Key Benefits:
Minister of Social Affairs and Health, Minister of Labour, Employment, Vocational Training and Social Dialogue, Minister of Women's Rights, Government Spokesperson, and Minister of Sport, Youth, Popular Education and Associative Life,
Vu le Decree No. 2011-497 of 5 May 2011 relating to the strategic risk management committee, the internal audit mission and the internal audit committee of the ministries responsible for social affairs, including section 6;
Considering the advice of the Joint Ministerial Technical Committee of 10 July 2012;
Having unanimously approved the internal audit committee of the Ministries responsible for Social Affairs on February 21, 2013,
Stop:
The Internal Audit Charter and the Code of Ethics referred to in thearticle 6 of the decree of 5 May 2011 referred to above are annexed to this Order.
The Minister of Social Affairs and Health, the Minister of Labour, Employment, Vocational Training and Social Dialogue, the Minister of Women ' s Rights, spokesperson for the Government, and the Minister of Sports, Youth, Popular Education and Associative Life are responsible, each with regard to it, for the execution of this Order, which will be published in the Official Journal of the French Republic.
A N N E X E S
A N N E X E 1
CHARTER DE L'AUDIT INTERNE DES MINISTÈRES CHARGÉS DES AFFAIRES SOCIAL
This charter defines and specifies the mission, areas of intervention, powers and responsibilities and rules of conduct of the internal audit within the ministries responsible for social affairs It specifies the relationship of the internal audit mission with the inspection services of the ministries responsible for social affairs as well as with other State audit services and external auditors (Court of Accounts, Parliament...). It is supplemented by a code of ethics that defines the rules that apply to audit officers.
The rights and duties of auditors and auditors are defined and the organization of the internal audit function within departments in order to ensure compliance with ethical rules, to enable the proper functioning of this activity and to include it in an assurance and quality improvement approach. The charter and code of ethics are also intended to facilitate the conduct of audit missions by informing audited entities of the objectives of the audit and the methods developed.
This Internal Audit Charter and the associated Code of Ethics are designed to comply with recognized professional standards of internal audit.
It is articulated with provisions provided for by the general statute of the public service and by the specific statutes that apply to the auditors responsible for it.
Definition
In accordance with Decree No. 2011-775 of 28 June 2011the internal audit is an independent and objective activity that provides assurance to each minister about the degree of control of his or her operations and provides advice to improve it.
It helps the organization achieve its objectives by assessing, through a systematic and methodical approach, its risk management, control and governance processes and making proposals to enhance their effectiveness.
Objectives
The objective is to independently and objectively assess the effectiveness and efficiency of risk control devices and to make relevant recommendations for the continuous improvement of these devices, to provide advice to operational services and to support possible future changes of these devices. By its proposals, the internal audit approach must contribute to improving process security and maximizing the overall performance of the ministries responsible for social affairs and institutions and agencies directly under the authority of the State and under these ministries.
The purpose of the internal audit is to assess systems and not individuals.
Scope and methodology
This charter concerns the internal audit in the ministries responsible for labour, employment, health, social security, solidarity, social cohesion, youth, associative life and sports, still known as " Ministries responsible for social affairs".
The internal audit is conducted in the form of ad hoc and targeted missions; These missions may be carried out in all departments of the ministries responsible for social, central or territorial affairs, as well as in institutions and bodies directly under the authority of the State and under these ministries.
In these structures, it will be verified that the risks associated with the processes implemented are identified, in particular, in the accounting and budgetary domain, but also in other areas for all the most sensitive activities.
Thus, the internal audit activity aims to ensure:
the achievement of government and ministerial objectives; appropriate identification and management of associated risks;
- the correct application of laws, decrees, instructions, circulars and procedures;
– the protection and preservation of the heritage of ministries responsible for social affairs and their operators or made available to them;
the integrity, reliability, completeness and traceability of financial and operational information produced and issued in a timely manner;
the proper and rational management of human resources;
the efficiency and good use of material resources;
the effectiveness and efficiency of internal control and the fight against fraud;
- respect for ethical and ethical rules.
Opportunities to improve the governance, efficiency and image of departments can be identified during audit missions. They will be communicated to the appropriate level of management.
To do so, missions can be focused on four types of audits: compliance (or regularity), efficiency (or performance), process (or organizational), management (or strategy).
The compliance audit (or regularity) verifies the proper application of existing internal regulations and procedures for all staff. It is based on a repository if it exists and/or on the documentary system that consolidates existing official regulations.
The efficiency (or performance) audit measures the performance of an organization in relation to its objectives and the resources allocated to it.
The process audit (or organizational) assesses the relevance of the work processes and the organization of services to the objectives and missions of the audited entity.
The strategy and management audit confronts all the policies and strategies of the unit audited with the environment in which it is located in order to verify overall coherence. It ensures that the policy defined for the audited unit is known to the personnel of the unit, well understood and applied by them.
Beyond these insurance missions that provide a reasonable assurance of the degree of control of activities, advisory missions may also be carried out, the purpose of which is to provide assistance for the improvement of the performance of audited activities and the control of associated risks.
Insurance and advisory missions contribute to the creation of added value by increasing the chances of achieving the objectives of the ministries responsible for social affairs and those of institutions and agencies directly under the authority of the State and under these ministries.
Organization of Risk Control and Internal Audit
Ministry of Social Affairs
The governance of risk control and internal audit of ministries responsible for social affairs is as follows:
― Act No. 96-452 of 28 May 1996 and Decree No. 2011-931 of 1 August 2011 specifying the powers of the general inspection of social affairs (IGAS);
― ofArticle L. 6141-7-2 of the Public Health Code specifying the responsibilities of the general advisors of health institutions, including audit;
― Decree No. 2002-53 of 10 January 2002 and the decision of 11 December 2008 including the organization and missions of the general inspection of youth and sports (IGJS);
― Decree No. 2011-497 of 5 May 2011 which sets up the Strategic Risk Control Committee (MRSC), the Internal Audit Mission (IAD) and the Internal Audit Committee.
The CSMR, chaired by the Secretary General of the Ministries responsible for social affairs, supports ministers in the definition of an appropriate risk control policy related to the activities of the ministries responsible for social affairs and their institutions and agencies directly under the authority of the State and under these ministries. Based on the risk analysis (risk mapping, results of previous internal audits, inspection and control missions...), the MRC sets out appropriate internal control measures or provides guidance to the relevant departments to improve the coverage of risks that represent the highest issues for the social affairs departments. The guidelines for institutions and agencies directly under the authority of the State and under these ministries are transmitted through the existing governance systems (guardianship, boards of directors...).
The role of IAD is to define the tools and methods necessary for the internal audit in connection with IGAS and IGJS, to develop the draft internal audit plan on the basis of risk mapping to implement the validated internal audit plan. The internal audit plan thus developed incorporates the list of missions to be carried out over the year and the resource forecasts to be allocated to it.
The missions are carried out in particular with IGAS members and IGJS. Inspection services activity programs and the internal audit plan are built in coherence. The registration of audits in the activity program of these inspections is in the end of the inspection heads.
The IOM may carry out additional missions to the internal audit plan at the request of one of the Ministers responsible for Social Affairs, the Internal Audit Committee or the Strategic Risk Management Committee.
In view of the missions to the inspections, they may conduct internal audit missions (at the request of ministers or by self-saisin in addition to departmental requests). They are carried out under this charter. The Secretary-General of the Ministries responsible for Social Affairs and IOM are kept informed of the launch of these missions; MAI is associated with the conduct of these missions. The CSMR is also kept informed of these missions.
The Internal Audit Committee ensures that the entire risk control system is operating and efficient. The committee, chaired by the ministers responsible for social affairs, is responsible for the independence and professionalism of the internal audit. It validates the internal audit charter and the code of ethics. It also validates the internal audit plan for which a project is finalized by the MRC and approves the annual MAI activity report. It receives information on all of the internal audit work on the ministries responsible for social affairs, whether or not they are the result of the internal audit plan. It reviews the follow-up of audited units to the recommendations contained in these reports.
Position of the internal audit mission in the administrative organization
In order to ensure its independent evaluation work, MAI is placed under the direct authority of the Ministers responsible for Social Affairs and is attached to the general inspection of social affairs. It also works permanently with the general inspection of youth and sports. She reports on her work to the Internal Audit Committee.
During the missions carried out by MAI, MAI operates on its own or in partnership with audit services within the State, including IGAS and IGJS. It can also use external providers to carry out missions, when appropriate, to ensure optimal audit coverage at a reasonable overall cost. It can conduct advisory missions on risk management related to public policy management. It is responsible for the internal audit methods used. It monitors all recommendations issued at the end of the missions.
It ensures that good internal audit practices are disseminated within institutions and agencies directly under the authority of the State under the ministries responsible for social affairs issues recommendations in this regard. It carries out internal audit missions in these institutions and organizations on its own or in partnership.
The head of the IADM reports annually to the Ministers and the Internal Audit Committee on the overall level of control of operations and significant issues identified in the risk management, control and governance processes of the ministries responsible for social affairs and institutions and agencies directly under the authority of the State and under the authority of those ministries or on the potential improvements of these processes.
The IOM official regularly communicates to Ministers and the Internal Audit Committee information on the level of progress and results of the annual audit plan and on the sufficient nature of the service's resources.
The MAI will develop its activity by engaging in an insurance and improvement of the quality of its benefits.
The conduct of internal audit missions
The internal audit plan for which the project is finalized by the MRC and approved by the Internal Audit Committee is addressed by the MAI to the audit services that have been selected under this plan. The inclusion of audits in the inspection activity program is ultimately up to the inspection heads.
The internal audit missions carried out by IGAS or IGJS outside the internal audit plan are conducted directly by ministers or under the inspection activity program. The complementary missions to the internal audit plan requested by the IOM and involving IGAS or IGJS members are carried out on the referral of the Ministers concerned or the Secretary General of the Ministries responsible for Social Affairs. The inclusion of audits in the inspection activity program is ultimately up to the inspection heads.
The internal audit plan, as well as the balance sheet of the missions conducted over the past year, are being reported annually to trade union organizations as part of the ministerial technical committees concerned.
The launch of the mission
A mail to or to the audited entities informs of the launch of the mission. It is signed by the Secretary General of the Ministries responsible for Social Affairs for the missions of the internal audit plan or requested to the IADM, by the Chief of IGAS if one or more of its members participate in the mission and by the Chief of IGJS if one or more of its members participate in the mission. These letters are signed by the heads of inspection services for the internal audit missions that their services conduct alone (autosaisine or direct request from ministers). This letter sets out the scope of the audit, the timeline and the names of listeners and supervisors.
Supervision begins with the auditors' designation and ends with the report and the auditors' evaluation. The supervision of the mission is within the competence of:
– the head of IGAS for the missions listed in the IGAS activity program or requested by a minister to IGAS, IAM is associated with supervision;
– the head of the IGJS for the missions listed in the IGJS activity program or requested by a minister to the IGJS, the IOM is associated with supervision;
– the head of IGAS in connection with the head of IADM for the missions under the internal audit plan of the ministries responsible for social affairs or requested in a complementary manner to the IAD and involving IGAS members;
– the head of the IGJS in connection with the head of the IAD for the missions under the internal audit plan of the ministries responsible for social affairs or requested in a complementary manner to the IAD and involving IGJS members;
– the head of the IOM (by delegation of the head of IGAS) for other missions under the internal audit plan of the social departments or requested in a complementary manner to the IAD.
It may be carried out by the head of the IAD, by a member of the IAD or by a member of a State inspection or audit service participating in the mission. The designation of auditors and supervisors is the responsibility of the audit services involved in the mission and the IAD.
The actual start-up of the mission is an opening meeting with the audited structure. This meeting allows to present the objectives of the mission and define its material conditions. It also allows to define the necessary contacts and to make appointments in order to minimize disruption in the operation of the audited entity. The audit charter and code of ethics are presented and delivered at the opening meeting.
Implementation of the mission
Auditors carry out their mission according to a methodology formalized in an audit repository adapted to its object. This methodology is intended to conform to the standards recognized for the professional practice of internal audit and the code of ethics of the internal audit of the ministries responsible for social affairs. In accordance with these procedures and standards, listeners remain master of their working methods and the scope of their investigations. They must be able to detail their working methods for any mission.
Auditors implement tools and audit methods that allow them to detect and evaluate risks and corroborate their observations: written questionnaires prior to the on-site mission, during the mission or after the end of the on-site mission, oral interviews, production of descriptive documents or test results submitted for validation to the audited structure (regulations, functional flow charts, charts and process sheets,
The return of results
The most important findings and recommendations are communicated to the audited entity as the mission proceeds. The responses of the entity officials are one of the elements of the validation and possible correction for the auditor without waiting for the final report. Similarly, they are likely to correct the listener's appreciation and lead him to reorient his work.
Each mission is a meeting to conclude on-site work, which aims to inform the audited entity officials of the key findings and recommendations, to validate these key findings and recommendations, to encourage the entity's officials to implement corrective actions in the context of an action plan.
The mission concludes with a preliminary audit report, which includes the main findings and recommendations. The interim report shall be forwarded within one month of the completion meeting to the audited entity to allow the audited entity to decide on the findings and recommendations of the report. They have a maximum period of one month to transmit their possible comments and the draft action plan to implement the recommendations.
The final report includes, in addition to the findings and recommendations, any comments and action plan prepared by the audited entity. This report is transmitted by the heads of the audit services who conducted the mission, after a visa from the head of the IAD (for the internal audit plan missions or requested in a complementary manner to the IAD), to the head of the audited entity, to the ministers concerned, to the secretary general of the ministries responsible for social affairs, to the relevant central administration departments and services, possibly to the CBCM and the financial controller, and to any other recipient proposed by the auditors.
Reporting the results of the audit mission to the audited entity's staff is the decision of the audit entity's official.
Internal audit reports are forwarded to members of the Internal Audit Committee upon request.
Each mission leads to the conduct by the auditors of an audit file. It is held under the responsibility of the IAD for the internal audit plan missions or requested in a complementary manner to the IADM and IGAS or IGJS for those directly related to inspection services (IGAS, IGJS).
In a quality approach, it is recommended to provide the audited entity with a questionnaire to assess its perception of the conduct of the mission.
Follow-up to recommendations of internal audit missions
In support of the MRC and the Internal Audit Committee and in order to assess the progress made, the MAI monitors the follow-up to the recommendations issued during the internal audit missions for all internal audit missions conducted and for the ministries responsible for social affairs.
At the end of the missions, the audited structures prepare an action plan that takes into account the recommendations issued and the risks identified. This is considered as part of a closing meeting chaired by the Secretary General of the Ministries responsible for Social Affairs or the Chief Administrative Officer responsible for the audited area, involving the heads of the inspection services concerned, auditors and audited entities. The plan provides a time frame for implementation and specifies those responsible for implementing each recommendation. The audited structures inform MAI periodically and in accordance with an agreed timeline for the implementation of the action plan. The IOM may propose to include in the internal audit plan a monitoring mission for the implementation of the action plan within two years of the mission.
Standards of practice and ethics
Auditors conduct missions without prejudice, objectivity, impartiality and honesty; they comply with the code of ethics of the internal audit of the ministries responsible for social affairs as well as all the rules and obligations related to their status (general public service status, special status provisions, Labour code...) as well as those relevant to theArticle 40 of the Code of Criminal Procedure.
In keeping with the guidance of the internal audit committee, they allocate their resources, establish the frequency of their missions, choose the subjects, determine the fields of intervention and apply the techniques necessary to achieve the objectives of their audits.
When conducting internal audit activities, internal auditors are provided with unlimited access, subject to legal or regulatory prohibitions, to documents, information and data that relate to the purpose of their mission. They may speak with any staff member, regardless of their status, grade and function, and attend meetings. In return, listeners respect the right of reserve with respect to the information obtained.
A staff member of the audited services must work with internal auditors during the conduct of the mission and facilitate its conduct. In the event of obstruction or dilatory manoeuvres, the sponsors are prevented to take any appropriate action.
This includes:
- spontaneous communication of the elements useful to the apprehension of the object of the mission;
the provision of the necessary means to the mission;
― respect for deadlines in response to the questions of listeners and in the communication of the requested documents;
- written and detailed responses to the audit report within the time constraints of this Response, explaining the modalities for the implementation of the recommendations;
– the provision of updated information on the status of actions.
Throughout the missions, listeners remain concerned with dialogue with the audited entity: audit findings and recommendations are normally brought to the attention of audited entity officials prior to being communicated to the audited entity bodies.
The audit supervisor must immediately report any suspicion of serious irregularity to the audited structure manager and, if necessary, to the supervisor of the audited structure, the Chief of the IAD, and the heads of audit services participating in the mission.
Internal auditors are not allowed to:
– perform operational tasks for the audited organization; they do not exercise authority or responsibility in the activities they audit;
- initiate or approve accounting transactions;
― directing the activities of any employee or agent of the audited organization, except in the event that the person was appropriately assigned to the audit team or was called to assist the audit team.
Relations with other audit services or inspection bodies
and with external auditors
The MAI can carry out joint missions with the Department of Internal Audit of the DGFiP as well as the CGEFi and with inspection bodies operating in the field of the ministries responsible for social affairs (IGAS and IGJS) and even outside this scope. The use of officers within the services, in order to participate as a complementary force in the audit missions, can be decided.
In addition, IOM and inspection and control services must coordinate their actions with each other. The IAD must also articulate its work with the audit services of institutions and agencies directly under the authority of the State and under these ministries, where they exist, as well as with external auditors, especially in the programming of audit missions. This coordination, which meets the requirements of international audit standards, aims to effectively analyze and cover the risks of departments. It must avoid overloading services.
The IAD in its work takes into account those previously conducted by other internal or external auditors in the departments responsible for social affairs and who, in a direct or indirect manner, participate in the evaluation of the risk control device of these departments.
Finally, the internal audit reports on accounting and financial fields can be forwarded to the Court of Auditors in its role of certification of State accounts.
MAI coordinates the follow-up of recommendations made by the Interdepartmental Program Audit Committee (IPCC), the Court of Audit and Parliament. In compliance with the reporting rules adopted by ministers, confidentiality rules, including defence, and unless otherwise provided by law, are available to ministers, the Secretary-General of the ministries responsible for social affairs, the heads of general inspections and the directors concerned, reports produced in the social ministries and external auditors linked to the control of public policy risks by the ministries responsible for social affairs.
This charter must be known to all auditors participating in internal audit missions within the departments responsible for social affairs.
This charter was approved by the Internal Audit Committee of the Ministries responsible for Social Affairs at its session on February 21, 2013. It may be revised on the proposal of the IAD, IGAS or IGJS or at the request of the Internal Audit Committee. Any revision is subject to the approval of the Internal Audit Committee.
A N N E X E 2
INLAND AUDITOR CODE
IN THE CHAMP OF MINISTERS CHARGÉS DES AFFAIRES SOCIAL
Introduction
Ethics can be defined as all rules and duties, which the exercise of their activity imposes on individuals. This set must be linked to the recognized rights and guarantees given so that this activity is properly exercised.
In accordance with the preconizations of the professional references of the internal audit, this Code of Ethics, in addition to the Internal Audit Charter, is intended to promote a culture of ethics within the profession.
It is articulated with the rights and obligations defined by the general status of the public service and the specific statutes that apply to the auditors responsible for it.
It applies to persons in charge of internal audit missions in the field of the departments responsible for social affairs, including those decided by the internal audit committee of the ministries responsible for social affairs and to any person who would be associated with these audits.
Definition of internal audit
The internal audit is an independent and objective activity that provides assurance to each minister about the degree of control of his or her operations and provides advice to improve them. The internal audit ensures that internal controls are effective.
Definition of internal auditors
The auditors involved in this Code are those involved in internal audit missions at the request of the ministers responsible for social affairs or the internal audit committee of the ministries responsible for social affairs or also included in the work programme for the general inspection of social affairs or the general inspection of youth and sports.
Fundamental principles:
Internal auditors are expected to respect and apply the following basic principles:
1. Integrity: The auditor carries out his mission with responsibility, honesty and righteousness. He refrains from any act that is contrary to honour and probity. The integrity of internal auditors is the basis of confidence and credibility granted to their judgment.
2. Objectivity: Internal auditors show the highest degree of professional objectivity by collecting, evaluating and communicating information related to the activity or process examined. Internal auditors fairly assess all relevant elements and do not influence their judgment by their own interests or by others.
3. Privacy: listeners respect the content and ownership of the information they receive; they only disclose this information with the required authorizations, unless a legal and professional obligation obliges them to do so.
4. Competence: Internal auditors use and apply the knowledge, know-how and experiences required to carry out their work.
5. Independence: the listener must be personally, hierarchically and functionally independent of the audited entity, any direct relationship of interest or any person placed with the audited entity likely to create a conflict of interest situation is to be prohibited.
6. Discretion: listeners must, vis-à-vis audited subjects such as experienced staff, accurately and clearly assess situations, facts and adopt the behaviours most appropriate to the context of the audited organization.
Rules of conduct
1. Integrity:
1.1. Auditors respect the laws and regulations and the rules of the profession and make the disclosures required by them.
1.2. They must not knowingly take part in illegal activities or engage in dishonoring acts for the internal audit activity or their organization.
1.3. They respect and contribute to departmental objectives.
1.4. Any auditor to whom a mission is entrusted shall be responsible for the execution of the mission and the report prepared at its conclusion. It retains this responsibility during the submission of the report and beyond.
2. Objectivity:
2.1. Internal auditors should not participate in activities or establish relationships that could compromise or risk compromising the impartiality of their judgment. This principle also applies to business activities or relationships that may conflict with the interests of the State.
2.2. They must not accept anything that could compromise or risk compromising their professional judgment.
2.3. They are required to disclose all material facts that they are aware of and which, if they were not revealed, would have the effect of distorting the report on the activities examined.
2.4. The listeners strive in their reports to rigor and precision. The editorial must not be vague or ambiguous.
2.5. The listeners strive to respect the principles of the conflict.
3. Confidentiality:
3.1. Internal auditors use with caution and protect information collected in their activities.
3.2. They should not use this information to withdraw personal benefit or in a manner that would contravene legal and regulatory provisions or prejudice the objectives of the administration.
4. Jurisdiction:
4.1. Internal auditors must only engage in work for which they have the necessary knowledge, know-how and experience.
4.2. They carry out their internal audit work in accordance with international standards for the professional practice of the internal audit and the procedures determined in the internal audit guides established within the ministries responsible for social affairs.
4.3. It is up to them to maintain their knowledge, improve their competence, efficiency and quality of their work.
4.4. They participate in the improvement of the methods applied by the audit teams and make the team members with whom they are expected to work benefit from their experience.
5. Independence:
5.1. Auditors recuss themselves when it is proposed to them a mission that they do not feel able to assure with the necessary independence. In the event of a doubt, they take the chief of the audit service on which they depend or the head of the internal audit mission who decides to withdraw or maintain the auditor on the mission.
5.2. They cannot participate in a mission if they are related by parentage, alliance, economic and financial interest, in particular, with one of the actors of the audited entity or if they have an interest, moral or emotional, economic or financial interest, in particular, in the audited entity.
5.3. They cannot intervene in the conduct of an insurance mission in respect of an entity that they have left within a period appreciated on a case-by-case basis by the head of the internal audit mission.
5.4. It should be avoided to the extent possible that an auditor is assigned to an entity that he has audited shortly before.
5.5. The auditors refuse, in the course of the missions, situations that could affect their independence.
6. Discretion:
6.1. The auditors direct their work to effectively meet the audit objectives while promoting the overall objectives of the organization.
6.2. The auditors limit their requests to the services to the elements that are useful to the mission and adapt the terms and conditions of the mission to the burden and schedule of the audits to avoid situations of unnecessary tension.
6.3. They must be courteous, refrain from any injurious word, malicious attitude, public or private writing that could harm the organization and its agents.
Done on 13 May 2013.
Minister of Social Affairs
and Health,
Marisol Touraine
The Minister of Labour, Employment,
vocational training
and Social Dialogue,
Michel Sapin
The Minister of Women's Rights,
Government spokesperson,
Najat Vallaud-Belkacem
Minister of Sports, Youth,
of popular education
and associative life,
Valérie Fourneyron
