National Audit Office of Finland
The National Audit Office (NAO) is Finland's Supreme Audit Institution and operates in affiliation with Parliament. It audits the state's finances, monitors and evaluates fiscal policy and oversees election and party funding. Through its independent audit work the National Audit Office ensures that public funds are spent according to Parliament's decisions, in compliance with legislation and wisely and that fiscal policy is exercised in a sustainable manner.
NAOF contributing to the development of European accounting standards
European Commission is preparing harmonisation of Member States' public sector accounting standards. Should the harmonisation task be completed, the potential EPSAS accounting standards would be applied to all the entities in the Finnish public sector.
The European Commission (Eurostat) has started the development of joint public sector accounting standards for all EU Member States.
According to the Commission, the aim of the planned European Public Sector Accounting Standards (EPSAS) is to make financial information more transparent, harmonise accounting information provided by EU Member States and improve the comparability of the reporting of the financial position and performance of the Member States. The Commission has proposed that the international IPSAS accounting standards represent a starting reference for EU harmonised public sector accounts development work.
The National Audit Office of Finland is following the preparation of the EPSAS standards and is participating in the development work in collaboration with other national actors. In Finland, the public sector accounting standards are laid out by the Ministry of Finance, which is also responsible for drafting the legislation on local government finances. More detailed instructions on local government accounts are issued by the municipal division of the Accounting Board. The Ministry of Social Affairs and Health is responsible for the drafting of legislation concerning social security funds (including the distinctive features of the financial statements).
The work is based on Article 16 of the Council directive on budgetary frameworks (2011/85/EU).Read more