Audit Office for the Institutions of Bosnia and Herzegovina

Audit Office for the Institutions of Bosnia and Herzegovina
Name	Audit Office for the Institutions of Bosnia and Herzegovina
Native name	Revizorska institucija institucija Bosne i Hercegovine
Formed	2004
Jurisdiction	Bosnia and Herzegovina
Headquarters	Sarajevo
Chief1 name	(varies)
Website	(official)

Audit Office for the Institutions of Bosnia and Herzegovina is the supreme external audit institution responsible for auditing financial reports and performance of central institutions in Bosnia and Herzegovina. The Office operates within the post-Dayton institutional framework established after the Dayton Agreement and functions alongside bodies created under the Constitution of Bosnia and Herzegovina. It provides audit opinions and performance audits intended to strengthen public financial management in the context of accession-related reforms involving the European Union and cooperation with international organizations such as the European Court of Auditors and the International Monetary Fund.

History

The Office was established against the backdrop of post-conflict reconstruction following the Bosnian War and the implementation of the General Framework Agreement for Peace in Bosnia and Herzegovina negotiated at the Wright-Patterson Air Force Base and signed in Dayton, Ohio. Early institution-building involved actors including the Office of the High Representative and the United Nations Development Programme to align with standards promoted by the United Nations and the Council of Europe. Legislative foundations were enacted by the Parliamentary Assembly of Bosnia and Herzegovina, and the Office’s capacity expanded through programs supported by the European Commission and bilateral cooperation with the United Kingdom, the Germany, and the United States Department of State. Over successive mandates the Office has responded to recommendations from the Certification Mission and engaged with the World Bank on public financial management reforms.

Legal Framework and Mandate

The Office’s mandate is grounded in laws adopted by the Parliamentary Assembly of Bosnia and Herzegovina and the Law on the Audit Office for the Institutions of Bosnia and Herzegovina, reflecting principles advocated by the International Organization of Supreme Audit Institutions (INTOSAI) and the European Court of Auditors. Its jurisdiction covers entities and funds established by the Council of Ministers of Bosnia and Herzegovina, agencies such as the State Investigation and Protection Agency, and institutions created by statutes under the High Judicial and Prosecutorial Council of Bosnia and Herzegovina. The mandate aligns with obligations arising from agreements with the European Union and recommendations from the Organization for Security and Co-operation in Europe and the Group of States against Corruption (GRECO).

Organizational Structure

The Office is headed by a board or leadership appointed by the Parliamentary Assembly of Bosnia and Herzegovina and overseen through reporting channels to committees such as the Parliamentary Assembly House of Representatives budget and fiscal oversight committees. Its internal structure comprises departments for financial audit, performance audit, legal affairs, and international cooperation, staffed by professionals trained in standards promulgated by INTOSAI and the Institute of Internal Auditors. The Office engages with vocational programs linked to the University of Sarajevo and cooperates with audit institutions such as the National Audit Office (United Kingdom), the Bundesrechnungshof, and counterparts in the Croatia, Serbia, and Slovenia.

Functions and Powers

The Office conducts statutory financial audits of annual financial statements of central institutions, performance audits examining efficiency and effectiveness, and compliance audits assessing conformity with laws enacted by the Parliamentary Assembly of Bosnia and Herzegovina and regulations issued by the Council of Ministers of Bosnia and Herzegovina. It has authority to access books, records, and premises of agencies including the Indira Jusko-type public bodies and state-owned enterprises, to issue audit reports and management letters, and to refer suspected irregularities to prosecutorial bodies including the State Prosecutor’s Office of Bosnia and Herzegovina and anti-corruption agencies like the Agency for Identification Documents, Registers and Data Exchange of Bosnia and Herzegovina. The Office’s powers are shaped by international accords with the European Union Police Mission and obligations under the Stabilisation and Association Agreement.

Audit Methodology and Standards

Audit methodology adheres to INTOSAI principles and international auditing standards promoted by the International Federation of Accountants and the European Court of Auditors. The Office applies risk-based planning, materiality thresholds, sampling techniques, and evidence-gathering procedures consistent with protocols used by the Comptroller and Auditor General of the United Kingdom and the Court of Audit of the Netherlands. Quality assurance and peer reviews have been conducted with support from the Transparency International programs and technical assistance from the IMF Fiscal Affairs Department and bilateral partners such as the Sweden International Development Cooperation Agency and the Norway Agency for Development Cooperation.

Major Reports and Findings

The Office has published annual audit reports covering the consolidated financial statements of state-level institutions, highlighting systemic weaknesses in public procurement, internal controls, asset management, and treasury operations affecting entities including the Central Bank of Bosnia and Herzegovina, the Independence Referendum Commission-style electoral institutions, and state agencies managing EU funds. Reports have documented irregularities that prompted legislative scrutiny by commissions of the Parliamentary Assembly of Bosnia and Herzegovina, inquiries by the State Audit Institution counterparts, and follow-up actions by the State Investigation and Protection Agency and the State Prosecutor’s Office of Bosnia and Herzegovina. High-profile findings have intersected with reform agendas championed by the European Commission’s Directorate-General for Neighbourhood and Enlargement Negotiations and recommendations of the Venice Commission.

Stakeholder Relations and Accountability

The Office engages stakeholders including the Parliamentary Assembly of Bosnia and Herzegovina, international partners such as the European Union, the United Nations Development Programme, and civil society organizations like Transparency International Bosnia and Herzegovina. It provides testimony to parliamentary committees, cooperates with the High Representative for Bosnia and Herzegovina, and participates in regional networks such as the INTOSAI Regional Working Group with peers from Albania, North Macedonia, and Montenegro. Accountability mechanisms include publication of audit reports, peer reviews by the European Court of Auditors and INTOSAI peers, and oversight by parliamentary budget committees in coordination with donors including the United States Agency for International Development and the Switzerland State Secretariat for Economic Affairs.

Category:Public finance of Bosnia and Herzegovina Category:Supreme audit institutions