The amended Act on the NIK has been published in the Journal of Laws on 1 December 2010. Some of its provisions will enter into force already on 2 June 2011, others - next year, while those related to directors and deputy directors - on 1 January 2013.
Two documents replaced with one
The amended Act stipulates significant changes in auditing practice which have to be introduced within 18 months. At present, after each audit three documents are generated: an audit protocol, a post-audit statement (a management letter) and a pronouncement on audit results. According to the new provisions, the two first documents will be replaced with one - only a post audit statement will be generated, comprising the description of the status quo, the description of irregularities found, including their reasons, scope, consequences and persons responsible for them. It will also contain an assessment of the audited activities and recommendations as regards elimination of the irregularities found.
The amended Act also stipulates several changes in the audit proceedings. For example, auditors will be authorised to inspect buildings and other assets that are not owned by the audited entity or are situated outside the audited entity. Auditors will be also authorised to ask former employees and other people who have ever performed services for the audited entity for explanations. All the changes related to the audit procedure will be in force from 2 June 2012.
Fixed term of office
The amendments have introduced a fixed term of office for directors and deputy directors of the NIK. Form January 2013, their term of office will last five years and they will be selected through a competition. The amended Act sets out basic requirements that candidates for these posts have to meet. The new provisions also stipulate the rules for qualification for posts of auditors.
Departments and offices
The amended Act on the NIK has also introduced changes in the NIK’s organisational structure. From 2 June 2011, departments that perform tasks related to the organisation and functioning of the NIK will stop to exist be replaced with ‘offices’*. The name ‘department’ will be restricted to units that perform or support audits exclusively. Detailed information on the changes as regards internal organisation of the NIK will be comprised in the Statutes of the NIK.
External audit
At least every three years, the NIK will be subject to external audit carried out by an institution selected in accordance with the provisions on public procurement. External audit will cover the execution of the NIK’s budget and its financial management. It will be conducted for the first time within six months from entering into force of the amended Act, that is by the end of 2011.
The above are just several changes introduced in the amended Act on the NIK, whose inventory is quite vast. These changes are concerned with each aspect of the NIK’s functioning: its tasks, scope of activity, organisation, audit procedure and staffing.
* The basic organisational unit in Polish ministries and other central offices is usually called ”a department” (Polish: departament). ”An office” (Polish: biuro) is the name usually used for a smaller unit, either being part of a department, or being a separate unit, usually designed to carry out auxiliary tasks (not related directly to the subject matter of the ministry’s activity).
