institutions and key performance indicators of managers”, which will assess the link between the performance indicators of managers and the implementation of a strategy of a relevant state institution and their comparability with the established remuneration, will be a logical continuation of compliance audit “Implementation of the remuneration system reform in state administration” launched last year.
This year, the State Audit Office of Latvia will launch three more audits, whose topics have been approved for 2024:
- Performance audit “Sustainable management of forests managed by state-owned JSC “Latvijas valsts meži””,
- Performance audit “Do EAFRD-financed projects maintain sustainability even after the end of the supervision period?”,
- Compliance audit “Is budget management in local and regional governments ensured in accordance with the principles of good governance and ensures the achievement of the set objectives?”.
“The majority of new audits are performance audits. It is possible to assess exactly in performance audits whether the use of public funds is efficient and provides the greatest possible benefits to society. Given the fact that the Saeima supported amendments to the State Audit Office Law at the end of 2024, we will be able to streamline the financial auditing by the State Audit Office of Latvia and redirect the saved resources to performance and compliance auditing. At the same time, one should note that the list of audit topics is open and can be supplemented and specified during a year as well,” adds Mr Korčagins.
How are audit topics determined?
The State Audit Office of Latvia is required to conduct financial audits by law, while the State Audit Office of Latvia selects the topics of performance audits and compliance audits based on the risk assessment of the audit areas. The risk assessment of the audited areas depends on the vision of the State Audit Office of Latvia on irregularities in policy implementation, financing, implementation, management and monitoring of reforms, and also takes into account the public interest and received complaints. In total, the State Audit Office of Latvia carries out risk assessment in 113 areas by choosing audit topics mainly in high-risk areas and balancing it with the resources at its disposal. The aspect of whether a specific topic/matter can affect public trust in state administration is also assessed.
More information on risk assessment and determining audit topics is available on the State Audit Office website in section “Audits/ Documents”.
Any entity which has the financial resources or property of a public entity at its disposal is subject to auditing by the State Audit Office of Latvia, as well as entities who perform state or municipal procurement, and state-owned and municipal enterprises within the meaning of the Law on the Management of Capital Shares of Public Entities and State-owned and Municipal Enterprises. The Saeima is not subject to audit by the State Audit Office of Latvia.
In 2024, the State Audit Office of Latvia completed 42 audits 27 of which were financial audits, 12 were performance audits, 2 compliance audits and 1 investigation. One interim audit report and one additional audit report have been published during the financial audits.
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