LITHUANIA

This Law shall regulate the activities of the State Control of the Republic of Lithuania (hereinafter referred to as the State Control) and legal relations of the service in the State Control.

1. The State Control shall be a supreme government audit institution, accountable to the Seimas.

2. The State Control shall be a legal entity having its current account with the Bank of Lithuania, a seal with the national emblem and an inscription “Republic of Lithuania. State Control", its symbols and insignia.

3. The seat of the State Control shall be in Vilnius - the capital of the Republic of Lithuania.

1) to supervise the lawfulness and effectiveness of management and use of the State property and carrying-out of the State budget;

2) to ensure that government auditing conforms to the international standards accepted by the International Organisation of Supreme Audit Institutions INTOSAI and consolidates a positive role of the government auditing and its impact on the State and community.

Article 5. Legal Basis and Principles of the Activities of the State Control

1. The activities of the State Control shall be governed by the Constitution of the Republic of Lithuania, this Law and other laws, international agreements, government auditing standards, and other legal acts.

2. The activities of the State Control shall be based on the principles of independence, lawfulness, publicity, neutrality, and professionalism.

CHAPTER TWO
STRUCTURE OF THE STATE CONTROL, FINANCING AND AUDIT

2. The structure of the State Control shall comprise departments, divisions, and other services necessary for performing of the government auditing. Auditor general shall establish and approve the names of the structural units and regulations of their activities.

1. The Board of the State Control shall be an advisory body to the Auditor General that considers the main issues of the State Control activities and service with the State Control.

2. Auditor General shall define the number of members of the Board, its composition, as well as the competence and work procedure of the Board.

3. The operation of the Board shall be organised according to the annual working plans.

Article 8. Procedures of Financing and Auditing of the State Control

2. The Seimas shall fix the amount of the appropriations for the State Control budget.

3. The financial audit of the State Control shall be carried out by the audit institution appointed by a resolution of the Seimas.

shall be carried out by the audit service established within the State Control or the chief auditor.

CHAPTER THREE
COMPETENCE OF THE STATE CONTROL AND OFFICERS

1. The State Control shall, while supervising the lawfulness and effectiveness of the management and use of the State property and the implementation of the State budget, shall carry out audit of:

6) use by respective fund management institutions and beneficiaries of funds of the European Union allocated to the Republic of Lithuania and implementation of programmes in which Lithuania participates.

shall carry out audit of the use of State budget funds allocated to municipal budgets. The State Control shall perform audit of the management, use and disposal of municipal property in accordance with the scope of government auditing as defined in Article 14 of this Law.

of the Republic of Lithuania and other legal acts, the State Control shall carry out audits of the European Union financial assistance allocated to the Republic of Lithuania and shall submit the records of these audits to the appropriate institutions.

shall prepare audit methodologies for municipal control institutions and shall perform external review of the audit of a municipal controller (municipal control institution) in a manner established by the Auditor General.

2) represent the State Control at State government and administration institutions, in court, at international organisations;

3) establish and approve the structure of the State Control, the list of positions, and job descriptions;

4) in a manner prescribed by legal acts, employ and dismiss officers and other public servants of the State Control;

5) propose candidates for the posts of deputies of the Auditor General and make proposals for their dismissal to the President of the Republic;

6) lay before the Seimas the audit reports and opinions specified in paragraph 3 of Article 9 of this Law, as well as other audit reports and opinions;

7) be entitled to attend plenary sittings of the Seimas and present his views when issues related to the activities of the State Control are being considered;

8) be entitled to make proposals for the improvement of legal acts to the Seimas, President of the Republic or the Government.

Article 11. Competence of Deputies of the Auditor General and Heads of Audit Units

1. Duties of deputies of the Auditor General and heads of audit units shall be established by the Auditor General.

2. In the absence of the Auditor General, a deputy Auditor General, acting for the Auditor General according to the procedure set by law, shall organise the activities of the State Control, however, without the powers specified in paragraph 5 of Article 10 of this Law.

Article 12. Competence of Officers of the State Control Performing the Government Auditing

1. Officers of the State Control performing the government auditing shall be entitled: to independently choose the audit procedures; to acquire from the auditee documents and information that are necessary to perform the audit; to carry out control measurements, inventory of material valuables or to examine property of the auditee in other ways, as well as to perform other necessary actions; to get from the auditee’s employees necessary explanations in writing; to draw up statements on the administrative violation of law; to get, for free via electronic communications, state cadastres, classificators and registries data and information, necessary for government auditing, from institutions of public administration and local government; to receive conclusions from agencies of expert examination on the submitted audit documents; to use experts of appropriate fields and audit companies when carrying out specific audits.

2. When performing the government auditing, officers of the State Control shall be responsible for the fulfilment of requirements of government auditing, conformity with the Institutional Ethics Code of State Control Officers, and validity of audit conclusions.

CHAPTER FOUR
GOVERNMENT AUDITING

2. Financial and performance audit shall be carried out according to the government auditing standards approved by the Auditor General.

3. Standards of government auditing shall be published in the Valstybės žinios.

1. The State Control shall annually establish scope of the government auditing in government auditing programmes. These programmes shall be confirmed by the Auditor General.

3) at undertakings of all types, in which the shares owned by the State or local authority carry over at least ½ of votes;

4) at undertakings and other legal entities, to which a State institution or a local authority has allocated funds or transferred property.

3. The State Control shall also carry out government auditing of implementation of the State budget, budget of the State Social Insurance Fund and of the budget of the Compulsory Health Insurance Fund.

4. Seimas may by its resolution assign the State Control to perform government auditing within the competence of the State Control.

1. Auditee shall, within 10 working days from the date of receiving a government auditing report, sign it and return the government auditing report to the State Control. Auditee shall be entitled to deliver his remarks on the audit concluded together with the audit report.

2. Auditee shall ensure the right of the State Control officers mandated to perform government auditing, to freely enter its premises, obtain documents, check information sources and receive data, including information obtained via electronic communications, as well as meet with auditee’s management and employees and receive their written explanations.

3. Auditee must create proper work conditions for the State Control officers to perform the government auditing.

1. Documents of the government auditing shall be working papers, government auditing report, and government auditing opinion and statement.

2. Working papers shall be ownership of the State Control and may not be submitted to the third persons without the consent of the State Control, except for the cases when, in a manner prescribed by law, the court requests to submit written evidences; law enforcement bodies take away documents of the government auditing in a manner prescribed by law.

3. Documents of the government auditing shall be preserved according to the procedure established by the Law on Archives.

1. Financial audit shall be concluded by drawing up the audit report and audit opinion, and performance audit by drawing up the audit report.

2. If violations of legal acts at the auditee have been revealed during the audit and have not been eliminated, the statement shall be drawn.

3. The statements shall be drawn by the Auditor General and his deputies on the basis of audit reports.

Article 18. Rights of the Auditor General and his Deputies While Drawing up Statements on Government Auditing Reports

1. When drawing up statements on government auditing reports, Auditor General and his deputies shall be entitled to:

1) indicate to auditees shortcomings in their activities, and to set the time limits for elimination of the violations of legal acts;

2) recommend to the management of the auditees or the superior institutions that the persons who have caused damage to the State or the local authority, institution, agency, undertaking, organisation or other legal entity, should be held liable (under personal/civil liability) in a manner prescribed by law;

3) recommend to the management of the auditees or the superior institutions to impose a disciplinary penalty on the persons who have committed violations;

4) recommend to the auditees to return to the State and municipal budgets, relevant State funds, the National Fund for implementation of aid programmes of the European Communities in the Republic of Lithuania the funds that have been allotted or used in violation of laws or other legal acts;

5) upon the establishment of violations, refer, according to the competence, government auditing documents subject to consideration by public administration entities or law enforcement bodies to concern within their competence;

6) propose to State and municipal control institutions and internal audit services of public administration entities to carry out examinations within their competence.

Management of the auditee or other persons specified in the statement may, within 20 calendar days of the receipt of such statement, appeal against the statement of the Auditor General or his deputy to the court according to the procedure established by the Law on Administrative Proceedings.

The auditee shall, within 30 calendar days or another time limit set by the Auditor General or his deputy, but not shorter than 30 calendar days, inform the State Control about the elimination of violations of legal acts specified in the statement, as well as implementation of indications, proposals and recommendations.

CHAPTER FIVE
CO-OPERATION WITH LAW ENFORCEMENT AND AUDIT INSTITUTIONS. INTERNATIONAL RELATIONS

Article 21. Relationship with Law Enforcement Institutions, Audit Institutions and Supreme Audit Institutions of other Countries

1. Having revealed systematic, material violations or violations of public interests during the government audit, the State Control shall take preventive measures, inform law enforcement bodies.

2. The State Control shall co-operate with audit institutions, audit firms and internal audit services operating in the Republic of Lithuania.

3. The State Control shall maintain international relations with supreme audit institutions of other countries.

The State Control shall take part in the activities of the International Organisation of Supreme Audit Institutions INTOSAI and its division EUROSAI.

CHAPTER SIX
PUBLICITY

1. Audit reports and opinions made by the State Control, results of the activities of the State Control, and other information shall be published in a special publication of the State Control.

2. The public shall, in a manner prescribed by law, also be informed through other means of the mass media.

CHAPTER SEVEN
CIVIL SERVANTS, OFFICERS AND EMPLOYEES OF THE STATE CONTROL

1. Auditor General and his deputies shall be civil servants. Other laws shall apply to them to the extent their status is not regulated by this Law.

2. Officers of the State Control shall be public servants. The Law on Public Service shall apply to them to the extent their status is not regulated by this Law.

3. The status of other employees of the State Control shall be regulated by the Law on Public Service.

CHAPTER EIGHT
RECRUITMENT TO THE SERVICE IN THE STATE CONTROL

Article 25. Requirements for the Recruitment to a Position of the State Control Office

1. The requirements for the recruitment to the public service established in the Law on Public Service shall apply to the persons who are recruited to a position of the State Control officer.

2. Persons having higher university education shall be recruited to a position of the State Control officer. When recruiting to the service, candidates' advantages and skills in the audit field as well as their moral and personal qualities shall be evaluated.

3. Persons who are recruited to a position of the State Control officer must be of an impeccable reputation. A person shall not be considered as having an impeccable reputation, if:

4. The State Control shall be entitled to acquire data on the person from the Ministry of the Interior and, if necessary, from other State institutions.

Article 26. Restrictions on the Recruitment to a Position of the State Control Officer

1. A person shall not be recruited to a position of the State Control officer if:

4) he is related by blood or by marriage to the immediate superior, if in their service together one of them would be in direct subordination to the other or in a supervisory position over the other;

1. Auditor General shall be appointed for a five-year term of office by the Seimas on the recommendation of the President of the Republic.

2. Auditor General may be appointed for no more than two successive terms of office.

3. Any citizen of the Republic of Lithuania who has an impeccable reputation, is not older than 65 years of age, has a higher university education may be appointed as Auditor General.

4. Auditor General shall commence performing his duties only after he takes an oath of allegiance to the Republic of Lithuania at a sitting of the Seimas.

Article 28. Procedure for the Appointment of the Deputy Auditors General

1. Deputies of the Auditor General shall be appointed by the President of the Republic on the recommendation of the Auditor General.

2. Any citizen of the Republic of Lithuania who has an impeccable reputation, is not older than 65 years of age, has higher university education may be appointed as deputy Auditor General.

3. Deputies of the Auditor General shall commence performing their duties after they take an oath of allegiance to the Republic of Lithuania.

1. State Control officers shall commence performing their duties after they take an oath of allegiance to the Republic of Lithuania.

2. The oath shall be administered by the Auditor General or a person deputising for him.

3. The person who has taken the oath shall sign the text of the oath, and the signed text of the oath shall be kept in the personal file of the officer.

4. Any refusal to sign an oath, or signing it with a reservation, shall mean failure of the officer of the State Control to take an oath and therefore he may not perform his duties.

Article 30. The Text of an Oath of Auditor General, his Deputies and State Control Officers

1. Auditor General, his deputies and State Control officers shall take the following oath:

“ I, (first name, name), swear to serve the Republic of Lithuania faithfully; to respect and observe its Constitution and laws; to strengthen, to the best of my ability, the independence of Lithuania, to protect State property, to conscientiously serve the Homeland, democracy, and the well-being of the people of Lithuania.So help me God.”

Auditor General, his deputies, and officers of the State Control must, in a manner prescribed by law, submit their and their family members’ income and property declarations as well as declarations of private interests.

1. A State Control officer shall have an employee identification card of the set form. It shall include the name, surname, personal code and position of the officer.

2. The procedure for issuing and use of an employee identification card shall be established and approved by the Auditor General.

1. Institutional ethics of State Control officers shall be regulated by the Institutional Ethics Code of the State Control Officers approved by the Auditor General.

2. Procedure of consideration of violations of institutional ethics of State Control officers shall be established by the Auditor General.

7) if he has lost the citizenship in accordance with the procedure established by the Law on Citizenship.

2. Auditor General shall hand in his resignation to the President of the Republic.

3. Upon expiration of the term of office, becoming 65 years of age, or in the case of resignation of the Auditor General, he shall continue to perform his duties until the Seimas appoints another Auditor General.

4. The Seimas or the President of the Republic may express no confidence in Auditor General.

5. Auditor General may be dismissed from office for health reasons on the recommendation of the President of the Republic and only on the basis of the conclusion of the commission of doctors, set up by the Minister of Health Care, that for health reasons and the duration of illness the Auditor General cannot perform his duties.

6. In the event the Auditor General is dismissed from office in accordance with subparagraphs 4 and 6 of paragraph 1 of this Article (if he has served in the State Control at least 5 years), a compensation in the amount of 6 average monthly salaries shall be paid to him.

7. Upon expiration of the term of office, the Auditor General shall have the right to return to a previously held position in accordance with the procedure set by law. In this case, he shall be paid a compensation in the amount of 3 average monthly salaries.

8. In case the grounds for dismissal of the Auditor General in accordance with subparagraphs 3, 4, 5, 7 of paragraph 1 of this Article appear, the activities of the State Control shall, by resolution of the Seimas, be organised by a deputy of the Auditor General in a manner prescribed by this Law, until the Seimas appoints another Auditor General.

Article 35. Grounds and Conditions of Dismissal of a Deputy of the Auditor General

1. A deputy of the Auditor General may be dismissed from office in the following cases:

6) if he has lost the citizenship in accordance with the procedure established by the Law on Citizenship.

2. A Deputy of the Auditor General shall hand in his resignation to the Auditor General.

3. A deputy of the Auditor General may be dismissed from office in accordance with subparagraph 2 of paragraph 1 of this Law by the President of the Republic on the recommendation of the Auditor General.

4. A deputy of the Auditor General may be dismissed from office for health reasons by the President of the Republic only if there are the conditions specified in paragraph 5 of Article 34 of this Law.

5. Upon expiration of the term of office of a deputy of the Auditor General in accordance with subparagraphs 4 and 5 of paragraph 1 of this Article (if he has worked at least five years in the State Control), a compensation in the amount of 6 average monthly salaries shall be paid to him.

Article 36. Grounds and Conditions for Dismissing from Office of State Control Officers

1. Service relations of State Control officers in the State Control shall expire and the said officers shall be dismissed from office on the general grounds for dismissal set in the Law on Public Service.

1) if they refuse to declare in a manner prescribed by law their and their family members’ income and property, and private interests;

2) if by their acts they discredit the name of the State Control officer during the official time and not during it;

4) if they have lost the citizenship of the Republic of Lithuania in accordance with the procedure established by the Law on Citizenship.

CHAPTER NINE
RIGHTS AND DUTIES OF STATE CONTROL OFFICERS

State Control officers shall have the same rights as public servants, as well as special rights laid down in Articles 12 of this Law.

2. State Control officers must: respect rights and legitimate interests of auditees; not make audit data public and not evaluate them publicly until the audit report is signed; protect state and official secrets; not use or permit the use of office or office related information of limited-use in the manner and to the extent different from those established by laws or other legal acts.

CHAPTER TEN
TRAINING AND IMPROVEMENT OF PROFESSIONAL QUALIFICATION OF STATE CONTROL OFFICERS

Article 39. Process of Training and Improvement of Professional Qualification

1. The State Control shall establish strategy of training and improvement of professional qualification of the officers as well as priorities of improvement of professional qualification in the area of the government auditing.

2. The State Control must create conditions for the improvement of professional qualification of the officers and officers must constantly improve their professional qualification in a manner prescribed by the Auditor General.

3. Training and improving of professional qualification shall be carried out according to the annual plans and special programmes, concluding agreements with Lithuanian and foreign educational institutions, as well as other ways and forms.

4. Procedure for the systematic, professional training and improvement of professional qualification of State Control officers in the area of the government auditing shall be established by the Auditor General.

Article 40. Financing of Training and Improvement of Professional Qualification

1. Training and improvement of professional qualification of State Control officers shall be financed with the budgetary assignments allotted for the State Control.

2. When sending officers for training abroad, contracts related to financing of training shall be concluded with them.

3. The State Control shall provide in its estimates for funds, equal to the amount from 1 to 5 per cent of the allotments for salaries, intended for training and improvement of professional qualification of State Control officers.

CHAPTER ELEVEN
REMUNERATION AND SOCIAL GUARANTEES OF CIVIL SERVANTS, STATE CONTROL OFFICERS

3) an additional pay related to the service in the State Control for the carrying-out of complicated, major government auditing and other additional pay provided for in the Law on Public Service.

1. Procedure and conditions of remuneration for work of the State Control officers shall be established by this Law and other laws.

2. The total sum of additional pay paid to State Control officers may not be in excess of the amount of additional pay fixed by the Law on Public Service.

3. The amount and conditions of payment of remuneration of the Auditor General and his deputies shall be established by the Law on the Remuneration of State Politicians, Judges and Civil Servants.

1. Types of holidays of the Auditor Genera, his deputies and officers of the State Control, their duration, arrangements and conditions for granting of holidays and paying for them shall be established by laws.

Article 44. State Social Insurance and other Social Guarantees of State Control Officers

Officers of the State Control shall be subject to state social insurance in accordance with the procedure established by the Law on State Social Insurance. Other social guaranties shall be set by laws.

1. The State Control may, in a manner prescribed by the Government, be provided with employee housing accommodation.

2. Procedure for providing with employee housing accommodation shall be established by legal acts.

3. The list of State Control officers who may be provided with employee housing accommodation shall be drawn up and employee housing accommodation shall be provided by the Auditor General."

I. GENERAL PROVISIONS

The Law shall regulate the purpose of the State Control of the Republic of Lithuania, the legal grounds of its activities, shall determine its functions, structure and powers, the procedure for exercising control and the financing thereof, the social guarantees for the employees and the types of activities control.

The State Control of the Republic of Lithuania (hereinafter referred to as "the State Control") is the supreme state institution of economic financial control accountable to the Seimas of the Republic of Lithuania which supervises the legality of holding and use of state property and the State Budget performance process.

The State Control is a legal person possessing a settlement account with the Bank of Lithuania and a seal bearing the Lithuanian State emblem and the name "Republic of Lithuania. State Control".

In its activities the State Control shall be guided by the Constitution and laws of the Republic of Lithuania, international treaties and agreements to which the Republic of Lithuania is a party, other legal acts.

The State Control shall be headed by the State Controller of the Republic of Lithuania (hereinafter referred to as "the State Controller") who shall be appointed for the term of five years by the Seimas on the nomination of the President.

At the request of the Seimas the State Controller must account to the Seimas for the activities of the State Control.

The State Controller shall inform the Seimas about the results of examinations carried out on the instruction of Seimas.

The Seimas, the President of the Republic and, as necessary, the Government must be informed about the results of examinations of state significance.

The mass media shall have the right to obtain information about the activities of the State Control.

Information which is an official, professional or commercial secret shall not be made public.

The State Controller shall present to the Seimas in accordance with the procedure established by the Statute of the Seimas the conclusion concerning the annual national account of the Budget.

The Republic's Government, ministries and other state institutions must within 5 working days present to the State Control the standard acts which regulate the accounting, distribution, use and control of financial and material resources which have been passed by the above bodies but are not subject to publication in the "Valstybós ýinios".

Chief managers of State Budget appropriations must annually present to the State Control expense budget performance accounts.

Article 9. Co-operation of the State Control with the Law Enforcement Institutions

On the instructions of law enforcement institutions which are duly authorised under law, the State Control shall examine the state institutions and economic entities assigned within the competence of the State Control.

II. FUNCTIONS OF THE STATE CONTROL

3) economic and financial activities of the Seimas Chancellery, offices accountable to the Seimas, subdivisions providing services to the Seimas;

4) economic and financial activities of the Chancellery of the President of the Republic and subdivisions providing services to the President;

6) the lawfulness of the management and use of State-owned assets in the Bank of Lithuania;

7) economic and financial activities of courts, bailiff's offices, prosecutor's offices and the police;

8) economic and financial activities of the Government's Chancellery, ministries, Government offices and other offices financed from the State Budget;

9) economic and financial activities of state offices of the Republic of Lithuania operating in other states;

11) the activities of all types of enterprises, offices and organisations, in which no less than a half of voting shares are owned by the state;

12) the representation of shares owned by the State in enterprises of all types;

13) the legality of State property privatisation and sale or other transfer of shares owned by the State in enterprises, offices and organisations of all types;

14) the legality of use of State-owned land, forests, water bodies and other natural resources as well as determination of State-owned land value;

15) whether the loans received from the State Budget and other State subsidies are used for the purpose and efficiently in the enterprises, offices and organisations; the economic and financial condition of the economic entities the guarantor of loans or contractual obligations whereof is the state;

16) whether local authorities, religious, public organisations are using the funds received from the State Budget for the purpose and efficiently;

17) the obtaining, distribution, use and repayment at commercial banks and enterprises, offices and organisations of all types of credit obtained on behalf of the State as well as credit taken with the Government guarantee;

19) as necessary, the municipal budget performance, the economic and financial activities of municipal offices and enterprises.

The State Control shall conduct the inquiry in the investigation of crimes assigned to its competence.

The State Control shall supervise the maintenance of financial discipline by state offices and present recommendations as to how it should be ensured.

On the instruction of the Seimas of the Republic of Lithuania, the State Control shall examine the economic and financial activities of enterprises, offices, organisations and commercial banks which are not provided for in Article 10 of this Law, if this is provided by law.

III. THE SYSTEM AND PERSONNEL OF THE STATE CONTROL

The system of the State Control shall be formed taking into account the purpose, tasks and functions of the State Control.

The structure of the State Control shall comprise the departments which perform the functions of control (hereinafter referred to as control departments) and other subdivisions.

3) represent the State Control in state and non-government institutions as well as in international organisations;

6) approve the structure of the State Control, the list of staff and the procedure for giving incentives to the employees without exceeding the established amount of the annual pay-roll fund;

7) approve the internal work regulations of the State Control, the office regulations of the structural subdivisions and their staff;

8) control the legality of decisions of the State Control officers, examine complaints regarding the actions and decisions of the State Control officers; and

9) appoint and dismiss, in accordance with the established procedure, the officers and employees of the State Control.

A person who is a citizen of the Republic of Lithuania, is trained in law or economics and has an impeccable reputation may be the State Controller.

Persons who during the last three years have been Government members or elected leaders of the central organisation of the country's political party may not be candidates to post of the State Controller.

The appointed State Controller shall take office only upon taking an oath of allegiance to the Republic of Lithuania at the Seimas meeting.

"I (full name) swear to be faithful to the Republic of Lithuania; swear to respect and observe its Constitution and laws; swear to the best of my ability to strengthen the independence of Lithuania, to protect state property, to conscientiously serve my Homeland, democracy, and the well-being of the people of Lithuania.
So help me God!"

The oath of the State Controller shall be administered by the Speaker of the Seimas of the Republic of Lithuania.

The State Controller shall read the text of the oath while standing in front of the Seimas Speaker and holding his hand on the Constitution of the Republic of Lithuania.

Upon reading the entire text of the oath, the State Controller shall sign the nominal oath sheet. The nominal oath sheet shall be handed over to the Speaker of the Seimas of the Republic of Lithuania.

The text of the oath shall not be amended or revised. Failure to comply with this provision as well as refusal to sign the nominal oath sheet or the signing thereof with a stipulation shall signify that the State Controller has not taken the oath and, consequently, may not commence to perform his duties.

Article 18. Participation of the State Controller in the Meetings of the Seimas and the Government

The State Controller may attend the meetings of the Seimas without a special invitation and may state his opinion in the deliberations regarding issues related to the activities of the State Control.

The State Controller shall have the right to participate in the meetings of the Government of the Republic of Lithuania with deliberate vote.

Should the State Controller disagree with the decision taken by the Government he may state his individual opinion which must be recorded in the minutes of the Government meeting, however, the implementation of the Government decision shall not be thereby suspended. The State Controller shall inform the Seimas in writing of the stated individual opinion.

The Seimas shall consider the individual opinion stated by the State Controller in accordance with the procedure established by Statute of the Seimas of the Republic of Lithuania.

The State Controller shall take office upon declaring his own and his family members' property and income.

The grounds and procedure for declaring property and income shall be regulated by laws and Government decrees.

Upon the expiry of the State Controller's term of office, or after he becomes 65 years of age or resigns, he shall continue in office until another the State Controller is appointed by the Seimas.

A vote of no confidence may be given to the State Controller by the Seimas or by the President of the Republic.

Upon being given a vote of no confidence, the State Controller shall be removed from office in accordance with the procedure established by the Statute of the Seimas of the Republic of Lithuania.

The State Controller's deputies shall be appointed and removed from office by the President of the Republic on the nomination of the State Controller.

A person who is a citizen of the Republic of Lithuania, is a university graduate and has an impeccable reputation may be the State Controller's deputy.

In the absence of the State Controller one of the State Controller's deputies who at the said moment is organising the work of the State Control but has no powers listed under items 1, 4, 5, and 6 of Article 14 of this Law shall act for him on his order.

According to the spheres of control activities and the state institutions and economic entities that are under examination the State Control shall be divided into departments.

Control departments shall be headed by department heads employed in the post and removed from it by the State Controller.

State Control officers and other employees shall be employed in the State Control.

The State Controller, his deputies, heads of control departments, controllers and persons conducting the inquiry shall be State Control officers.

Persons conducting the inquiry shall be officers who conduct inquiry in criminal cases in accordance with the established procedure who have been empowered for the purpose by the State Controller.

Employed as State Control officers shall be citizens of the Republic of Lithuania whose educational attainment, personal qualities and professional training makes them suitable for the work of the State Control official.

Article 27. Employment of the State Control Officers and other Employees, Their Transfer and Dismissal

The employment, transfer and dismissal of the State Control officers shall be regulated by this Law and other laws.

Probation period for up to one year shall be established for the officers who are employed in control departments.

The officers shall begin to do their duties upon taking the oath of allegiance to the State of Lithuania and declare, in accordance with the established procedure, their own and their family members' property and income.

The employment, transfer and dismissal of other employees shall be regulated by the Law on Employment Contract.

Persons taking up employment as officers of the State Control shall take the following oath of allegiance to the State of Lithuania:

"I (full name), in your presence swear to be faithful to the State of Lithuania, conscientiously observe the laws of the Republic of Lithuania, honestly fulfil my duties, serve the people and the State of the Republic of Lithuania; swear to keep all official and professional secrets entrusted to me; swear to always and everywhere preserve by my demeanour the good name of the State Control official.
So help me God!"

The oath of the State Control officers shall be administered by the State Controller.

Qualification categories shall be established for evaluating the qualification of the control department officers and persons conducting the inquiry.

Officers shall be subjected to performance evaluation with the aim of evaluating the work results and suitability for the position of control department officers and persons conducting the inquiry.

The grounds and procedure for awarding qualification categories and carrying out performance evaluation shall be regulated by the Regulations for Awarding Qualification

Categories and Performance Evaluation Regulations approved by the State Controller.

The State Control personnel shall be trained at the institutions of learning and studies of Lithuania and other states possessing long-standing traditions of democracy.

State Control officers may take part in the activities of public organisations, societies, clubs and other non-political associations.

The functioning of political parties and political organisations in the State Control shall be prohibited. State Control officers may not be members and supporters of political parties, political organisations and may not participate in their activities.

The State Control officers shall be prohibited from holding any other elective or appointive post, being employed in other state, public, business, commercial or private offices and enterprises, or from receiving any other remuneration except his official salary and payment for creative activities.

If the State Controller or his deputy or any other official of the State Control becomes a member of the municipal council, he must quit his post in the State Control.

7) if the provisions of Par. 2 and 3 of Article 31 and of Article 32 of this Law are violated; or

8) if he refuses to declare his own or his family members property and income, or if he understates the amount thereof.

The State Controller shall cease to perform his duties in accordance with the procedure established by Articles 20 and 21 of this Law.

The grounds for dismissal from office listed herein, with the exception of the grounds provided for by item 3, shall apply to the State Controller's deputies.

A consultative institution - the State Control Board shall be formed and shall function within the State Control. It shall consist of the State Controller, his deputies, heads of control departments.

The functions of the State Control Board and its work procedure shall be determined by the State Controller.

IV. RIGHTS AND DUTIES OF THE STATE CONTROL OFFICERS

Article 35. Rights of the State Controller, his Deputies and Heads of Control Departments

The State Controller, his deputies and heads of control departments shall have the right to:

1) point out to the heads of the state and municipal institutions and economic entities which are under examination the deficiencies in their activities, warn them, to charge them to eliminate the established deficiencies;

2) present proposals to the heads of state and municipal institutions and economic entities which are under examination that they should revoke their decisions which violate lawful interests of other state and municipal institutions and economic entities, suspend the clearly unlawful decisions and actions of the officers of state institutions and economic entities which are under examination if said decisions and actions may cause material damage to the state;

3) impose cash deductions on the officers for the recovery of unauthorised expenditure in the amount equivalent to the damage inflicted on the state, municipality and state or municipal enterprise, office or organisation, but not in excess of 6 average monthly salaries;

4) file an action in court and propose dismissal of the guilty officers from their respective posts, with the exception of those appointed by the President of the Republic or appointed or elected by the Seimas, for the violations of laws or Government decrees or extensive damage inflicted on the state, municipality or state or municipal enterprise, office or organisation;

5) recommend to the heads of the state and municipal institutions and economic entities which are under examination or to the heads of their superior institutions that they dismiss the employees subordinate to them from their respective posts for the violations of economic and financial activities;

6) demand from heads of state and municipal institutions and economic entities which are under examination or from heads of their superior institutions that disciplinary penalties be taken against the employees who committed the violations or that the employees be held materially liable therefor;

7) give instructions to banks to suspend for up to one month's period the payment and transfer of money from the accounts of state and municipal institutions and economic entities which are under examination if extensive damage to the state is established in the course of examination. Upon receiving such instructions, banks may not open a new account for the state, municipal institution or the economic entity;

8) charge the heads of state and municipal institutions and economic entities which are under examination to repay into the state or municipal budgets or state funds the resources, subsidies, budgetary appropriations allocated or used in violation of laws or other legal acts as well as to pay to the state the unpaid taxes and amounts due under economic sanctions;

9) exact without suit from state and municipal institutions and economic entities which are under examination the resources, subsidies, and budgetary appropriations allocated or used in violation of laws or other legal acts as well as the unpaid taxes and amounts due under economic sanctions and pay the amounts into the state and municipal budgets or state funds;

11) submit proposals to cancel, in accordance with the procedure established by law, the enterprise registration for the violations established by the laws of the Republic of Lithuania;

12) give instructions to state and municipal control institutions to conduct examination in the state and municipal institutions and economic entities which are assigned within their jurisdiction;

13) obtain from expert examination offices findings regarding the examination material;

15) impose administrative penalties in accordance with the procedure established by law.

Article 36. Decisions of the State Controller, his Deputies and Heads of Control Departments

Exercising their respective powers, the State Controller, his deputies and heads of control departments shall adopt decisions regarding the violations in the economic and financial activities of state and municipal institutions and economic entities which are under examination.

Article 37. The Procedure for Appealing the Decisions of the State Controller, his Deputies and Heads of Control Departments

The decisions of heads of control departments may be appealed to the State Controller or his deputies within 10 days of the receipt thereof.

The decisions of the State Controller or his deputies regarding the imposed cash deductions for the recovery of unauthorised expenditure and exaction of funds without suit may be appealed by instituting, within 10 days, action proceedings at the Vilnius district court of the first instance. Appeal to court shall not suspend the implementation of decisions of the State

Article 38. Administrative Liability of Persons for Obstruction of the State Control

Administrative action shall be taken against persons who prevent State Control officers from conducting examination, refuse to produce or conceal documents, furnish false or incomplete data as well as fail to comply with the lawful demands and decisions of State Control officers.

In discharge of their functions of control, State Control officers shall have the right to:

3) be allowed free entry of the premises of state and municipal institutions and economic entities which are being checked;

4) obtain verbal and written explanations, certificates and copies of documents from the employees of state and municipal institutions and economic entities under examination as well as from private persons;

5) confiscate documents leaving copies thereof and the list of confiscated documents and attach said documents to the examination reports (acts); when deemed necessary, seal up the places of safekeeping of documents, securities, money and other material valuables;

6) request that check measurements, stocktaking of material valuables and other factual checks be carried out;

7) obtain data, certificates and copies of documents related to the examination from the Bank of Lithuania, commercial banks and other credit institutions as well as state and municipal institution and economic entities;

8) carry out counter-checks in economic entities and banks of all forms of ownership to the extent this is connected with the examination conducted by the State Control and the established violations; and

9) engage the aid of police officers in the event that entry of premises of state and municipal institutions and economic entities is obstructed or in case of refusal to produce the requested documents. In such cases police officers must take away the documents requested by the State Control officer.

Documents containing data included in the official secrets list and the material valuables and resources specified therein shall be examined by the State Controller personally or by the State Control officers specially authorised on his instruction for the purpose.

Article 41. Powers of the State Control Officers to Impose Administrative Penalties

In the cases determined by law, the State Controller, his deputies and heads of control departments shall be granted powers of the officer having powers to impose administrative penalties.

The State Control officers must be objective, keep official, commercial and professional secrets divulged to them in the discharge of their official duties as well as refrain from giving preliminary public evaluation of the performed examination.

V. PROCEDURE FOR EXERCISING CONTROL

The State Control shall at its own discretion determine the period, methods and scope of control.

The heads of state and municipal institutions and economic entities which are under examination must provide the necessary conditions of work for the State Control officers and the specialists engaged by them for the purpose of performing the functions of control.

The examination must be performed in such a manner as to interfere as little as possible in the activities of the persons under examination.

Article 44. Rights and Duties of the Employees whose Activities are Examined by the State Control

The employees whose activities are examined by the State Control must participate in the examination of material valuables, securities and money they are in charge of; shall have the right to familiarise themselves with the documents in which the deficiencies of their work is recorded and present explanations.

If employees of state and municipal institutions and economic entities which are under examination avoid participating in the performance of examination, the checks shall be carried out without their participation and a corresponding statement shall be drawn up.

Upon the completion of examination a report (statement) shall be drawn up, the responsibility for the validity and truthfulness of the contents whereof shall fall fully on the State Control officer who signed it.

Heads and officers of state and municipal institutions and economic entities under examination must sign the examination documents no later than within 3 days from the receipt of the report (statement). If they object to the recorded deficiencies in their work, they may present their comments in writing.

Refusal to familiarise with and sign the examination documents shall not stop the taking of decisions.

Article 46. Time Limits for Implementing the Decisions of the State Control Officers

Heads of state and municipal institutions and economic entities which have been subjected to examination shall be informed of the decisions adopted by the State Control officers and must within a month or within any other fixed time period inform the State Control of the measures taken to compensate for the inflicted damage and to eliminate the established violations.

VI. IMPOSING CASH DEDUCTIONS FOR THE RECOVERY OF UNAUTHORISED EXPENDITURE

Article 47. Imposing cash Deductions for the Recovery of Unauthorised Expenditure

1) regardless of the application of other measures of influence provided for in Article 35 of this Law;

3) taking into account the extent of material damage which shall be determined in accordance with the actual losses sustained by state and municipal institutions and economic entities, on the basis of accounting data (damaged, lost, unlawfully written-off property; amounts paid out without due justification; fines, late charge and other economic sanctions).

The value of property in the case of its misappropriation, embezzlement, wilful destruction and damage shall be assessed on the basis of government-controlled or maximum market prices effective at the moment of establishment of said facts.

Article 48. Conditions Precluding Imposition of Cash Deductions for Unauthorised Expenditure Recovery

Cash deductions for the recovery of unauthorised expenditure may not be imposed after the passage of six months from the day of establishment of material damage caused by an officer (i.e., from the day of drawing up of the examination report (statement), excluding the period of the officer's absence from work by reason of illness, business trip or holiday).

Article 49. Implementation of Decisions of the State Controller, his Deputies and Heads of Control Departments Regarding the Imposition of Cash Deductions for Unauthorised Expenditure Recovery

Heads of state and municipal institutions and economic entities must implement the decisions of the State Controller, his deputies and heads of control departments regarding the imposition of cash deductions for the recovery of unauthorised expenditure.

The decision to impose cash deductions for the recovery of unauthorised expenditure shall be sent by the State Control to the officer who caused the damage, at his office address, and to the corresponding state tax inspectorate.

The amount for the recovery of unauthorised expenditure shall be deducted from the officer in accordance with the procedure established by law by the accounting department of state and municipal institutions and economic entities which are under examination at the place of his employment on the basis of the decision of the State Control.

The deducted amount for the recovery of unauthorised expenditure shall be transferred within five days into the State Budget.

From persons who take up another employment at another state or municipal institution or economic entity without having paid the required amount for the recovery of unauthorised expenditure, the sum due shall be deducted at their new place of employment. In such cases the head, the chief accountant of the state, municipal institution or economic entity must send the decision of the State Control regarding the recovery of unauthorised expenditure with the entry concerning the deducted amounts to the new place of employment of the person who has failed to pay the amount for the recovery of unauthorised expenditure and notify the appropriate state tax inspectorate thereof.

If it is impossible to deduct the amount for the recovery of unauthorised expenditure or the unpaid sum thereof from the salaries of persons on whom it is imposed, the documents concerning the recovery shall be referred to court in order that the required amount be recovered from the property of the specified person in accordance with the procedure established by the Code of Civil Procedure of the Republic of Lithuania.

VII. THE RIGHT OF STATE CONTROL OFFICERS TO USE FIRE-ARMS

The procedure for the acquisition, keeping and use of firearms shall be regulated by laws and Government decrees.

VIII. COMPENSATION FOR WORK AND SOCIAL GUARANTEES OF STATE CONTROL OFFICERS

The procedure and conditions of compensation for work of State Control officers shall be established by the laws of the Republic of Lithuania.

Social guarantees for State Control officers shall be established by the laws of the Republic of Lithuania.

IX. FINANCING AND MATERIAL -TECHNICAL SUPPLY OF THE STATE CONTROL

The State Control shall be financed from the Lithuanian State Budget. The funding level shall be determined and funds shall be appropriated by the Seimas of the Republic of Lithuania on the proposal of the Committee on Budget and Finance.

The State Control may have official dwelling space. The dwelling space shall be acquired in accordance with the procedure established by the Government.

After the completion of examination by the State Control officers, a share (30%) of the funds recovered and paid into municipal budgets as well as into state funds shall be assigned for strengthening the resource base and for giving incentives to the personnel.

75% of the funds received in accordance with the procedure established in Par. 1 hereof shall be assigned for strengthening the resource base of the State Control and 25% of the funds shall be allotted for giving incentives to the personnel.

Par. 1 and 2 hereof shall be effective until the Seimas establishes the general procedure for promoting the activities of State Control institutions.

X. PARLIAMENTARY CONTROL OVER THE STATE CONTROL ACTIVITIES

Parliamentary control over the State Control activities shall be exercised by the Seimas of the Republic of Lithuania.

The economic and financial activities of the State Control shall be annually examined by the commission appointed by the Seimas. The examination report shall be presented to the Seimas together with the conclusion concerning the annual national account of the Budget.

LITHUANIA

CONSTITUTION OF THE REPUBLIC OF LITHUANIA

CHAPTER 1 GENERAL PROVISIONS

CHAPTER TWO STRUCTURE OF THE STATE CONTROL, FINANCING AND AUDIT

CHAPTER THREE COMPETENCE OF THE STATE CONTROL AND OFFICERS

CHAPTER FOUR GOVERNMENT AUDITING

CHAPTER FIVE CO-OPERATION WITH LAW ENFORCEMENT AND AUDIT INSTITUTIONS. INTERNATIONAL RELATIONS

CHAPTER SIX PUBLICITY

CHAPTER SEVEN CIVIL SERVANTS, OFFICERS AND EMPLOYEES OF THE STATE CONTROL

CHAPTER EIGHT RECRUITMENT TO THE SERVICE IN THE STATE CONTROL

CHAPTER NINE RIGHTS AND DUTIES OF STATE CONTROL OFFICERS

CHAPTER TEN TRAINING AND IMPROVEMENT OF PROFESSIONAL QUALIFICATION OF STATE CONTROL OFFICERS

CHAPTER ELEVEN REMUNERATION AND SOCIAL GUARANTEES OF CIVIL SERVANTS, STATE CONTROL OFFICERS