We conduct audits where there is a risk of deficiencies
The Swedish National Audit Office’s audits are based on a risk analysis with a focus on central government finances, decision-making processes and coordination issues. Every year, we compile our overall audit focus into an audit plan.
Compared to many other countries, Sweden’s central government activities are effective and efficient. The framework for this was established centuries ago and has evolved since then. The principle of public access to official documents and citizens’ involvement, and confidence, in politics have contributed to the development of the Swedish state. Nevertheless, there are challenges and risks of shortcomings in central government activities. The annual central government budget amounts to over SEK 1,300 billion. Everyone living and active in Sweden must be able to trust that the money is used efficiently and prudently accounted for.
To ensure that the Swedish National Audit Office is of as much use as possible, we primarily examine areas where a risk of deficiencies could lead to major misstatements in government agencies’ annual reports or to inefficient central government activities. These risks may be related to the disbursement of large payments in the form of grants, government agencies’ non-compliance with rules and decisions, decisions taken on a basis of inferior documentation, or irregularities and other aspects that could damage confidence in government agencies and central government activities.
Changes in society and external unrest affect where the risks are the greatest. We take this into account when planning our audits. The Auditor General annually decides on the overall focus of our audit activities. This decision is contained in the Swedish National Audit Office Audit Plan.
Three high-risk areas in central government
We choose what to audit based on an analysis of trends in society and previous audits. We have identified three main areas that present a risk of deficiencies and where our auditing can contribute important knowledge.
Central government finances must suffice today and tomorrow
It is important that central government money is used efficiently and that fiscal policy is sustainable in the long term. External unrest and the repercussions of the COVID-19 pandemic affect public finances. Central government finances are also affected by Sweden’s ageing population. The proportion of pensioners is growing in relation to the working-age population, while the need for support and care is on the rise.
Central government revenue is derived from taxes and fees that are processed by various government agencies. These are large amounts that are often processed automatically. In our audits, we examine whether accounting and finances are in order. This is important because the Riksdag and the Government use this information when making decisions that affect the Swedish economy.
A solid basis of data is needed when important decisions are to be made
Developments in society require Sweden to adapt to new conditions. This is challenging for governing bodies, especially when rapid change is called for.
Making good decisions calls for accurate data of good quality This requires government agencies to follow on up their activities, perform analyses and then report clearly to the Government and Riksdag. How this works is a recurrent topic in our audits. The Government, for its part, needs to be clear in its instructions to government agencies and in its decisions.
In their annual reports, government agencies report how they have used money they received from the Government to perform their remits. Therein, they also describe how they have worked with their remits. Annual reports must reflect reality and adhere to the reporting rules in place in order for their content to be reliable for the Government and others. In total, it is a matter of approximately SEK 1,300 billion. Every year, we audit and assess the content of the annual reports, and share our observations.
Efficient central government activities require coordination
Central government agencies work with other organisations at national, regional and local level. This requires coordination and collaboration. Any ambiguous division of responsibilities or conflicting objectives may lead to ineffectiveness. An important question in this context is how the central government assigns tasks to municipalities and regions. Changes to central government organisation may affect efficiency. When, for example, operations are privatised, the central government’s possibility to exert influence changes, placing stringent demands on control and monitoring. These are matters we assess in our audits.
Every year, we produce an audit plan for the coming year, in which we present the focus of our auditing.