Performance audits can be part of the routine monitoring of
the electoral process by the EMB itself or an official oversight agency, as
well as an investigative tool in suspicious cases or cases involving
malfeasance or corruption. Audits can identify irregularities as an internal
quality control mechanism of the EMB. They can also help ensure that electoral
administrators, political parties and organizations receiving public funds
comply with the law and are accountable for their actions. Audits increase
transparency of the electoral process by making records and audit reports
available to the public. They may also facilitate the decision-making process
for those responsible for taking corrective measures.
The principle underlying
audits is that the persons and institutions entrusted with handling public
resources must be held accountable for using those resources efficiently and
economically.[1]
They must also comply with the applicable public funding laws and regulations.
Public officials and public
spending managers must establish and maintain effective controls to ensure that
resources are safeguarded; laws and regulations are followed; and accurate,
reliable data are obtained, maintained and disclosed. These persons must also
be accountable to the public and to other levels and branches of government for
their use of public resources, and must submit reports at the required time.
The type of audit depends on
its objectives. It can be a performance audit, assessing he effectiveness of
managers, a financial audit, examining accounting records to determine
how funds were utilized, or it can be a combination of the two, or look solely
at internal controls.
Depending on legal
restrictions or ethical considerations, audit reports may be made public.
Performance
Audits
For election administration, a
performance audit is an objective and systematic examination with the purpose
of providing an independent assessment of the performance of the electoral
management or policy-making bodies, the agency that regulates campaign
financing, and/or recipients of public financing, such as candidates and
political parties.
Performance audits provide
information on how the electoral process functions, identify weaknesses and
areas of non-compliance, and make recommendations for improvement. The facts
uncovered by an audit may require electoral administrators to take corrective
measures and make the process more efficient.
Performance audits may also check
for efficiency and economical use of resources. The aim is to determine whether
the electoral management body and other electoral agencies acquire, protect and
use their resources (e.g. personnel, property, space) effectively and
efficiently. A performance audit is a powerful tool for combating mismanagement
and possible corruption.
Financial
Audits
Economic corruption can become
a major cause of integrity problems for an electoral management body, which
usually has a large permanent staff, hires thousands of temporary workers, and
procures large quantities of electoral equipment and materials. Lucrative contracts
may attract offers of kickbacks or provide opportunities for misappropriation
of funds. Financial audits, especially those performed on a regular basis, can help
detect and deter economic corruption and financial malfeasance.
Financial audits determine
whether reports prepared by the institution or candidate accurately present the
financial position, and whether the accounting is performed in conformity with
generally accepted accounting principles.
Financial audits examine financial statements and records, and banking
information. They refer to internal controls to check compliance with
regulations governing procurement, bidding, accounting, and reporting on grants
and contracts.
Objective
and Accurate Audit Reports
Audits should be performed objectively and without interference by
other agencies or persons. The reports must be accurate and fair, and must
include sufficient information to help the organization being audited—as well
as oversight agencies and policy makers—understand the situation and determine
corrective actions to be taken.
Audits must be carefully
documented. An audit report usually describes the objectives and scope of the
audit, and the methodology used. It includes findings and recommendations for
correcting problems and improving operations. It may also contain
recommendations on how to improve administrative controls and enforcement.
Supporting documentation is usually attached and available for public
inspection. Some systems allow audit reports to be used as evidence in criminal
cases, while others do not.
[1] Comptroller General of the United States, Government
Auditing Standards, 2003 Revision
