State Audit Office
REPUBLIC OF LATVIA

Independence

The Parliament (Saeima) appoints the Auditor General for seven years according to the procedure stipulated by "Saeima Rules of Procedure". The candidate for the position of the Auditor General, State Audit Office Council member and audit department Collegiate member have to meet the following requirements:

1. Be the citizen of the Republic of Latvia;
2. Have good command of the state language;
3. Have a University degree and whose professional qualifications and the last five year job experience are appropriate for coping with the State Audit Office tasks.

The Auditor General, the State Audit Office Council member or audit department Collegiate member can be dismissed form office only by the Saeima based on the court decision. The Auditor General, a State Audit Office Council member, an audit department collegiate member may submit his/her personal resignation.

The person cannot become a candidate for the position of the Auditor General, State Audit Office Council member and audit department Collegiate member if the person:

1. Has reached the retirement age determined by the law;
2. Has been in the government during the period of the last three years;
3. Has held elective office in the political parties during the period of the last three years;
4. Has been punished for committing deliberate crime (irrespective of clearing of criminal record);
5. Has committed deliberate crime in the past, but has been freed from serving the sentence due to limitation, amnesty or pardon;
6. Has been or still is a part-time or full time employee of the USSR, Latvian SSR or a foreign state defence service, intelligence service or national security service, has been an agent of any of the above mentioned institutions, resident or holder of the secret address;
7. Has been or still is a member of the illegal organisations, claimed illegal by the Latvian Republic Law, Decisions of the Supreme Soviet or court decisions after these organisations have been announced illegal.

The Auditor General, other State Audit Office Council members and audit department Collegiate members have to suspend their participation in political parties.

Various conditions of service of the Auditor General that secure the independence of the SAI are:

1. Special procedure of appointment
2. Special procedure of removal
3. Fixed time tenure
4. Control over resources/budget
5. Immunity/protection from actions by others in his performance of duties
6. Independence to frame workplans

The State Audit Office is financed from the State Budget. The State Audit Office submits the budget request to the Ministry of Finance. The State Audit Office annual financial statements are audited by an external auditor, chosen by the Saeima through a tendering procedure. The State Audit Office submits its annual statement together with the opinion of the external auditor to the Saeima regarding implementation of the State and Local Governments' budgets.

The SAI's jurisdiction extends to following:

• State institutions;
• State enterprises, companies and public incorporated companies as well as companies with the state capital parts;
• Local Governments, and institutions and enterprises established them;
• other enterprises and companies, as well as non government organisations, associations of non government organisations and natural persons, if :

1. they have control or are in charge of State or Local Government property or financial resources;
2. they are financed from State or Local Government resources, or resources guaranteed by them;
3. they implement State or Local Government procurement and supply.

• Users of the resources allocated by the European Union or other international institutions.

SAI also has Jurisdiction over 

• Revenues and expenditure of the state and municipal budgets;
• Actions with the state and municipal assets;

Powers

The State Audit Office submits application to the Constitutional Court about filing a case regarding the conformity of the laws to the Constitution, conformity of the Cabinet of Ministers regulations and other legislation and resolutions to the law. The State Audit Office reports to other state institutions about the findings within the competence of the respective institutions.

The State Audit Office is entitled to request the drafts submitted to the Cabinet of Ministers and to provide opinions about these draft legal acts if they influence State and Local Government revenues and expenditure and provide for actions with State and Local Government property, or provide for actions with the European Union or other international fund resources allocated to the national or local governments. The State Audit Office has the right to send its authorised representatives in the capacity of advisors to the State and Local Government institution meetings.

Auditor General, State Audit Office Council member, State Audit Office Audit Department Collegiate member, State Audit Office Employees authorised by the Auditor General, if that is necessary in order to cope with the tasks of the State Audit Office, can, without hindrance attend the state, Local Government and other institutions, enterprises (companies) irrespective of their subordination and ownership and request any information required.

The State Audit Office audits:

1. Revenues and expenditure of the state and municipal budgets;
2. Actions with the state and municipal assets;
3. Spending of the resources allocated by the European Union and other international institutions.

The objective of the State Audit Office activities is to state whether actions with the resources mentioned above are lawful, correct, cost efficient and effective. Annually, the State Audit Office submits a report on the government review to the Parliament (Saeima) regarding implementation of the State and Local Governments' budgets.

The State Audit Office provides opinions about the correctness of the annual statements of the central ministries, central state institutions and local governments. The State Audit Office submits to the Saeima and the Cabinet of Ministers reports about important and significant findings.

The Latvian SAI does not exercise judicial functions. The State Audit Office performs audits in accordance with International Auditing Standards. The audit and operational procedures of the State Audit Office are determined by the State Audit Office Instructions adopted by the State Audit Office Council.

Organisation

Auditor General, State Audit Office Council members and the Audit Department Collegiate members are state officials. Other members of the State Audit Office Council and of the audit department Collegiates are, pursuant to the recommendation of the Auditor General, appointed by the Saeima to a seven-year term. Members of the State Audit Office Council and of the audit department Collegiates may be re-appointed in office.

Administrative Functions and Miscellaneous 

The State Audit Office is financed from the State Budget. The State Audit Office submits the budget request to the Ministry of Finance. The State Audit Office annual financial statements are audited by an external auditor, chosen by the Saeima through a tendering procedure. The State Audit Office submits its annual statement together with the opinion of the external auditor to the Saeima regarding implementation of the State and Local Governments' budgets.