Board of Audit

Last updated: 11.07.2024

The council appoints an audit committee to organize administration and financial audits and evaluations. According to the Municipal Act, the number of members of the inspection board is at the council's discretion, and personal deputies are chosen for the members. The chairman and vice-chairman of the audit board must be authorized. The council can decide in the administrative rules that all members must be authorized. Instead of the municipal government, the audit committee prepares matters concerning the audit of administration and finances for the council. The supervisory board's preparatory responsibility is an exception to the municipal board's preparatory responsibility. Sections 70 and 135 of the Administrative Code stipulate the presentation at the audit board.

According to § 121 of the Municipal Act, the task of the inspection board is

  1. to prepare matters concerning the administration and financial audit to be decided by the council
  2. to assess whether the operational and economic goals set by the council have been realized in the municipality and the municipal group and whether the activities have been organized in a productive and appropriate manner
  3. to assess the realization of financial balancing in the financial period and the adequacy of the current financial plan if there is an uncovered deficit in the municipality's balance sheet
  4. take care of coordinating the inspection of the municipality and its subsidiary communities
  5. as the registrar of the affiliation register, supervise compliance with the obligation to report affiliations stipulated in § 84 and notify the council of the notifications at least once a year
  6. to prepare for the municipal board a proposal for the provisions of the administrative rules concerning their duties and for the evaluation and inspection budget

According to Section 125 of the Municipal Act, the audit committee must obtain an explanation from the person concerned and a statement from the municipal board regarding the reminder made in the audit report.

In addition to what is stipulated in Sections 121 and 125 of the Municipal Act, the inspection board must

  1. monitor the implementation of the auditor's audit plan as well as otherwise monitor the performance of the auditor's tasks and, as necessary, make proposals for the development of the audit
  2. ensure that the necessary resources are available for the audit, which enable the audit to be carried out to the extent required by good public administration auditing practice, and
  3. make initiatives and presentations on coordinating the tasks of the audit board, auditor and internal audit in the most appropriate way
  4. the selection of the audit firm to be tendered and to make a proposal to the council about the audit firm to be selected
  5. monitor compliance with the audit contract.