30.Dec .2020 14:00

Precondition for Receiving EU Assistance of € 15 MLN is an Emergency Expenditure Audit

Precondition for Receiving EU Assistance of € 15 MLN is an Emergency Expenditure Audit
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In response to the coronavirus (Covid-19) pandemic, the Georgian government has developed an anti-crisis plan outlining measures to be taken in this direction. International donor organisations have expressed readiness to allocate resources to support Georgia in this process.

In this context, Georgia has signed a € 75 million agreement with the European Union (EU) – the Resilience Contract – to support the anti-crisis plan. The first instalment (€ 60 million) has already been disbursed. For the disbursement of the second tranche, as part of a set of conditionality and as a result of consultations between the EU, the Government of Georgia and the State Audit Office (SAO), the SAO will conduct the following audits on specific actions under the anti-crisis plan:

• Compliance audit of public procurement in healthcare system in response to the pandemic - The audit objective is to examine the issues of goods and services (medical equipment and services) purchased by the healthcare system in response to the pandemic during 2020;

• Performance audit of management of quarantine zones regarding the Covid-19 - The subject of the audit will be the management of covid-hotels;

• Performance audit of SMEs support measures - The pandemic has had a negative impact on the functioning of SMEs. Therefore, the audit objective is to examine the measures taken to mitigate this impact.

In addition, further reflecting interest of international partner organisations, the SAO is also considering assessing/auditing other measures and activities in response to the pandemic. For example, another topic potentially relevant for audit is distance learning at public schools, focusing on school readiness and education process performance.

The SAO conducts the audits in accordance with the International Standards of Supreme Audit Institutions (ISSAIs) issued by INTOSAI, the international organisation of supreme audit institutions worldwide. The principles and details of the SAO audit process are described in a set of manuals, and guidelines.

The audit process will normally include application of quantitative and qualitative methods, documentary reviews and analysis of internal controls. During the audit, interviews, surveys and statistical methods may also be engaged. The combination of methods will be determined by the scope of individual audits.