Presentation on guidelines for PIFC compliant financial inspection, Joop Vrolijk, SIGMA expert, joint SIGMA-ReSPA PIFC regional conference for EU candidate countries and potential candidates, Skopje, 19 September 2019.

1. © OECD
GUIDELINES FOR PIFC
COMPLIANT FINANCIAL
INSPECTION
Joop Vrolijk , SIGMA expert
Skopje, North Macedonia
20 September 2019

2. What is Financial Inspection?
• Tool of management
• Ex post control activity reporting
usually to a central organisation
• Should aim at inspecting major
failures/irregularities
• Administratively sanctioning the
responsible people and organisations

3. Why Guidelines?
• FI function is not mandatory for EU
Enlargement countries but where FI exists……
• Powers, mandate, scope, and tasks of FI
functions differ, which can influence
development of PIFC
• Guidelines will be mandatory for Enlargement
countries after discussion and approval on this
PIFC conference but…..
• Implementation depends on local regulatory
framework for administrative investigations
2

4. Proposed guidelines for
Financial Inspection (1)
1. The ex-post control function of FI should
check cases of serious mismanagement,
suspected professional misconduct and
negligence.
2. Financial Inspection should only check
compliance with laws, regulations, rules and
national and international agreements.
3. Financial Inspection should cover the whole
public sector
3

5. Proposed guidelines for
Financial Inspection (2)
4. FI should be a reactive control activity
5. FI should be a centralised, professional control
function
6. FI’s should be based on risks
7. Financial Inspectors should have unlimited
access to premises and documentation of the
inspected entity
8. FI should hold perpetrators administratively
liable
4

6. Proposed guidelines for
Financial Inspection (3)
9. FI should report to entity inspected and to
institution responsible for that entity. If the
entity responsible for the entity inspected is
involved in financial inspection, FI institution
should report to next higher level. Annual FI
report should be discussed at Government level
and published on FI website.
10. FI requests to eliminate violations of laws
and regulations should be followed-up regularly
11. FI should co-operate with functional national
and international partners 5

7. Thank You
Questions?
6