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Decision on audit of decentralised authorities

Original Language Title: Besluit accountantscontrole decentrale overheden

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Decision of 28 August 2003 laying down detailed rules on the scope and reporting of audit provinces and municipalities (Decision of the audited provinces and municipalities)

We Beatrix, at the grace of God, Queen of the Netherlands, Princess of Orange-Nassau, etc. etc. etc.

On the nomination of Our Minister of Internal Affairs and Kingdom Relations, also on behalf of our Minister of Finance dated 9 May 2003, FO2003/56474;

Having regard to Article 217, sixth paragraph, of the ProvincieAct and Article 213, sixth paragraph, of the Municipal Act ;

The Council of State heard (opinion of 16 June 2003, No W04.03.0175/I;

Having regard to the further report by Our Minister of Home Affairs and Kingdom Relations, also on behalf of our Minister of Finance, dated 19 August 2003 (FO2003/69873);

Have found good and understand:


Article 1. (Concepts)

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For the purposes of this Decision, the following definitions shall apply:

  • a. Partial accountability: a separate account drawn up by the Provincial Council, on behalf of the Provincial Executive Board, of a part of the provincial municipal or local organization of the island;

  • b. public body: public body Bonaire, Sint Eustatius or Saba.


Article 1a. (Scope)

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The Articles 3a and 5, 4th Member , the provisions of this Decision shall not apply to public bodies.


Article 2. (Approtolerances)

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  • 2 The size base is equal to the total burden of the province, the municipality of the public body.

  • 4 The auditor shall establish its control in such a way that a reasonable degree of assurance exists that errors and uncertainties, individually or jointly, the approval tolerances for errors in the financial statements and uncertainties in the audit It shall be detected.

  • 5 The auditor shall abstain from an audit opinion statement if one or both of the approval tolerances, as set out in the first paragraph, are exceeded.

  • 6 If provincial States, the council, instruct the island council to issue a separate audit on a partial justification, the approval tolerances shall be 1% for errors in the partial accounting. and with regard to uncertainties in the control, 3% of the size basis of that part-accountability. On the basis of (special) activities of the part of the provincial, municipal or local submersible organization, the auditor may justify for the calculation of approval tolerances for certain partial justification choosing a different size other than the total burden of the partial responsibility.

  • 7 Provincial states, the council, and the island council as a whole may fix the approval tolerances for the whole of the financial statements or for partial accounesof account.


Article 3. (Qualitative aspects)

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In addition to the quantitative errors and uncertainties in control, the auditor maintains qualitative aspects in the control and judgement of the judgement. Where qualitative aspects give rise to this, the auditor may withhold an audit opinion.


Article 3a. (Specific benefits control)

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The auditor shall assess for each specific benefit whether there are risks which are guidance for the establishment of the auditing system. If the province or municipality receives one or more specific benefits with a size of at least € 125,000 in the year of responsibility, the auditor shall, in any case, carry out a partial observation for each of those specific benefits.


Article 4. (Accountant Statement)

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  • 1 For the formulation of the approval audit, the auditor shall apply the model of Annex 1a for the province, Annex 1b For the municipality of 1c for the public body.

  • 2 For the purpose of the audit, the auditor shall apply the principles and the table, as set out in Annex II. Annex 2 .


Article 5. (Report of findings)

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  • 1 The amounts for the reporting tolerances to be used by the auditor for reporting purposes in the report of findings shall be the amounts resulting from approval tolerances.

  • 2 Provincial States, the Council may, on the one hand, be able to provide the chartered accountant for the reporting tolerances which are lower than the amounts resulting from the approval tolerances.

  • 3 If the auditor finds qualitative defects of significant importance, he shall report them in the report of findings, even if such defects do not lead to the abstenation of an audit opinion.

  • 4 In the auditor 's report of the auditor' s findings, per specific benefit is reported with a reporting tolerance based on the burden of the specific benefit in the responsibility year or, in multi-year financial reckoning based on of performance agreements, based on the total advance per specific benefit, in all cases with a lower limit of the findings to be notified of:

    • a. € 12,500 if the burden is less than or equal to € 125,000;

    • b. 10% if the burden is greater than € 125,000 and less than or equal to € 1,000,000;

    • c. € 125,000 if the loads are greater than € 1,000,000.


Article 6. (Extension basis)

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This Decision shall be based on: Article 38, seventh paragraph, of the Finance Public Bodies Act Bonaire, Sint Eustatius and Saba .


Article 7. (Entry into force)

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This Decision shall enter into force as from the day following the date of issuance of the state sheet in which it is placed.


Article 8. (Citation Title)

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This decision is cited as: Decision on audit and audit of decentralised authorities.

Charges and orders that this Decision will be placed in the Official Journal by means of the note of explanatory note accompanying it.

' s-Gravenhage, 28 August 2003

Beatrix

The Minister of Home Affairs and Kingdom Relations,

J. W. Remkes

The Minister of Finance,

G. Zalm

Issued the eighteenth September 2003

The Minister of Justice,

J. P. H. Donner


Annex 1a. Audit opinion text

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In Article 217, third member of the Provincial Law are the elements which the auditor must record in the audit.

In the case of an approval of the financial statements, the following text should be adopted by the auditor when drawing up the audit opinion.


Command

We have audited the financial statements .... (yeartal) of province ... (name). The annual accounts have been drawn up under the responsibility of the Member States of the province (name). Deputed States are also primarily responsible for compliance with the laws and regulations. It is our responsibility to control it as intended. Article 217, second member of the Provincial Law to carry out and provide an audit opinion on the annual accounts.


Work

In checking our audit, we checked that the annual financial statements comply with the following requirements:

  • • that the financial statements faithfully reflect both the benefits and the expenses on .... (annual) and the assets and liabilities as at 31 December .... (annual); and

  • • that the income and expenses of the financial statements as well as the balance sheet changes have been established in accordance with the budget, applicable statutory schemes, including provincial regulations and

  • • that the annual report is compatible with the annual accounts.

We have also checked whether the annual accounts have been prepared in accordance with the Treaty. Decision budget and accountability provinces and municipalities .

Our audit has been carried out in accordance with generally accepted guidelines in the Netherlands with regard to control tasks and in accordance with the Decision on audit and audit of the decentralised authorities. According to the directives generally accepted in the Netherlands, our audit should be planned and implemented in such a way as to obtain reasonable assurance that the annual accounts do not contain any material misstatements.

Verification shall include, inter alia, an examination by means of partial observations of information to support the amounts and explanations in the annual accounts. It shall also include an assessment of the accounting policies applied in the preparation of the financial statements, and of significant estimates made by the institution's competent authority, and an assessment of the accounting policies of the Member States in the field of financial reporting. evaluation of the overall picture of the financial statements.

We believe that our control is a sound basis for our judgement.


Judgment

We consider that the province's financial statements .... (provincial name) are faithful and in line with the Decision budget and accountability provinces and municipalities both the benefits and the expenses over .... (annual) and the assets and liabilities as at 31 December .... (annual) represents and that the income and expenses of these financial statements, as well as the balance sheet changes, have been established in accordance with the budget and applicable legislative arrangements including provincial regulations.


Annex 1b. Audit opinion text

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In Article 213, third member of the Municipal Act are the elements which the auditor must record in the audit.

In the case of an approval of the financial statements, the following text should be adopted by the auditor when drawing up the audit opinion.


Command

We have audited the financial statements .... (yeartal) of the municipality (place name). The annual accounts have been prepared under the responsibility of the college of mayor and aldermen of the municipality (place name). The college of mayor and aldermen is also primarily responsible for compliance with the laws and regulations. It is our responsibility to control it as intended. Article 213, second paragraph of the Municipal Act to carry out and provide an audit opinion on the annual accounts.


Work

In checking our audit, we checked that the annual financial statements comply with the following requirements:

  • • that the financial statements faithfully reflect both the benefits and the expenses on .... (annual) and the assets and liabilities as at 31 December .... (annual); and

  • • that the income and expenses of the financial statements as well as the balance sheet changes have been established in accordance with the budget, applicable statutory schemes, including municipal regulations and

  • • that the annual report is compatible with the annual accounts.

We have also checked whether the annual accounts have been prepared in accordance with the Treaty. Decision budget and accountability provinces and municipalities .

Our audit has been carried out in accordance with generally accepted guidelines in the Netherlands with regard to control tasks and in accordance with the Decision on audit and audit of the decentralised authorities. According to the directives generally accepted in the Netherlands, our audit should be planned and implemented in such a way as to obtain reasonable assurance that the annual accounts do not contain any material misstatements.

Verification shall include, inter alia, an examination by means of partial observations of information to support the amounts and explanations in the annual accounts. It shall also include an assessment of the accounting policies applied in the preparation of the financial statements, and of significant estimates made by the institution's competent authority, and an assessment of the accounting policies of the Member States in the field of financial reporting. evaluation of the overall picture of the financial statements.

We believe that our control is a sound basis for our judgement.


Judgment

We consider that the annual accounts of the municipality .... (place name) are faithful and in accordance with the Decision budget and responsibility provinces and municipalities both the benefits and the burdens on .... (annual) and the assets and liabilities per 31 December .... (annual) represents the income and expenses of these financial statements as well as the balance sheet changes achieved in accordance with the budget and with applicable legislation under which municipal authorities regulations.


Annex 1c. Audit opinion text

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In Article 38, 4th paragraph, of the Finance Public Bodies Act Bonaire, Sint Eustatius and Saba are the elements which the auditor must record in the audit.

In the case of an approval of the financial statements, the following text should be adopted by the auditor when drawing up the audit opinion.

Command

We have audited the financial statements .... (yeartal) of the public body (name). The annual accounts have been drawn up under the responsibility of the public body of administration (name of the public body). The administrative system is also primarily responsible for compliance with laws and regulations. It is our responsibility to control it as intended. Article 38, third paragraph, of the Finance Public Bodies Act Bonaire, Sint Eustatius and Saba to carry out and provide an audit opinion on the annual accounts.

Work

In checking our audit, we checked that the annual financial statements comply with the following requirements:

  • • that the financial statements faithfully reflect both the benefits and the expenses on .... (annual) and the assets and liabilities as at 31 December .... (annual); and

  • • that the income and expenses of the financial statements, as well as the balance sheet changes, have been established in accordance with the budget, applicable statutory schemes, including island regulations and

  • • that the annual report is compatible with the annual accounts.

We have also checked whether the annual accounts have been prepared in accordance with the Decision on Budget and Accountable BES.

Our audit has been carried out in accordance with generally accepted guidelines in the Netherlands with regard to control tasks and in accordance with the Decision on audit and audit of the decentralised authorities. According to the directives generally accepted in the Netherlands, our audit should be planned and implemented in such a way as to obtain reasonable assurance that the annual accounts do not contain any material misstatements.

Verification shall include, inter alia, an examination by means of partial observations of information to support the amounts and explanations in the annual accounts. It shall also include an assessment of the accounting policies applied in the preparation of the financial statements, and of significant estimates made by the institution's competent authority, and an assessment of the accounting policies of the Member States in the field of financial reporting. evaluation of the overall picture of the financial statements.

We believe that our control is a sound basis for our judgement.

Judgment

We consider that the annual accounts of the public body .... (name) faithfully and in accordance with the Decision budget and accountability BES both the benefits and the burdens on .... (yearmany) and the assets and liabilities as at 31 December .... (a) reflects the income and expenses contained in these financial statements as well as the balance sheet changes achieved in accordance with the budget and applicable legislative arrangements, including island regulations.


Annex 2. Approval tolerances and accounting documents

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In the judgement of the annual accounts, approval tolerances play an important role. The approval tolerances shall be quantitative criteria. If the approval tolerances are not exceeded, an approval rating declaration shall in principle be issued.

If one of the two approval tolerances (s) are exceeded, no approval rating, but one of the three other judgeals specified below, shall be provided by the auditor.


type of declaration

approving

with limitation

Judgment-abstinence

Disapproving

Errors in financial statements (% of charges)

≤ 1%

> 1% < 3%

-

≥ 3%

Uncertainties in control (% of loads)

≤ 3%

> 3% < 10%

≥ 10%

-

Like in Article 3 The auditor may also decide, on the basis of his expertise, that there are qualitative deficiencies of such a nature that the approval is withheld.