WRITTEN QUESTION E-0966/02

by Lousewies van der Laan (ELDR) to the Commission

(10 April 2002)

Subject: Internal Audit Service

On April 1, 2000 the Internal Audit Unit of DG XX was replaced by the Internal Audit Service and several internal audit capabilities in the DGs. The IAS has thus been functioning for almost two years and the Commission should have a clear assessment of its achievements.

1. How does the staffing of the new services compare to the previous one?

2. How many audit reports have been prepared by the new service and on which subjects?

3. How does this output compare to the previous service?

4. Is it correct that a large number of officials recruited by the IAS, including one supervisor, are looking for new jobs or have left the service? How does this turnover compare to the previous service? Is this a matter of concern to the Commission?

Answer given by Mr Kinnock on behalf of the Commission

(25 June 2002)

The Commission refers the Honourable Member to its Internal Audit Report for 2000 and Internal Audit Interim Report 2001, both of which have been transmitted to the Parliament. These have been up-dated in the coming months by the Internal Audit Report 2001 which was finalised in common with all other DG Reports before April 30th and is now being considered by the Commission. Those Reports will be provided to Parliament in due course.

It is also relevant to draw the Honourable Member's attention to the fact that when I presented the Interim Report to the Budgetary Control Committee on 20 February 2002, I covered a wide range of issues affecting the Internal Audit Service (IAS), and answered questions on other matters, including staff turnover. A copy of my 20 February statement is being sent to the Honourable Member. References in the statement which I made to the Legal Affairs Committee on 21 May and circulated to the Budget Control Committee on 23 May are also relevant.

Any comparison with the situation of the previous internal audit unit is difficult to interpret: the previous unit was much smaller (11 staff as against total staffing of over 80 in the new service), and was, until July 2001, part of the ex ante Financial Control Directorate General and had a much more restricted function, duty, and outlook.

In the period since it formally came into existence on 1 May 2000, Internal Audit Service has focussed on high-level, high-impact issues, which either affect many departments or are of critical importance to the Institution, its reform and its governance. The IAS began its audit work with the Reform Progress Audits of 34 services that were specifically required under the Reform programme's Action 87. In addition,

ten thematic audits ranging from building management to expenditure of EDF counterpart funds have been undertaken. A detailed breakdown of activities is provided in the IAS Reports mentioned above. In 2001, the IAS used 72,1 % of its resources on specific audit activities, while the remainder was used for support activities across the Commission, and for the capacity building which is particularly essential in a new service which will not reach its full complement of personnel until late 2002.

One supervisor will be leaving the service. The total number of officials leaving the IAS since it was set up two years ago is six. Bearing in mind that there was a period of rapid expansion in a new service with functions that have not been exercised in the Commission before, it is not surprising that some of the six left because their expectations did not match those of the new service. Others left for promotion or personal reasons. The Commission does not regard movements on this scale to be unexpected or to be a matter for undue concern.