The National Audit Office (SAI) of the Republic of Bulgaria was established under a special Act of Parliament in 1995, according to the provisions of the Constitution of the Republic of Bulgaria from 1991. The SAI President is elected by the Parliament for a term of 9 years and has no right to be re-elected (second mandate). He can be discharged by Parliament before the term set, in three cases:
The law envisages certain provisions/qualifications for election of a SAI President
The head of SAI is appointed for a fixed tenure (Mandate) - 9 years with no age limits.
The various conditions of service of the Head of the SAI to secure independence are:
The SAI is independent of the Legislature, the Executive and the Judiciary in performing its activity. The SAI Act regulates its relationship with the different authorities in the country as mentioned above. Upon request by Parliament or Government the SAI expresses opinions on the estimated budget and bills. Incase of ascertained damages, in the execution of the budgets, the SAI refers the audit reports to the Public Internal Financial Control Agency. If data for crime are found in the execution of the budgets, the SAI forwards the audit reports to the Prosecution authorities.
The SAI Bulgaria has financial independence. The SAI forms its estimated annual budget by itself, observing the budget procedure in the country. The SAI budget guarantees the execution of the SAI legal powers and in some cases the Ministry of Finance provides additional funds as well. The Parliament adopts the SAI budget as part of the State budget.
According to the law, the SAI submits its activity report to the Parliament and after being adopted it is promulgated in the Official Gazette.
The SAI's jurisdiction extends to following and there are no limitations imposed on this jurisdiction.
The SAI has jurisdiction over Public utility/Agencies providing pubic services even if they are privately funded and managed. The SAI audits all budgets, adopted by the Parliament or the local authorities. It also audits the resources in extra-budgetary accounts and funds; the management of the property entrusted to the budget organisations; the budget expenditures of the Bulgarian National Bank (BNB).
The SAI has the necessary powers to perform its activity according the SAI law. The SAI has the right to impose sanctions, as well as to approach the Prosecution authorities in case of refusal of access to the needed data. Bulgarian SAI's audit powers are wide-ranging.
The auditors have powers to free access to the premises of the auditees, to require and seize documents from the auditees, including electronic data, to demand oral and written explanations from the officials of the auditees, as well as other audit proofs inclusive of securing measures imposed by court. Further the SAI has powers to seek testimonials of persons concerned or those who are deemed to have been involved in the matter subject to audit and inspection. If necessary, the SAI notifies the government investigation agencies, observing the legislation of the country. In case of carrying out audits by the SAI, the officials of the auditees cannot refer to state, official, trade, bank or other secret, protected by law.
The Heads of audits, Heads of Departments or Directors of Regional Offices and the SAI President have the right of an opinion on the auditee's claims concerning the findings in the audit reports. The SAI has the powers to take punitive action and/or impose surcharge. In case of refusal for access to the data needed for conducting the audits, the SAI has the right to impose sanctions and to approach the Prosecutor's office.
SAI has powers to access the computer systems of the auditees and the power to download and use electronic data either in site or off site. It has power to review the development of computer systems by auditees and suggest controls. The Budget organisations, which are auditees of SAI can be audited only by SAI and by the Public internal financial control agency, which is a body of the Executive. The SAI has powers to share reports with the public and media - the audit reports may become public after their adoption by the SAI. The SAI has the right to request corrections of the statements by their compilers, according to the order, determined by; the National Accounting Standards.
The The SAI conducts financial, compliance, performance and EDP audit and other special audits. The different types of audits are carried out according to the SAI Act and the SAI own standards, drawn up on the grounds of the INTOSA auditing standards.
The SAI conduct Concurrent audit and Special audit. Each audit that the SAI carries out includes the following stages: audit planning; study and evaluation of internal control; testing; reporting; follow up and implementation of the audit recommendations. The SAI can consult and co-operate on audit related issues with the EGA and the SAIs of other countries with which it has signed agreements, as well as with international organisations.
The SAI has drawn up and applies its audit standards in compliance with the INTOSAI Auditing Standards. The SAI can consult with the European Court of Auditors and with other SAIs, with which agreements have been signed (SIGMA/OECD). It can engage external experts when carrying out audits.
The SAI has 9 Regional Offices that have no juridical independence. The Regional Offices have their sectors in 28 towns of the country and they audit the budgets of the local authorities of the Executive. The SAI has powers, when conducting audits, to seek cooperation with external experts, who are obliged to observe the SAI Act, the way its auditors do.
The SAI follows a standard reporting procedure.
The SAI constituted as a collegial multi-member body (Board-Committee-Chamber) - Chamber of Audit. The SAI is a collegial multi-member body, consisting of 11 people a President and 10 SAI Members. The SAI Members are elected by Parliament, following a proposal of the President, for a tenure of 9 years. The SAI President and Members posses equal rights in making decisions and they vote conscientiously. The NAO collegium organises, manages and controls the entire SAI activity. The President manages the day to day functioning of the SAI.
The SAI organises the execution of its budget by itself, according to the general regulations of the budget organisations. It has elaborated and adopted its own regulations for financial management and control on the execution of its budget.
The SAI is fully independent in preparing and implementing its annual audit programme. The SAI determines by itself the auditees to be included in its audit programme, the types of audits and the duration for their implementation. The SAI can perform up to three extra audits per year, which are not included in its annual audit programme, following a decision of the Parliament.
The SAI audit activity is based on the principles of publicity and transparency. The SAI may make all audit reports public if they do not include information that is a state, official, trade, bank or other secret, protected by law. The SAI draws up an Annual activity report, which is submitted to Parliament for adoption.