European Seminar
How to Audit Public Procurement Effectively
With Speakers from:
• Northern Ireland Audit Office
• Swedish National Audit Office
Brochure
19th – 20th May 2014, Berlin
• Ministry of Defence, Denmark
• Audit Commission, United Kingdom
• General Inspection of Social Affairs (IGAS), France
1
EUROPEAN SEMINAR
How to Audit Public Procurement Effectively
Auditors face a unique range of challenges in procurement audits
In times of austerity, audits of public procurements have gained in importance.However,
practitioners from public adiminstrations often find auditing public procurement processes
to be one of the most challenging and complex fields to audit. Misspent public money in
low quality services and goods can endanger both the financial and operational integrity
of an organisation. Therefore, rigorous audits of procurement and contract management
play a key role nowadays in assuring efficiency in public administration. Internal and
external auditors have to be well prepared to identify weaknesses and assess the risks in
procurements to ensure that money is well spent in public administration.
Keep yourself up-to-date and learn from renowned public
procurement audit experts
To cope with the challenges arising from complex public procurement environments it is
essential for auditors to keep themselves informed about auditing tools such as saving
methodologies, forensic examination of processes or procurement data analysis. It is
necessary to exchange experience and practical knowledge about typical pitfalls and
potential misunderstandings in the control of procurements that occurs especially for
complex public procurements of particular goods and services, including IT procurement.
Learn at this European Seminar how to audit in complicated fields such as public
procurement of IT, telecom services, investment banking, health and social affairs,
transport and defence. Receive first-hand insights from internal and external audit
experts and benefit from their experiences to ensure value for money is secured in the
procurement process in your institution.
Directors, Heads of Unit, Internal
Auditors, External Auditors,
Controllers, Advisors, Managers,
Officers, Audit Experts, Audit
Methodologists
and
other
professionals who carry out audits
of public institutions on national
and regional level as well as
from European and international
organisations, especially from the
following departments:
•
•
•
•
•
•
•
•
•
•
•
Internal Audit
External Audit
Performance Audit
(Value for Money Audit)
Inspection
Compliance
Financial Control
Management Support
Quality Assurance
EU Structural Funds (ERDF, ESF)
International Cooperation
Investment
Private audit companies working
with/for public institutions
“Public procurement is a very risky process.
The different topics in the seminar were in good balance with regard to the
theoretical and practical approach of the auditing of public procurement”
“Very interesting seminar”
2
Who is this seminar for?
What will you learn at this European seminar?
Your benefits
• Which procedural rules are necessary to ensure sound management of
• Detect and avoid risks to your
institution’s procurement
public procurement
• How to discover unfair competition – A checklist for auditors
• How to structure the audit of public procurement
• How to assess the risks in every stage of the procurement process
• How to conduct a review of controls to ensure value for money in the
procurement process
• Ensure that your procurement
follows legal standards – Prevent
lawsuits from tenderers
• Make sure that your institution is
getting value for money
• Be prepared – Learn how to
prevent and detect the risk of fraud
and corruption
• Benefit from case studies
• What are the different methods to audit public procurement
• Which questions do you have to rise when in audit of public procurement
• How to use the right investigation methods to support evidence
• How to handle industry standards in public procurement
• Discuss your challenges with our
experts and receive practical hints
on how to proceed in practice
•
Network and exchange
experiences with our experts and
other public sector professionals
working in the field of procurement
audit from all across Europe
• What is important when auditing public procurement of IT/telecom services
and investment banking
• How can IT infrastructures facilitate public procurement audits
• How to establish an effective follow-up programme in public procurement
• How to make sure that auditor’s recommendations are followed
“The seminar was excellent, interesting presentations and lecturers,
a lot of practical and useful information was shared with us.”
“Well prepared seminar.”
Aurimas Miškinis, Deputy Head, National Audit Office, Lithuania
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PROGRAMME DAY 1
How to Audit Public Procurement Effectively
8.30-9.00
Registration and Hand-Out of Seminar Documents
9.00-9.05
Opening Remarks from the European Academy for Taxes, Economics
& Law 9.05-9.30
Welcome Note from the Chair and Round of
Introductions
Dimitrios Ioannidis, Audit Coordinator,
Swedish National Audit Office, Sweden
9.30-10.15
A Risk-Based Approach to Auditing
Public Procurement
Drawing on guidance for auditors, and recent work on
procurement, commissioning and contract management, this
session will use examples to illustrate the following themes:
•Recent developments in procurement and commissioning in local
public bodies in England
•The criteria auditors use to assess risks in the procurement of
local public services
•The costs and benefits of collaborative procurement
•Arrangements in public bodies that ensure value for money in
procurement and contract management
Mark Wardman, Senior Manager, Audit Commission,
United Kingdom
10.15-10.30
Discussion Round
10.30-11.00
Coffee Break and Networking Opportunity
11.00-11.45
The Northern Ireland Audit
Office’s Approach to Public
Sector Procurement Audit
W
Pra ith
c
Ca tical
se
s
This presentation examines a number of Northern Ireland Audit
Office and associated Public Accounts Committee reports. It deals
with case studies across government in areas such as health,
housing, culture and regional development.
•Savings validation – Reviewing savings methodologies
•Review of specific procurements – with a focus on regularity
and propriety of expenditure
•Review of a procurement fraud – lessons learned
Eddie Bradley, Assistant Auditor General, Value for
Money Audit Department, Northern Ireland Audit
Office, United Kingdom
11.45-12.00
Discussion Round
4
MARK WARDMAN
Senior Manager, Audit
Commission,
United Kingdom
Mark Wardman has been with the
UK Audit Commission since 2001
and currently holds the position of
Senior Manager. He has taken a close
interest in governance and accountability in the public
sector. He is the author of Audit Commission national
study reports on corporate governance, public trust,
individual choice in public services, and partnerships.
Mark Wardman recently gave evidence to the UK
parliamentary select committee on the subject of local
government procurement.
EDDIE BRADLEY
Assistant Auditor General,
Value for Money Audit
Department, Northern Ireland
Audit Office, United Kingdom
Eddie Bradley is Assistant Auditor
General at the Northern Ireland Audit
Office and is charge of performance
and value for money audits within procurement and
other areas. Formerly an economist in the Department
of Finance and Personnel (DFP), he has also previously
undertaken secondments in the European Commission
and in the private sector. Since joining the NIAO in
2001, he has overseen a wide range of Value for Money
(VFM) studies across the Northern Ireland Public Sector.
He currently leads a team which has responsibility for
producing 11 VFM reports each year, the majority
of which result in an evidence session of the Public
Accounts Committee.
12.00-12.45
W
Pra ith
c
Ca tical
se
s
DIMITRIOS IOANNIDIS
Audit Coordinator, Audit
Coordinator, Performance Audit
Department, Swedish National
Audit Office
Since 2006, Dimitrios Ioannidis is
Audit Coordinator at the Swedish
National Audit Office. He has audited
procurement processes linked to the
sale of state owned companies as well as the purchase
of IT and telecom services in the government sector. In
2005, he was Secretary in a Government of Committee,
dealing with the review of the Swedish National Premium
Pension system. In this position, he has also worked with
procurement. Between 2001 and 2006, he was Economist
at the Financial Stability Department of the Central Bank
of Sweden, and participated in the procurement of a new
system for the settlement of large payments. Between
1990 and 2001, he was researcher and lecturer at the
Stockholm School of Economics. His research focused on
the importance of buyer/seller relationship for industrial
and corporate development. The views expressed in
his presentation are solely those of the speaker himself
and do not represent the official position of the Swedish
National Audit Office.
Audits of Public Procurement of IT/
Telecom Services, Railway Infrastructure
Maintenance, Investment Banking
– Methodological Reflections
•A grounded approach
•Identifying the audit norm
•Applying the norm
•Confident analysis
Dimitrios Ioannidis, Audit Coordinator, Swedish
National Audit Office, Sweden
The views expressed in his presentation are solely those of the speaker himself and do not
represent the official position of the Swedish National Audit Office.
12.45-13.00
Discussion Round 13.00-14.00
Lunch Break and Networking Opportunity
14.00-14.45
Accepting or Challenging Industry
Standards? The Role of the Auditor in
Guiding Governments with Complex
Services and Products
•Who is the ultimate beneficiary of procurement
– The supplier or the client?
•Dangerous misunderstandings
•The case of investment banking services in the sale of state
owned companies
•The case of IT and telecom services in the government sector
•The case of critical financial infrastructure operated by government
•The case of railway infrastructure maintenance
•Lessons learnt from public procurement
Dimitrios Ioannidis, Audit Coordinator, Swedish
National Audit Office, Sweden
The views expressed in his presentation are solely those of the speaker himself and do not
represent the official position of the Swedish National Audit Office.
14.45-15.00
Discussion Round 15.00-15.30
Coffee Break and Networking Opportunity
Case Study
15.30-16.15
Promoting Value for Money from
Public Procurement – NIAO Study on
Collaborative Procurement
•Mapping the procurement landscape
•The quality of management information
•The scope to encourage greater collaborative procurement
•The impact of collaborative procurement on SMEs
Eddie Bradley, Assistant Auditor General, Value for
Money Audit Department, Northern Ireland Audit
Office, United Kingdom
16.15-16.30
Discussion Round
16.30
End of Day One
5
PROGRAMME DAY 2
How to Audit Public Procurement Effectively
CARSTEN KYHNAUV
9.20-9.30
Welcome Note from the Chair
Carsten Kyhnauv, Director of the Internal Audit
Department, Ministry of Defence, Denmark
9.30-10.15
How to Structure a Public Procurement
Audit?
•Importance of organisational understanding of audit of public
procurement – Create value
•Procurement with a strategic, tactical and operational point of view
for the organisation and for the internal auditors
•How to structure the internal audit of public procurement
•The need for involving the organisation in the internal audit
•How deep and wide will or can the internal audit do auditing of
public procurement?
•Identifying the risk of fraud in the procedures for public spending
•Key points in reporting the result of the internal audits work with
public procurement
•Use of key ratios in connection with public procurement
Carsten Kyhnauv, Director, Internal Audit Department,
Ministry of Defence, Denmark
10.15-10.30
Discussion Round 10.30-11.00
Coffee Break and Networking Opportunity
11.00-11.45
Using Investigation Methods to
Support Evidence
Fo
c
Me us o
tho n
ds
•The balance between the internal auditor as an auditor, and a
criminal/police investigator
•Forensic auditing
- risk understanding
- risk acceptance and
- risk control
•How does the internal auditor work against producing and
securing evidence – Homework and on the site?
•Steps in the work of an internal auditor to document evidence –
NOT produce evidence
•How does an internal auditor prepare the presentation of the
evidence to the company and/or the person?
•How does the internal auditor work together with the police/court?
•How do the internal auditor and the company/department secure
that processes in the future can avoid or reduce the possibilities of
fraud
Carsten Kyhnauv, Director, Internal Audit Department,
Ministry of Defence, Denmark
11.45-12.00
Discussion Round 12.00-13.30
Lunch Break and Networking Opportunity
6
Director, Internal Audit
Department, Ministry of Defence,
Denmark
Since 2006, Carsten Kyhnauv is
Director of Internal Audit in the
Ministry of Defense in Denmark
where he is now responsible for the internal auditing of
the Danish Defence and Danish Home Guard. In this
role he has gained vast experience in auditing huge
and complicated public procurements – for example
investments in navy shipborne helicopters, warships, and
armored personnel carriers. He is a member of the group
executive management team in the Ministry of Defence,
and also confidential adviser on financial management to
the top management team within the Danish Defence and
Danish Home Guard. Moreover, Carsten Kyhnauv has farreaching academic experience from his part time work as
assistant professor at the Copenhagen Business School
(since 1985 – now) and at the University of Southern
Jutland (since 1995 – now), Institute of Accounting &
Auditing. He also has expertise in the finance sector: He
started his career as Banker and has been Senior Vice
President as a Merchant Banker in a large Danish Bank.
Following this position he was appointed as CFO in the
City of Copenhagen at the Department for Children and
Youth Administration.
13.30-14.30
Use of IT in Public Procurement
Audits
Ca
Stu se
dy
•Use of IT in the planning and implementation of audit
- Planning: Procurement data analysis, determination of
“questionable” procedure or purchase families, sample selection
- Audit implementation: Compliance audit of tender and
operational audit of procurement execution
•Results of audits (initial and follow-up)
•Findings with regard to
- The procurement information system
- Auditing methods
Pascal Penaud, Inspector General, Inspection
Générale des Affaires Sociales (IGAS) – an InterMinisterial Audit and Evaluation Office for Social and
Health, Employment and Labour Policies, France
14.30-14.45
Discussion Round
14.45-15.15
Summing Up and Final Discussion Round
15.15-15.30
End of Seminar and Handout of Certificates
PASCAL PENAUD
Inspector General, Inspection
Générale des Affaires Sociales
(IGAS), France
Since 2003, Pascal Penaud is
Inspector General at the Inspection
Générale des Affaires Sociales
(IGAS) which is an inter-ministerial audit and evaluation
office for social, health, employment and labour
policies that assists public players in making informed
decisions. His experience in auditing public procurement
is manifold. As Inspector General, he was responsible
for auditing public procurement in various major
French hospitals as well as social ministries. Moreover,
Pascal Penaud also has experience in auditing public
procurement as part of general audits in the hospital
sector. During his membership in an inter-departmental
investigation mission of the public authorities (“Mission
Interministérielle d’Enquète sur les Marches Public”) he
was furthermore responsible for compliance audits of
procurement operations.
“Very good and useful seminar.”
7
ORGANISATIONAL MATTERS
How to Audit Public Procurement Effectively
Date of Event
19th – 20th May 2014, Berlin
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8
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