Audit and evaluation

In its role as the independent national audit authority, the NAOF audits and monitors the management of central government finances. The role and duties of the NAOF are laid down in the Constitution of Finland.
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The task of the NAOF is to audit the legality of central government finances and compliance with the state budget. By conducting audits, the NAOF ensures that state funds are used in accordance with Parliament’s decisions and the law and in a reasonable manner. The NAOF is also responsible for the monitoring of compliance with fiscal policy rules, as well as for overseeing campaign funding and political party funding.

Auditing

NAOF audits the legality and productivity of government finances and compliance with the budget in accordance with section 90 of the Finnish Constitution. It also audits the reliability of information provided to Parliament about central government finances and the management thereof, as well as compliance with the regulations of the fiscal policy.

NAOF performs its duties laid down in the Constitution through financial audit, compliance audit, performance audit and fiscal policy audit.

The audit work covers:

  • the Government and ministries

  • government agencies

  • off-budget funds

  • state enterprises and state-owned companies

  • central government transfers and subsidies paid to municipalities, companies, and other entities

  • transfers of funds between Finland and the European Communities.

 

The NAOF does not audit:

  • the finances of Parliament

  • funds under the responsibility of Parliament

  • the Bank of Finland or the Financial Supervisory Authority

  • the Social Insurance Institution.

In its audits, the NAOF applies its internal audit guidelines, which are based on the ISSAI auditing standards issued by the International Organisation of Supreme Audit Institutions (INTOSAI). The ISSAI auditing standards are based on the International Standards on Auditing (the ISAs). These are supplemented by separate manuals for compliance audits, performance audits and fiscal policy audits.

Evaluation

The NAOF evaluates fiscal policy aiming to secure stable and sustainable public finances and transparent and clear fiscal policy rules. Pursuant to the Fiscal Policy Act, the NAOF supervises the setting of and compliance with the rules steering fiscal policy.

Another task of the NAOF is to oversee election campaign and political party funding and receive and publish documents specified in the Act on Political Parties and the Act on a Candidate’s Election Funding. The NAOF also checks that disclosers such as registered political parties and their district and women’s organisations, as well as all candidates elected or appointed as alternate members disclose the funding they have received according to the law.

Further information

Parliament: Oversight of the Government

Ministry of Finance: Spending limits in central government finances and the budget