Planning: The preparation of the annual work plan takes into
account a wide range of considerations in accordance with the
guidelines and policy set by the State Comptroller. The criteria
for selecting the topics for audit are determined mainly according
to the importance of the subject; the public interest; financial
implications; the quality of internal and external control systems;
complaints against the audited bodies; information publicized
by the media or received from any other source; and the appropriate
frequency for examining the subject. Before undertaking extensive
audit, a preliminary survey is carried out, providing initial
information and direction.
The detailed work plan indicates the order in which the work
is to be conducted, the importance to be attached to each of
its stages, the schedule for its implementation and the guidelines
for the examination of each of the subtopics included. In order
to ensure the proper direction and quality of audit, team coordinators,
division and department heads participate during the stages
of implementation, and interim internal discussions are held
with the top management of the office.
The results of audit are summarized in a written document to
the audited body. This document invites the audited body to
respond to the findings as presented by the audit, to the way
in which the facts were interpreted, and to the conclusions
drawn. Prior presentation of the results of audit in writing
to the audited body demonstrates that the intention is not to
cause surprise or embarrassment with the publishing of the final
report, but to induce correction and improvement.
Officials throughout the office hierarchy take part in preparing
the final audit report, including the auditors, team coordinators,
heads of departments and divisions, staff advisory units, the
director general, and finally the State Comptroller himself,
who determines state audit's position and the emphases to be
given to the various issues. The intention is to generate optimal
analysis of the issues, arrive at well-based conclusions and
to ensure the professional quality of the audit reports, as
well as the accuracy of the facts and findings.
The Timing of Audit: State audit is usually carried out ex post
facto. In recent years, the State Comptrollers of Israel have
made efforts to conduct audit on subjects of public interest
as close as possible to the occurrence of events, or audit in
"real-time." In special circumstances, when during the course
of audit it becomes clear that the results of an action by an
audited body are liable to cause severe or irreparable damage,
the State Comptroller will then make his voice heard already
during the course of the events in order to prevent irremediable
action. Examples are the audit reports on immigrant absorption,
the report on the preperations to solve the "Bug 2000" problem,
various aspects of military and civilian preparedness for war
and emergency situations, gas masks and protective equipment
for the civilian population, and the sale of government holdings
in the major banks.
The Results of Audit: The State Comptroller's Reports
The State Comptroller issues various types of reports, the Annual
Report being the major one. The Annual Report summarizes the
activities of audit as regards the government ministries, the
defense establishment, state enterprises and institutions. Findings
on follow-up of the actions taken by the audited bodies to rectify
shortcomings uncovered by previous audits are also included.
The State Comptroller specifies in his reports any infringements
of the principles of economy, efficiency and moral standards
that in his opinion deserve to be included. The Comptroller
also includes recommendations for the correction and prevention
of shortcomings. According to section 15 of the State Comptroller
Law, the Annual Report is to be submitted to the Prime Minister
for consideration no later than the 15th February in each year.
In accordance with the Comptroller's decision, beginning from
1999 the Annual Report is to be submitted in two parts: the
first section is to be submitted to the Prime Minister at an
earlier date - in mid-July each year; and the second section
is to be submitted in mid-February of the following year. The
Comptroller lays the report on the table of the Knesset and
publishes it about ten weeks after its submission. Together
with the Annual Report, the report on the balance-sheet showing
the assets and liabilities of the State is laid on the table
of the Knesset.
According to the State Comptroller Law, the Prime Minister shall
make his comments regarding the Annual Report within ten weeks
from the date on which he receives it. These comments are also
laid on the table of the Knesset together with the Comptroller's
report.
The State Comptroller regards the media as a vital means for
bringing his audit findings and recommendations to the knowledge
of the public. Publication serves as a deterrent against deviations
from proper administrative procedures and spurs the audited
bodies to bring about improvement and the correction of deficiencies
uncovered by audit.
Together with the submission of the Annual Report to the Prime
Minister, the part of the report dealing with the defense establishment
is submitted to the Knesset Committee for State Audit Affairs.
In accordance with section 17 of the State Comptroller Law,
the Committee decides, after consultation with the Comptroller,
whether the entire section of this part of the report shall
be laid on the table of the Knesset or whether the submission
and publication of certain chapters is to be prevented for reasons
of safeguarding the security of the State or avoiding an impairment
of its foreign or international trade relations.
Reports on other audited bodies - such as local authorities,
public enterprises and institutions of higher education - are
issued by the Comptroller as separate reports to the Knesset
Committee for State Audit Affairs, to the government ministers
concerned and to the audited body. The audit findings are published
as separate reports on each body or subject, or are issued as
a compendium of reports on a group of bodies.
The Report on the Results of Audit in Accordance with the Political
Parties' Financing Law, dealing with the income, expenditures
and accounting practices of the political parties represented
in the Knesset, is presented annually to the Chairman of the
Knesset. In an election year, the Chairman is also presented
with an audit report on the income, expenditure and accounting
practices of the political parties during the election period
for the Knesset and local authorities.
From time to time, and in accordance with section 21 of the
Law, the Comptroller also publishes an Opinion if requested
to do so by the Knesset, the Knesset State Audit Affairs Committee
or the Government. Such opinions have been submitted, for example,
on the procedures for granting assistance by government ministries
and by local authorities, the terms of retirement of senior
officials, instituting summer time, reimbursement of travel
expenses of civil servants, and on the course of events leading
to the termination of office of the Inspector-General of the
Police in 1993.
The Annual Report of the Ombudsman is submitted to the Knesset
each year at the beginning of its session, in accordance with
section 46 of the State Comptroller Law. The report contains
a general survey on the activities of the Ombudsman, data on
the number of complaints received from the public and their
outcome, and summaries of selected cases where complaints have
been handled.
Liaison with the Knesset
The Law explicitly states that in carrying out his functions,
the State Comptroller shall be responsible only to the Knesset,
and emphasizes his independence from the government. The Comptroller
provides the Knesset with information that can serve it as a
means for overseeing the executive and thus enables it to fulfill
its responsibility. This expresses one of the central pillars
of the principle of the separation of powers in a democratic
state - the legislative branch's oversight of the executive
branch.
Expression is given to this responsibility in several ways:
First and foremost, the State Comptroller's Annual Report and
the Annual Report of the Ombudsman are laid on the table of
the Knesset. Other reports are submitted to the Knesset Committee
for State Audit Affairs. The Comptroller also maintains continuous
contact with the Committee. He reports to the Committee on his
activities whenever he thinks it appropriate or is requested
to do so by the Committee. The annual budget of the State Comptroller's
Office is determined by the Finance Committee of the Knesset,
upon the proposal of the Comptroller, and at the end of the
financial year, the Comptroller submits the financial report
of his Office for the approval of the State Audit Affairs Committee.
The Committee holds sessions to discuss the reports of the State
Comptroller and the Ombudsman. The subjects raised for discussion
are determined also in consideration of the State Comptroller's
recommendations. Meetings are convened several times a week
when the Knesset is in session. The State Comptroller, his assistants
and senior representatives of the office who deal with the subject
being reviewed, regularly attend and actively participate in
the discussions, as do the representatives of the audited body.
During the meetings, the representatives of the audited body
are requested to respond to the audit findings and the Ombudsman's
reports, and submit additional information, especially regarding
the correction of shortcomings. Afterwards, discussions are
held in which the Committee members question the audited body's
representatives and make their comments. Based on these discussions,
the Chairman of the Committee, in coordination with the State
Comptroller's Office, prepares the "Conclusions and Proposals
of the State Audit Affairs Committee on the State Comptroller's
Report," which are brought for the approval of the Knesset plenum.
Upon their approval they receive the status of Knesset resolutions.
The State Comptroller Law was amended in 1990 to enable the
Committee to obligate any person who held office or fulfilled
a function in an audited body (including publicly elected officials)
to appear before the Committee in order to respond to the findings
of the audit report in regard to matters with which the said
person was connected. The Law also imposes a fine on any person
who refuses, without any justifiable reason, to respond to the
request to appear before the Committee.
International Cooperation
State auditors and Ombudsmen throughout the world maintain close
cooperation and exchanges of information, both on the bilateral
level and in the framework of international organizations. The
State Comptroller's Office of Israel is an active member of
the International Organization of Supreme Audit Institutions
(INTOSAI) since the 1950's. The State Comptroller has been a
member of the Governing Board of INTOSAI and served as its Chairman
from 1965 to 1968. The 5th International Congress of INTOSAI
was held in Jerusalem in 1965. In 1980, the Second International
Ombudsmen Conference also met in Jerusalem, as did the 6th Conference
of European Ombudsmen in 1997. The State Comptroller is also
a member of the regional Asian Organization of Supreme Audit
Institutions (ASOSAI), and in his capacity as Ombudsman, is
also a member of the International Institute for Ombudsmen and
the European Institute of Ombudsmen.
Trainees from other countries visit Israel from time to time
to study the principles and methodologies of state audit.
At the beginning of the 1990's, a research team was set up in
association with the State Comptroller's Office, the members
of which are university affiliated academicians, and professionals
in the field of public audit. The research team prepared its
first volume of articles in 1987 entitled "State Audit in the
Nineties." In 1991, the research team prepared a reader on state
audit which includes articles on the principles and methodologies
of state audit in various countries (State Audit and Accountability:
A Book of Readings, editors.: A. Friedberg, B. Geist, N. Mizrahi,
I. Sharkansky). More than half the articles were written especially
for the book, which was distributed by INTOSAI's training and
development organization as Israel's contribution in this field.
Many of the articles were published in Hebrew in the professional
journal, Iyunim B'bikoret Hamedina (Studies in State Audit),
issued by the State Comptroller's Office since the beginning
of the 1960's. In 1995, a selection of articles from the journal
were published in English as a book: Studies in State Audit
(editors: A. Friedberg, B. Geist, N. Mizrahi, I. Sharkansky).
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