How to Audit Public Procurement Effectively

For Auditors in the Public Sector:
How to Audit Public Procurement Effectively
26 th – 27 th September 2013, Berlin
With Experts from:
• National Audit Office, United Kingdom
• Swedish National Audit Office
• Ministry of Defence, Denmark
• Swedish Competition Authority
• General Inspection of Social Affairs (IGAS), France
Brochure
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FOR AUDITORS IN THE PUBLIC SECTOR:
How to Audit Public Procurement Effectively
Auditors face a unique range of challenges in procurement audits
In times of austerity, audits of public procurements have gained in importance.
However, practitioners from public adiminstrations often find auditing public
procurement processes to be one of the most challenging and complex fields to
audit. Misspent public money in low quality services and goods can endanger
both the financial and operational integrity of an organisation.Therefore, rigorous
audits of procurement and contract management play a key role nowadays in
assuring efficiency in public administration. Internal and external auditors have
to be well prepared to identify weaknesses and assess the risks in procurements
to ensure that money is well spent in public administration.
Keep yourself up-to-date and learn from experienced public procurement
audit practicioners
To cope with the challenges arising from complex public procurement
environments it is essential for auditors to keep themselves informed about
auditing tools such as saving methodologies, forensic examination of processes
or procurement data analysis. It is necessary to exchange experience and
practical knowledge about typical pitfalls and potential misunderstandings in the
control of procurements that occurs especially for complex public procurements
of particular goods and services, including IT procurement.
Learn at this European Seminar how to audit in complicated fields such as
public procurement of IT, telecom services, investment banking, health and
social affairs, transport and defence. Receive first-hand insights from internal
and external audit experts and benefit from their experiences to ensure value for
money is secured in the procurement process in your institution.
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“Public procurement is a very risky process.
The different topics in the seminar were in good balance with regard to the
theoretical and practical approach of the auditing of public procurement”
“Very interesting seminar”
Who is this seminar for?
Directors, Heads of Unit, Internal
Auditors, External Auditors,
Controllers, Advisors, Managers,
Officers, Audit Experts, Audit
Methodologists and other
professionals who carry out audits
of public institutions on national
and regional level as well as
from European and international
organisations, especially from the
following departments:
• Internal Audit
• External Audit
• Performance Audit
(Value for Money Audit)
• Inspection
• Compliance
• Financial Control
• Management Support
• Quality Assurance
• EU Structural Funds (ERDF, ESF)
• International Cooperation
• Investment
Private audit companies working
with/for public institutions

What will you learn at this European seminar?
• Which procedural rules are necessary to ensure sound management of
public procurement
• How to discover unfair competition – A checklist for auditors
• How to structure the audit of public procurement
• How to assess the risks in every stage of the procurement process
• How to conduct a review of controls to ensure value for money in the
procurement process
• What are the different methods to audit public procurement
• Which questions do you have to rise when in audit of public procurement
• How to use the right investigation methods to support evidence
• How to handle industry standards in public procurement
• What is important when auditing public procurement of IT/telecom services
and investment banking
• How can IT infrastructures facilitate public procurement audits
• How to establish an effective follow-up programme in public procurement
• How to make sure that auditor’s recommendations are followed
“The seminar was excellent, interesting presentations and lecturers,
a lot of practical and useful information was shared with us.”
“Well prepared seminar.”
Aurimas Miškinis, Deputy Head, National Audit Office, Lithuania
Your benefits
• Detect and avoid risks to your
institution’s procurement
• Ensure that your procurement
follows legal standards – Prevent
lawsuits from tenderers
• Make sure that your institution is
getting value for money
• Be prepared – Learn how to
prevent and detect the risk of fraud
and corruption
• Benefit from case studies
• Discuss your challenges with our
experts and receive practical hints
on how to proceed in practice
• Network and exchange
experiences with our experts and
other public sector professionals
working in the field of procurement
audit from all across Europe
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PROGRAMME DAY 1
How to Audit Public Procurement Effectively
8.30-9.00
Registration and Hand-Out of Seminar Documents
9.00-9.05
Opening Remarks from the European Academy for Taxes, Economics
& Law
9.05-9.30
Welcome Note from the Chair and Round of
Introductions
Keith Davis, Director, Cross-Government Work
Department, National Audit Office, United Kingdom
9.30-10.00
Auditor´s Approach to Public Procurement
• Enforcing public procurement law
• Procedural rules safeguarding effective and sound procedures
• The role of effective remedies
Magnus Johansson, Senior Advisor, Department for
Enforcement of Public Procurement Laws, Swedish
Competition Authority
10.00-10.15
Discussion Round
10.15-10.45
Coffee Break and Networking Opportunity
10.45-11.30
Checklist to Discover Unfair Competition
• Exclusions of economic operators convicted of crimes or grave
professional misconduct
• Twelve ways to detect bid-rigging cartels
• Frequent issues: Case studies from the Swedish Competition
Authority
Magnus Johansson, Senior Advisor, Department for
Enforcement of Public Procurement Laws, Swedish
Competition Authority
11.30.11.45
Discussion Round
11.45-12.30
An Overview of the Range of
Methods Employed by the NAO in Its
Work on Public Procurement
This presentation includes a cross-government perspective, but
also pulls in findings from department-specific work such as that in
health, transport and defence.
• Savings validation – Reviewing savings methodologies
• Review of specific major procurements – Forensic examination of
processes
• Procurement controls
Keith Davis, Director, Cross-Government Work
Department, National Audit Office, United Kingdom
12.30-12.45
Discussion Round
4
With
Practical
Cases
DIMITRIOS IOANNIDIS
Audit Coordinator, Audit
Coordinator, Performance Audit
Department, Swedish National
Audit Office
Since 2006, Dimitrios Ioannidis is
Audit Coordinator at the Swedish
National Audit Office. He has audited procurement
processes linked to the sale of state owned companies
as well as the purchase of IT and telecom services in
the government sector. In 2005, he was Secretary in a
Government of Committee, dealing with the review of
the Swedish National Premium Pension system. In this
position, he has also worked with procurement. Between
2001 and 2006, he was Economist at the Financial
Stability Department of the Central Bank of Sweden, and
participated in the procurement of a new system for the
settlement of large payments. Between 1990 and 2001,
he was researcher and lecturer at the Stockholm School
of Economics. His research focused on the importance
of buyer/seller relationship for industrial and corporate
development. The views expressed in his presentation are
solely those of the speaker himself and do not represent
the official position of the Swedish National Audit Office.
MAGNUS JOHANSSON
Senior Advisor, Public
Procurement Department,
Swedish Competition
Authority
Magnus Johansson is Senior
Advisor at the Swedish Competition
Authority. In this position, he advises
the Swedish government in public
procurement related projects and prepares expert
opinions in legal matters when requested from Swedish
courts. Before this position, he was Case Officer at
the Swedish Competition Authority. In this role he got
to know a more practical view upon the field of public
procurement: a the Swedish Competition Authority has
the possibility of processing a public procurement fine
against contracting authorities with a particular focus
on illegal direct award of contracts. Prior to this, he was
Case Officer at the Administrative Court of Stockholm,
where he has been working with procedural law and the
material law of public procurement, and at the Swedish
Unemployment Insurance Board (IAF).

12.45-14.00
Lunch Break and Networking Opportunity
14.00-14.45
Audits of Public Procurement of
IT/Telecom Services and Investment
Banking – Methodological Reflections
• A grounded approach
• Identifying the audit norm
• Applying the norm
• Confident analysis
Dimitrios Ioannidis, Audit Coordinator, Swedish
National Audit Office, Sweden
The views expressed in his presentation are solely those of the speaker himself and do not
represent the official position of the Swedish National Audit Office.
14.45-15.00
Discussion Round
15.00-15.45
Accepting or Challenging Industry
Standards? The Role of the Auditor in
Guiding Governments with Complex
Services and Products
• Who is the ultimate beneficiary of procurement – The supplier or
the client?
• Dangerous misunderstandings
• The case of investment banking services in the sale of state owned
companies
• The case of IT and telecom services in the government sector
• The case of critical financial infrastructure operated by government
• Lessons learnt from public procurement
Dimitrios Ioannidis, Audit Coordinator, Swedish
National Audit Office, Sweden
The views expressed in his presentation are solely those of the speaker himself and do not
represent the official position of the Swedish National Audit Office.
15.45-16.00
Discussion Round
16.00-16.30
Coffee Break and Networking Opportunity
With
Practical
Cases
KEITH DAVIS
Director, Cross-Government Work
Department, National Audit Office,
United Kingdom
Keith Davis is the Director of the
National Audit Office’s Cross-
Government Work Department. His
role includes leading work on procurement, workforce,
property and public sector transformation. He has
overseen Cross-Government value for money reviews
on collaborative procurement, contract management
and the Government Procurement Card. He has also
directed value for money reviews on specific categories
including professional services and postal services. He
leads the NAO’s relationship with the Cabinet Office and
the Efficiency and Reform Group. Previously he managed
value for money reviews of the BBC and was Head of
the Press Office at the NAO. He is a qualified accountant
(Chartered Institute of Public Finance and Accountancy).
Case Study
16.30-17.30
Auditing Compliance with
Procurement Process on the Example
of the Government Procurement Card
(GPC)
• The concept of risk in the procurement process
• Reviewing the existing control system to ensure value for money
in the procurement process
• Experiences from the Government Procurement Card (GPC)
• Example of the Government Procurement Card (GPC) Audit by
the NAO
- Background: GPC to pay for goods and services, typically used
a way to use low-value, high-volume transactions
- Misuse of the GPC
- Review of the controls in place to ensure value for money in the
use of cards
- Recommendations
- Implementations
Keith Davis, Director, Cross-Government Work
Department, National Audit Office, United Kingdom
17.30-17.45
Discussion Round
17.45
End of Day One
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PROGRAMME DAY 2
How to Audit Public Procurement Effectively
9.20-9.30
Welcome Note from the Chair
Carsten Kyhnauv, Director of the Internal Audit
Department, Ministry of Defence, Denmark
9.30-10.15
How to Structure a Public Procurement
Audit?
• Importance of organisational understanding of audit of public
procurement – Create value
• Procurement with a strategic, tactical and operational point of view
for the organisation and for the internal auditors
• How to structure the internal audit of public procurement
• The need for involving the organisation in the internal audit
• How deep and wide will or can the internal audit do auditing of
public procurement?
• Identifying the risk of fraud in the procedures for public spending
• Key points in reporting the result of the internal audits work with
public procurement
• Use of key ratios in connection with public procurement
Carsten Kyhnauv, Director, Internal Audit Department,
Ministry of Defence, Denmark
10.15-10.30
Discussion Round
10.30-11.00
Coffee Break and Networking Opportunity
11.00-11.45
Using Investigation Methods to
Support Evidence
• The balance between the internal auditor as an auditor, and a
criminal/police investigator
• Forensic auditing
- risk understanding
- risk acceptance and
- risk control
• How does the internal auditor work against producing and
securing evidence – Homework and on the site?
• Steps in the work of an internal auditor to document evidence –
NOT produce evidence
• How does an internal auditor prepare the presentation of the
evidence to the company and/or the person?
• How does the internal auditor work together with the police/court?
• How do the internal auditor and the company/department secure
that processes in the future can avoid or reduce the possibilities of
fraud
Carsten Kyhnauv, Director, Internal Audit Department,
Ministry of Defence, Denmark
11.45-12.00
Discussion Round
12.00-13.30
Coffee Break and Networking Opportunity
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Focus on
Methods
CARSTEN KYHNAUV
Director, Internal Audit
Department, Ministry of Defence,
Denmark
Since 2006, Carsten Kyhnauv is
Director of Internal Audit in the
Ministry of Defense in Denmark
where he is now responsible for the internal auditing of
the Danish Defence and Danish Home Guard. In this
role he has gained vast experience in auditing huge
and complicated public procurements – for example
investments in navy shipborne helicopters, warships, and
armored personnel carriers. He is a member of the group
executive management team in the Ministry of Defence,
and also confidential adviser on financial management to
the top management team within the Danish Defence and
Danish Home Guard. Moreover, Carsten Kyhnauv has farreaching
academic experience from his part time work as
assistant professor at the Copenhagen Business School
(since 1985 – now) and at the University of Southern
Jutland (since 1995 – now), Institute of Accounting &
Auditing. He also has expertise in the finance sector: He
started his career as Banker and has been Senior Vice
President as a Merchant Banker in a large Danish Bank.
After this position he was appointed as CFO in the City
of Copenhagen at the Department for Children and Youth
Administration.

13.30-14.30
Use of IT in Public Procurement
Audits
• Use of IT in the planning and implementation of audit
- Planning: Procurement data analysis, determination of
“questionable” procedure or purchase families, sample selection
- Audit implementation: Compliance audit of tender and
operational audit of procurement execution
• Results of audits (initial and follow up)
• Findings with regard to
- The procurement information system
- Auditing methods
Pascal Penaud, Inspector General, Inspection
Générale des Affaires Sociales (IGAS) – an Inter-
Ministerial Audit and Evaluation Office for Social and
Health, Employment and Labour Policies, France
14.30-14.45
Discussion Round
14.45-15.15
Summing Up and Final Discussion Round
15.15-15.30
End of Seminar and Handout of Certificates
Case
Study
PASCAL PENAUD
Inspector General, Inspection
Générale des Affaires Sociales
(IGAS), France
Since 2003, Pascal Penaud is
Inspector General at the Inspection
Générale des Affaires Sociales
(IGAS) which is an inter-ministerial audit and evaluation
office for social, health, employment and labour
policies that assists public players in making informed
decisions. His experience in auditing public procurement
is manifold. As Inspector General, he was responsible
for auditing public procurement in various major
French hospitals as well as social ministries. Moreover,
Pascal Penaud also has experience in auditing public
procurement as part of general audits in the hospital
sector. During his membership in an inter-departmental
investigation mission of the public authorities (“Mission
Interministérielle d’Enquète sur les Marches Public”) he
was furthermore responsible for compliance audits of
procurement operations.
“Very good and useful seminar.”
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ORGANISATIONAL MATTERS
How to Audit Public Procurement Effectively
Date of Event
26th – 27th September 2013
Booking Number
S-630
Event Language
The event language will be English.
Event Price
1.389,- Euro, excl. German VAT (19%)
The above price covers the following:
• Admission to the seminar
• Hand-out documents in print and digital version
• Seminar certificate, if seminar fully attended
• Soft drinks and coffee/tea on both event days
• Lunch on both event days
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